FxCape review – 5 things you should know about fxcape.com

Beware! FxCape is an offshore broker! Your investment may be at risk.

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FxCape wants us to believe that it represents an established forex broker with a global presence. But fact-checking shows that it would be a mistake to trust your money to this website. In this review, we will look at the clues that this is not a legitimate broker, but yet another online scam.

FxCape Regulation and safety of funds

FxCape does not disclose which company is behind this website. There are no Terms and Conditions or a Client Agreement on the website.

If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.

FxCape claims that the headquarters of the unnamed company is in the United Kingdom.

But a check of the British financial regulator’s register leads us to a warning that this website is not authorised to provide brokerage services.

If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA). They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

FxCape Trading software

FxCape implements basic web-based trading software. 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.

While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. 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.

FxCape Trading instruments

In theory, FxCape offers trading in all major asset classes, including cryptocurrencies. But first, as stated there are no guarantees that this trading is real. And second, financial regulations in the UK prohibit brokers who are truly licensed in the country from offering crypto derivatives trading. So this is further proof that FxCape is not what it portrays itself to be.

FxCape Spreads and cost of trading

FxCape promises competitive spreads of less than 2 pips. But this anonymous and unregulated website could not possibly offer real trading. If you want to enter the forex market, it is in your best interest to do so through a licensed and established broker.

FxCape Maximum leverage

Further proof that this website is not a regulated broker is the leverage offered up to 1:1000. It is not possible for a UK licensed broker to offer such risky levels of leverage. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

Another such piece of evidence is the claim that FxCape offers bonuses. Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms. FxCape does not provide clear information about the conditions attached to bonuses.

If you are nevertheless willing to take the risk of high-leverage trading and want to take advantage of bonuses, promotions and prize games, the best option is to use the services of offshore brokers operating under an established brand.

FxCape Deposit and withdrawal methods

FxCape only allows the deposit of funds with cryptocurrencies. This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.

While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.

FxCape Minimum deposit

FxCape specifies a minimum deposit of 250 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

FxCape Withdrawal requirements

FxCape does not provide any information on withdrawal conditions other than a minimum withdrawal amount of 50 USD. Since FxCape 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.