FinanceCapitalFX Review – The Disturbing Things about the Broker

FinanceCapitalFX Review

One of the most important decisions that traders make in their journey is choosing an online broker. It is true that there are thousands of companies offering their services and their numbers continue to rise on a regular basis and this is enough to create a lot of confusion for people.

How do you select one company from such a huge list? It gets tougher when you realize that many of them are offering similar, professional services. Opening multiple accounts is not possible and you cannot risk signing up with just any company either. You can go through this FinanceCapitalFX review to know just what problems can exist.

Not all the companies in the market are going to be what they seem. Bear in mind that appearances can be quite deceiving where online brokers are concerned because a lot of fraudulent ones may portray themselves as legitimate when they are not.

In fact, they know how to put together a rather convincing story, which can draw the attention of many and this is exactly what they intend to do. Therefore, you have to be cautious and never opt for a broker based on what you see. Instead, you need to do some homework and ensure that the company is really what it claims.

In most cases, these scams are like a house of cards and when you start digging in, it will collapse and reveal the truth to you. Try as they might, fraudulent brokers will not be able to hide the disturbing features and details that disclose their true nature; you just need to make the effort of finding them.

It is best to take the same approach in the case of FinanceCapitalFX as well because on the surface, it sounds like just the broker you need. It is offering access to a variety of forex, crypto, metals, indices, stocks and commodities, a cutting-edge web based platform, lucrative trading conditions and high leverage.

This makes FinanceCapitalFX quite an appealing package and you would want to open an account straight away. But, if you start digging into the details, you will come across a number of disturbing things about it that show you it is not what it looks like. Ready to find out? Let’s see:

Lies about licensing and regulation

Checking the licensing and regulation of an online broker should be your top priority because you want to ensure that the company you choose is not operating illegally anywhere.

Also, a license and regulation means that the broker will maintain high standards of service, offer transparency and security and can also be held accountable in case of any issues. Such companies are unlikely to be scams because their activities are monitored. But, the same cannot be said for their unregulated counterparts.

You need to check the license and regulation of FinanceCapitalFX before you sign up with the brokerage and when you go through its Terms and Conditions, you will find the details. They dictate that the company complies with the laws of Estonia and the Grenadines, which are two different locations.

Estonia is part of the European Union, while Saint Vincent and the Grenadines is an offshore jurisdiction. To operate in Estonia, FinanceCapitalFX has to have a license from the regulatory authority in the region.

But, there is no mention of any license and FinanceCapitalFX is also going against the regulatory framework established for all brokerages in the EU. They are not permitted to offer trading bonuses and also have caps on leverage, but FinanceCapitalFX is not following these requirements.

This confirms that it cannot legally operate in Estonia. As far as the SVG registration is concerned, it does not make any difference because this offshore zone is recognized as a scam haven.

The financial authorities in St. Vincent and the Grenadines have stated clearly that the forex industry is not regulated, so there is no oversight, whatsoever.

Therefore, many scammers like FinanceCapitalFX set up operations there to carry out their activities. Hence, it does not offer any credibility to the broker, which means you are dealing with an unlicensed and anonymous company.

Malicious bonus policy

When you come to know that FinanceCapitalFX is offering trading bonuses to its clients, you should immediately become concerned rather than pleased.

This is due to the fact that trading bonuses are not a welcome practice in the trading world anymore, since they come with strings attached that are not considered fair. They are banned in Europe, including Estonia, so FinanceCapitalFX should not be offering a bonus at all.

But, it is doing so and the bonus policy that you spot at FinanceCapitalFX is downright malicious, which dictates why bonuses were banned. According to the policy, the bonus and the profits made through it are not eligible for withdrawal.

This would have been practical if it was possible to keep the profits generated via your own deposits and with bonuses separate. But, this cannot be done, which means you will not be able to make any withdrawals on the platform altogether.

Excessive leverage

Another disturbing thing that you will uncover about FinanceCapitalFX is the leverage ratios that the broker is offering. There is no denying that leverage is extremely helpful in trading because it gives you flexibility and can help you make higher profits.

But, leverage is also risky because it can lead to higher losses as well. Thus, too much leverage is never a good idea and this has prompted regulatory bodies to restrict the level of leverage that can be offered to retail traders.

Brokers operating in the EU, including Estonia, cannot offer leverage more than 1:30, but you will find that FinanceCapitalFX is offering leverage as high as 1:200. It is a clear indication that the company is flouting the regulatory framework, which means it cannot possibly be operating from Estonia at all.

Ending Thoughts

Add to the fact that FinanceCapitalFX has a lackluster and oversimplified trading platform and you will understand just why this broker should be avoided when you want to start your trading journey.