Capital80 Review – 5 things you should know about capital80.com

Capital80 Review – 5 things you should know about capital80.com

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Beware! Capital80 is an offshore broker! Your investment may be at risk.

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

 

Capital80 pulls an unconvincing attempt at scam – they are supposed to be a reliable broker offering a wide range of instruments but are completely unregulated, impose huge fees, and do not offer anything even resembling a trading platform. You would not want to invest with this broker – they will steal anything you deposit.

Capital80 REGULATION AND SAFETY OF FUNDS

Capital80 has provided two addresses – one in Cyprus and one in Madrid – and claims to be governed by the laws if the EU – on the website, at least. However, the narrative is different in the Terms and Conditions- there, the broker states that they are governed by the laws of the Marshall Islands.

Capital80 was nowhere to be found in the registers of the Cypriot regulator CySEC and the Spanish CNMV which means they cannot be offering financial services in the EU, at least not legally. They are not regulated by a EU regulatory body which makes them unreliable at best. The Marshal Islands don’t have a financial regulator and you could easily register a company there over the Internet. So a broker registered there should not be your first choice.

Moreover, the Spanish CNMV has issued a warning on the broker because they are offering financial services illegally.

Opting for a likened UK, EU or Aussie broker is a much better option – such brokers cannot get licensed just like that and have to maintain a high standard and meet many requirements before becoming regulated. There is a  minimum capital requirement at all of these locations – €730 000 for the UK and the EU and A$1 million for Australia. All licensed brokers have to keep client money segregated accounts – you can be sure your broker would not be able to use your investment for their own purposes. This also means faster withdrawals. Negative balance protection is ensured – your losses cannot be bigger than the size of your investment. Such brokers have to do everything by the book and provide a huge level of security and transparency – the same cannot be said about unregulated scammers like Capital80 – especially ones that try you to fool into thinking that they are regulated in the EU by providing addresses in EU member states.

Capital80 TRADING SOFTWARE

Capital80 did not provide any sort of trading platform and did not mention what kind of software they offer. Without a trading platform, a broker is useless – you would not be able to trade with them.

Better turn to a broker offering leading trading platforms like MetaTrader 4 and MetaTrader 5. These are the most established platforms in the industry for a reason – they offer a variety of tools and features like Expert Advisors that track the markets and trade automatically, a market full of trading add-ons, the opportunity to create your own trading bots and indicators, and share them with others, VPSs you could purchase to keep your trading bots functioning even when your computer is off, customizable signals, and much more. Definitely check one (or both) of the platforms out – with a licensed broker.

Capital80 TRADING CONDITIONS

The minimum deposit amount Capital80 asks for is $250 – which is not that much but as they are a scam, you should not even be considering investing any sort of money with them.

Without a functional trading platform, any talk of spreads or leverage becomes redundant. Still, the broker mentioned offering leverage of up to 1:20 on the most basic account – which is completely in line with EU leverage restrictions that only allow brokers to offer leverage of up to 1:30 on forex majors to retail clients. However, if you upgrade your account a bit and deposit $2500, you could get 1:50, if you deposit $20 000, 1:200 would be available. It seems like the only thing this broker would need to give you access to (illegally) high leverage is more money. Clients in the EU can indeed trade with higher leverage – if they qualify as professional clients and meet two out of the following three conditions: to have capital of at least $500 000, to have worked in the financial sector for at least a year, or to have placed at least ten big orders in the past year. High leverage can lead to more than huge profits – if you don’t have sufficient capital and experience, you could lose a lot of money. That is why you should always be careful with your leverage setting – but if you want to get access to higher leverage, there are legitimate brokers that could offer you 1:100.

Capital80 DEPOSIT/WITHDRAWAL METHODS AND FEES

The only way to deposit and withdraw money with Capital80 is to use Bitcoin. There is nothing wrong with cryptocurrencies themselves – they are an innovative technology providing secure payments – many legitimate brokers have started accepting Bitcoin alongside some more conventional payment methods like Visa, MasterCard, and wire transfer. But that is the thing – legitimate brokers leave you the choice to deposit in a different way – scammers often only accept crypto payments. They adore cryptos for one property specifically – the irreversibility of transactions. This would make it impossible for you to ask for a chargeback when you figure out you are being scammed.

Capital80 asks for an enormous dormant account fee – $85 after just 30 days of not logging in to your account.

Most legitimate brokers also have such fees but they rarely come after just 30 days and are never this huge – a regular inactivity fee is between $5 and $15.

HOW DOES THE SCAM WORK?

Such scams are rarely very elaborate so it is quite surprising that they manage to trick so many people. It seems that scam brokers are not going away any time soon so it would be good to know how to avoid them.

It all starts innocently enough – you see some impressive ad on the Internet promising to make you rich in a matter of months. And you would not have to do much – just invest a small amount of money with broker X. You are tempted so you provide the scammers with your email and phone numbers. After that, they won’t leave you alone before you deposit. Some scammers disappear right after you have transferred any sort of money but most of them are greedy – they will keep asking for more and more money. And you will be transferring because you will see that you are turning huge profits soon enough – it is very easy for scammers to manipulate platforms to make it look like you are doing great. Keep in mind that such people are well-versed in the arts of smooth-talking and convincing – they will charm you into transferring thousands before you know it.

But once you want to get access to all this money you have won, you will have trouble. The scammers will keep making up additional fees and clauses that prevent you from withdrawing – yet. At some point, they will just stop answering your calls and emails altogether.

WHAT TO DO WHEN SCAMMED?

Such stories rarely end well so prevention is key – always do your research, check registers of different regulators, and read Terms and Conditions carefully.

If you have already gotten scammed, there is still hope. Change any passwords you have provided the scammers with – that includes cases when you have given them remote access to your computer. Notify the responsible authorities and contact your bank or credit card provider to let them know you have been scammed. If you have used Visa or MasterCard to transfer money, you can try asking for a chargeback – this is possible within 540 days. Don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam and it would only lead to you losing more money.

Finally, sharing your story with others is important – this way, fewer people will fall into the same trap.

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