Capital.com Review: How Safe is Your Money With This Forex Broker?
Most investors lose their money due to a lack of trading knowledge, while others become victims of scam brokers. While trading is generally risky, some forex brokers unethically retain client money by making it hard to withdraw cash. Is Capital.com one of them, or is it a legitimate brokerage firm?
This in-depth Capital.com review will assess whether this company is genuine and whether there are any tactics it’s using to scam innocent traders?
Have you lost your money with any scam forex broker? Reach out today for a free consultation with our team. We’ll provide you with guidance on how to recover your funds.
Let’s take a closer look at how Capital.com operates.
Capital.com: An Honest Look at Capital.com
Established in 2016, Capital.com is owned by Victor Prokopenya, a serial technology entrepreneur and founder of the global investment firm VP Capital. As part of the investment portfolio, the founder claims that this company is a high-growth investment trading group.
Like with his other businesses, Victor launched this award-winning platform that offers investors access to over 3,800 world-renowned markets and a seamless treading experience. But, how genuine is this?
According to the website, the company has an outstanding broker profile. While all this information appears legitimate, it’s not proof that Capital.com is not a scam. Before trusting a broker with your money, you need to identify the red flags away from the website information. So, what’s the company hiding?
Is Capital.com Legit?
A trading platform can have all the regulation licenses, provide the best platforms, accounts, and products, but still turn out to be a scam. For this reason, you shouldn’t invest your money blindly without first understanding how a broker works.
To know whether Capital.com is who it claims to be, we will need to examine the company’s offerings and whether the correct financial bodies regulate it. With this information, we can develop a conclusion about the legitimacy of the company.
A Brief Background of Capital.com
Since its establishment, the company has gained over 788,000 registrations on its platform and has traded volumes of more than $13 billion. The company enables customers to trade in over 4,000 global markets.
Capital.com specializes in commodities, cryptocurrencies, indices, shares, currency pairs. Its intuitive trading platform uses AI-powered post-trade analysis to help traders.
While the company lists its physical address in London, it also has global offices in Belarus, Cyprus, and Australia.
Licensing and Regulation
Who regulates this brokerage firm? This is one of the most important questions for any investor. You can tell whether a company is legitimate by looking at the regulatory agencies and the laws that govern these trading licenses.
Is Capital.com Regulated?
According to the company website, Capital.com has group entities in Melbourne, London, and Limassol. Because of these locations, it’s regulated and authorized in these regions by the respective agencies.
In the UK, the company is under the regulation of the Financial Conduct Authority (FCA), license number 793714.
In the other regions, it’s regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities & Investment Commission (ASIC).
Based on this regulation, customer funds are protected in case the company becomes insolvent. Deposits are protected by the Financial Services Compensation Scheme (FSCS) and the Investor Compensation Fund (ICF).
While all this looks in order, this customer protection only applies to the FCA regulation. What happens to customers outside the UK whose funds are regulated by the other bodies?
Is Capital.com a Scam?
Capital.com is part of the businesses established by a renowned technology entrepreneur. The company is also operating under regulation. Here are some aspects that make it look legit.
- The brokerage firm is authorized and regulated by renowned bodies such as the FCA, ASIC, and CySEC, which is critical for protecting customers’ funds held in segregated accounts.
- Capital.com is compliant with PCI Data Security Standards, which encrypts customer information.
- Investors can access major global markets from the web platform or mobile apps.
- The company doesn’t charge any commission and has tight spreads.
- It has an educational app, training guides, and online courses for traders to use.
- The trading platform has an AI-powered post-trade analysis.
But is this a cover-up for an online scammer?
Capital.com Red Flags
The Regulation Question
It’s clear that the company is regulated by one of the strongest bodies, the FCA. Since the company is based in London, the FCA laws protect UK traders. The company claims to have a presence in other countries, which might not adhere to the strict FCA rules.
While the licenses give the company credibility, the other licenses in countries such as Belarus leave traders exposed to potential scams. This region has weaker trader protection laws and tons of loopholes that make it easy to scam investors with no accountability.
Questionable Reviews By Employees
On the Forex Peace Army review site, the team identified some reviews from the exact location as Capital.com in Belarus. This is a red flag that some 5-star reviews are coming from the company employers, which is quite suspicious.
Negative Customer Reviews
Although Capital.com has a 4.3/5 rating on Trustpilot, there are tons of complaints from customers who have lost money, can’t withdraw their cash, and disappointing customer service.
These reviews suggest that Capital.com is betraying its customers’ trust by keeping their money.
Capital.com Review Conclusion: The Final Verdict
Brokerage firms use their websites to parade all their achievements and to boost their credibility. Capital.com is an example of this. On the surface, it looks like a regulated, award-winning forex trader, but a closer look reveals some issues with trader protection outside the US and real-life stories about money loss.
Our in-depth Capital.com review shows that the company might be a regulated scam.
Have you lost money to Capital.com or any other broker and want to get it back? Trader Protection will help you recover your funds. Book a free consultation session with our team of experts today.