Broker Capitals Review: Discovering the Truth Behind This Scam

Broker Capitals is owned by Broker Capitals Limited and Broker Capitals Inc. The company’s headquarters are in two locations: Saint Vincent and the Grenadines, and the United Kingdom.

This company provides an online platform for people to trade stocks, indices, commodities, and currencies. The company also offers educational resources and a variety of trading tools. However, where’s the catch? What is there to know about them? 

To help you make an informed decision, we recommend checking out our detailed Broker Capitals review.

License and Regulations of Broker Capitals

Broker Capitals has officially been confirmed as a scam. The Italian regulator, CONSOB, blacklisted the broker. 

They provided clear evidence of fraudulent activity. It’s always wise to check the warnings from trustworthy financial authorities. Their list of unauthorized brokers is updated regularly, by all means. We recommend avoiding any broker with a warning.

Even without a warning, we advise against trading with Broker Capitals or Kiplar for a significant reason. Broker Capitals company is registered in St. Vincent and the Grenadines, a tax haven and offshore zone. 

So, we can see that Broker Capitals is an anonymous broker. Furthermore, the local regulator SVGFSA does not regulate Forex brokers. That means each broker registered on the island can act without any responsibility. 

This offshore registration creates an environment that allows Broker Capitals to scam traders. And nobody can hold them accountable.

We always recommend trading with regulated brokers. For example, brokers licensed by CySEC (Cyprus) or FCA (Britain) are safe. Both authorities enforce strict regulations to protect client funds. 

Most importantly, both authorities maintain deposit insurance funds. This is with CySEC brokers able to claim up to €20,000 in compensation. UK protection is even higher at £85,000 per person. 

It’s crucial to avoid trading with unregulated brokers such as Broker Capitals and Freedom 24. These brokers can leave you unprotected and exposed to fraud.

Trading Platform Overview

Broker Capitals claims to have an award-winning trading venue, but this is far from the truth. The brokerage provides a poor-quality WebTrader. It doesn’t even come close to industry leaders like MetaTrader 4 and MetaTrader 5. 

Both of these platforms are known for their stability and advanced features. MetaTrader 4 and MetaTrader 5 platforms offer the following tools:

• Automated Trading
• Analytical Tools
• Complex Indicators
• Custom Apps

Broker Capitals’ WebTrader lacks these features, per se. We find that concerning as there is no safety guarantee.

Regardless of whether there is a warning against the brokerage, we advise you to stay away from them. That is due to the subpar trading software they provide.

Account Types Offered

This company offers three different account options. They are as follows:

• MICRO
• STANDARD
• PREMIUM

The base currency for all three is USD, and the trading platform offered is Webtrader.

1. The MICRO account requires a minimum deposit of $200.it, has a minimum lot size of 0.01, and offers order execution options of Market or Instant. The spreads are 1 pip, and there are no commissions. The leverage offered is 1:1000, and the trading instruments available are FX and metals.
2. The STANDARD account requires a higher minimum deposit of $1000. It has a minimum lot size of 0.01 and also offers order execution options of Market or Instant. The spreads are slightly lower than the MICRO account, at 0.7 pips, and there are still no commissions. The leverage offered is 1:500, and the trading instruments available are FX and metals. Additional trading instruments such as commodities, CFDs, and indices are available upon request.
3. The PREMIUM account is the highest tier, with a minimum deposit of $25,000. The minimum lot size is 0.1, and order execution options remain Market or Instant. The spreads are 0.0 pips, but there is an $8 commission fee. The leverage offered is 1:100.The trading instruments available are FX, metals, and futures.

Margin call and stop-out levels vary depending on account type. Micro has a margin call of 100 and a stop out of 60. Standard has a Margin Call of 80 and Stop Out of 40, and Premium has a margin call of 90 and stop out of 40.

Broker Capitals accounts differ in deposits, spreads, commissions, trading instruments, and leverage. Hedging is available, but SWAP information is not provided.

Deposit and Withdrawal Methods

Their Client Agreement specifies a protocol that requires the customer to log into the Client Portal and formally request a withdrawal. However, this action is only the first step in a long and arduous journey toward the withdrawal’s actualization.

The client is compelled to present all relevant documentation and endure the agonizing wait for the verification process completion. Besides, the only accepted deposit and withdrawal modes are debit/credit cards, which may limit accessibility for some users.

Lastly, clients may be unable to withdraw their funds if they receive bonuses. Consequently, given the absence of a concrete timeframe, it appears plausible that clients may be left waiting for their funds indefinitely, resulting in significant losses and frustration.

How The Scam Works

Broker fraud is a common problem that can cause big financial losses for investors. Some brokers and investment firms use dishonest methods to fleece their clients. They might invest money in high-risk ventures without telling their clients or complete trades their clients don’t approve of. 

They could also lie about how well their clients’ investments are doing or falsify account statements. Some brokers earn commissions for recommending investments, even if they’re not the right fit for their clients.

One type of broker fraud is called “churning,” where brokers make lots of trades to earn more money for themselves, but it hurts their clients. Another is “front running,” where brokers use their market knowledge to buy stocks for themselves before trading for their clients. 

There are also scams like Ponzi schemes, unregistered securities, and pump-and-dump schemes that use lies to get people to invest money.

To protect yourself from broker fraud, research the broker or investment firm before investing. Look for registered firms with a positive reputation. 

Broker Capitals Summary

Broker Capitals is a trading system for stocks, indices, commodities, and currencies. However, they have been officially confirmed as a scam by the Italian regulator, CONSOB. 

The company is registered in St. Vincent and the Grenadines, an offshore zone with no regulation, allowing them to scam traders without accountability. 

They offer a poor-quality WebTrader platform, and we advise against trading with them due to their ineffective trading software. It is advisable to stay away from this broker scam.

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