Nexta Capital FX review: 5 things you should know about nextacapitalfx.com

Nexta Capital FX review: 5 things you should know about nextacapitalfx.com

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

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Nexta Capital FX is an offshore broker that lies about being globally regulated. Not only that but there is an official warning from the UK’s Financial Conduct Authority (FCA) that this broker is an unauthorized firm and therefore is not to be trusted. If this isn’t enough, just note that Nexta Capital FX offers too high a minimum deposit and doesn’t provide clear information about its trading conditions and payment methods. Keep reading for more details on why we think that Nexta Capital FX is a scam firm.

Regulation and safety of funds

On its website Nexta Capital FX claims to be situated in Massachusetts, the US and also to be operating from the company name of Nexta Capital FX ltd.

As you probably know, every broker, registered in the US, must be a member of the National Futures Association (NFA) and also should be regulated by the Commodity Futures Trading Commission (CFTC). We carefully checked the registers of these institutions and Nexta Capital FX wasn’t on them. So obviously it’s not a member of NFA as it shamelessly claims to be, nor is it supervised by CFTC. Take a look:

Nexta Capital FX also boldly states to be globally regulated and lists some of the most popular financial institutions in the world – like the Financial Conduct Authority (for UK), BaFin (For Germany), CNMV (for Spain) and a lot more. It even displays some fake license numbers. We looked at the registers of all the institutions listed by Nexta Capital FX, but the broker isn’t granted a license by any of them. Not only that it isn’t authorized by any of the financial regulators, but it turned out that there’s an official warning by the Financial Conduct Authority (FCA), which states that Nexta Capital FX provides its financial services in the UK without their permission. See for yourself:

As you see Nexta Capital FX is a scam firm that operates on the financial market against the law and therefore is not to be trusted. It also lies about its regulation and credibility. In case you consider investing with them, note that you most certainly put your funds at risk.

Nexta Capital FX also mentions one more “regulator” in the United States – US Financial Services Authority (UFSA). In fact such institution doesn’t exist at all. Without a doubt Nexta Capital FX wanted to hide the fact that it’s not regulated in the US and therefore made up the whole thing.

Dealing with such an unregulated firm hides a lot of danger for your funds and personal information as well. It’s always for your best to invest with reputable brokers that have a legit forex license. Doing so you make sure to benefit from better trading conditions and be calm that your money is safe. Regulated brokers offer their services under the supervision of certain authorities, so the chance to be scammed is practically equal to zero. Not to mention that very few firms can really be granted a forex license, because of how strict and tough the requirements are. Let’s see some of the most important guidelines that regulated brokers follow.

Firstly, in order to get a license, a broker must have a minimum net capital that is not used for the operational needs of the company, but only serves as a guarantee for its financial stability. The amount is different depending on the country. For example for the EU and the UK the minimum capital is 730 000 EUR, whereas for the US its the impressive 20 000 000 USD.

Secondly, brokers in Europe must participate in a client compensation scheme designed to insure all client’s funds for up to a certain amount. This means that in the unlikely event of bankruptcy a relevant authority can step in and compensate the trader. The amount payable differs according to the country – in the UK the Financial Services Compensation Scheme (FSCS) can compensate you for up to 85 000 GBP. In Europe on the other hand the amount is up to 20 000 EUR in most of the countries and even higher in some countries like Greece (30 000 EUR) and France (70 000 EUR). Brokers in Australia and the US are not obligated to take part in such guarantee funds.

Of course your safety is one of the top priorities that are set by financial regulators. For this reason customers’ funds are kept in segregated accounts, apart from the company’s own money. This way it’s 100% sure that they are safe from being stolen or misused.

Trading software

On its website Nexta Capital FX claims to be offering the industry standard MetaTrader 5. After we registered however we got access to a completely different type of platform. See for yourself:

As you can see this is a very simple web-based chart that has nothing to do with MetaTrader 5. In fact it is a basic third-party chart of Trading View that offers only standard indicators and tools, but nothing more advanced or interesting.

So not only that Nexta Capital FX openly lies about offering MetaTrader 5, but as a top of that it provides a very insufficient trading chart that doesn’t have any benefits at all. It is typical for scammers like the one we are dealing with to mislead you with false information just to make you register as soon as possible. Unfortunately with fraudsters like Nexta Capital FX you’ll come across countless bad surprises like the one with their trading software.

We advise you to always look for reputable brokers that offer MetaTrader 4 or MetaTrader 5 for real, since these platforms truly surpass all the competition and can give you endless trading opportunities.

Most reputable brokers usually rely on more sophisticated trading platforms like MetaTrader 4 and MetaTrader 5. They are proven to be the best piece of software for trading purposes nowadays and have been downloaded by millions of people so far.

MetaTrader 4 and MetaTrader 5 happen to be the most popular trading platforms around the world. Both brokers and traders praise them for a good reason, mainly because of how secure and stable they are. You can always rely on them to execute your orders promptly and efficiently. Not only that but all the essential information such as transactions and your IP address is encrypted.

MetaTrader 4 and MetaTrader 5 have some outstanding features but the best one according to traders are the Expert Advisors. These bots have one particular task – to search for certain conditions and to start trading the moment they find them. A truly unique feature that only MT4 and MT5 can brag about.

MetaTrader 4 and MetaTrader 5 are perfect for beginners as well for more advanced traders. You can keep your knowledge up to date with a variety of educational resources and daily forex news. They are also very easy to navigate – you don’t need any previous experience in order to use them. MT4 and MT5 can be downloaded on different devices like PCs, smartphones and tablets.

