Trading Capital FX Review – What Makes it a Scam Broker?

Trading Capital FX Review

When you begin looking for an online broker to start trading with, you will be overwhelmed by the number of options you come across. But, the quantity does not mean that you will also get quality.

While some of the brokerages are undoubtedly renowned for their top-notch services, you will also hear stories about fraudulent and fake brokers who have conned people out of their money. No one wants to find themselves in such a situation, but this Trading Capital FX review shows that it is far too common.

If you check out some of the scam stories, you will discover that people get conned because they do not take enough time to do their homework. The decision should never be taken in haste because you will depend on the broker to provide you access to the financial markets and entrust them with your funds and personal information. Therefore, it is best to be cautious and check the ins and outs of the company you decide to sign up with.

How does this help? This enables you to figure out if the brokerage you are considering is legitimate, or is another scam. No matter how hard they try, scam platforms cannot be the same genuine ones. Sure, they can create a good front, but once you take a closer look, their story will eventually fall apart. This is because fraudulent platforms have some signs that can alert you right away and help you see what kind of company you are dealing with.

As long as you are willing to make the effort, you will be able to choose the right brokerage for your trading needs. Putting in the same effort in the case of Trading Capital FX can save you from losing your money because it is technically incompetent and an outright scam. What makes it one? You can find out below.

No licensing or regulation

The best way to determine whether you are dealing with a legitimate or scam broker is via its licensing and regulatory status. Any broker worth their salt will always obtain a proper license to offer its services because it does not have a problem in fulfilling the requirements set forth by regulatory bodies in their respective jurisdiction. Moreover, they also want to establish trust with their potential and build credibility to operate in the long term.

However, this does not mean that you believe a brokerage when it claims to be licensed and regulated because claiming something and actually having a license are two entirely different situations. This is what you will find in the case of Trading Capital FX, which claims to be licensed by the Financial Services Commission (FSC) of the British Virgin Islands.

But, when you search the online register of the regulatory authority with the license number that Trading Capital FX has provided, you will discover that it is not listed there at all. Moreover, the license number given on the website is actually a clickable link that leads you to the register of Companies House UK, but this is not a regulatory body either. The Financial Conduct Authority (FCA) is the regulatory authority for Britain.

However, Trading Capital FX cannot be licensed in Britain either because it breaks the rules of leverage that are applicable. All of this misleading and false information indicates that you are not dealing with an authentic company and it is just a scam.

Lack of legal documentation

When you sign up with any online broker, they will ask you to agree with their Terms and Conditions, or a Client Agreement. This is considered normal and this document usually outlines the policies that are to be followed, or any other rules, along with the costs you might be charged and other relevant details. It essentially outlines the relationship you will have with the broker, so it is a must to go through them to ensure there are no surprises in the future.

The problem with Trading Capital FX is that it does not appear to have any legal documentation, whatsoever. You can go through their website and now find any Terms and Conditions, or Client Agreement, which means they can come up with any policy later on and you will not be able to fight them on it. Does that sound like a legitimate company? Of course it does not.

Availability of bonus

Another major issue that you will come across at Trading Capital FX is that the broker appears to offer a 100% deposit bonus. Shouldn’t that be a good thing? If it was a perfect world, it would be, but in this case, it is bad news because trading bonuses are forbidden in a number of jurisdictions. This is due to the fact that they come with strings attached, which are aimed at preventing withdrawals.

The issue with Trading Capital FX is not just that it offers a trading bonus; it is that it does not outline its bonus policy either because the legal documentations are missing. Hence, they can come up with any condition later on and you will not be able to do anything about it.

Excessive leverage

The trading conditions of a broker are always important to check and Trading Capital FX has a surprise for you because it is offering leverage ratios as high as 1:1000.

Some might find this extremely attractive, given how much flexibility you can enjoy, but it should be considered a red flag because such high ratios can be downright dangerous. They can result in hefty losses, due to which many regulatory bodies have imposed a cap on the amount of leverage that can be offered, such as the FCA in the UK that has a cap of 1:30.

Yet, Trading Capital FX does not follow the rules at all and the leverage is significantly higher than what is considered reasonable.

Ending Thoughts

All of these flaws that you discover about Trading Capital FX show that it is a scam broker that should be avoided.