Beware! Jumper 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.
Jumper Capital claims to be a “global online trading broker tailored for traders”. The clunky and cheap-looking website makes that claim hard to believe. Closer inspection reveals that Jumper Capital is not authorized to offer financial services, and furthermore, it is unclear who is actually behind this website. This shows that you should by no means trust your money to Jumper Capital.
JUMPER CAPITAL REGULATION AND SAFETY OF FUNDS
When you visit the website of a legitimate broker, you can expect to find clear and comprehensive information about the company that owns and operates it, where it is based, what licenses it has and which regulatory institutions oversee its activities.
Jumper Capital’s website mentions the company name Jumper Capital Ltd without giving an address. This alleged broker is said to offer its services in Europe, Asia, South America, Africa and Australia, but without providing information on the licenses that would allow this to be true. The only mention of a regulator is the claim that Jumper Capital Ltd insists on complying with stricter regulations than the Financial Conduct Authority (FCA)”.
The FCA is the United Kingdom’s financial regulator. However, no licensed broker with the name Jumper Capital Ltd can be found on the institution’s register.
The registration information on Jumper Capital’s trading platform lists a London address, but the company name is different – Jumper International Ltd. However, this company is also not licensed by the FCA.
No legal documentation is available on the website. After the initial registration of an account, we get access to the Terms and Conditions, which do not mention the name of a specific company. This document states that the agreement between the customer and the unspecified company “shall be dealt with in accordance with the laws of the People’s Republic of China”. Some foreign forex brokers can offer their services in the Chinese market, but a Chinese company – especially an anonymous one – could not legitimately offer financial services in other jurisdictions.
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.
JUMPER CAPITAL TRADING SOFTWARE
For all its dubiousness, Jumper Capital uses real trading software – MetaTrader 5 (MT5). If the account is not verified by providing a copy of ID, the platform can only be used with a Demo Account.
The presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers have trading software to fool their victims that their money is being invested. You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customized scripts for backtesting trading strategies.
JUMPER CAPITAL TRADING CONDITIONS
The only information about the alleged trading conditions offered by Jumper Capital is the claim that a “real ECN account” is offered. In the MT5 platform, we see a very low spread of 0.2 pips, which is consistent with ECN accounts at licensed brokers. But these types of accounts come with a fixed commission per lot traded. Jumper Capital does not provide any information on whether there is such a commission and what its amount is. Not even a minimum deposit is specified. But you should know that most legitimate brokers allow you to start trading with very low amounts of 100-200 USD.
When registering an account, a leverage level between 1:100 and 1:1000 can be selected. This in itself is evidence that Jumper Capital could not be a licensed broker in the UK. The FCA, like EU regulators, limits 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.
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.
JUMPER CAPITAL DEPOSIT/WITHDRAW METHODS AND FEES
The logos of payment methods such as Visa, MasterCard, Skrill and Vpay can be seen on the Jumper Capital website. However, the deposit menu is not available if the account has not been verified and approved. Many scammers advertise popular payment methods, but in practice only use shady providers and cryptocurrencies that do not allow refunds. We have every reason to believe that this is also the case with Jumper Capital.
HOW DOES THE SCAM WORK
The idea of passive income is increasingly attractive to more and more people. The Internet gives the impression that making money through investments in the financial markets is more accessible than ever to non-experts. But the online space is full of scammers who lure inexperienced wannabe traders through flashy advertisements and fake testimonials from satisfied clients. However, these fake brokers don’t really invest the money you give them – even though they very confidently assure you that you are generating great profits and should invest even more.
But when you try to withdraw some of your supposed winnings or deposit, it turns out to be impossible. Scammers will tell you that a sudden change in the market has wiped out all your money, or point you to vague clauses in the Terms and Conditions that require a huge minimum volume traded. The victim of such a scam may also be surprised with hidden fees and taxes amounting to tens of percentages of their funds.
Holding fraudsters accountable is difficult because they operate through offshore companies that are uncontrolled and unregulated. In addition, scammers require that you provide them with a copy of your ID and proof of address so that they can claim that all transactions were voluntary and agreed upon by both parties.
WHAT TO DO WHEN SCAMMED
First of all, you should know that there is another kind of scammers who prey on victims of fake brokers. They claim they can refund your money for an upfront fee. The most realistic option to get at least some of your money back is to request a chargeback, but this is only possible if you used a credit or debit card for the transactions. Scammers usually insist on using cryptocurrencies, direct bank transfers or shady online payment platforms where refunds are impossible.