Cred Capital Review – Shady or Authentic?

Cred Capital Review

The services of an online broker are a vital ingredient for trading in the financial market. But, you need to remember that not any brokerage would do here because the quality can make a big difference. The company you decide to deal with will provide you with the trading platform you use at the end of the day, the trading conditions that affect your bottom line and the tools and features that affect your performance. Suffice it to say, it is a decision that has long-term consequences, which makes this Cred Capital review of the utmost importance.

When you are making such a big decision that will have an impact on your overall trading journey, you should never make compromises and settle for platforms that cannot offer you what you need. But, how will you know if they can or cannot? It is understood that every company you come across will make some big promises and claim to offer you the best of services. But, as is the norm elsewhere, it may not be true. Some of the platforms out there are just mediocre, but there are also those that are downright shady and could turn out to be scams.

These are the ones that every trader wants to avoid because not only do they stand in the way of you achieving your financial goals, but can actually steal your money entirely. These are consequences you do not want to deal with and the only way to ensure it does not happen is to look into an online brokerage closely. No scammer will be upfront with you about their intentions, which means you need to find out the truth on your own. It might be a bit of effort, but can protect you from scam risks. This is also applicable in the case of Cred Capital, which is one of the companies you will come across.

A quick look at the Cred Capital website shows that they seem to have done a decent job at creating the right illusion. The availability of the MT5 is what adds the magic to it and most people do not look beyond it. But, this can be a mistake because Cred Capital is certainly not what it appears to be. It does not meet the criteria of an authentic brokerage and belongs to the category of shady and scam ones. How? Let’s check it out:

Lack of licensing and regulation

The licensing and regulatory status of an online brokerage offers the most protection to traders because these companies have to comply with rules and regulations. They also have to meet certain standards of services, which means they provide safety of funds and there is also compensation in case of a problem. Therefore, everyone will recommend that you opt for a licensed and regulated brokerage because those are definitely authentic, so does Cred Capital have a license?

When you go through the Cred Capital website, you will find that it boasts an address in London, United Kingdom, which is impressive because it is one of the most regulated jurisdictions in the world. In order to operate in the UK, the broker needs to have a license from the Financial Conduct Authority (FCA), which is the regulatory body for the region. It is also recognized as one of the top regulatory authorities in the world.

However, if you check the FCA’s online register for Cred Capital, you will not find it listed anywhere. In fact, you will discover that the address that the brokerage mentions on its website is the same as that of another brokerage named PBS Capital, which has already been blacklisted by the FCA. This means that the broker is not legitimate at all, as it is connected to an already-proven scam, which means you have to avoid it completely.

No Terms and Conditions

The fact that Cred Capital is an unlicensed and unregulated brokerage should be reason enough for you to doubt its authenticity. But, you can get more proof if you continue looking into its offerings. One glaring indication that you will come across is the fact that it has no Terms and Conditions mentioned on its website. The Terms and Conditions, or Client Agreement is something you are asked to accept when you sign up with an online brokerage.

The purpose of these legal documents is to outline the policies of a brokerage, the ones they follow and the ones they want you to comply with. Likewise, they also dictate the fees they charge and other relevant details that are connected to your trading experience. Yet, Cred Capital does not offer you any such document, which is undoubtedly a problem. Of course, it will still expect you to agree with these legal documents, which means you will be agreeing to something you have no knowledge of.

Essentially, it provides Cred Capital with room to implement any policy and ask for any charges they wish down the line and you will not be able to do anything about it. This is something only a shady brokerage would do.

Excessive leverage ratios

You would obviously want to know more about the trading conditions offered by a brokerage because they have a direct impact on your trading performance. When you take a look at what Cred Capital offers, you will find that the leverage ratios available go as high as 1:1000. Such leverage ratios are not permitted in most regulated jurisdictions because, while it is lucrative, it can also be extremely risky.

Therefore, regulatory bodies, like those in the UK, have imposed a cap on the amount of leverage that can be offered and it is not possible for brokers to go beyond 1:30. The fact that Cred Capital is offering you leverage as high as 1:1000 should indicate that the brokerage is either lying about its office, or is operating illegally, both of which do not help in establishing its credibility.

Closing Thoughts

Considering the lack of license, no legal documentation and the excessive leverage, it is apparent that Cred Capital is a shady brokerage that should be avoided.