Finance Capitalfx Review: Is It a Trustworthy Broker?
Finance Capitalfx review, starts off with a straight-up fact that this fraudulent broker is all but trustworthy and legitimate. Each section of this honest review will shed light on why you should do your best to avoid Finance Capitalfx and the like. But first, here’s a table with basic information and key facts:
|Headquarters||504, 79 Athinon Street 3040 Limassol, Cyprus|
|Broker Type||Forex, CFDs|
Judging from the table, there are quite a few things that need to be addressed such as leverage, the minimum deposit, and the trading platform, but more importantly, the lack of regulation, which will be the topic of the next section.
Working with unlicensed brokers, such as those described in the following paragraph, has the same risks as AdarCapital, Coinmercefx, and FNZ Europe.
Finance Capitalfx License and Regulations
On its official website, Finance Capitalfx states it is part of FinanceCapitalFX Cyprus Ltd. However, upon checking the address posted at the bottom of the website, we’ve found out that there is actually no entity named Finance Capitalfx registered at that address. This is the first sign that the broker is an outrageous scammer.
Here’s one more piece of evidence of fraud found in its Terms and Conditions that reads “user must be aged 18 or older and legally permitted to engage in usage of this site under Estonia and the Grenadines laws applicable to him/her.” This is just incredible and sad at the same time.
From this we can conclude that the company is a liar, it is not based in Cyprus and therefore, is unregulated.
Why Trading with Offshore Brokers Risky
Trading with offshore brokers always carries certain risks mainly due to the broker being based in countries where there are little to no regulations in force. This opens opportunities for shady companies to manifest their money-grabbing schemes. There are many legal offshore providers that have chosen to operate in that manner due to taxes but still follow the rules.
We can agree that it is sometimes hard to distinguish them from fraudsters and it may take thorough research. Nonetheless, if the address of the broker turns out to be wrong as is the case with Finance Capitalfx, then you know what you’re dealing with.
Trading Platform Overview
As mentioned, the trading platform that Finance Capitalfx offers is a browser-based platform called Web Trader, dedicated to beginners. The broker claims this platform allows clients to choose from a wide range of built-in indicators, stop loss and take profits capital protection functions and pick the leverage which fits their future goals among other features.
The platform itself is rather lacking, unpolished, and ineffective for real trading. Also, such internet-based platforms can easily be manipulated in order to steal your money. For a provider that promises the world when it comes to its trading platform, it surely fails to deliver.
The website also mentions various trading strategies and analyses but at this point, there is no reason to believe that any of them are legit or authentic.
Trading Instruments Available
For trading instruments, Finance Capitalfx offers:
- Forex pairs – EUR/USD, USD/JPY, etc;
- Commodities – gold, silver, crude oil, corn, etc;
- Indices – NASDAQ-100 (US 100), The Dow Jones Industrial Average (US 30), etc;
- Shares – Apple, Allianz, AstraZeneca, CVS Health, etc;
- Crypto – Bitcoin, Ethereum, Litecoin, etc.
The EUR/USD cost of trade is 0.2 pips, which is incredibly low, extremely profitable, and therefore, unrealistic and fake. The leverage is capped at 1:200 for retail clients. Licensed brokers are prohibited from giving such high leverage by their respective regulating authorities because it can cause significant losses.
Deposit and Withdrawal
The phony broker’s website does not provide enough information about deposits and withdrawals, which is a red flag per se, but there is a PDF file about it in the Legal section. It lists bank transfers and credit/debit card transfers are possible payment methods. The minimum deposit is $250.
The necessary fee for withdrawals/refunds is $50 for bank transfers and $25 for card transfers plus a processing fee of $10. The minimum withdrawal amount is $250 for bank transfers and $100 for card transfers. Refund processing time is 2-5 days.
Finance Capitalfx Offers Bonuses
Fraudulent brokers often offer bonuses, which is nothing new. This one included a welcoming bonus (5-10%), a friends-bring-friends bonus (15-20%) and a transfer funds bonus (18-23%). It also imposed a cunning clause regarding bonuses that would prevent you from getting your money.
Do not forget the fact that bonuses are banned by regulators in EU member states.
How Do Offshore Brokers Implement Their Scam?
Cyber frauds are executed through high initial deposits. Afterward, the broker ceases all communication with the victims and simply vanishes, never to be seen again under the same name. Their websites oftentimes get shut down due to a large number of complaints.
The scammers will often use hefty bonuses to attract clients and trick them into believing that they are making profits when instead, they are losing all their funds. Be aware of their vile tactics and make sure to check their background. If you notice irregularities, immediately turn away from that fraudster.
Top Forex Brokers
Ture brokers are candid about their business. Their regulated status is evident. Here is a list of a few legitimate providers that you might want to check out. Make sure to choose the one that best suits your needs and desires.
|FXTM Broker||Cyprus, UK, Mauritius||4.5||$10||Forextime.Com|
|OctaFX Broker||Cyprus, SVG||4.4||$100||OctaFX.Com|
|FP Markets Broker||Australia, Cyprus||4.7||$100||FpMarkets.Com|
|XM Broker||Cyprus, Belize, Australia||4.7||$5||XM.Com|
|HFM HF Markets Broker||Cyprus, UK, South Africa, UAE, Kenya||4.3||$5||HFM.Com|
|FBS Broker||Cyprus, Belize, Marshall Islands||4.85||$100||FBS.Com|
Finance Capitalfx Summary
- Finance Capitalfx is an unregulated entity;
- The broker lied about its address and regulations;
- It claims it offers bonuses, which are banned in the EU;
- Terms and Conditions contain numerous contradictions;
- The minimum deposit required is $250.
FAQs About Finance Capitalfx Broker
Is My Money Safe with Finance Capitalfx?
Your money is not safe with Finance Capitalfx because the broker is unregulated.
Is Finance Capitalfx Regulated?
Finance Capitalfx is not regulated and has also provided the wrong office address.
Does Finance Capitalfx Offer a Demo Account?
Finance Capitalfx does not offer a demo account on its official website.