Beware! Sich 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.
Sich Capital tries to present itself as a forex broker run by “a team of experienced managers from the trading industry”. But it is quite obvious that it is anything but.
At the time of writing this review, Sich Capital ‘s website lacks basic information, legal documentation and functionality. There isn’t even an address and contact info, except for chat programs and a form to send an email.
That in itself is indication enough that this is not a legitimate broker. But the site has a number of direct links to other known scam sites that appear to be from the same network. It
is possible that Sich Capital is still in development or has been abandoned, as is often the case with scam platforms. But it is important to stress that this and related sites should be avoided.
SICH CAPITAL REGULATION AND SAFETY OF FUNDS
The only more specific claim is that Sich Capital Ltd is incorporated in Australia:
To operate in Australia, a broker must be licensed by the Australian Securities and Exchanges Commission (ASIC). There is a company with a similar name on the ASIC register – Sich Capital Pty Ltd. This is a recently registered fixed income company. As the ASIC public register does not include company websites, fraudsters often take the liberty of using registered company names. A basic web search shows that Sich Capital Pty Ltd uses a different website than Sich Capital:
Sich Capital’s client system is devoid of any functionality. After logging in, only menus to fill in additional personal information are available. There is not even a menu for depositing funds, which is the most important part of the fraudulent scheme. This suggests that Sitch Capital is probably still a scam in progress.
One thing that reveals the connection between Sich Capital and a whole network of scam sites is that the Sich Capital registration form is used directly by another site we recently reviewed – Sandwind Capital. This site in turn is identical to other fraudulent platforms such as SandWindFX and the now defunct Sandwind Global. These three sites use not only identical names, but also the same logo.
The name Sandwind Global can also be seen on the main page of Sich Capital’s website, apparently inadvertently left because the scammers are reusing old assets:
If you have decided to trade on the capital markets, you should be careful not to fall for scammers like this network of anonymous websites. You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia.
There, the activities of brokers are controlled by powerful regulatory bodies such as Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) and Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.
In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to EUR 20,000 EU and 85,000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.
SICH CAPITAL TRADING SOFTWARE
Sich Capital claims to offer one of the most widely used trading platforms in the industry, MetaTrader 5 (MT5). The file which can be downloaded from Sich Capital’s website is again named “Sandwind Global”. However, the installation file itself is not configured for a specific broker, but is simply the generic file that can be downloaded from the software developer, MetaQuotes. So Sich Capital doesn’t have a functioning trading platform.
There are more than enough legitimate brokers offering MT5 and the still very popular MT4 to their clients. Turn to such a broker if you want to take advantage of the features these platforms offer, such as ability to design and use scripts for automated trading and testing of trading strategies.
SICH CAPITAL TRADING CONDITIONS
Legitimate, regulated brokers usually offer a wide range of services for both beginners and advanced traders, with trading conditions detailed and clearly described on their websites. Genuine brokers also offer a wide range of payment methods, including credit cards, bank transfers and popular e-wallets such as PayPal or Neteller.
Sich Capital’s website does not describe different account types, nor does it mention basic trading indicators such as spread, leverage, minimum deposit and fees. There is also no information on payment methods. But since Sich Capital and its affiliated scam sites don’t offer real trading, it wouldn’t really matter if values were listed.
HOW DOES THE SCAM WORK
It is tempting to be lured by the promises of easy money that we constantly come across on the internet. But behind the vast majority of these promises, if not all, are scammers. In recent years, many fraudulent schemes have consisted of websites posing as brokers and trying to cash in on the excitement surrounding cryptocurrencies.
If you give your contacts to one of these scammers, they will start convincing you that they will multiply your money, with nothing required of you but to sit back and take profits. If you agree to an initial investment of a few hundred dollars, they will start persuading you to invest more and more.
But you will never get the promised profits or the money you deposited. Scammers have many ways to ensure this. First of all, they are hidden behind offshore companies, not subject to controls and regulations. For the money transfers they use shady payment platforms, direct bank transfers or cryptocurrencies that make recovering money very difficult and often impossible. The terms and conditions are always riddled with traps that also block your ability to withdraw your money, such as prohibitively high minimum trading volume requirements or withdrawal fees amounting to tens of percentages of your funds.
WHAT TO DO WHEN SCAMMED
When you find yourself scammed and seek advice and help online, you are likely to receive offers from individuals and companies who promise to refund your money for a fee that you have to pay in advance. Don’t trust such offers or recommendations from anonymous commentators on the internet – this is also a well established scam.
The best chance to get at least some of your money back is to request a chargeback, but this applies only if the transfer is made via credit card. It is of course advisable to notify the relevant authorities of the fraudsters’ activities and to spread the word online to warn other people who may fall victim to the same scammers.