Capitalxaps Review – Are there any Warning Signs?

Capitalxaps Review

Shopping for an online broker is not very different from shopping from anything else over the internet. You need to take the same steps i.e. make a list of options and then research each one thoroughly in order to find the best solution for your needs.

Of course, it is a given that every company will make tall claims about their services and offerings, but this does not mean that you should just believe everything they are going to say. After all, there are some fraudulent companies that also exist, as this Capitalxaps review highlights, so you should be on the lookout for any warning signs.

Do they have any? Indeed, a fraudulent brokerage cannot be the same as a genuine one. Sure, their website may appear to be professional and attractive, as do their features, but this is not very difficult these days.

There are software that can be used for setting up such websites and at first glance, it is almost impossible for you to tell a scam brokerage apart from a legitimate one. But, this does not mean it is not possible. It is possible for you to uncover their true nature and this can be done by looking for some warning signs.

This is because no matter how hard the fake platforms may try, they cannot be like authentic ones completely and they will not be able to hold their story together. It will help you in making the right decision and avoid putting your money at risk.

But, you need to know what aspects need to be studied in order to find the warning signs. This is where you can go through this Capitalxaps review to find out what kind of tricks these fraudulent companies tend to use.

False claims of licensing and regulation

The licensing and regulatory status of an online broker is a dead giveaway of its true nature because majority of the platforms that operate without a license are fraudulent. They cannot be trusted at all because they do not comply with any laws, or maintain specific standards. Likewise, there are no guarantees of any kind in terms of safety and consumer protection.

The fact that Capitalxaps claims to be licensed and regulated in several jurisdiction is something that can impress many people. But, you have to bear in mind that claiming something is one thing and actually being regulated is entirely different. According to the Capitalxaps website, it has offices in about 8 countries around the world.

These include the UK, Germany, China, Australia and France. You will also find Capitalxaps claiming to be licensed and regulated by several regulatory bodies, such as the FCA, CMB and KNF. The problem is that you will not find any licensing numbers on their website. Secondly, you can go through the online registers of these organizations and not find the company listed.

Moreover, another issue is that Capitalxaps is also going against the regulatory framework outlined by some of these bodies, such as the Financial Conduct Authority (FCA)’s ban on crypto derivatives and trading bonuses.

Apart from that, you will also find that Capitalxaps lists an address in the United States, but it is not listed in the registers of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), which are the regulatory bodies there. This means it is lying about this as well and there can be no bigger warning sign than this.

Availability of trading bonuses

The fact that Capitalxaps is offering trading bonuses to its clients is a warning sign in itself. Why? This is because, as mentioned earlier, these bonuses have been banned in several jurisdictions. These include the United Kingdom as well as the European Union.

But, despite claiming to be based in the UK and European countries like Germany and France, Capitalxaps is still offering trading bonuses and this shows that it is an unlicensed and unregulated broker. These bonuses are meant to prevent traders from making withdrawals and come with other conditions that got them banned in the first place.

The fact that no clear bonus policy is mentioned by Capitalxaps is also a problem because it means that they can spring up whatever conditions they like later on.

Lack of a good trading platform

The trading platform that an online broker offers is a crucial feature because this is what you use primarily for trading. This means that there is no trading without a platform and so, it has to be up to the mark in every way. Unfortunately, you are doomed for disappointment when you check Capitalxaps’ trading platform because it is nothing to write home about.

You will find a very simple web trading platform available at Capitalxaps that may have been appropriate for trading about two decades ago. Today, this is an outdated and oversimplified platform that does not offer you anything more than the basics.

Most reputable brokers in the market offer their clients platforms like the MT4 and the MT5, but you will not find it available here, which is another warning sign that the broker is up to no good, as it has not made any effort to offer you a professional platform.

Limited payment options

Checking the payment options that you will be able to use on a platform is also necessary because you want to be able to make your deposits and withdrawals easily. This is another area where you will find a warning sign about Capitalxaps because it only offers you two cryptocurrencies for deposit purposes; bitcoin and Ethereum.

While cryptocurrencies are being used for making payments these days, the problem is that Capitalxaps does not offer more options. Crypto alone is a warning sign because these payments are final and not eligible for a chargeback of any kind. This eliminates the possibility of getting a refund, which means you will not be able to get your money back in case of a problem.

Bottom Line

These warning signs can help you conclude that Capitalxaps is not a reputable and professional broker.