Nexocap Review – 5 things you should know about nexocap.com

Nexocap Review – 5 things you should know about nexocap.com

Beware! Nexocap is an offshore broker! Your investment may be at risk.

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Nexocap is a forex broker trading in forex, commodities and cryptocurrencies. The website of this company does not stand out in any particular way, so we check some of the indicators that show if this broker is legitimate or not.

Nexocap Regulation and safety of funds

On the company’s website, we find out that this broker’s address is in St. Vincent and the Grenadines (SVG). This country happens to be an offshore zone and an year ago, the Financial Services Authority for SVG has issued an official warning that it does not regulate forex brokers. The fact that Nexcap is a not regulated broker may have serious implications on your funds, should you choose it for your trading activities. Unregulated brokers do not provide any guarantee for the safety of your funds and more often than not may be scammers. You should exercise utmost caution when it comes to non-regulated forex brokers and avoid them at all cost!

Instead, we suggest that you look and pick up a forex broker from one of the well-established jurisdictions around the world. Jurisdictions where brokers are regulated put in place many stringent requirements to make sure that the brokers are genuine and not scammers. If we take for example the EU or the UK, you must know that there brokers must have an initial capital of 730,000 EUR to be allowed to operate. Scammers will not provide so much money just to look legitimate. In addition to that, licensed brokers must provide daily reports about their transaction as a prevention against scam and shady deals. As you can understand, this is not something that will suit the scammers. Where the safety of your funds is concerned, we must tell you that licensed brokers are also obliged to contribute to compensation schemes from which clients will be compensated if the broker goes bankrupt. If the broker is regulated by FCA, the clients will be compensated by up to 85,000 GBP per person and if regulated by CySEC, then the client will be compensated by up to 20,000 EUR per person. As you can see, non-regulated brokers cannot offer such excellent conditions to their clients, so always choose a licensed broker!

Nexocap Trading software

If you visit the company’s website and open the information about trading software, you will see that this broker offers Activ8 platform and a web trader. However, when you open an account, the options are between MetaTrader 4 and MetaTrader 5. We do not understand how such discrepancy is possible in terms of trading platforms and we think that no self-respecting forex broker will do that.

Form the account we created, we opened the MetaTrader 4 web trader which happened to be an unbranded platform. What you see in the screenshot below is how this webtrader is organized – on the left, you see the menu with the currency pairs and their bid/ask price and in the middle of the screen you see the chart of one of those currency with the price fluctuation in a given time frame. For this example, we have selected the EUR/USD currency pair which chart is displayed in the middle. From its bid/ask price, we calculated the spread for this currency pair to be 1.8 pips which is in normal limits – not too tight and not too wide either.

However, what worries us is that the leverage is too high. In the account types information, we found out that the leverage for the Bronze account is 1:200 and for the other 3 consecutive accounts, it increases to 1:300, 1:400 and 1:500. We are alarmed because a forex broker that offers such high leverage is putting its traders funds at risk. High leverage means big win or big loss, there is no middle road! And given the fact that around 70% of traders lose money in transactions, chance are that you are going to lose rather than win if you choose to trade via this broker.

Just to let you know, brokers from the well-established jurisdictions we mention in the previous section, namely EU and UK, have a leverage cap imposed that cannot go over 1:30 and in the US, brokers cannot offer a leverage higher than 1:50. These are measures to prevent traders giving in to temptation and risking their hard-earned money.

 

We want to mention here that MetaTrader 4 and MetaTrader 5 are considered the best platform in the forex trade. Over 80% of the brokers are using them for their excellent qualities. Both platforms offer an auto trading option and they have an app market and a financial calendar. In addition to that, they offer VPS and code base with customs scripts and trading signals which come with a subscription fee. The charting options are also out of this world! Traders can select from a wide range of charting options that provide technical analysis indicators which assist them to predict the future direction of exchange rates and make profit.

If you open the links to MT4 and MT5, you will see a long list of forex brokers using these platforms. However, we want to stress here that a platform, as excellent as it could be, cannot compensate for the fact that the broker is not regulated!

Nexocap Deposit/Withdrawal methods and fees

Nexocap offers 4 different account types to its clients (screenshot below) – Bronze, Silver, Gold and Black. The minimum initial deposit for the Bronze account is 500 EUR. For the Silver and Gold accounts, it is 5,000 EUR and 25,000 EUR respectively and the Black account is invitation only.

The payment methods for deposit and withdrawal are the same and include VISA/MasterCard, OK Pay, Alipay.com and wire transfer.

 

As per the company’s policy, dormant accounts that stay inactive for 6 months will be charges 10% deduction fee each month. 

There are some withdrawal fees for wire transfers which amount to 50 USD/GBP/EUR and for credit card withdrawals, the fee is 25 USD/GBP/EUR. ePayments will be charged 10 USD or 5 GBP or 7 EUR. In addition to that, a levy of 10% of the withdrawal amount will be charged in case the trader has not executed more than 200 in turnover. 

The minimum amount for wire transfers is 250 USD/GBP/EUR and for the other methods, the minimum withdrawal amount is 100 USD/GBP/EUR and they do not include the transaction fee.

The processing time for deposits may vary up to 5 business days and for withdrawals, it may take even longer – 4-7 business days.

What we notice in the deposit and withdrawal policy of this forex broker is, first, that there are too many fees and not all of them are a fixed amount. This definitely does not work to the client’s advantage and we advise you to avoid a brokers that charges so many fees.

The company offers non-deposited funds (which belong to the broker, not the trader) and bonuses. Both are not available for withdrawal unless conditions set by the broker are met, such as the client trading volume of 25 times the deposit amount plus the bonus. As you can see, the bonus conditions are not easy to fulfil and accepting a bonus put limitations to the client’s withdrawal options. Please be informed that licensed brokers do not offer bonuses or non-deposited funds. Having such is actually a sign that this broker may be a scammer and should be avoided.

How does scam work?

A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or the social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.

What to do if scammed?

Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for chargeback.

If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.

 

Rich Snippet Data
Review Date
Reviewed Broker
Nexocap
Broker Rating
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