Beware! Forexglobalcap 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.
The cumbersome, chaotic and dysfunctional Forexglobalcap website is the first clear signal that we are unlikely to be dealing with a legitimate financial services provider.
The way Forexglobalcap describes itself is also very implausible – “award-winnig digital investment platform officially registered in the UK, widely used for investments and trades in cryptocurrency, retail foreign exchange, binary option, bitcoin mining, Gold mining, Timber trading, Real Estate, commodity trading and forex marketing”.
There is a lot wrong with these claims, starting with the fact that regulators in the UK have banned binary options and crypto derivatives trading for years. Let’s take a closer look at why it’s in your best interest to stay away from Forexglobalcap.
FOREXGLOBALCAP REGULATION AND SAFETY OF FUNDS
Forexglobalcap claims to be based in one of the global financial hubs, where some of the most stringent regulations for financial service providers are in place. But this website does not even comply with the basic requirement for licensed brokers to provide legal information about the owning company, as well as proper legal documentation. The Terms and Conditions available on the website are far too brief and do not meet the requirements for such a document – not least because they also do not mention which company we are dealing with.
On the home page – which is also the only one – of the website we see a picture of a supposed certificate of incorporation of a private limited company in England and Wales.
This certificate is obviously fake because it has the domain name forexglobalcap.com instead of the name of a legal entity. Furthermore, such a certificate would not authorise a company to offer brokerage services in the UK. A licence from the Financial Conduct Authority (FCA) is required for this purpose. However, when we searched for Forexglobalcap in the regulator’s database we did not find a licence but a warning that this website is not authorised to offer financial services and products.
One place on the website actually mentions a company name – METATRADECAPS LTD – but this appears to be an accidental holdover from copying content from another website. This hunch has been confirmed – there is a metatradecaps.com website which is an identical copy of forexglobalcap.com. Obviously these are projects of the same scammers.
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like the FCA or Cyprus Securities and Exchange Commission (CySEC). As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
FOREXGLOBALCAP TRADING SOFTWARE
On Forexglobalcap’s website we see images of what looks like a common web-based platform. However, we were not able to verify whether Forexglobalcap has any trading software because registering an account requires a reference link. Financial scammers usually pick their potential victims by fishing spam on social networks and forums.
But even if Forexglobalcap had a trading platform, that would not make this website credible. Fake brokers use trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. 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.
FOREXGLOBALCAP TRADING CONDITIONS
Forexglobalcap does not provide information on the specific terms of the many financial services it claims to offer. As noted, among these services we see some that are prohibited for brokers that are indeed based and licensed in the UK – crypto derivatives and binary options trading.
Binary options are financial options that come with one of two payoff options if the contract is held until expiration: a fixed amount or nothing, depending on whether the trader has guessed whether the price of a certain asset will be below or above a certain level at a certain time. This is a very simple way to trade the financial markets, but it is this simplicity that makes it prone to scams and exploits. Binary options trading is banned in a number of major markets such as the EU, the UK and Australia.
Instead of different types of trading accounts like genuine brokers offer, Forexglobalcap offers “investment plans” promising impossibly high returns. The minimum investment is 100 USD. For the same amount or even less, you could register an account with a licensed broker and start trading for real.
FOREXGLOBALCAP DEPOSIT/WITHDRAW METHODS AND FEES
Forexglobalcap makes it clear that it only uses cryptocurrencies as a payment method. This is typical of financial fraudsters because cryptocurrency transactions allow for anonymity but do not allow the defrauded to seek a refund or chargeback.
This intent of the fraudsters behind the Forexglobalcap is confirmed by a clause in the Terms and Conditions that any deposit is to be considered a private transaction between forexglobalcap.com and “qualified members”.
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, GiroPay or Sofort.
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.