Beware! A.B.Capitals is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
A.B.Capitals is said to provide the highest quality of online trading, covering over 150 assets across several markets, including forex, commodities, stocks, indices and crypto currencies, with a choice of five account types and a web based trading platform.
If that sounds attractive, you should take into account as well the fact that the A.B.Capitals website is virtually anonymous, and that they have already been blacklisted as potential scammers by the Financial Conduct Authority (FCA) in the UK.
A.B.Capitals regulation & safety of funds
Let us start with the simple fact that the A.B.Capitals website is virtually anonymous – we are not told which is the company that operates the broker, nor where it is based and incorporated – there is just some contact phone number in the UK, but obviously this does not count.
And of course there is not a single word about regulation. Bear in mind that a legit forex license is the single reason you can trust an online forex broker. A legit license issued by a well respected institution like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC) will ensure that the broker has sufficient operational capital to cover all of its outstanding payments, will guarantee that your funds are kept in a segregated, protected form creditors trust account, that you will be granted a negative balance protection, and that the broker is accountable and transparent the way it handles your money.
So our best advice is to avoid unregulated, anonymous websites like A.B.Capitals altogether. What is even worse, as we already noted they appear in the latest warnings list of the British regulator. See for yourself:
A.B.Capitals deposit/withdrawal methods and fees
Apart from the fact that the 5000 EUR minimum deposit requirement is absurdly high – most brokers will let you start trading with about 250 USD, A.B.Capitals has some rather unusual withdraw conditions and fees as for example, even without a trading bonus they will require you to reach a certain minimum trade volume. Otherwise they say, your attempt to withdraw your personal funds, before reaching the minimum trade volume requirement will result in a breach of contract and will be penalized by a 33% handling fee from the total deposit. This is absurd. Needless to say, but no legit broker will ever apply a condition like this.
And of course A.B.Capitals offers trading bonuses as well and this is yet another warning sign. Trading bonuses are a highly controversial practice prohibited in Europe and on other regulated markets as well. The general problem with all trading bonuses is that they invariably are offered with some minimum trade volume requirement, which quite too often scammers use as a pretext to cancel your withdraw requests.
Finally the broker says it would take them 7 business days to process your withdraw request, while legit brokers would do that within 24 hours.
How does the scam work?
In the good old days scammers used to cold call their potential victims with some irresistible investment opportunities. That method however was not very efficient, as most people simply get annoyed, if someone just called them out of the blue.
That is why nowadays scammers use more sophisticated and not so direct ways to get to their victims – for example ads and promo articles on the social networks like Facebook and Instagram, or the so called “robo scam” websites like Bitcoin Revival and Bitcoin Profit where you will be greeted by some nicely cut video, telling you the story of how easily you can get filthy rich by just joining some innovative trading platform. And if you get interested and leave your e-mail and phone, filling the simple registration form, that is when you will receive the phone call and will be redirected to the website of a unregulated, offshore scam broker, where you will have to deposit about 250 USD.
Be aware as well that your initial trades will look amazingly successful and pretty soon your deposit will seem to have doubled. That however will be just a manipulation as obviously scammers will do anything to convince you to deposit as much as you can. And that is exactly what your “senior account manager” will be telling you – if you really want to make some real money, you will surely have to invest more – like at least 10 000 USD.
And as strange as it may sound, but at that stage most people do invest that kind of money without realizing they have been tricked, until the very moment they attempt to withdraw some of their funds. Than all off sudden they are told they are not eligible to withdraw because of some minimum trade volume requirement, possibly linked to their welcome bonus. Certainly the excuse might be different, but the result will always be the same – scammers will not pay a single penny back.
What to do if scammed?
Your one and only plausible chance to get your deposit back is to file for a charge back with your credit card company. Fortunately both VISA and MasterCard now allow their customers to do that within 540 days.
Also if somehow scammers have gotten to your personal banking details like your credit card number and your online banking password, immediately change the password and block your credit card.
Finally, do not trust the so called recovery agencies as they will do you no good, except that as a rule, they will charge you some fees in advance, basically scamming you a second time.