GrandCapitalCG.com Review – 5 things you should know about GrandCapital

GrandCapitalCG.com Review – 5 things you should know about GrandCapital

Rating: 1

Beware! GrandCapitalCG.com is an offshore broker! Your investment may be at risk.

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GrandCapitalCG.com is clearly a scam – the broker has not provided clear information about its license or location, does not offer a functional trading platform, and only accepts shady deposit methods you would not be able to get a chargeback on. If you need detailed proof on why this is a horrible investment choice, check out the review below.

GrandCapitalCG.com REGULATION AND SAFETY OF FUNDS

At the footer of its website, GrandCapital claims to be based in Switzerland. In the Terms and Conditions, we stumbled upon an address for a head office in Luxembourg. However, this broker could not be licensed in any of these two jurisdictions since it offers some conditions that would be illegal in both Luxembourg and Switzerland – like extremely high leverage. Moreover, we did not find the broker in the databases of either FINMA (the financial regulator of Switzerland) or CSSF (Luxembourg) – which means that this is certainly not a licensed broker.

In a section of its Withdrawal Policy, GrandCapitalCG.com claimed that it is registered in St. Vincent and the Grenadines – which is far more likely. The local authority of this country does not regulate forex brokers and does not impose any laws in the sphere of forex trading – which is why there is a huge number of scammers currently operating from St. Vincent and the Grenadines. Since GrandCapitalCG.com could not prove that it is regulated elsewhere, we would suppose that this is an offshore broker – which automatically means that they might pose a danger to your investment. If you choose to work with an offshore company, make sure it is a subdivision 0f a renowned brokerage – unlike GrandCapitalCG.com.

Our advice is to work with brokers licensed in the UK, the EU, or Australia instead. Such brokers are under the supervision of merciless financial regulators they are obligated to report to regularly. There are many requirements meant to ensure fairness, transparency, and client safety. All brokers must prove that they are financially stable before obtaining a license and maintain a minimum operational capital of €730 000 in the UK and the EU, and A$1 million in Australia. Negative balance protection is ensured which means you can never lose more money than you have in your account. Finally, all licensed brokers keep client money segregated from their own funds – which proves that the broker cannot use your investment for its own purposed, and keeps your deposits safe in case the broker becomes insolvent. All of these vital safety nets are only available with legitimate, regulated companies – you can forget all about them if you choose an anonymous, offshore broker.

GrandCapitalCG.com TRADING SOFTWARE

GrandCapitalCG.com does not provide access to any sort of trading platform – when we opened an account with the broker, we were urged to deposit and verify our account but were not offered any sort of functional software in exchange. This basically means that you would not be able to trade with this broker and makes opening an account with them completely pointless.

Better check out some brokers who offer leading platforms like MetaTrader 4 and MetaTrader 5. Both of these platforms are highly functional and efficient but also quite intuitive and user-friendly. MT4 and MT5 offer a full charting and analysis package – all the technical indicators, graphical objects, and timeframes you might need – as well as many additional features such as Expert Advisors you could use to track markets and trade automatically, VPSs, a Strategy Tester, the chance to set signals for prices going up or down or to subscribe to those set by other traders, a market for additional trading apps, and much more.

GrandCapitalCG.com TRADING CONDITIONS

GrandCapitalCG.com asks you to invest at least $250 in order to open an account. If we were dealing with a legitimate broker, we would say that this is appropriate if slightly too high of a price. However, we are dealing with a fraudulent broker who does not even offer functional trading software – every price would be too high in such a case. Check out these legitimate brokers who offer accounts for as little as $10 instead.

The broker promised leverage of up to 1:300 depending on the account type and spreads starting from 1.2 pips on the most basic account type. However, without a functional trading platform, talking about spreads or leverage is completely pointless. We would still like to point out that no legitimate broker in Switzerland or in Luxembourg could offer leverage as high as 1:300 – since common European leverage restrictions set the maximum leverage retail traders can get access to at 1:30. Higher leverage can lead to much bigger losses which is why such restrictions exist – always be careful with your leverage settings. If you would like to get access to higher rates, check out some brokers who can offer you 1:100.

GrandCapitalCG.com DEPOSIT/WITHDRAWAL METHODS AND FEES

GrandCapitalCG.com accepts a number of less-than-popular payment methods. You would indeed be able to deposit via wire transfer or in Bitcoin – but if you prefer, you could use payment solutions like TGW, or Wellari, or forward your payment through a crypto exchange like Mirhax. Needless to say, all of these payment methods are less than reliable. You should also keep in mind that if you have deposited via wire transfer or in crypto, getting a chargeback on your payment would be very hard, if not impossible. Bank transfers can technically be reversed but that rarely happens while crypto payments are both anonymous and completely irreversible. The chances of retrieving your money if you have already deposited it with this broker are close to zero.

HOW DOES THE SCAM WORK?

Such scams are not only becoming more frequent but they are also surprisingly effective – which is why the first and most important step if you want to protect yourself from them, is to understand how they work.

You stumble upon a broker on the Internet – that broker promises to make you a rich, successful trader in no time. You are curious to see what forex brokers are all about – after all, you have heard stories of people becoming rich by trading – and provide the scammers with your phone number and email. After that, you would not be left alone before you have deposited – these people are seasoned scammers and will convince you to transfer money in no time.

This will not be enough though – the broker will keep asking for more and more money, and since scammers often manipulate profits and platforms, you might even be happy to invest because you would be thinking that you are turning a profit.

Once you try to withdraw, however, the problems will start – the broker will start denying withdrawals because of certain clauses in the Terms and Conditions, because of previously unmentioned fees and taxes, etc. At this point, you will find out that there is something wrong going on – but the scammers will be long-gone with your money before you can do anything.

WHAT TO DO WHEN SCAMMED?

Do not get desperate and do not employ any so-called “recovery agencies” that promise to track down the scammers and retrieve your money for a fee – this is just another type of scam.

What you should do is notify the responsible authorities in your country and contact your bank to let them know that you have been scammed. Change all your banking passwords and remove all remote access software the scammers had you install under false pretenses – they only wanted access to your computer and your banking systems.

If you have deposited with a Visa or MasterCard card, you might be able to retrieve your money – both card providers allow chargebacks within 540 days of the transaction so contact your card issuer as soon as possible.

Finally, make sure to share your story with as many people as possible to let them know that such scams exist and how they work. This way, others can avoid losing their money in the future.

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