Beware! PremierFxCapital 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.
On the PremierFxCapital website we can read that this is a forex broker with over 25 years of experience and over 15 “global awards”. However, the low-quality and obviously unfinished website immediately reveals that this cannot be true. PremierFxCapital is actually part of a seemingly endless string of identical scam websites. Alphanion and Hodleltd are just a few of the most recent examples of this scam we’ve encountered.
At the time of writing this review PremierFxCapital was not yet fully developed. The website uses the logo of another of the dozens of identical fake brokers, LiquidFX. Standard placeholder text is used in many places on the website, even the contact email is exemplary. It was also not possible to register an account. However, the affiliation of this website to the scam network is not in doubt.
PREMIERFXCAPITAL REGULATION AND SAFETY OF FUNDS
When you visit the website of a legitimate broker, you can expect to find detailed information on the index page about the legal entity that manages it, where it is based, what licenses it has and which regulators oversee its activities.
No such information is available on the PremierFxCapital website. There is not even an address, and the links to the supposed Terms and Conditions and other legal documentation are empty.
There is mention of a company – Liquid Inc, but it is simply copied from the other website and we have every reason to think that no such company exists. The website also shows another brand, Blockit, by all appearances also copied from another website on the scam network.
Even if the PremierFxCapital website is developed and populated with more specific information in the future, this information will not be reliable. When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.
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 UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or 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 20 000 EUR in the 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.
PREMIERFXCAPITAL TRADING SOFTWARE
According to its website, PremierFxCapital offers desktop, mobile and browser versions of the MetaTrader 5 (MT5) platform, one of the most widely used software in the industry. However, all the links to download the software do not work.
But even if some kind of trading platform were to appear on this website in the future, it would not make the PremierFxCapital any more legitimate.
It is advisable to contact one of the many legitimate brokers that offer MT5 or the still very popular MT4. These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
PREMIERFXCAPITAL TRADING CONDITIONS
One more thing that you will find on any legitimate broker’s website, but is lacking in PremierFxCapital, is systematized and detailed information about trading conditions. Several types of trading accounts are mentioned – Standard, ECN and Islamic, but there is no information about them.
Genuine brokers usually offer packages tailored to the needs of traders with different capital and experience. Many licensed brokers allow you to start trading with a minimum deposit of just 100 USD or even less.
On the website we see a promise of a spread “from 0.0” pips, but these values mean nothing on a website that does not offer real trading. One of the elements that is found in all the scam websites of this network states a leverage level of 1:500.
This can also be used as an indicator that this is not a regulated broker. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. EU and UK regulators limit leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. The same rules currently apply to Australia. In the US, the maximum limit is slightly higher at 1:50.
There is no information anywhere about payment methods, nor about fees and conditions for deposit and withdrawal of funds.
HOW DOES THE SCAM WORK
Many people have a desire to invest in the financial markets but lack the necessary knowledge and experience. This makes them a potential victim of the many internet scammers posing as brokers and investment intermediaries. These types of scams have exploded alongside the cryptocurrency boom.
If you trust such a website and give them your personal information, you will be contacted by experienced scammers who will entice you with promises of easy profits. The scammers usually offer to take over all aspects of investing for you, sometimes even prompting you to install remote access software on your personal computer. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.
But you will never get the promised profits, nor will you be able to get your money back. If you want to withdraw funds from your account, you will find that you have suddenly lost everything in the market, or that you have to meet impossibly high traded volume requirements, or that you have to pay huge fees. It is also possible that fraudsters simply disappear because they hide behind fake names and shell companies in offshore areas that are not subject to any control and regulation.
WHAT TO DO WHEN SCAMMED
One of the few options to get at least some of your money back in such a situation is to ask for a chargeback. But this is only possible if you have used a credit or debit card for the transaction. Scammers typically use cryptocurrencies or dubious e-wallets that make it impossible to get your money back.
Under no circumstances should you trust people and websites that promise to magically refund your lost money for an upfront fee. This is also a well established scam. You may even fall victim to the same scammers again.