Beware! CapitalBear 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.
CapitalBear presents itself as an offshore forex broker, which in itself is reason enough to be cautious. But in preparing this review, we found only clues that this is not a credible financial services provider at all. Let’s take a detailed look at why it’s in your best interest to stay away from CapitalBear.
CapitalBear 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.
CapitalBear is represented as a trademark of Digital Smart LLC. This company is allegedly based in Saint Vincent and the Grenadines (SVG), but we did not find this legal entity among those registered in this offshore zone.
Even if the owner of this website is indeed based in SVG, this does not provide any guarantee of customer funds.
SVG is an offshore zone with no broker regulations in place. As soon as you open the website of the local Financial Services Authority you see a warning that the institution does not licence forex and other types of brokers and does not supervise the activities of International Business Companies engaged in such activities.
Due to the large number of scammers taking advantage of this lack of regulatory oversight, starting in 2023, the financial authorities in the SVG began requiring international brokerage firms registered in the country to provide proof that they hold the necessary licences in the jurisdictions in which they provide financial services.
If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
CapitalBear Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
After registering an account we get access to a very basic web platform. Furthermore, this is not the forex and CFD trading software advertised on the website, but for binary options trading.
This is a very simple way to trade the financial markets, but it is this simplicity that makes it prone to scams and exploits. Binary options trading is banned in a number of major markets such as the EU, the UK and Australia.
Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
CapitalBear Trading instruments
The website advertises forex, indices, commodities and cryptocurrency trading. But as stated, CapitalBear does not actually have software to facilitate such trading.
CapitalBear Spreads and cost of trading
CapitalBear does not provide any information on the terms of trade it claims to offer. 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.
CapitalBear 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||❌||❌||❌||❌|
High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.
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.
CapitalBear Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Bank wire||2-5 business days||2-5 business days||$25+|
|Credit card||Instant||24 hours||2%|
|PerfectMoney||1 hour||24 hours||2%|
|Crypto||24 hours||24 hours||Fee depends on crypto|
CapitalBear allows deposits with credit cards, cryptocurrencies and some obscure payment processors operating in Asia.
CapitalBear Minimum deposit
CapitalBear requires a minimum deposit of 10 USD. For an equivalent low amount you could open a Micro account with an established brand.
CapitalBear Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|CapitalBear||Not specified||2%||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|
CapitalBear charges a 2% withdrawal fee. Most legitimate brokers do not charge any transaction fees.