Beware! This 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.
FXCMCapital uses a blatant and obvious copy of the name of one of the most renowned brokers in the industry, FXCM, but just adding “capital” in the title. This is a definite rip off, and a shameless approach to promoting your brokerage. We had little expectation for FXCMCapital at the beginning, but when we figured the issue with the title, our expectation fell even lower. In the end, FXCMCapital turned out to be yet another questionable broker for the pile.
The sign up process is compromised of 4 fields to complete. There is nothing more to it. However, once we registered, the user area revealed a message saying that there is a large amount of traffic on right now.
However, that did not stop us from exploring the simple and dull client portal. We accessed a web trading platform, the MT5. However the servers on both the web-MT5 and its desktop counterpart were under a different name, which has nothing to do with the broker, a brconsulting. What this essentially means is that the trading conditions on the MT5 are not applied to FXCMCapital. Another way to see this is that FXCMCapital has stolen the right to use this third party firm’s trading servers.
What’s left are trading conditions that have nothing to do with the reviewed broker. So any of the spreads, leverage, and assets on the website don’t really apply to the FXCMCapital experience.
The website can be accessed in English only.
FXCMCAPITAL REGULATION AND SAFETY OF FUNDS
The Terms and Conditions claim that the company functions under the laws of Gibraltar, a country more associated with online gambling than forex brokers.
However, that does not mean that there is no FX regulator. The Gibraltar Financial Services Commission is the only local entity that authorizes forex brokers. Needless to say, FXCMCapital was not present in the registry of licensed entities on the regulator’s website.
Seeing that there is no other concrete info concerning a license, we have to conclude that this broker DOES NOT HOLD A REGULATION, and is therefore a risk to all investors.
There is no reason at all to invest in an unregulated broker. The best advice there is, concerning the choice of a broker, is to always check for a license. If the broker has an FCA and CySEC license you are off to possibly the best start, as these are some of the top regulators in the industry. Usually, legitimate FX overseers integrate a set of rules to each of its listed brokers. Brokers form an agreement with them to follow very strict guidelines. Furthermore, some agencies, like the FCA or CySEC, have compensation schemes that reimburse clients whose brokers have become insolvent. As you can see, a regulated broker benefits not only the brokerage itself, but the traders as well.
FXCMCAPITAL DEPOSIT/WITHDRAW METHODS AND FEES
The user portal area reveals no payment information because, as we debriefed in the introduction, the broker is apparently experiencing heavy traffic. So, all payment details will be taken from the website, which is a source that we do not fully trust, due to the firm’s lack of legitimacy.
As per the website, funding methods are credit cards, debit cards, wire transfer, and cryptocurrency. The minimum deposit according to the Account page is $300.
We assume that the withdrawal payment methods are the same as the ones used for funding an account. The total time it takes for a withdrawal amount to reach an account is up to 7 days. The minimum amount allowed for withdrawal is €100. In typical illegal broker fashion, all many of the fees have not been explained. However, it seems that there are no fees for withdrawals.
Nevertheless, users should not invest in this one. There is absolutely nothing to gain from doing so. In fact, clients will only lose!
How does the scam work?
If things feel uneasy or suspicious, then you are probably being scammed. Most fraudsters adapt the same scam structure, however, they might add their own little nuances. The point is, that if you think you are in a scam, then you probably are!
The first step is the online ads. These annoying pop-ups or side distractors are the essence of scammer brokers. It’s through them that the user is lured into the fake broker website. The link of the ad leads to a website or a registration form. Both require the user to write down his or her personal details, like email and telephone number. Do not give these away. The scammers will contact you if you give these details away, and will sooner or later try to charm his/her way into your wallet, by asking you to deposit.
After a deposit is made, and hopefully it isn’t, then the first step of the same is complete. The following step concerns the account manager, a.k.a the advanced scammers. These individuals are charming convincers, and if they succeed, it means that you have deposited a second time. This can go as long as the user keeps depositing. When suspicious arises, one of these things will probably happen: the broker will delete the account of the user without a reason; the broker will not allow for withdrawals, or the broker will keep finding ways to stall withdrawals.
What to do if scammed?
Filing for a chargeback is the best advice. VISA and MasterCard have prolonged their chargeback time span to 540 days.
If the deposit is made through wire transfer, then change your user name and password as soon as possible. Another step is to contact the bak as they might have a specialized procedure for such cases.
Another crucial advice: NEVER deposit in unregulated brokers through bitcoin or any other form of cryptocurrency. These payment methods are untraceable, meaning that once a deposit is made, it cannot be traced. The money is lost.
Last but not least. recovery agencies are definitely a scam. These programs, or whatever they call themselves, offer help for defrauded users…for a price. Once the fee/tax is collected, these agents disappear, leaving you at a bigger loss.