Beware! Prime Capital Invest 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.
Prime Capital Invest really is no different than other brokers in its field. The field of scammers that is. We can claim that for certain because the British Financial Conduct Authority(FCA) has issued a warning that the company is pretending to be a licensed company.
As a result of this warning, issued on the 18th of August, the broker has tried to re-brand as Prime Capital Investment or Prime Investment Capital – both versions of the name are present on the website. Comically enough they have missed several places where the original name still stands
If there was any doubt that the broker is different it is immediately dispelled by the name of the domain – primecapitalinvest.com. The FCA warning was issued against this very domain, of course.
Prime Capital Invest regulation and safety of funds
The company claims to be operating from London, under the following address and using these phone numbers:
The address is real, and it is the one of the company that Prime Capital Invest is pretending to be – Monecor. The latter is actually licensed with the FCA, but make no mistake – Prime Capital Invest has nothing to do with it. The phone number for new and existing accounts is curiously enough one and the same – most likely a fake number.
So why does Prime Capital Invest go to such lengths to present itself as an entirely different company? Well, licensed companies like Monecor have to undergo severe restrictions to comply with FCA standards – for example there is a requirement to provide information on positions daily, as well as a steep minimal capital threshold of 730 000 pounds to even start operating as a CFD broker. Once that is cleared the company must also participate in a guarantee fund (FSCS) that recover up to 85 000 pounds for each trader in the event of broker bankruptcy.
It is recommended to invest with firms that have a legitimate license, because the regulations mentioned above help prevent losses and minimize the inherent risks of trading.
Prime Capital Invest trading software
Prime Capital Invest claims to provide a web-based platform as well as a distribution of Metatrader 4. We were able to gain access only to the former, which is a shame. Metatrader 4 has established itself as an industry standard because of the abundance of features it presents its users with – there are advanced charting tools like the ability to use hundreds of indicators with a few clicks and graphical functions like drawing trend lines and Fibonacci levels. What also must be mentioned about the platform is the ability to trade automatically with sophisticated algorithms. This is noteworthy because, firstly it is a huge convenience for any trader as the bots can trade at any time of day, and secondly because a robust community has formed around this exact feature of the platform – there are developers who make and test the software and there are people who buy it from them on the marketplace the platform hosts.
All of these features are rarely seen in other platforms, especially web-based ones, which quite often lack some rather basic functionality – for example, in the case of Prime Capital Invest.
What we can see here is a really lazy and uninspired interface. It boasts a couple of chart layout options – for example changing from a candle to a bar chart. There is a decent amount of indicators as well. Other than that, there is a shocking lack of trading-related functions – for example even really basic things like Stop Loss and Take Profit are nowhere to be found. It seems you can only place instant orders, there does not appear to be any functionality for pending orders.
Despite this glaring lack of features we have to admit that the leverages the broker offers are completely within the allowed by the FCA 1:30.
Prime Capital Invest deposit/withdrawal methods and fees
This section of the review will be quite brief, because, as stated at the start, we are unable to access the broker’s Terms of Service. There is no information directly describing the deposit or withdrawal process either, so we pretty much had to guess from what we saw on the platform. Regardless, here is what we know about it:
Deposits are made by wire transfer, credit cards, Cryptocurrency and Western Union. These are the options available from the web platform. On the site there is also a banner that claims that you can pay using e-wallets as well, Skrill and Neteller to be exact. It is unclear if there is a required minimum deposit as well.
On the other hand withdrawals are a complete mystery – it is unclear how fast they are processed, if there are any taxes or additional fees the broker can charge on them. We cannot say if the company charges any commission either. We cannot stress enough how risky it is to invest with Prime Capital Invest under these conditions. You’re better off picking a broker that is not too afraid or too incompetent to give you their terms and conditions.
How does the scam work?
Considering the FCA warning we can say with certainty that Prime Capital Invest does not have good intentions towards you and your deposit – it certainly wants to separate the two. There are plenty of shady companies like them that operate under what is a fairly uniform model to try to rid as many people as possible from their money. This model is simple and easily repeatable, and so the scammers stick to it. The scheme starts when someone makes one or several ads or videos promising a way to get rich quick, or some sort of secret of the market being revealed for the first time in history – empty and over the top promises designed to get attention. Once they fulfil that goal the scam advances to the next stage – the website.
Here the would-be traders are redirected to a website by one of the ads. Most websites are hastily slapped together and promise similar things to the ads. The only thing a potential customer has to do is register using their phone number and email for the world of trade to be their oyste. Unfortunately when they do that they fall further into the scam, which goes onto stage three.
This stage can be called the “account manager” stage, because on it you are constantly getting contacted by people who pretend to be just that – account managers or advisors, authority figures who demand one thing and one thing alone from you – to deposit. These demands usually come from phone calls and emails and are quite persistent. The people who make them are cunning and patient. If they get what they want and you decide to invest with them you will often see your account’s balance plummet down instead – this is a tactic to make you deposit more and more, tricked by what is known as the Gambler’s fallacy. The scammers do not make their money from the trades they execute but from your deposits.
What to do when scammed?
When scammed you have some recourse if you have paid using a method that offers a chargeback policy – for example Mastercard and Visa both offer to fulfill such demands within 540 days of the transaction. If you have used Bitcoin or another cryptocurrency, however, you will not be able to get your money back.
You also have to watch out for further scams – that includes changing any credit cards the scammers had access to and uninstalling any desktop sharing software they had you install – they will often use TeamViewer or AnyDesk to steal more information from your PC.
Finally, if you get contacted by any recovery agencies, do not trust them. Whatever they promise you, they will not restore your losses. They will, however, demand a fee and once they have it, completely ghost you.