Beware! TCM is an offshore broker! Your investment may be at risk.
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TradingCapitalMarkets is a Forex brokerage registered in Seychelles. It provides the MetaTrader4 platform and the required minimum deposit is the industry average of $250. However, the spread is unfavorably high at 3 pips on EUR/USD and the leverage is way above the regulatory levels for Europe.
TradingCapitalMarkets regulation & safety of funds
The company behind TradingCapitalMarkets is registered in the Republic of Seychelles, however, we could not uncover any other corporate details. We warn readers that anonymous websites are among the biggest scam operations in Forex trading.
We learn through the website that the brokerage is supposedly regulated by the Financial Services Authority of Seychelles with. Here we remind readers that the financial regulator of Seychelles – the FSA – cannot compare with prestigious regulatory agencies in Europe, most importantly because it does not provide participation in a financial mechanism by which client’s losses may be recovered in case of bankruptcy or fraud. There is also no assurance for the segregation of accounts which exposes the clients to the possibility of commingling – combining the broker’s finances with that of the client. Furthermore, the agency requires a starting capital of the meager $50 000 while CySEC requires at least $730 000.
After checking with the online registry of the Financial Services Authority we may conclude that the brokerage is not in fact licensed by the authorities in Seychelles. The lack of credible regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
We highlight the danger in doing business with such a website since the people behind it do not answer to any authority and have no reason to uphold the client agreement. Even though we do not come across an official warning issued by a regulator regarding the activities of TradingCapitalMarkets, it’s a safe bet that soon enough they will fall on the radar of the relevant authorities and be blacklisted. Until then we are confident to say that the lack of both corporate information and regulation put tremendous risk on any transactions interested traders may conclude with the brokerage and we deeply recommend they look elsewhere for viable trading options.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. 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.
TradingCapitalMarkets trading software
The brokerage does provide the MetaTrader which we always view as a serious advantage. The MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Through a demo account we could see a spread of 3 pips which is twice the industry average and definitely not in favor for traders. The unfavorable trading conditions, combined with the lack of regulatory oversight inclines us to believe that TradingCapitalMarkets is not an attractive trading option and interested traders should look elsewhere for viable options in Forex trading.
TradingCapitalMarkets deposit/withdrawal methods and fees
Clients may deposit or withdraw via the standard Visa and MasterCard, as well as bank-wire, however, popular and preferred by traders e-wallet Skrill is not supported.
Going through the terms and conditions of the brokerage we did come upon provisions which are worth noting.There are withdrawal conditions pertaining to accounts that have taken advantage of the bonus promotion. A trader has to achieve a trading volume in order to be eligible for withdrawal which is purposefully excessive in order to impede any trader from actually receiving his money. Legitimate brokerage which are regulated in Europe do not offer such promotions and even if they do, the information regarding potential withdrawal requirements is always presented straight-forward on the website, not hidden away in the terms and conditions.
This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!