Beware! CMC Capital 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.
It’s baffling that after all this time, brokers still stick to a familiar formula when they design their websites. We are speaking of those companies that are shady brokerages or even downright unlicensed ones. CMC Capital is a typical example of what we are talking about: lack of innovation due to an obvious uninterest in providing proper FX services, a website filled to the brim with useless information and not enough helpful one, and a ton of other so-called compromises that in the case of CMC Capital translate to a total lack of care for client safety. Read the review to find out all there is to know about CMC Capital.
We tried to register an account, but we never received a confirmation mail with the necessary credentials to complete our account creation process. This is bad news because as of now all the trading and payment information will be taken from the website, a source that we do not fully trust.
From the website we gather that the available tradeable assets are precious metals, forex currency pairs, indexes, commodities, and cryptocurrencies. The leverage is capped at 1:400, the basic spread, for an undisclosed asset, is on average 1.3 pips for users of the Basic account types. However, we know for a fact that most illegitimate brokers parade with account types, but very few of these actually offer different account types. We guess this is what happens when you are operating an illegal FX business.
The website is available in English, Russian, German, French, Spanish, Italian, and Portuguese.
CMC CAPITAL REGULATION AND SAFETY OF FUNDS
The broker claims an official Companies House registration, which is the United Kingdom’s registrar of companies, a list filled with lost or forgotten companies, as well as many illicit or half-functioning firms. It doesn’t take much to open a company in the UK, and we have noticed that many illegal brokers open up such companies as fronts to their scammer actions.
The terms and conditions also claim that the broker is located in the UK.
However, the broker is officially blacklisted by none other than the FCA, a company whose words are taken seriously by all legitimate brokers and FX traders. Being blacklisted by this agency is your basically indicative that the broker you are dealing with is a scam!
So we can conclude that the company is not licensed in the UK. Seeing that there is no further info into the legitimacy of the company, we have no other choice but to label this company UNLICENSED and thus a risk to all!
To deposit in an unlicensed broker is the equivalent of throwing your money away for no reason. We always say that the first thing to do when dealing with any broker is to check for a license; this should be your priority! Usually, we would go for either an FCA or CySEC regulated brokers or other respected overseers. These regulators all employ harsh rules and impose very severe penalties on those brokerages that do not abide by the scrupulous rules. Furthermore, some agencies, like the FCA and CySEC, include reimbursement schemes to all users of brokers under their wings. These compensation funds schemes, as they are called, are put into action once broker cannot pay their clients back to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
CMC CAPITAL TRADING SOFTWARE
The broker claims to be using some sort of a web trader, but without a way of testing it, we remain skeptical.
Unregulated brokers are known to come with limited web traders while promising totally different things!
CMC CAPITAL DEPOSIT/WITHDRAW METHODS AND FEES
According to the website, the minimum deposit is $10 000, which is completely ridiculous. Usually, scammer brokers allow for a $250 deposit in order to attract many users. However, there always exists the chance that the broker aims to lure in high rollers.
The payment options on the website are incredibly varied, ranging from credit/debit cards to more than 10 alternative e-wallets. Another thing we have learned from years of experience is that unregulated brokers lie about their payment methods in 99% of the cases. So, in reality we presume that CMC Capital offers either credit/debit cards, wire transfer, or some sort of crypto investment method.
Withdrawal requests are said to be completed in 10 days, and the minimum to take out is $1. There is no real evidence of any withdrawal fees, but we say to keep your guard up nevertheless.
CMC Capital is an unregulated broker, and one not worth your time and money. Keep away!
How does the scam work?
The straightforward way into an investment scam is through the thousands of online ads that flood our browsers and social media sites. These are those familiar ads that promise impossible returns and luxurious lifestyles as a result of investing.
Succumbing to such ads will lead to either the scammer investment site, or to an intermediary source with close ties to this and other fraudulent websites.
In either case, the user will be asked to provide a phone number and probably an email address. The purpose of these is for the reps of the scam to be able to contact the client and push for initial investments. This is the first wave of the fraud, and is usually done by the rookie team.
The second wave is the pros, sometimes those behind the whole scam. These are charming and cunning individuals, whose communication skills can potentially result in the users to invest a second, or third, or even fourth time.
Basically, the scam continuous until the client realizes that she is being scammed. At that moment, when she wishes to withdraw or has questions for the scammer, it is already too late.
The culprits will easily ignore all requests or stall them. There are times when unlicensed brokers even terminate entire accounts, and on rare occasions entire websites are closed!
What to do if scammed?
The safest way to get your money back is to file for a chargeback using your credit or debit card provider. MasterCard and VISA have a chargeback period of 540 days. However, this only applies if you have deposited through a card.
Wire transfers are more difficult to reimburse, although some banks may have a specific plan for such times, so we advise users to directly contact their banks and ask them for help. What’s crucial is for users to change their bank account user names and passwords as soon as possible.
As for any funds invested through a cryptocurrency wallet, be sure that they are lost! Crypto transfers are untraceable!
And finally: never trust recovery agents or agencies. These are fraudsters who will ask for money in return for nothing. Do not trust these!