Beware! TheBrokersCapital 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.
TheBrokersCapital is yet another offshore broker which operates without a license – the savvy trader will have recognized that as a sufficient warning – but if you need further convincing to avoid TheBrokersCapital, you can certainly find it in the review below:
TheBrokersCapital regulation and safety of funds
TheBrokersCapital is not regulated and seems to wear this fact as a badge of pride – here is what the broker says about where it operates from:
The islands of St. Vincent and the Grenadines are quite notorious – their government has refused to regulate the Forex trade on the islands. This has made them a perfect place for fraudsters of all kinds to run their schemes from!
There is no guarantee that a broker from St. Vincent will not scam you – because they are not being held accountable like brokers in more traditional jurisdictions – for example, in the UK all brokers need to have a license with the FCA – and the issuing of a license requires them to cover certain thresholds – they need to have over 730 000 euro to their name and agree to keep client accounts segregated.
There are many more reasons to invest with FCA licensed brokers – and if you wish to know more about them, you can find them here, as well as some trustworthy brokers to pick over TheBrokersCapital.
TheBrokersCapital trading software
To our surprise, the broker offers a distribution of Metatrader 5 – what is widely regarded as the best trading platform, due to its incredible ease of use, sophisticated automated trading features and much more. Here is what the platform looks like:
The spreads on the platform are also quite tight, with them moving well within the acceptable 1 pip for major Forex pairs like EURUSD. However, the leverage that TheBrokersCapital offers is simply too much – 1:500. Leverage of that size is outright banned in most jurisdictions – this is because such amounts are too risky for retail traders to make use of. Still, shady brokers like TheBrokersCapital offer it, in a bid to attract clients. Therefore, you need to be careful when you see a leverage of that size in the wild – odds are, you are dealing with an unlicensed broker, or worse.
TheBrokersCapital deposit and withdrawal methods and fees
TheBrokersCapital accepts deposits through Neteller and Skrill – both of these payment methods have chargeback features, which might be beneficial, considering the fact we have no idea what kind of fees TheBrokersCapital charges. Since the broker is unlicensed, however, we do not expect withdrawals with it to be easy at all.
As for the minimum deposit with TheBrokersCapital, it is $50 – not a huge amount, but there are legitimate brokers out there that have much lower deposit minimums – $10 to open a micro account at most.
How does the scam work?
TheBrokersCapital is undoubtedly a scam – and one that operates following a rather simple, yet efficient model – the scammers set up websites like TheBrokersCapital, where victims are taken by following ads on large social media platforms like Instagram, Facebook and so on. These ads all promise lucrative investment opportunities with incredible returns. Once the victim is on the website, they are prompted to leave a phone number – should they do so, a barrage of calls will ensue, from the scammers who seek deposits. The fraudsters derive all their profits from the deposits and skillfully manipulate people to give them all the money they can squeeze out of them. But should the victim demand a withdrawal, or cease depositing, the scammers will drop them without hesitation and run with the money they have already gathered.
What to do when scammed?
When scammed, you need to do several things to limit further losses – first off, you need to remove any desktop-sharing software from your PC that the scammers had you install – they often use Team Viewer to snoop around your PC without permission. What’s more, any credit cards and form of ID you have given the scammers need to be changed ASAP – otherwise, they will certainly try and use them against your will.
After you have restored your privacy, you should look into recovering your funds – the best way to do that would be contacting your bank and explaining your predicament to them. Watch out for recovery fund scams, however – these scammers contact victims and promise to restore their deposits at the cost of an upfront payment. They will do no such thing – simply take your money and run with it.
Finally, do share you experience below – there is nothing shameful about falling victim to such a scam – and the only way to curb the spread of such schemes is by raising the general awareness of them!
