Beware! NitroCapitals 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.
NitroCapitals is yet another reason why you should be very thorough in checking whether a broker you aim to trade with is legitimate or not – on its face, there is nothing wrong with NitroCapitals, but a closer look reveals a whole myriad of issues regarding its regulation and legal documentation. Here is why NitroCapitals is best avoided:
NitroCapitals regulation and safety of funds
NitroCapitals is not a regulated company – it also lies about its address, stating it is based in Toronto, as you can see from the screenshot below:
However, all brokers that operate in Canada are required to hold a license with the IIROC – the regulatory body that oversees the Canadian markets. To obtain a license with that body, one needs to participate in guarantee funds that restore client losses in the case of broker insolvency – up to $1 million per affected person. As this is not exactly an easy task, no broker that holds a license with the IIROC neglects to mention it – and NitroCapitals does just that, with not a single word on regulation on its website. This means the company is under no-one’s oversight and there are no guarantee it is not actually running a scam!
NitroCapitals trading software
NitroCapitals provides access to the following web-based trading platform:
Compared to industry standard Metatrader 5, however, we found it to be rather lacking – there is no automated trading available. Additionally, even though NitroCapitals’ spreads are within the acceptable 1 pip range for FX majors like the EURUSD, its leverage is quite obscene – 1:200 is an amount that most regulatory bodies have deemed inappropriate for the retail trader and banned. Still, brokers like NitroCapitals have it available in a bid to attract more clients – so be careful whenever you see a company advertise high-leverage trading out there – nine out of ten times it is not regulated!
NitroCapitals deposit and withdrawal methods and fees
NitroCapitals accepts deposits via credit cards and wire transfers – the latter are final and ineligible for a chargeback, meaning that anyone who has deposited with them will have to contend with NitroCapitals’ absurd fees. Here is a schedule of the withdrawal fees NitroCapitals charges:
The broker charges at least $35 to process a withdrawal, with the addition of a 10% levy. The levy is only lifted from accounts that have achieved a turnover of 200 times – but that is simply impossible, and the broker knows it. There is no way this is anything, but an attempt on NitroCapitals’ part to charge you as much as possible – in the same vein, check out its fee on dormant accounts:
No legitimate broker would charge as much!
However, the worst part about NitroCapitals is that it will use the following clause on bonuses to make you unable to withdraw your profits:
It states that profits made with bonuses the company issues are not eligible for a withdrawal under any circumstance – and since there is no way to know what money is made using what, the broker will simply claim all of your money for itself!
Similarly, the ability to withdraw your bonus provided you have achieved a turnover of at least 25 times the bonus plus your deposit is simply illusory!
How does the scam work?
NitroCapitals is definitely running one of the oldest scams out there – here is how the scheme works:
Someone stumbles upon the website the broker runs and is prompted to open an account – they are to leave a phone number if they agree. Once the scammers have that, they will start calling around the clock to demand deposits – more and more money will be taken from the victim, until they are either bled dry or realize what’s going on – at which point, the scammers simply move on to new targets!
What to do when scammed?
If you have been scammed, you need to take the following steps to make sure you do not suffer further losses:
First off, reissue whatever credit cards and forms of ID the scammers had access to – and remove any remote control software they had you install.
Contact your bank to see if you can file a chargeback – but if not, do not trust recovery agencies that demand an upfront payment for their services, as they are a scam!
Finally, do not hesitate to leave a comment below and tell us about your experience with NitroCapitals – that will help combat the scam by raising awareness of it!
