Beware! CapitalXtend 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.
You may think that CapitalXtend is your average run of the mill forex company. But is that so? We are going to look at some key features for this company and advise our readers whether it is safe to trade via this brokerage or not.
From the company’s website, we find out that this company trades in forex, gold, oil, stock CFDs on indices and cryptocurrencies. Three accounts are offered – a Standard, an ECN and an ECN Pro. We’ll look into what each account got to offer a bit later.
To register on the company’s website is easy – you need to fill out some basic information and soon we get a confirmation email with your login details.
CapitalXtend Regulation and safety of funds
In the company’s website we find that CapitalXtend is an online trading brand of Capitalstend Limited Liability Company with an address in St. Vincent and the Grenadines (SVG). You may not know but St Vincent and the Grenadines is an offshore zone where Financial Services Authority does not regulate forex companies. The implications are that if you choose to trade via this company, there won’t be any guarantee for your safety of funds should the company go bankrupt. Also, without being regulated, there is no guarantee that this forex company is not scam.
We strongly advise you to look into forex brokerages in well-establish jurisdictions where you can be sure that if the company of your choice is regulated, it will guarantee the safety of your funds. Reliable and licensed forex companies in EU, UK and US must meet stringent requirements in order to be licensed and regulated. In EU and UK, for example, they must have an initial capital of at least 730,000 EUR and they must contribute to a compensation fund. It means that if the company is regulated by FCA, its clients will be compensated up to 85,000 GBP per client if the company goes bankrupt and if it is regulated by CySEC, its clients will be compensated by up to 20,000 EUR per client in the case of bankruptcy. You can’t ask for better conditions and guarantee for safety of funds.
Please do not entrust your hard-earned money to shady brokerages without regulation authority.
CapitalXtend Trading software
The trading software that CapitalXtend offers to its clients is MetaTrader 4 trading platform. Although it was launched 15 years ago, it is still one of the best in the forex trade and preferred by 80% of the brokers for the many advantages it offers. For example, it’s got a charting package from which clients can choose different chart types time frames, can create templates and can use the many technical analysis indicators, such as Bollinger Bands or Fibonacci retracement. Clients also benefit from a financial calendar, an app market, trading signals (for a subscription fee), VPS and code base with customs scripts.
If you look at the screenshot below, you will see on the left side the menu for forex pairs with their bid/ask price and beneath, the navigator with accounts, indicators, expert advisors and scripts options. In the middle, you can see 4 charts containing 4 pairs of forex currencies with the fluctuation in their price in a given time frame. If we look at the EUR/USD pair, we see that the bid price is 1.4451 and the ask price is 1.4453 which gives us a spread of 2 pips.
If we look at the account info, for the basic account, we find out that the spread starts from 3 pips with the leverage reaching up to 1:1000. Looking at this leverage we can’t help it but be alarmed at the high ratio. High leverage can bring a big win which is very tempting but it could also bring big loss. Given the high percentage of traders losing funds in forex trade (over 70%), we advise the potential forex traders to select a brokerage with a lower ratio. Have you asked yourself why in EU there is a cap on leverage amounting to 1:30 and in the US the cap on leverage is 1:50. The answer is very simple – to prevent traders from taking unnecessary risks with their financial funds.
Offering such high leverage is a sure sign that you should avoid trading via this forex company!
CapitalXtend Deposit/Withdrawal methods and fees
The minimum deposit is $200. Payment methods include Bitcoin with 3% fee and processing time up to 24 hours. Other payment methods include wire transfer, VISA and MasterCard all of which do not have commission or fee included. Choosing a suitable payment method is important as you will see when you read our section about what to do if scammed.
For dormant accounts that stay inactive for 6 consecutive months, the company will charge $5 per month.
The withdrawal methods are the same as the deposit methods – bitcoin, wire transfer and credit card.
The company offers 30% welcome bonus upon opening an account. However, in the documents provided by the company, we did not find information on bonuses. You should be aware that normally bonuses come with heavy requirements attached to them. Not having clear information about what the bonus policy is, we are highly suspicious of this company’s dealings.
How does scam work?
Actually, it’s quite simple and users often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the \internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for chargeback.
What to do if scammed?
Our advice is to immediately file for chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.