Beware! Fxsmartcapitaltrade 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.
Fxsmartcapitaltrade claims to be a “distinctive investment company offering our investors access to high-growth investment opportunities in Bitcoin markets and other services” that aims to “implement best practices of trading”. All of this sounds great – but this broker is nothing but a scam. A reputable financial regulator has issued a warning to the broker and stated that they are not allowed to offer such services under their supervision. But this is far from the only problem – Fxsmartcapitaltrade asks for a huge minimum deposit without actually offering a functional trading platform and only accepts crypto deposits that you would not be able to get a chargeback on.
If you would like to trade safely and turn a profit, better stay away from this broker – they are as far away from a reliable investment choice as possible.
Fxsmartcapitaltrade REGULATION AND SAFETY OF FUNDS
Fxsmartcapitaltrade stated that it is based in the UK and regulated by the local financial regulatory body, the FCA. The problem was that when we checked the regulator’s database, we did not find any company or broker with this name. What we did find was a recent warning issued by the FCA on this specific broker:
Such a warning is definitely to be taken seriously. It means not only that this is an unauthorized company the clients of which would not be entitled to any protections but also that they are most probably running a vicious scam. Trading with unregulated enterprised is a risk you should not even consider taking.
We would advise you to turn to a regulated UK, EU, or Australian broker instead – this way, you could be sure that there is a strict authority making sure that you are being treated in accordance with all laws, and that certain procedures are being followed. Licensed brokers in these regions are obligated to keep client money segregated which means that you would not lose your deposits in case of unfortunate events, speeds up withdrawals, and serves as proof that the broker would not be able to use your investment for their own financial operations. Negative balance protection is provided – the losses you could suffer could only be as big as the amount of money you have in your account. UK, EU, and Aussie brokers must also maintain a minimum operational capital to prove their financial stability – €730 000 in the UK and the EU, and A$1 million in Australia. All UK and EU brokers are also obligated to participate in compensation funds – if such a broker goes bankrupt, each of their clients could receive compensation of up to £85 000 in the UK and €20 000 in the EU (compensation funds don’t exist in Australia at the present moment).
Trading with a regulated broker comes with countless merits and protections – opt for such a company instead of putting your money in the hands of scammers.
Fxsmartcapitaltrade TRADING SOFTWARE
Fxsmartcapitaltrade does not offer any sort of software you could use for actual trading – this broker urges you to deposit while only offering a TradingView chart. This is a type of market-tracking software that can definitely not be used for trading and that can be freely accessed on the Internet – you hardly need a broker in order to check it out. In the end, we are forced to conclude that you would not be able to trade with Fxsmartcapitaltrade – which makes opening an account with them completely pointless.
Check out some legitimate brokers who offer MetaTrader 4 or MetaTrader 5. The MT software has been reigning over the trading world for decades and is unrivaled in popularity. The reasons for that are simple – the software is user-friendly and provides access to both a full charting and analysis package and countless additional features such as Expert Advisors, Strategy Testers, VPSs, and signals you could set (or subscribe to those set by others), custom scripts creation functions, a market for add-ons, etc.
Fxsmartcapitaltrade TRADING CONDITIONS
Since Fxsmartcapitaltrade does not offer a trading platform, talking about spreads and leverage also becomes pointless. Moreover, they have not mentioned anything about additional fees and commissions which means that you might be forced to pay huge amounts of money at some point. One thing that the broker did mention was that the minimum amount of money required to open an account is $1000 – which is outrageous. Most legitimate brokers would not ask for more than $250 but many offer Micro accounts for as little as $10.
Fxsmartcapitaltrade DEPOSIT AND WITHDRAWAL METHODS AND FEES
Fxsmartcapitaltrade says that it accepts deposits in Bitcoin and Ethereum, or via Skrill. However, when we tried to deposit with Skrill, we found not only that we would be forced to pay a huge fee ($25 plus 2.25% of the transferred amount) but that this was impossible. The broker immediately redirected us to their Bitcoin payments page.
The reason why scam brokers would often urge you to deposit in crypto and offer no alternatives is simple – such transactions are both anonymous and irreversible. This means that you would not be able to retrieve your money unless the scammers decided to send it – which, of course, would never happen.
HOW DOES THE SCAM WORK?
Scams like this one are becoming more and more prominent – they rely on people’s desire to make fast money without putting a lot of effort in. That is why it is important to know how you can tell apart a fully legitimate broker from a scammer and learn more about how such scams generally function.
All brokers promise certain things and try to advertise their services to their best capabilities – but all legitimate companies also provide statistics on how many people have lost money while trading with them. Scammers, on the other hand, promise guaranteed fast profits and a life of luxury. You will probably stumble upon the scam broker’s website randomly – or you might be pursued via phone or e-mail and asked to open an account. Maybe you have heard of people earning a living by trading – so you decide to set up such an account. The moment you provide the scammers with your phone number or email (if they have not already obtained it somehow), they will not leave you alone before you make an investment. These are professional smooth-talkers who scam people for a living – which means that they can be very convincing. Once you have made your first deposit, the scammers will ask you for bigger and bigger sums. You might even be happy to deposit more money because at this early stage, you will be turning a profit – scam brokers are good at manipulating results to make it seem like you are doing great.
The problems will start the moment you try to withdraw those profits – the broker will start making up reasons why this is impossible. – Usually, new, shady clauses in the Terms and Conditions will appear – you might be asked to reach some unattainably high turnover threshold or pay a high withdrawal fee. At some point, you will figure out something is wrong – and that is when the broker will stop answering your calls and e-mails and just disappear.
WHAT TO DO WHEN SCAMMED?
We should warn you that the chances of you getting your money back if you have already been scammed are slim -prevention is key in the world of online brokers. Choosing a legitimate company that holds an official license and has proven its reliability is essential. There are, however, still some things you can do if you have already been scammed.
Make sure to notify your bank that you have been scammed. Change all the passwords you have provided the scammers with. If you have given them remote access to your computer, remove the software immediately. Scam brokers usually claim that you need to install such software so they could help you with software set-up – or even help you trade – but their actual objective is to get access to your banking systems and steal even more money.
If you have deposited with Visa or MasterCard, ask for a chargeback immediately – both card providers allow such chargebacks within 540 days.
Notify the responsible authorities, and share your story with as many people as possible – this way, more people will know about such scams and learn how to avoid them.
Finally, don’t trust any “recovery agents” promising to retrieve your money for a fee – this is just another type of scam targeting scam victims. Often enough, the recovery agency is run by the same people who scammed you in the first place.