Beware! CapitalFunds 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.
UPDATE: On 28th of August, just two days after our review, FCA granted Capital Funds with an official warning!
CapitalFunds is a totally anonymous broker. It is unknown where they are registered, there aren’t even an e-mail or a contact number shown on their web page. But they claim to operate branches in London, Zurich and Singapore. They also introduce themselves as an award-winning company and enlist many prizes won, but it’s a lie, we discovered that the most of the competitions listed are non-existent.
Also they declare to have been founded in 2005, however, a quick inspection showed that the website has been running since 2019.
In fact we do not know if there is even a company standing behind this website. Avoid CapitalFunds, there are too many scam signs which we are going to expose in the next review.
CapitalFunds REGULATION AND SAFETY OF FUNDS
CapitalFunds is undisclosed, shady entity which isn’t controlled by any financial authority. We do not know anything about the people standing behind this website.
Your funds are not in safety, stay away from CapitalFunds! Our advice is to have a look at the legit EU and UK brokers, which are strictly supervised and not surprisingly are the leaders in the retail Forex industry.
The main reason that makes EU and UK regulated brokers so popular is the transparency, also, they comply to many different rigorous rules, implemented for the benefit of the traders. A fine example of such policies are the money protection schemes, which guarantee the funds deposited by the traders. In Cyprus they are guaranteed of up to 20 000 EUR per client, while in the UK under FCA supervision the guarantees are even of up to 85 000 GBP. Also each broker is obliged to maintain negative balance protection of its customer accounts, meaning that a trader cannot lose more than the sum deposited.
CapitalFunds TRADING SOFTWARE
CapitalFunds does not offer MT4 or MT5 on their Main Page. However, upon registration there were 3 different options- MT4, Metatrader Webtrader and Status Webtrader. No demo trading available! We tried to set up demo MT4 account, but unsuccessfully.
The sign-up process was quick and easy, it didn’t take more than a minute to register. Logged-in, we noticed that their Dashboard is identical to the one used by Finfuture and Investactive, only the name was different.
CapitalFunds offers 5 types of accounts, but in none of them are presented any details about spreads, margin requirements or leverage. If you open their Status Webtrader, however, you will finally discover their spreads, the EUR/USD is unusually high, more than 8 pips in the beginning of the New York session, when normally it shouldn’t be more than a pip. We also spotted that the leverage is fixed at 1:100, with no option for adjustment.
CapitalFunds demonstrates strange behavior, they do not list Metatrader as their trading platform on their Home Page. The rest of the brokers in the industry will proudly announce that they offer MT4 or MT5 accounts, but CapitalFunds is hiding it from its customers. Very poor presentation and overall service provided by them, stay away, they do not act like professionals.
CapitalFunds DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit required is 500 USD. There isn’t much information about the funding methods, in their T&Cs they mention only wire transfers as an option. But if you are logged in, there is a deposit button and it looks like that the way to deposit funds is totally different than their explanations. We gave their payment system a try, but it was broken at the time. It seems that CapitalFunds has nothing to do with a broker, at all, and the website itself is just another one, operated by scammers. If this is true they might have completely forgotten about its existence. Here is the result:
The minimum withdrawal for wire transfers is set to be 250 USD. A minimum withdrawal on any other method is 100 USD, but no funding or withdrawal alternatives were listed in their T&Cs. Lack of competence, once again.
Each wire transfer is subject to 50 USD fee. Also, a levy of 10% of the withdrawal amount will be charged to any withdrawal from an account that has not executed more than 200 in turnover and/or from accounts that have not been verified. The withdrawals will be processed within 2 to 5 business days.
Special attention should be paid to the Non-Deposited Funds. These funds are not available for withdrawal, and may be assigned in certain occasions, for example, when an account is indebted! The time is appropriate to recall that EU and UK regulated Forex brokers are forced to maintain negative balance protection of its customer accounts, which means that the losses cannot be greater than the sum deposited. Under FCA or CySEC supervision indebted Forex accounts are impossible! Keep your money safe and stay away from CapitalFunds!
There are some bonuses offered, but nothing specified. The only thing we came upon was that in order to make a withdrawal you have to execute a minimum trading volume of 25 times the deposit amount plus the bonus issued.
Dormant accounts are subject to a deduction of 10% each month.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centers. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Many of these are identical in appearance, only with their names and logos changed. For example, the websites CapitalFunds.co and 10CryptoMarket.com look like twins, 99% the same. This fact itself should be enough to make you stay away from CapitalFunds! Still, there is no official scam confirmation, but the red flags are way too many.
The most effective way to avoid scam is to trust only licensed brokers which are authorized and regulated by a financial authority such as FCA or CySEC. Under their supervision it is impossible for a scam broker to survive, always do the research, stay informed!
WHAT TO DO WHEN SCAMMED
The scammers are constantly changing their strategies and no one must think he is safe. If being scammed the first thing you should do is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!
Avoid CapitalFunds, it’s a shady entity!