Beware! Green capitalz 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.
Green capitalz is the worst type of scam broker – one that tries to pass as a licensed company by using somebody else’s license information. There is no way we would trust such a broker with our money – and you should not do it either. This is far from the only red flag we encountered while conducting our research – read the review to find out more.
Green capitalz REGULATION AND SAFETY OF FUNDS
Green capitalz is a scam broker that tries very hard to convince you that they are licensed and regulated. The broker states that it is licensed both by the Financial Sector Conduct Authority (FSCA) of South Africa, and by the FSCA in the Commonwealth of Dominica.
We have a few problems with that statement. First of all, the information you can see above was not a separate text on the broker’s website – it was a screenshot which seemed quite suspicious. Second of all, the regulatory authority for the non-banking financial sector in Dominica is not called FSCA but FSU (Financial Services Unit) – and this is a regulator that does not license forex brokers or monitor their activities. This means that Green capitalz could not be licensed in Dominica because no broker can be licensed in that country. This could not be a simple mistake because the broker repeated once again that it is regulated in Dominica in the Terms and Conditions.
On to the claim that this is a broker regulated by the FSCA of South Africa – a fairly reputable and stern financial authority that does license forex brokers and has certain requirements for them. A company with the name Marnic Financial Consultants LTD and with that license number did show up in the FSCA register – however, that company had a different phone number and was not a forex broker at all. Marnic Financial Consultants seems to specialize in insurance services. One of the South African addresses Green capitalz has featured on the website is the same as the one provided by the other company – the other one is not.
It is a huge offense to try and clone a licensed company without being licensed yourself – something Green capitalz is clearly trying to do. The broker is in no way licensed despite what they would have you believe – and they are extremely dangerous.
If you choose to work with a broker regulated in the UK, the EU, or Australia, you could be sure that you will be safe and would not get scammed. The activities of such brokers are closely monitored by reputable authorities like the UK’s FCA, Cyprus’s CySEC, and Australia’s ASIC – those regulators are there to make sure that the broker is conducting business in a transparent, legal manner. There are also many protections for clients of such brokers – for example, you could never lose more money than you have in your account because of the Negative Balance Protection Policy. Licensed brokers are obligated to prove their financial stability by maintaining a capital of at least €730 000 in the UK and the EU, and A$1 million in Australia – but in case that against all odds one of them goes bankrupt, you will be entitled to compensation (at least if you are a client of an EU or UK broker since compensation funds do not exist in Australia). The size of that compensation could be up to £85 000 in the UK and €20 000 in the EU. Finally, client funds are always kept in segregated bank accounts – which promotes transparency and proves that the broker would not be able to reinvest your money elsewhere, and speeds up withdrawals.
Green capitalz TRADING SOFTWARE
Green capitalz offers a web-based platform – one that provides a decent number of charting and analysis tools, and additional features.
And although this platform is not half-bad, we would in no way suggest that becoming a client of obvious scammers is worth it just because they offer a functional platform. Besides, platforms like industry-leaders MetaTrader 4 and MetaTrader 5 are a far better choice – both of those are still user-friendly while also offering access to a full charting and analysis package and many exquisite additional features.
Green capitalz TRADING CONDITIONS
The maximum leverage Green capitalz claims to offer is 1:500 – however, for some reason, we could not see what leverage we personally were trading with. And since trading with high leverage enables you to make far bigger offers and subsequently take bigger risks, it could lead to one of two things – much bigger profits, or much bigger losses. If you want to turn those huge profits, however, you have to be experienced and willing to risk a considerable amount of your capital – trading with a leverage of 1:500 is not for novice traders or for the weak of heart.
The spreads we got on the broker’s platform were around 1.1 pips on EURUSD – which is great, especially considering the fact that supposedly no commissions are charged. However, a decent spread is no reason to turn to a scam broker – some such brokers even try and manipulate platforms so you could think they offer amazing conditions.
Finally, Green capitalz allows you to open an account for $250 – which might sound affordable if you are not familiar with the usual prices in the industry but is actually not that great. There are many licensed brokers who would open an account for as little as $5.
Green capitalz DEPOSIT/WITHDRAWAL METHODS AND FEES
Green capitalz claims on the website that you would be able to deposit using a credit/debit card, or wire transfer – the truth is different. You could indeed transfer money via bank transfer but there was no card option – you could use the electronic payment solution Payeer but the broker seems to urge clients to deposit in crypto. This is a huge red flag – although many legitimate brokers have started accepting cryptocurrency payments, it is only scammers who would favor them. Such transactions are irreversible by default which means you would not be able to get a chargeback on your payment. Wire transfers are also not your best option if you would ever want to get a chargeback – such payments can be reversed but that is quite hard to do. Moreover, Green capitalz reserves the right to block your account and the money you have in it until “an investigation” is carried out.
Moreover, this broker reserves the right to change all of its fees without prior notice – so who knows what sort of crazy fees and commissions might appear in the future.
HOW DOES THE SCAM WORK?
Such scams are rarely very imaginative – they usually follow the same pattern but still manage to trick a lot of people. This is mostly the result of people’s desire for fast, easy profits – something only a scammer can promise you – and poor fact-checking. Always read all terms carefully, and check license information – you should be completely sure you can trust your broker before depositing with them. Getting acquainted with how scams work is also a vital step if you want to avoid fraud.
It all starts with you seeing some sort of ad on the Internet for the broker’s website. You have surely heard of people getting rich by trading, or maybe you just get tempted by the promise of making profits with relatively little effort – scam brokers rarely mention the risks of trading, especially with zero knowledge, or provide you with educational material that could actually help you trade successfully. All you need to do, according to them, is deposit a certain amount of money, and you will see profits soon enough.
But you don’t even need to deposit to set the scam in motion – you just need to provide the scammers with your phone number and e-mail address. After that, they will not leave you alone before you deposit. And such people are well-versed in the art of smooth-talking – they are usually quite convincing and will persuade you to transfer the money in no time. Once you have deposited though, they will keep asking you for bigger and bigger deposits. And you will gladly invest more – because at this point you are probably turning a profit. However, once you try to withdraw those profits, matters will get complicated. The scammer will make up reasons why this is impossible – additional taxes or certain clauses in the Terms and Conditions, often related to bonuses. At some point, you will start figuring out something is wrong – but the scammers will be long-gone with your money by then.
WHAT TO DO WHEN SCAMMED?
Be advised that such stories rarely end with the client recovering their lost money – however, there are still some things you could do to recover it. More importantly, there are some things you could do to prevent further scams.
The first thing you should do is change all your banking passwords to make sure the scammers would not be able to get access to any more of your money. If you have installed any sort of remote access software and given scammers permission to access your computer, make sure to get rid of everything such people had you install. They probably claimed that installing such programs is necessary so they could help you but the truth is they just wanted access to your banking systems.
If you have deposited via Visa or MasterCard, ask your card provider for help – chargebacks are possible within 540 days. Notify the responsible authorities and make sure to share your story with other people – online, and in your circle of acquaintances. The more people know about this type of scam, the fewer people will become victims of scammers in the future.
Finally, don’t trust any company or person claiming they could recover your money for a fee – such “recovery agents” run another type of scam aimed at desperate people who have fallen victims to scam brokers. Sometimes those “agents” are the same people that robbed you in the first place.