Beware! Capital Guru 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.
Capital Guru is a very typical example of a scam targeting people without the necessary experience and knowledge of financial markets. In this review, we will look in detail at the evidence that this is not a genuine forex broker and should not be trusted under any circumstances.
Capital Guru Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
Capital Guru is an anonymous website – no company name is mentioned anywhere. There is no Customer Agreement or other legal documentation on the website to inform us exactly who we are dealing with and what terms we are agreeing to when we register for an account.
This anonymity means that the London contact address given cannot be genuine.
A check of the UK financial regulator’s database confirms that there is no authorised broker using the Capital Guru brand and domain.
Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.
As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK.
Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
Capital Guru Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|Capital Guru platform||✅||❌||✅||❌|
|cTrader||40+ indicators||✅||✅||Android and iOS|
After registering an account, we get access to a pretty basic web trading platform that doesn’t feature extensive customization options or advanced functionality. We’ve seen the exact same platform being used by multiple fake brokers we’ve encountered. Scammers are using rigged trading software to fool their victims into believing that their money is really being invested and even turning a profit.
While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.
Capital Guru Trading instruments
In the trading platform, we see all major asset classes, but the Capital Guru does not provide any specific information on trading conditions.
When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc.
Instead, Capital Guru offers a list of investment plans promising guaranteed profits.
A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.
Capital Guru Spreads and cost of trading
In the trading platform, we see a spread of about 1 pip, which is in line with the industry average. But as pointed out, Capital Guru is not a legitimate representative of the forex brokers.
Capital Guru Maximum leverage
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
The trading platform has a set maximum leverage of 1:500. This is not a level that you see with regulated brokers.
The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
Capital Guru Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Credit card||Instant||24 hours||Not specified|
|Crypto||24 hours||24 hours||Fee depends on crypto|
Capital Guru allows deposits via cryptocurrencies and obscure Russian payment processors.
Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill, Neteller or Sofort.
Capital Guru Minimum deposit
Capital Guru requires a minimum investment of 300 USD. For a much lower amount you could open a trading account with an established and trustworthy broker.
Capital Guru Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Capital Guru||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
Since Capital Guru does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.