Beware! Capitrades 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.
We are going to review Capitrades, a shady broker sharing many features with another potential scam we’ve recently reviewed. Both entities falsely claim to be regulated, hide crucial information about themselves, use similarly structured websites and have the same MetaTrader4 provider. That makes us believe both brokers are run by the same people or at least are somewhat connected to each other. Find out the rest of the details about this controversial business in the full Capitrades review.
Capitrades REGULATION AND SAFETY OF FUNDS
Capitrades claims to be a regulated broker but fails to prove that this statement it’s true. They do not share any information whatsoever about the company or the people running this business. We researched but found no licensed company in any way associated with this shady broker. Your funds are not safe if you deposit with Capitrades because it’s an unlicensed and unregulated entity. Furthermore, the fake claims indicate it’s potentially a scam.
Avoid them and follow the links to see the EU brokers and the British brokers we recommend. Those companies are covered by the European deposit insurance funds protecting traders and investors’ money in case of bankruptcy or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person. Also, the European financial authorities implement various customer protection regulations in their pursuit to make the trading environment safer for people. By following the links above, you can see the best brokers in Europe and more information about the regulatory framework applied.
Capitrades TRADING SOFTWARE
Capitrades offers MetaTrader4 accounts for their customers. However, the platform distribution provider is Utrada Tech, an obscure company that also delivers to other equally shady brokers, such as Investistic. That shouldn’t be a problem in general, but given the questionable nature of these businesses, it’s worth noting this fact.
Considering trading software, see the MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular Forex platform, which seasoned traders and investors highly acclaim for its reliability. The software provides sophisticated trading tools such as Expert Advisors, Algo trading and plenty of complex indicators. MetaTrader also created a marketplace where you can find more than 10 000 apps and third-party developed trading solutions.
The spreads are said to start from 0.0 pips, which is the best possible Buy/Sell difference, but we can’t validate these claims. In fact, the platform we got was not active at the time, so it was impossible to place a trade or see the real trading conditions. It could have been some temporary problem, but that doesn’t make it less annoying. Beware!
The maximum leverage possible is 1:500, a ratio too risky for retail traders and investors. 1:500 will most likely cause instant-quick losses rather than profits because it involves tremendous risks. It’s hazardous nature motivated some financial authorities to step up and restrict leverage as a customer protection measure, helping traders and investors reduce losses caused by misuse. Frankly speaking, before the regulators’ intervention, the Forex trading looked like a casino rather than an actual financial market.
So, the European, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t provide higher levels than 1:50. The Swiss brokers aren’t restricted, but there is a 20 million francs capital requirement in Switzerland, which certainly drives shady brokers away.
Capitrades DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Capitrades is $100, which meets the industry requirements. The single funding method is a Credit/Debit card, considered the safest way to make deposits. It allows getting a refund for a year and a half after the money transfer if, unfortunately, things go wrong.
However, if you have a preferred payment system, see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers. The selected companies are strictly regulated, so it’s unlikely for traders to experience fraud.
There is no information about withdrawal provisions, fees, request processing time, inactivity policy, bonuses etc. That’s because Capitrades doesn’t publish legal documents on their website, and that’s a major red flag we need to note. More importantly, the lack of T&Cs, User Agreement and so on makes Capitrades an illegal business because these documents serve as a contract between both parties. You should never trade and deposit money unless you sign an agreement with the broker. Beware!
Overall, Capitrades is an unregulated broker, which is a solid reason to stay safe and avoid.
HOW DOES THE SCAM WORK
People can see many fraudulent ads on the Internet and social media posted by scammers who want to steal as much as possible from traders and investors.
If you click on the post and submit your e-mail and contact number, they’d ring you immediately and would promise you anything to make you deposit money as quickly as possible. Most of the scammers are experienced manipulators, and before you know it, they’d ask for your bank card numbers out of the blue. Urgency is a treacherous sign, so if someone pushes you to start trading ASAP, then it’s most probably a scam.
However, the first deposit is just the beginning. Gradually they’d ask for more money from you no matter what. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d convince you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and would even ask you to deposit even more funds if you want to withdraw. The scammers’ mantra is “give me your money”, they’d insist every day you should fund your account over and over again for no obvious reason. Legit companies do not bother you over the phone to deposit with them, so if someone pushes you to invest, it’s most probably a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!