Banex Capital review – 5 things you should know about banexcapital.com

Banex Capital review – 5 things you should know about banexcapital.com

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

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On the Banex Capital website we see the bold claim that this is a broker that “have pioneered and shaped the foreign exchange industry”. It’s pretty doubtful a completely unknown brand has had such an impact on the industry. Closer inspection reveals that Banex Capital provides no evidence that it is a legitimate broker at all, let alone a leading one. There is absolutely no reason to trust your money to this fishy website.

BANEX CAPITAL REGULATION AND SAFETY OF FUNDS

The first red flag is that it is not apparent who is behind this alleged broker. The website does not give the name of a specific legal entity. Banex Capital does not provide access to Terms and Conditions, Client Agreement, Privacy Policy or any other document required by licensed brokers.

The only identifying information is a UK address. But this address cannot be trusted – the UK is a highly regulated jurisdiction where brokerage services cannot be offered by anonymous websites.

In order to operate in the UK, a broker must hold the appropriate license from the  Financial Conduct Authority (FCA). But there is no trace of a company whose name includes “Banex Capital” in the regulator’s database.

If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA). They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

The registration confirmation email mentions a different, offshore jurisdiction – Seychelles. Unlike the UK, the Seychelles has almost no requirements for forex brokers. But Banex Capital is not even listed among the companies authorized by the Seychelles Financial Services Authority. So it remains a mystery who exactly is behind this website. Under these circumstances, it would be extremely unwise to put your money on the line.

If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the FCA. They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

BANEX CAPITAL TRADING SOFTWARE

On the homepage of the website, we see the claim that Banex Capital offers a total of four trading platforms – MetaTrader 4 (MT5), MetaTrader 5 (MT5), cTrader, and its in-house platform.

Account registration gives us access to only one platform – MT5. This is the most widely used advanced trading platform in the industry. But along with genuine brokers, the software has also been used by some scammers in order to deceive their victims that their money is really being invested. We have every reason to believe that this is the case with Banex Capital.

You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customized scripts for backtesting trading strategies.

BANEX CAPITAL TRADING CONDITIONS

Banex Capital claims to offer trading in thousands of financial instruments, including forex and CFDs on commodities and indices. But nowhere is a list of tradable instruments and a comprehensive description of trading conditions provided.

On the home page we see a statement that five types of trading accounts are offered, but we find a description of only three – Standard. ECN and PRO. The quoted trading price is absurdly high – a spread of up to 40 pips combined with a commission of 10 USD per lot. Genuine brokers either charge only the spread or offer a raw spread close to zero combined with a fixed commission. In the trading platform we see a more reasonable spread of 2 pips, but this again exceeds the price you will pay at most legitimate brokers.

The website specifies a leverage of 1:300 and when setting up an account you can choose a level between 1:50 and 1:500. This is further evidence that Banex Capital could not be a licensed broker operating in the UK. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.

The stated minimum deposit is 100 USD. Many leading brands allow you to start trading with even lower amounts.

BANEX CAPITAL DEPOSIT/WITHDRAW METHODS AND FEES

In the deposit menu of the Banex Capital we see options for bank transfer, e-wallet Skrill and the cryptocurrencies Bitcoin and Tether. But it seems the only active option is to send an amount to the specified crypto wallets.

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.

Banex Capital does not provide any information about fees and transaction terms. The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet  withdrawal terms.

HOW DOES THE SCAM WORK

There are many scammers lurking on the internet, luring people with promises of easy riches. These scammers arouse the curiosity of their potential victims through online ads, videos, comments and other content on social networks. Often the initial hook is get-rich-quick tips that link to websites and mobile apps of fake brokers or fake investment firms. After clicking on the ad or downloading the mobile app and having given their contact details, the victims are usually swiftly called by fraudsters presenting a concrete “investment proposal”.

These scammers are very aggressive and often even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers. The fraudsters also try to convince the victims to invest increasingly higher amounts of money. They also make promises of repayment in exchange for one last money transfer. This is a technique to collect even more money from their victims. When you try to withdraw your money, your request is blocked by hidden conditions and huge fees. Fraudsters can also simply disappear because they hide behind fake names and offshore companies.

WHAT TO DO WHEN SCAMMED

First of all, it is important that you do not try to recover your money by trusting people who claim to offer such a service for an upfront fee. These are also 100% scammers. If you used a credit or debit card for the transactions to the scammers, you could ask for a chargeback. But such a claim could be disputed if you provided the scammers with a copy of an ID or proof of address. Scammers usually get their victims to use cryptocurrencies that don’t allow refunds. In any case, it is advisable to inform the relevant financial authorities in your country and spread the word online to warn others not to fall into the same trap.

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