Beware! STR Capital 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.
STR Capital uses a typical website template, relying on a limited number of images and information. Aside from the legal documents, the website is rather restricted in text, which can be both goo or bad, depending on your point of view. For us, it’s all about what the broker wishes to achieve, in the end. Well, what STR Capital does, is to quickly raise our suspicions, which is why we urge you to read the review before depositing anything.
Signing up was a very familiar process, which we do not recollect with good memories. After filling the required fields, we were redirected to familiar web trading software, which also serves as the main home page of the user dashboard. Note that when we say familiar, we are referring to a recollection of brokers of which none were legitimate.
That same webtrader gave us a EUR/USD spread of 3 pips, with a leverage cap of 1:200. The trading assets are forex pairs, indices, commodities, cryptocurrencies, stocks, ETFs, and bonds.
The official languages of the site is English.
STRCAPITAL REGULATION AND SAFETY OF FUNDS
We have some distressing news for everyone, who where hoping that STR Capital was a decent brokerage firm. The Terms and Conditions reveal that the company is based in St. Vincent and the Grenadines. The Caribbean nation is well known among the scammer broker community, and has become the most popular harbour for fraudulent brokers. What;s more, is that the country does not issue FX licenses, thus STR Capital is not regulated there!
If there are disputes that arise between the company and the user, they will be resolved according to the laws of Estonia. This is of little concern for us, since the broker is not registered in Estonia, nor is it regulated there, making this provision completely irrelevant and useless.
And furthermore, the Terms and Conditions reveal something further about STR Capital that does not work in its favour. The it is revealed that the users trading experience is bound by the laws of whatever jurisdiction he or she is in. This is an easy way out for STR Capital, and is another way to say that this broker is UNREGULATED.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
The broker has the right to give away your funds to a third party, which proves ones and for all how little it cares for its users. This move is absolutely prohibited, and no legit broker would ever do such a thing. At this point we have lost all trust for STR CapitaL, even if the rest of the clause tries to redeem the first part of the paragraph.
STRCAPITAL TRADING SOFTWARE
This trading platform is common with scammer brokers. In fact, we have never seen this trading terminal anywhere aside in the company of shady brokerage firms. This is yet another proof, in many, that serves as evidence as to the illicit nature of STR Capital.
The only good features here are as follows pending orders, live news, live TV, and some very limited chart customisation. But these are not even close to making STR Capital’s platform escape its inevitable status as a boring and bland terminal. We advice users to not only stcik with the MT4, but also stay away from STR Capital.
STRCAPITAL DEPOSIT/WITHDRAW METHODS AND FEES
According to the payment area, the minimum deposit is €250, The user can deposit via one of the following gateways: Vload, MasterCard, and Visa.
Every withdrawal is approved by phone, and it takes 3 days to process, according to the Terms and Conditions.
If the wire transfer withdrawal is more than 25 EUR, the user will be charged with a fee.
Of course, it goes without saying (however, we will say it nevertheless), that there might be other fees applicable, not only to withdrawals, but to other services and features of the broker. So if, for what ever reason, you chose to go with STR Capital, please be aware of this.
The 1 click policy has a very worrying clause that states that deposits cannot be returned. We are not sure if this is applied only to this 1-Click service, or to the general deposit. Upon further inspection of the entire 1-Click collection of clauses, we believe that this provision applies more to all deposits!
The inactivity fee of €50 is applied after a user has been dormant for more than 90 days.
The other inactive fee is issued when a withdrawal is requested from an account that has not done any trading prior to the request. The chargeable tax is $250.
The usual bonus withdrawal clause makes a return. If a client wishes to withdraw, he or she must complete a trading volume of 500 * the bonus. Only then can she or he withdrawal her bonus funds.
As you can clearly see, these clauses are there to prove the fact of just how illegal this broker is. Our only advice to you is to never deposit your funds here!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimised traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.