Unfortunately not long ago Apple removed both of them from its AppStore so MT4 and MT5 can’t be downloaded on Android devices anymore. We really hope this measure is temporary. As for the users that have already downloaded the app, they can continue using it but without any future updates or upgrades. MetaTrader 4 and MetaTrader 5 can still be installed through Google Play Store.

Trading conditions

Nexta Capital FX offers several account types, as the basic one requires a minimum deposit of 300 USD. This is a standard amount to be honest, however investing with such a scam firm isn’t worth the risk. Most reputable brokers tend to offer a minimum deposit of 250 USD, or even less – sometimes you can open a micro account with 10 USD. Take a look at some of their account types:

Nexta Capital FX also promises a spread of 1.9 pips, but again, given the fact that this broker is absolutely unlawful and doesn’t follow any rules, we don’t believe anything they might claim.

As you probably know, any spread between 1 and 2 pips is very advantageous as it comes with lower trading costs, whereas a spread higher than 2 pips is more costly for sure. Scammers like Nexta Capital FX know how important the spread is for your trading, therefore they usually lie about its amount. As soon as you register on their website, you might find out a much higher level of spread.

Nexta Capital FX doesn’t give any information about its leverage – also very important information that every regulated broker would normally display on an easily seen place on their website. In this case we don’t know what kind of leverage we can benefit from.

Bear in mind however that there’s a leverage cap of 1:30 for the EU. In the US the leverage is also limited to 1:50, because of the associated risk of trading with a higher amount. A lot of the offshore brokers offer a leverage of 1:100 and even more, which is very tricky and even dangerous, but as we know – scammers don’t care for your safety of funds at all. It’s very probable that Nexta Capital FX also offers too high a level of leverage, so be cautious.

Deposit/Withdrawal methods and fees

On its website Nexta Capital FX doesn’t mention anything about the payment methods it accepts. This is not a good sign already, as most trustworthy brokers usually say what payment options you would have even before opening an account with them.

Only after we registered on the website of Nexta Capital FX were we able to see what are the options for making a deposit with them. It turned out that the only possible method is crypto coins – a clear sign that you are dealing with scammers. See for yourself:

This is typical for scam brokers – they usually ask for crypto payment for two particular reasons.

First paying with crypto coins like Ethereum and Bitcoin is proven to be absolutely irreversible. So even if you realize you’ve been scammed, there’s nothing you can actually do to return your money. This type of payment is also known to be 100% anonymous, as you don’t know to whom the transaction is made. One more explanation why you can’t take any actions towards recovering your stolen funds.

On the other hand most of the regulated brokers usually offer a wide range of payment methods to choose from. For example traditional payment methods like Visa/ Mastercard, popular e-wallets like Paypal, Skrill and Neteller and cryptocurrencies can all be possible options. Except the crypto coins, all of the above-mentioned transactions give you a possibility to retrieve your money – you can file for a chargeback (credit/debit card) or open a dispute (e-wallets).

In the case of Nexta Capital FX it’s obvious that this offshore broker is trying to deceive its customers. Given the fact that there’s a warning against it by a reputable financial institution and also considering the payment method it offers, the best advice we can give you is to stay away from it completely.

How does the scam work

Never underestimate online scammers as they happen to be unexpectedly inventive and come up with different ideas on how to deceive people literally every day. Most importantly, remember that offshore brokers don’t have any intention to actually invest your money and don’t care about your prosperity. Their only goal is to make you invest as much as you can and then drop out of sight completely (with your money of course). There are some techniques that are a red flag, so if you come across them, just flee as fast as you can.

Firstly, scammers would try to reach out to you via email or phone, so providing such information carefree is not a good idea. If they succeed in getting this material however do expect a lot of phone calls and emails that contain their promise to double your investment – “risk-free” indeed.

They might also guarantee a very high return on investment without any hard work from your side. This sounds ridiculous already – any investment on the forex market holds more or less risk and requires some knowledge. In fact regulated brokers are obligated to post a warning about trading risks on their websites.

The next step in scammers` fraudulent practice is to manipulate their trading software and make it look as if your funds are being invested and you make huge profits at the same time. This is also a lie with no doubt. Scammers just want to make you invest a “little more” again and again and will take advantage of you as much as they can.

They might also offer some kind of welcome bonus just to make you get in the game. Note that such bonuses come with strings attached – a very high volume requirement you certainly won’t be able to achieve. Not only that but reputable brokers in the EU are restricted from offering such bonuses or promotions exactly because of this malicious practice.

Unfortunately most people realize that all of the above is a lie when it’s too late. Once you try to withdraw any funds from your account you will find out that this is impossible. First however scammers might ask for a certain fee upon the withdrawal request – 10% or even 20%. Note that most reputable brokers don’t ask for a fee at all. Anyway, there’s no point in paying this fee, because even if you do, you still won’t be allowed to withdraw your money. Therefore you may end up losing everything.

What to do when scamed

Certainly there are some Dos and Don’ts when it comes to online scam.

Your first move has to be to turn to the bank that issued your credit or debit card in case you paid with one and file for a chargeback in 540 days. If you have used Skrill, Neteller or PayPal you can also open a dispute. Unfortunately crypto transactions are irreversible and anonymous as we already said, so they are not eligible for a chargeback.

It’s also 100% sure that you shouldn’t turn to people on the internet who suggest restoring your stolen funds in exchange for a certain fee. These people are most probably also fraudsters, so don’t take the risk of losing even more money!

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