Beware! RRRCapital 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.
At first glance, RRRCapital as a licensed offshore broker who offers a good trading platform and okay enough trading conditions. However, we quickly established that this broker has provided a fake license and is in fact nothing more than a badly disguised scam. Do not trade with such enterprises under any circumstances since you will surely end up losing money.
RRRCapital REGULATION AND SAFETY OF FUNDS
RRRCapital claims to be based and regulated in Mauritius and has even provided a license on its website. Mauritius is an offshore location that hardly has the strictest forex trading laws. However, locally licensed brokers still have to meet some basic requirements to earn a Mauritius Global Business License – for example, maintain a minimum capital of between €25 000 and €250 000 depending on the type of services they want to offer. The minimum capital requirements for EU and UK brokers are far higher – €730 000. Australian brokers have to maintain a capital of at least A$1 million while those in the US have to have as much as $20 million to start offering services. You can see how the capital requirements in Mauritius are hardly impressive. However, any sort of license is better than no license.
A quick search of the register of the FSC of Mauritius proved that this broker has blatantly lied about being regulated:
Trading with a company that lies about something as serious as regulation is out of the question – they are surely out to scam you.
Turn to a broker who is actually licensed by CySEC or the FCA – such brokers are indeed reliable because they are under the supervision of strict authorities and are obligated to follow many rules and procedures. In addition to the minimum capital requirements, UK and EU brokers are 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. Client money must be kept separate in segregated accounts – this ensures transparency and speeds up withdrawals but most importantly, it proves that no mixing of broker money and client money would be possible. Negative balance protection is a must if you are a retail client – this means you cannot lose more money than you have in your account.
RRRCapital TRADING SOFTWARE
RRRCapital actually offers access to one of the best trading platforms out there – the well-known MetaTrader 5.
Not only is this software intuitive and accessible but it offers all the features a trader might need. You would get access to a wide array of indicators, graphical objects, and timeframes as well as to many additional features. MT5 allows you to employ Expert Advisors that track markets and trade automatically, develop custom scripts and purchase VPSs. You could also use a multi-threaded Strategy Tester that allows you to export charts and, or set signals for prices going up or down. Finally, you will get access to a community chat, a market for trading apps, and a built-in economic calendar.
MT5 is an amazing platform – but make sure to only trade on the terminals of licensed brokers. Many scammers try to use the platform’s good reputation to lure more customers into their trap.
RRRCapital TRADING CONDITIONS
RRRCapital offers 3 different account types. All of them allow you to trade over 200 trading instruments across various markets – Forex, CFD, Indices, Metals, and Energy. The cheapest account costs $250 – however, the conditions on that account did not particularly impress us.
The broker promised a spread starting from 1.4 pips on EURUSD on its Standard account. What we got was 2.1 pips on the demo account. Considering that some brokers manipulate platforms so that the results on demo accounts seem better, we would not be surprised if this broker offers an even worse spread. In order to get access to a better spread – starting from 0.2 pips – we had to invest in an ECN Pro account that costs as much as $15 000. However, there is an additional commission of $5 per lot that also has to be considered. If this was a legitimate broker, we would still say that the ECN account is worth it. But since we believe this to be a dangerous scam, we cannot recommend that you open an account at all.
The maximum leverage RRRCapital offers is 1:500 on forex majors. Offshore brokers are free to offer any leverage they decide, even dangerously high leverage. That is why it is up to you to be careful with your settings – remember that trading with high leverage could lead to bigger profits and bigger losses alike.
RRRCapital DEPOSIT AND WITHDRAWAL METHODS AND FEES
RRRCapital claims that you will be able to deposit with a credit or debit card, via wire transfer, or in crypto. That was not completely correct – the card option was not available. This is problematic since these sorts of payments are the easiest to get a chargeback on – within 540 days. Legitimate brokers do not assume you will go around asking for chargebacks which is why they usually accept this payment method. Scammers, on the other hand, prefer payment methods that are irreversible – such as wire transfers or crypto. Crypto transactions have the added perk of being anonymous – they can only be traced to a wallet address and not to a specific person or organization. For these reasons, we found it quite problematic that RRRCapital only accepts bank transfers and Tether payments – you would not be able to retrieve your money once you have deposited it.
HOW DOES THE SCAM WORK?
This type of scam is really not that complicated – but it has proven to be quite effective and has managed to trick quite a few people. Given such schemes’ growing popularity, it is important to know how to avoid them – so reading the following paragraphs carefully is vital.
The scam starts with you seeing an ad on the Internet for a certain broker’s website. Such websites usually promise amazing conditions and extremely fast profits – but offer very little in terms of license and company information. However, sometimes scammers can be very elaborate in their promise – so you fall for it and provide them with a phone number or an email. There is another option – they might have stumbled upon your contact details somewhere and are the first to make contact. After that, a game of cat and mouse begins – you will be asked to open an account and make a deposit. Keep in mind that these are professional scammers who convince people to transfer money for a living – they will sweet-talk you into depositing by talking about profits and opportunities.
After that, you might indeed see profits and deposit even more money – but all of this is smoke and mirrors, scammers often manipulate results to make you transfer bigger amounts.
At some point, of course, you would want to withdraw your money – and the problems will start. Additional fees or unfulfilled clauses in the Terms and Conditions will appear, and you will be denied access to your money. At this point, you will probably discover something is wrong – and this is when the scammers will drop out of sight.
WHAT TO DO WHEN SCAMMED?
There are a few things you could do if you discover you have been scammed. Chargebacks are possible in some cases depending on the payment method you have used to deposit. Both Visa and MasterCard allow such chargebacks within 540 days while bank transfers and cryptocurrency transactions are irreversible.
Make sure to change all banking passwords. If you have installed any remote access software, remove it immediately – scammers ask their victims to install such software under different pretexts but their endgame is to just get access to your banking accounts and steal even more money.
Notify authorities and share your story with as many people as possible – the more people know about such scams, the less they will fall victim to fraudulent schemes.
Last but not least – don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam, sometimes even conducted by the same people that stole your money in the first place.