Beware! Meritkapital.co 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.
This is a review of meritkapital.co.
Meritkapital.com and meritkapital.co.uk are reputable companies by FCA UK.
We encountered something with Meritkapital.co, that we have never seen before. Upon opening the website, we were given only to options; to either enter the trading software or the private area. Both shortcuts lead to a sign in page.
When we registered, we entered a user area. There was no actual website that acts as a front to all the broker’s services, no home page, no sub section, not nothing. Users of this broker are directly asked to register and given access to the user dashboard.
Something tells us that this is not how things are done, and not only that, but we doubt that this is the way of the future. Perhaps, Meritkapital.co attempts to be original because it tries to conceal a scam behind this seeming innovation.
The leverage is 1:1000, and as such extremely dangerous, however it can also be an incredible lucrative opportunity; it all depends on how one uses it. The EUR/USD spread is 0.3 pips, which is surprising to say the least. Such a cost of trade is very lucrative, indeed. The financial instruments used to trade with are forex pairs, commodities, stocks, and indexes
The broker can be accessed in Russian, Polish, and English.
MERITKAPITAL.CO REGULATION AND SAFETY OF FUNDS
The first major evidence that Meritkapital.co is UNREGULATED, is that is does not offer a website, in ways that other brokers do; it straight goes to a user dashboard. Thus clients have no way of getting to know Meritkapital.co before signing up, which is exactly the way Meritkapital.co wishes to make things, because once you are registered, you basically become property of the firm, given that you have provided legit personal information. Unlicensed firms like this one can easily manipulate you into giving them what you want by using your personal details against you.
The biggest tell by far that Meritkapital.co is up to shady business is that it is, in its essence, a clone firm of an FCA regulated broker. The shallow difference here is the domain name. Whereas the current scammer broker holds the meritkapital.co address, the FCA authorised firm hold the meritkapital.com and meritkapital.co.uk for a UK branch.
Typically, clone broker try to replicate a legit business by using similar trading term and visuals. Seeing as Meritkapital has no website, we believe that it has taken certain elements from meritkapital.com’s own user area, and has blatantly copied them.
Because Meritkapital is just a user dashboard, we could not find any legal documents of any kind. Usually these are kept on the website, but seeing as Meritkapital is, technically, not a website, in the normal way of understanding it, there was no real source of legal provisions.
Unlicensed brokers offer services that are not overseen by any agency, and so are not at all worth a trust. In fact, 99% of all unregulated brokers are scams!
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.
MERITKAPITAL.co TRADING SOFTWARE
Upon our registration, the following platform was given to us. Here the expression – more than meets the eye- can be used negatively, for this terminal doesn’t really do much. Its only strength lays in its visuals.
The following are the features that are usable: pending orders, take profit – stop loss, customisable charts, and that’s it. In an industry that is continuously evolving, such platforms are at this day and age entirely lacklustre. When compared to other trading softwares used by legal brokerages, this one doesn’t even hold 1 percent of what the others have. It may look pleasing and professional, but the hard evidence says differently.
MERITKAPITAL.co DEPOSIT/WITHDRAW METHODS AND FEES
According to the deposit section, the minimum deposit amount is out of reach. Joking aside, the deposit area gave us the ability to chose from one of four funding gateways, but it did no allow us to input an amount nor continue with the payment process. We suspect that users have to get contacted by the broker’s rep to actually deposit. What ever the case is, this is yet another instance where Meritkapital proves to be illicit. All the funding methods are pretty shady looking: Exchanger, PayBis, CryptoPay, and Tokeneo.
Withdrawals are on the other side of the spectrum. They can be achieved through wire transfer, credit cards, debit cards, and bitcoin wallets. The discrepancy between these payment methods and the ones used for depositing can be best explained by the reality that withdrawals are not going to be available. We believe so, because withdrawals from unregulated brokers are usually impossible.
There are no details on processing times, and withdrawal fees. However, fees, both for withdrawing and other services, can easily arise as is expected from illicit brokerages.
No scammer feed today. The reason for this is the lack of legal provisions. However, freeing oneself of these clauses is even more dangerous, because now Meritkapital has all the power to direct users like a puppet master. This is another good reason why you should not invest in Meritkapital.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.