Beware! Eurasia Capital Forex 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.
Eurasia Capital Forex is a forex broker based in Mongolia and focused exclusively on local clients. The website is only partially available in English. Although the broker accepts clients from other countries, there is no good reason to use the services of this company if you are not a resident of Mongolia. Trading conditions are not defined in detail and in a standard way, and the country’s legislation does not provide the protections and safeguards enjoyed by retail traders in jurisdictions with more established regulations.
EURASIA CAPITAL FOREX REGULATION AND SAFETY OF FUNDS
The broker is owned and managed by Eurasia Capital Holding, a company registered with the Financial Regulatory Commission of Mongolia and listed in Mongolian Stock Exchange. Although the company’s registration and long existence give us confidence that we are not dealing with fraudsters, Mongolia is not known as a financial centre.
If you intend to invest in financial instruments, it is advisable to use a broker licensed in a country with a developed financial infrastructure and legislation. Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
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.
Eurasia Capital Forex only promises its clients negative balance protection. To provide liquidity and technological solutions, the broker has partnered with Swiss online bank Dukascopy Bank, which focuses its operations in the Asia region.
However, there are no Terms and Conditions, Customer Agreement or any type of legal documentation on the Eurasia Capital Forex website. We could not recommend putting your money on the line if you do not have clear information on what the terms of the deal are.
EURASIA CAPITAL FOREX TRADING SOFTWARE
Eurasia Capital Forex offers a little-known trading software – JForex. The platform is available in Windows, Linux, mobile and web versions. Here’s what the desktop version looks like:
The platform’s basic functionality is comparable to that of the leading platforms in the industry – multiple technology indicators, charting tools and the ability for automated trading. The most widely used platforms in the industry are 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.
EURASIA CAPITAL FOREX TRADING CONDITIONS
As mentioned, Eurasia Capital Forex does not provide access to Terms and Conditions. The broker also does not offer different account types for trading, which is standard industry practice.
Eurasia Capital Forex claims to offer trading in over 500 trading instruments across eight classes – forex, cryptocurrencies, indices, stocks, bonds, energy, commodities and ETFs. But nowhere do we find a comprehensive list of tradable instruments, nor detailed information on trading conditions. The website has only limited information about the parameters of forex trading.
The base currency of the account can be USD, AUD or GBP. The minimum deposit is 100 USD – an amount for which you could open a starter account with many leading brokers.
Eurasia Capital Forex’ trading account is an ECN – which means a low spread combined with a fixed commission. In the auction platform we see a spread of 0.3 pips for the benchmark currency pair EUR/USD.
Standard practice is for the broker to charge a commission per standard lot traded. But Eurasia Capital Forexapplies a different scheme. According to the limited information available on the website, the client must choose between a commission based on trading volume or a commission based on net deposit. Accordingly, a higher traded volume or a higher deposit guarantees more favourable conditions.
The base commission applies to a volume of less than 5 million currency units or a deposit of less than 5,000 USD. It amounts to 52 USD per 1 million USD traded, i.e. 5.2 USD per standard lot.
Theoretically, this is quite a competitive level, but the atypical commission scheme and the lack of a detailed description of the conditions leave some doubts.
Eurasia Capital Forex offers a leverage of 1:200. This is a very risky level that you can only find with offshore brokers. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
EURASIA CAPITAL FOREX DEPOSIT/WITHDRAW METHODS AND FEES
Eurasia Capital Forex does not provide any information on the payment methods used and the fees and conditions for deposit and withdrawal. Most brokers offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.
BOTTOM LINE
Eurasia Capital Forex might be a good choice for Mongolia residents, but for everyone else there are better and safer options to invest their money.
