Vitacapitals review – 5 things you should know about vitacapitals.com

Vitacapitals review – 5 things you should know about vitacapitals.com

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

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Vitacapitals is a blatant fraudulent scheme posing as a forex and CFD broker. The website misleads that it is authorized to offer financial services, which is refuted by fact checking. The trading that Vitacapitals pretends to offer is fictitious, and the terms of the user agreement guarantee that you will never be able to get back the money you made the mistake of giving to these scammers.

VITACAPITALS REGULATION AND SAFETY OF FUNDS

The main page of the website states that it is owned by Vitacapitals LLC, “a Broker-Dealer registered with the Monetary Authority of Singapore (MAS)”.

However, a check of the MAS database does not reveal a licence but a warning to investors that Vitacapitals is not authorised by the regulator:

However, the Vitacapitals’ legal documentation lists a different company – Rever LTD, based in Bulgaria. However, this company is not listed among the brokers licensed by the Bulgarian Financial Supervision Commission (FSC). According to the general register of companies in Bulgaria, the sphere of activity of Rever LTD is online marketing and IT consulting, and the company has a capital of only 200 BGN, or 100 EUR.

The account registration form requires you to indicate agreement to the Terms and Conditions. However, the link does not lead to the relevant  documents on the Vitacapitals website, but to a completely different domain, Weliux.online. This website is available only in Russian and is operated by another company, Trinityfair LTD. This company is also registered in Bulgaria, and is also not licensed to provide financial services.

After registering an account in the customer area, we found another version – that the website is owned and operated by LoyalTech Ltd based in Liechtenstein.

Checking with the relevant financial regulator, the Financial Market Authority Liechtenstein (FMA), again leads us to a warning that the Vitacapitals are fraudsters:

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.

Before investing money, make sure your chosen broker is licensed by a reputable regulatory body, such as Cyprus Securities and Exchange Commission (CySEC). There are many advantages to working with such brokers because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. Whenever clients deposit money in their trading accounts, it is kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy. All brokers licensed in Cyprus are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. Cypriot forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.

VITACAPITALS TRADING SOFTWARE

Vitacapitals’ trading software is no more convincing than its trading credentials. After registering an account we only get access to a very simplified web platform:

While the platform has the basic features for placing orders, customizing charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). 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.

It should be noted that 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.

VITACAPITALS TRADING CONDITIONS

The Vitacapitals website describes six types of trading accounts with minimum deposits ranging between 250 EUR and 1 million EUR. In comparison, many leading brokers allow the creation of a micro account with amounts below 100 USD.

The only trading parameter listed on the website is the spread, reaching 3 pips for the starter account type. This is about double the industry average. So even if Vitacapitals were to offer true trading, it would be disadvantageous to the investor.

Leverage of 1:200 is set in the trading platform. This in itself indicates that Vitacapitals could not be a licensed broker based in an EU member state like Bulgaria or a member of the European Economic Area like Liechtenstein. 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. The European Securities and Markets Authority (ESMA) and accordingly all EU regulators limit leverage to 1:30 for major currency pairs and even lower levels for more volatile assets.

Vitacapitals  also claims to offer promotions and bonuses, another practice banned by financial regulators in Europe.

VITACAPITALS DEPOSIT/WITHDRAW METHODS AND FEES

Vitacapitals allows you to deposit funds via credit/debit card or cryptocurrencies. Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Sofort.

Nowhere is it stated whether there are transaction fees, but that does not mean that there are no hidden fees. The main problem is that you will hardly be able to withdraw the money you have deposited with Vitacapitals.

Putting aside that it’s not clear exactly which company you’re dealing with, according to the Terms and Conditions on the Vitacapitals website, if an account has received a bonus, it can withdraw funds after meeting traded volume requirements. However, these requirements are not specified anywhere.

If the customer wants to withdraw money without having carried out trading operations, he has to pay as a fee 30% of the net deposit amount, but not less than 80 EUR . If the account is inactive for 90 calendar days, Vitacapitals will charge a fee of EUR 100 and EUR 30 per month thereafter.

HOW DOES THE SCAM WORK

While browsing the interwebs there is a significant chance you will come across comments, videos, social media pages that promise easy ways to passively make money. If you follow the links you will be taken to websites claiming to be legitimate brokers or investment firms. And if you take the next step and make contact with the people behind these websites, you will be contacted by slick and experienced scammers who will lure you in with promises of easy profits. For a while they will convince you that your investment is generating impressive returns and you need to pour in even more money to make sure you don’t miss out on this once in a lifetime opportunity.

However, the attitude towards you will be changed if you want to withdraw your money. Suddenly, it will turn out that your investment makes losses and you even owe money to the fake broker for unexpected fees and expenses. They will show you clauses hidden in the Terms and Conditions, according to which you can only withdraw money after you have traded an impossible minimum volume, or that you will have to pay withdrawal fees of 20%, 30% or even more. When you try to hold them accountable you will find they are using fake names and shell companies in shady offshore jurisdictions without any regulatory oversight.

WHAT TO DO WHEN SCAMMED

Your options to recover your money are limited. If credit/debit cards were used for the transactions, you have the possibility to request a chargeback. But most scammers insist that you send them proof of identity and address with which they can dispute that the transactions were legitimate. Fraudsters also predominantly use cryptocurrencies, where refunds are impossible.

You should also be aware that there are many scammers who offer to recover your money for an upfront fee. You should not trust such offers. It is better to contact the relevant authorities in your country and warn them about the activities of the scammers.

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1 Comment

  1. Everything you write is correct. Invest and lose the the money! That is what happens and happened to me. 12000€ gone.

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