Beware! CapitalOneMarket 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 are going to read about a sneaky brokerage in this review. CapitalOneMarket presents an appealing website, but at its core, the broker is fraudulent and conceivably pretty dangerous one indeed. It’s somewhat linked to another suspicious entity, but it wasn’t in any way evident in the beginning. We believe it’s a bit more sophisticated scam than the rest, and you can see why in the full CapitalOneMarket review.
CapitalOneMarket REGULATION AND SAFETY OF FUNDS
CapitalOneMarket claims to be a UK broker that’s regulated in Cyprus. Well, we researched the CySEC register but couldn’t find anything about such an entity, so it’s unlicensed and very likely a scam. There is nothing in the records of the British financial authority FCA either. However, as you can see from the picture above, the contact number provided is strictly fraudulent and outright proves that CapitalOneMarket is nothing else but a fishy enterprise. Your funds are not safe if you deposit with this broker because it’s unregulated and a scam. We’ll give more evidence in the following sections.
Avoid this broker and see the high-rated EU brokers and British brokers instead. The European markets offer high-grade security, and the member states are compelled to operate deposit insurance funds that guarantee clients’ money in case of insolvency or fraud. Hence, CySEC brokers’ traders can claim up to 20 000 EUR, while the British protection is up to 85 000 GBP. Unregulated businesses like CapitalOneMarket are not only unlikely to provide safety but will most probably scam you when dealing with them.
CapitalOneMarket TRADING SOFTWARE
CapitalOneMarket claims to provide MetaTrader4 and MetaTrader5, which turned to be a fallacious offer. Well, they do, but the platforms are web-based only and actually the generic distributions, so no real trading can occur. To put it simply, anyone can download the generic MT5 and put it on their website. This is indeed a sly trick because some traders with little or no experience may as well believe that they open positions with real money and make deposits. This is a scam.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are reputable and proven to deliver upper-class software. The MT distributions are furnished with advanced trading features such as Expert Advisors, many complex indicators and sophisticated charting tools. There is also a marketplace where clients can benefit from more than 10 000 apps and third-party trading solutions. MetaTrader is the best option on the market, so do not hesitate if you are eligible to open an account with some of those brokers.
The trading software is fraudulent, so we can’t discuss real-time spreads and leverage levels. The EUR/USD spread is 2 pips, but the quotes difference is irrelevant in this case. The default leverage is 1:100, but it can reach up to 1:1000 if clients deposit more than 250 000 USD. Well, you’d better miss this chance. Nevertheless, a ratio such as 1:1000 entails tremendous risks and can blow your account in an instant if not carefully used.
In fact, leverage is the most dangerous aspect of trading, so many financial authorities imposed regulations to reduce leverage-related risks. As a result, EU, British and Australian brokers limit their clients to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
Now, if you have a look at the screenshot below and pay attention to the logo, you’ll notice CapitalOneMarkets typed. The link provided redirects to the review of another suspicious broker we recently reviewed. Both brokers use precisely the same logo, which perhaps means that the people behind those entities put effort to conceal their intentions. Still, we can’t speculate about the link between those, but that’s evidence of a scam nonetheless. Be cautious!
CapitalOneMarket DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with CapitalOneMarket is $250, which is slightly more than the regulated brokers’ requirements on average- $100. The funding methods are Credit/Debit cards, Wire Transfers, OkPay and AliPay.
While discussing deposit methods, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated brokers on the lists are strictly regulated, so you won’t face scammers.
Minimum withdrawal amount and fees are not determined, but the provisions alter if clients accept incentives. In this case, they need to trade 30 times the bonus plus the deposit to become eligible for withdrawal. That’s a highly unfavourable clause, which effectively locks the account, making it impossible to take money out of it. Still, it’s impossible to trade with this broker, so we can dismiss this clause as fraudulent.
There is also no information about inactivity fees and dormant account procedures, which is a disturbing sign because those provisions are critical. Nevertheless, the broker doesn’t provide a functional platform, so the provisions about withdrawals and fees are generally irrelevant.
Overall, CapitalOneMarket is a scam scheme that we exposed in this review, so make sure to keep your money in your pocket and avoid this broker.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
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!