Beware! Broker 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.
As soon as you open Broker Capitals’ website, you’ll see them claiming that it’s a fully-regulated online trading platform with elaborate research tools and a handful of helpful features. However, their assertions are a far cry from the truth, and just a spoiler – Broker Capitals is not regulated, it’s an exposed scam! More details are available in the following review.
Broker Capitals Regulation And Safety Of Funds
As mentioned, Broker Capitals is an officially confirmed scam – the Italian regulator CONSOB blacklisted the so-called broker, which outright proves it’s fraudulent! Trustworthy financial authorities regularly update their lists with unauthorised entities, and it goes without saying that any broker with a warning on its name should be avoided.
However, even without warning, we would still advise against trading with Broker Capitals for one very significant reason! As you can see from the above screenshot, Broker Capitals is a brand of Broker Capitals Limited – a company registered in the tax haven St. Vincent and the Grenadines. The country is an offshore zone that allows the registration of international business companies with undisclosed ownership, meaning that Broker Capitals is practically a fully anonymous broker! What’s more, the local regulator SVGFSA does not license and regulates Forex brokers, so each one registered on the island can actually do whatever it wants to do, bearing no responsibility for its actions. Simply put, the offshore registration makes it possible for Broker Capitals to scam you and get away with it!
For that reason, we always recommend regulated brokers only! For example, both CySEC (Cyprus) licensed brokers and FCA (Britain) brokers are proven safe as both authorities force strict regulations to guarantee safety for clients’ funds. The compulsory rules include client account segregation, risk-reducing measures like leverage restrictions and negative balance protection, and increased capital requirements to license a broker (€730 000). Most importantly, though, both authorities maintain deposit insurance funds – clients of CySEC brokers can claim up to €20 000 in compensation, while the UK protections are even higher at £85 000 per person! It goes without saying that if you trade with unregulated brokers, you’ll remain unprotected and exposed to fraud risks!
Here is the warning exposing Broker Capitals as a scam:
Broker Capitals Trading Software
Broker Capitals claims it has an award-winning platform, but that’s a lie! In reality, the so-called brokerage only provides a poor Webtrader that’s not even close to the industry leaders MetaTrader4 and MetaTrader5. Both have gained a solid reputation for their stability and the sophisticated features they can provide, such as automated trading and analytical tools, many complex indicators, and thousands of third-party-developed apps found in the in-built marketplace. Broker Capitals’ Webtrader can provide none of it, and we consider it dangerous as there are no guarantees that the platform’s servers are secure at all! So, with or without warning, we would still recommend that customers should stay away solely because of the inferior trading software!
Broker Capitals Trading Conditions
The asset classes available for trading are Currencies, Stocks, Cryptos, Indices, Commodities, ETFs and Synthetic derivatives.
The trading costs are practically impossible to calculate as Broker Capitals’ platform reveals no spreads. That’s a ridiculous situation, but it is what it is – the so-called brokerage keeps Buy/Sell difference concealed, which is a very major red flag! If you look at the screenshot below, you’ll see only one price when there should be two of them – Buy quote and Sell quote! That’s a scam!
The leverage can allegedly reach 1:1000, which is a rate with enormous profit potential, but at the same, it increases trading risks dramatically! What’s most important, though, is the fact that the leverage ratio is in direct conflict with some of the brokerage claims. Namely, Broker Capitals says it’s EU regulated broker, but the maximum leverage allowed in the Union is 1:30! Hence, the 1:1000 leverage alone proves there is something wrong with Broker Capitals! We know what it is – that’s a scam!
Broker Capitals Deposit/Withdraw Methods And Fees
The minimum deposit with Broker Capitals is $200, which is a tolerable requirement, but it’s still twice as high as the industry standard of $100. Not to mention that many brokers are now accepting clients for as little as $5, which turns Broker Capitals into expensive brokerage!
The funding methods are allegedly Credit/Debit cards, but that’s not the whole story. Yes, it’s true that customers can deposit via bank cards, but each transaction is processed by fishy wallets like Cardpayz and Paypound, both of which were previously exposed as scam facilitators. The scheme works in this way: customers are forced to buy crypto with their cards, then they should deposit the crypto with Broker Capitals, and when the procedure is complete, chargebacks become practically impossible! Needless to say, the deposit system itself waves a major red flag and more or less proves that Broker Capitals is a scam!
Information about withdrawals is scarce, but it’s anyway irrelevant as we already know that Broker Capitals is an officially exposed scam – it does not send money to customers! Still, we should note that Broker Capitals claims some entity called Magna Markets (magnamarkets.com) is the one allegedly processing withdrawals, but this detail changes nothing whatsoever.
And lastly, we’d like to demonstrate how brokers use malicious clauses to put clients in unfavourable positions. One such clause is the Inactive and dormant account and procedures, which you can clearly see below. According to it, an account becomes dormant after only 30 days of inactivity and will be subject to a $50 handling fee. Broker Capitals fails to specify whether the charge incurs just once or every month, but either way, a $50 dormant fee is a midday robbery! Beware!
How Does The Scam Work
Forex scams are different from one another, but in most cases, the fraudulent scheme is practically carried out in the same way. Scam brokers are always unregulated and usually registered somewhere offshore, which helps scammers remain anonymous and untraceable. If you open an account with such an entity, you should expect endless phone calls. Scammers will constantly try to approach you and make you deposit money as quickly as possible. Remember that urgency is always a treacherous sign, so it’s probably a scam if someone calls you twenty times per day, asking for money.
In the worst-case scenario, you’ll deposit, and scammers will persuade you to trade instead of you. You’ll soon see magnificent profits generated – false, of course, and you’ll get excited, asking to take your money back. As you probably guess, they won’t let you do so and will try to get another deposit from you, promising that much more lucrative gains are waiting. Or, they can ask for a false tax, saying that withdrawals are only possible if you cover the charge in advance. If you pay, you’ll increase the amount stolen from you, but if you keep asking for your money, you’ll soon realise it’s a scam!
What To Do If Scammed
You should first inform the authorities – call the police and contact your local regulators and other government bodies dealing with crime and fraud. Also, deactivate your cards ASAP and call your bank to inform them about what happened – they can provide essential information and help you reduce further financial damage.
If you deposited cryptocurrencies, there is not much you can do, but if you used your credit/debit cards, you could file a chargeback, hoping that all or some of the money invested can be retrieved. However, you shouldn’t go blindly looking to recover the loss because many fraudulent chargeback agencies are waiting to double-scam victims of fraud – be cautious about it!
And lastly, consider sharing your experience to help protect others and provide further information about how scams work!
