KapitalEU review – 5 things you should know about kapitaleu.com

KapitalEU review – 5 things you should know about kapitaleu.com

Rating: 1

Beware! KapitalEU is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

Forex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

KapitalEU is a puzzling scam- it’s one of the very few schemes that intentionally wants to reduce the number of potential victims. For one thing, the website is available only in German and Spanish, and the broker made it totally untranslatable. What’s more, access is limited in too many countries, which indeed makes KapitalEU a weird-looking scam. Nevertheless, we should review the brokerage as it’s officially exposed as fraudulent, so let’s get started.

KapitalEU REGULATION AND SAFETY OF FUNDS

We struggled to open KapitalEU’s website, but when we got in, it was the usual story- no address, no company numbers, no licenses etc. The broker intentionally hides critical information about itself, which is indeed a major red flag. What’s more, the whole website is designed to be impossible to translate using online translation services- definitely, something fishy is going on. And we know what that is: KapitalEU is a scam, which was earlier exposed by the Austrian financial regulator FMA. The watchdog, just like many others of its kind, including the Spanish CNMV and the Estonian FI, issued a warning against KapitalEU to raise awareness among investors. Many financial authorities regularly blacklist scam entities, so you should avoid every broker with a warning on its name.

That being said, we need to get a little bit deeper into the matter. KapitalEU is exposed as a scam, which also means that it’s unregulated, and we would still strongly advise against depositing with it solely because of that, the warning aside. Dealing with any given unregulated broker is dangerous because these entities are anonymous and unaccountable. To put it into perspective, many trustworthy authorities impose rules and regulations to guarantee transparency, ethical business behaviour, reduced risks and the safety of clients’ funds. So, KapitalEU follows no rules whatsoever, meaning that it can put clients’ money to risk or just steal it, getting away with the crime. Generally, each unregulated brokerage seems to be the perfect scam setting, doesn’t it? Well, indeed it is, and KapitalEU is just a fine example of a fraudulent scheme disguised as a Forex broker.

That’s why it’s always better to stick with companies authorised by trustworthy financial regulators like CySEC (Cyprus) and FCA (Britain). Both mentioned force brokers to keep deposits segregated local banks, thus ensuring that clients won’t lose their capital if something wrong happens. The segregation improves transparency, speeds withdrawals up, makes chargebacks easier and generally helps prevent fraud. What’s more, the European FX companies are covered by deposit insurance funds laid down to compensate clients in case of unforeseen events- CySEC brokers’ clients can claim up to €20 000 per person, while the British guarantees are even up to £85 000.

At the end of the regulatory assessment, we can only conclude that you’ll lose money to fraud if you deposit with KapitalEU.

KapitalEU TRADING SOFTWARE

KapitalEU has a basic Webtrader available in German and Spanish only. We couldn’t assess it exhaustively, and in this particular case, we don’t actually have to. In any way, though, the platform is not even close to MetaTrader 4 and MetaTrader 5- the most popular and, at the same time, most powerful terminals available. As there are too many legit MT4 and MT5 brokers, we can’t recommend KapitalEU to anyone, regardless of everything else.

The trading costs revealed by the Webtrader are also substandard as the EUR/USD spread is 3 pips, which makes KapitalEU’s services three times more expensive than usual. In contrast, most of the regulated brokers offer a spread of 1 pip for EUR/USD ($10 per lot, compared to $30 per lot if you trade with KapitalEU). The broker is generally expensive- yet another reason to stay away.

As to leverage, we found nothing about the matter, so the risks involved remain unknown. That’s a major red flag because KapitalEU obviously hides information about one of the most important aspects of trading. Well, the broker is an exposed scam, so we are not at the least surprised to see it acting stupid.

KapitalEU DEPOSIT/WITHDRAW METHODS AND FEES

The minimum deposit is probably $250 via Credit/Debit cards only, but we can’t validate this information. As for withdrawals, there is information only available in German and Spanish, so we can’t discuss anything either. Of course, we could have put some extra effort to get the website translated, but that would make no sense as we already know that the broker is a scam.

HOW DOES THE SCAM WORK

KapitalEU is an exposed fraud, so now we’ll quickly describe how scammers usually work while trying to defraud as many customers as possible out of their hard-earned money.

So, when fraudsters get hold of your contact numbers, you’ll get a call, promised the moon and the stars if you deposit immediately. And to gain trust, those criminals will usually pretend to work for governments, financial authorities, banks, other reputable companies and so on. Scammers will be confident in what they say, so if you don’t see the warning signs, you may end up depositing fascinated by their fake commitment. However, the fraudulent game actually begins after you send the money. Once they have the desired deposit, the cons will distort prices and forge fake reports to make you believe you are on the winning side, manipulating you to start thinking big and consider more deposits.

Then, the fraudsters will continuously ask you to increase the size of the investment and invent stories to make you deposits over and over again. Sooner or later, though, you’ll get determined to withdraw some money, and then the scammers will ask you to deposit again because, according to their words, there are taxes and fees that you should pay. At this point, you’ll probably realise something wrong is going on, and when the scam becomes too apparent, the cons will simply stop answering your calls and e-mails.

WHAT TO DO WHEN SCAMMED

It would be best if you first call your bank to inform it and then deactivate your card to avoid any additional risks, as the scammers may as well have obtained your details.

Then, call the police, inform the financial authorities, file complaints and don’t forget to spread the word online so that other people can find out about the particular scam, too. Still, it’s crucial not to rush trying to reclaim your funds as numerous scams are disguised as chargeback agencies set up to double-scam victims.

Finally, we know it’s an awful experience to get scammed, but please share your story to help protect others!

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia, Cyprus4.93/5$100 Click for a special offerWebsite
UK, Australia4.85/5$50 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite
Cyprus, Bermuda4.75/5$50 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *