Beware! PrimeCapitec is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
PrimeCapitec is an offshore brokerage firm, that seemingly offers decent trading terms for traders. At first glance, you might be compelled to deposit, however upon further scrutiny rough edges start to appear. The leverage we were able to get was capped at 1:100, with a EUR/USD spread of 4,5 pips paving the road for what we are about to conclude.
PRIME CAPITEC REGULATION AND SAFETY OF FUNDS
PrimeCapitec is operating from the most popular offshore destination for suspicious brokers, namely St. Vincent and the Grenadines. As we have mentioned before, the island nation does not have a financial regulator, in the likes of CySEC for example, and as such does not regulate the forex market. The website claims that the parent company Crewire Holdings Ltd is operated under the local laws which is fine, but here we are specifically looking for a legitimate regulator. Not to mention that the jurisdiction is notorious for its looser laws and government structure, aspects directly contributing to the high number of registered illicit brokers. To sum up, Crewire Holdings Ltd is UNREGULATED, and therefore a risk to any users that invests in it.
The austerity and liability of the FCA or CySEC (and other prominent regulators) are not found in unregulated brokers, and rarely are these aspects enforced with such seriousness by offshore license issuers. Potential traders’ number one responsibility is to operate under a brokerage that is regulated by a reliable organization even if it cuts their choices in half. Not only do unregulated brokers lack a decent overseer who expects detailed reports on all their operations, but they also lack any decency and will stop at almost nothing to reach their ultimate goal: your money. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
PRIME CAPITEC TRADING SOFTWARE
At first, it might seem that this platform is attractive, and indeed it is, yet it’s mainly directed towards novice users or first-time investors who do not know better.
However, there are some great features like live news, live TV, pending orders, charts customization, multiple time frames, and more. Overall, quite the good platform yet it cannot offer more to advanced traders who are used to the MT4.
PRIME CAPITEC DEPOSIT/WITHDRAWAL METHODS AND FEES
The minimum deposit amount according to the payment terminal is $250. Users can deposit via Credit and Debit cards.
As for withdrawals, a users can used Wire Transfer and Credit/Debits cards. Cards payments are immediate according to the Withdrawals policy. According tot he T/C withdrawal processes can last up to 10 days, and the minimum withdrawal amount for Bank Transfers is $500, while for cards it’s $100. There are no withdrawals fee disclosed anywhere.
However, withdrawal amounts that have been credited a bonus have to be traded at least 25 times.
In order to avoid loosing you money, you should stay away from such scammers, but if you’re mind’s made up or if you didn’t know any better, we advice you to deposit the minimum amount of money first, before making any big investments. Try to withdraw the minimum amount to check if the broker/scammer hasn’t imposed any sudden fees or delays.
How does the scam work?
In the fast world of Forex, there is bound to be some slippage in the shape of scammers and wrongdoers. Traders should be properly learned how these people work and what to do when you get caught in the mouse trap. For your sake, we have detailed their procedure.
Most casual PC users are aware of those annoying “Get Rich, Fast” or “I’m making $1000 a day while sipping piña coladas on the Maldives” (and so many more, at times clever, variations) ads that keep reappearing on a large chunk of websites. Once clicked on, you will be swiftly redirected to a website where you will be prompted to give away your personal contact details, after been shown a piece of propaganda in the form of a short, well edited film, a number of testimonies, or just images of the promised land, all of which deceive with illusions of profitability. Once you provide the aforementioned details you will eventually start getting phone calls from brokers, whose one and only goal is to push you to make an initial deposit of about $250. In so doing, the first stage of the scam is complete- the pitchers have won themselves a 25% commission.
First deposits always bring in substantial profits, and naturally users get excited and are baffled by the fast “results”. This is of course all manipulated information, done for the sole purpose of compelling you to deposit more. The real game has began. The pitchers are done with you. Enter the retainers, the real pros in the scam. These “personal account managers” or what ever they call themselves, will charm and manipulate you into funding your account with much larger sums of money ($10 000…), because, as they will claim, that is the only for you to swim with the big fish.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.