Beware! PRB Capitals 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.
PRB Capitals is an unimaginative scam scheme that is best avoided. This is a broker who has already done enough to attract the attention of a reputable financial authority and earn an official warning on its name. We have no idea who is behind this company or how they conduct business – we were not provided with any sort of legal documentation although we were asked to agree to the Terms and Conditions, and were not even allowed to open an account. All we can say at this point is that choosing PRB Capitals over one of the many licensed brokers out there who offer great conditions, would be a stupid mistake you should not make.
PRB Capitals REGULATION AND SAFETY OF FUNDS
PRB Capitals claims to be based in the UK – which automatically means they must be licensed by the UK’s financial regulator, the FCA, if they want to legally offer services. Not only is this not a regulated broker but the FCA – which just so happens to be one of the most reputable financial authorities in the world – has recently issued a warning on the broker. Such a warning should be taken extremely seriously – it means that the broker is probably dangerously, and definitely not authorized to offer services in the UK. It also means that you, as a client of the broker, would not be able to benefit from the many protections and safety nets that exist for traders who have chosen a licensed company.
UK brokers have to meet many requirements in order to obtain a license and keep it. There are reporting requirements – brokers’ activities are closely monitored by the FCA to ensure transparency and fairness. Client money is kept in segregated bank accounts – there are many reasons for that. It proves that the broker would not be able to reinvest your money, speeds up withdrawals, and keeps your investment safe in the event of the broker becoming insolvent. If the broker does become insolvent, you could receive a compensation of up to £85 000 – because all UK-licensed brokers participate in the Financial Services Compensation Scheme (FSCS). The Negative Balance Protection Policy ensures that you could never lose more money than you have in your account. There are also some minimum capital requirements meant to prove the broker’s financial stability – at least €730 000 but possibly more for brokers with many clients. All of these measures turn trading with a UK broker into a very safe affair.
PRB Capitals TRADING SOFTWARE
We were surprised to find out that PRB Capitals – which generally does not seem like the most reliable broker – offers its own MetaTrader 5 terminal.
There is a good reason for MT5 huge popularity in the industry – the platform is both accessible and highly functional. On it, you would be able to get access to 38 technical indicators and conduct advanced analysis but you will also get access to features like Expert Advisors, VPSs, and a multi-threaded Strategy Tester, as well as the possibility to create custom scripts, set signals, exchange strategies with others in a community chat, purchase add-ons on the MT market and much more. This is definitely the platform to try – but we recommend that you try it with one of these licensed brokers instead.
PRB Capitals TRADING CONDITIONS
We were unable to open an account with PRB Capitals – we were supposed to receive a verification email but that email never came. As a result, we did not learn a lot about the trading conditions the broker offers. What we did learn is that the broker offers quite decent spreads – 1.4 pips on EURUSD in the MT5 demo account. However, those numbers could be much different on the real account.
The broker also states that it does not charge a commission on most account types. Only ECN accounts are charged some sort of commission – $7 (per side per lot supposedly). This does seem quite convenient – the price of a pip per lot is usually $10 which means you would be paying $14 per lot traded on a standard account. The price is exactly the same on the ECN account. We cannot say if this was the broker’s intention and the platform was subject to manipulations but with such scammers, you just can never be sure.
Our advice would be to turn to one of these affordable, reliable brokers instead – many of them would ask for $10 or less in order to open a trading account.
PRB Capitals DEPOSIT/WITHDRAWAL METHODS AND FEES
Since we were unable to open an account with this broker, we can only guess what deposit methods it offers. We saw some familiar logos on PRB Capitals’ website – those of Neteller, Skrill, PerfectMoney, Bitcoin, Ethereum, and Ripple. One very likely possibility is that this broker only accepts cryptocurrency payments – which are irreversible and more or less anonymous. If you have deposited in crypto, you would have no way of getting a chargeback – which is why scammers would often urge you to use this payment method. What we urge you to do is not waste your money on this scam, and only deposit in crypto if you are 100% sure you can trust whoever you are depositing with.
HOW DOES THE SCAM WORK?
In this day and age, such scams are far more frequent than you would think. With the rising number of people willing to invest in the forex market, the number of scam brokers has increased drastically. It is important to learn how such scams work in order to spot them and avoid them. Scammers are rarely very imaginative so you would not find a lot of deviations from the following scheme.
In your search for a broker to start trading with, you stumble upon one who promises particularly great conditions. Or maybe you were not even looking for a broker but have heard stories about people getting rich by trading and are tempted to see what all the fuss is about. This particular broker promises fast effortless profits, enormous promotions, and an all-around great trading environment. So you fall for it and provide the scammers with your email and phone number.
The moment you do that, you will start getting calls from the broker asking you to invest – the scammers will be persistent and promise you all sorts of tempting profits. If you give in and deposit, you will be asked for increasingly bigger amounts – and you will gladly deposit because, at this point, you would probably be seeing profits.
The problems will start once you try to withdraw those amazing profits – all sorts of additional fees and clauses in the Terms and Conditions will prevent you from doing so, or result in huge losses of capital. At some point, you will understand that you are being scammed – but the scammers will be long-gone by then.
WHAT TO DO WHEN SCAMMED?
Prevention is key in such situations. Make sure that you choose a reliable brokerage with a solid reputation, and always check the registers of the responsible authorities to make sure that all of the broker’s regulatory claims are true. Do not trust offers that are too good to be true.
If you have, however, already deposited with a scam broker, make sure to look up chargeback options as soon as possible. Both Visa and MasterCard, for example, allow chargebacks within 540 days of the transaction. Getting your money back if you have deposited via cryptocurrency or bank transfer, would not be possible. You should make sure to change all banking passwords, and remove any software the scammers had you install from your computer. They might have you believe that you should install some sort of remote access software to help you trading, or with technical issues but that is a lie – they just want access to your banking accounts.
Make sure to notify authorities about the scam and share your story with as many people as possible – this would prevent such scams from spreading.
Finally, do not trust anyone – usually calling themselves a “recovery agent” – who offers to retrieve your money for a fee. This is just another type of scam.