Of late, online trading has become all the rage because of how convenient it is to get started and the many lucrative opportunities it boasts. Who doesn’t want to make money from the comfort of their homes and with minimal investment? Thanks to online brokers, you can now try your luck in the financial market of your choice. However, it is vital to remember that your success also depends on the broker you sign up with. With shady and scam brokers invading the market, you have to be on the lookout and select a platform carefully. But, appearances can be deceiving, as this CapitalXN review will show you.
You cannot just rely on the website of the broker and take their word for the services and features they offer. It is necessary to evaluate their offerings in order to determine if they are fraudulent or deserving of their trust. Not doing so means exposing yourself to the risk of fraud and scam, which is not recommended if you don’t want to lose your hard-earned money. Unless you are ready to do that, it is better to put in some effort beforehand and check out a broker before signing up with them.
Yes, the sheer number of companies in the market can be overwhelming and the fact that all of them promise to be the right choice only adds to it. Nonetheless, you shouldn’t fall for their claims, as in the case of CapitalXN. It presents itself as a true ECN broker that offers low spreads, a massive selection of instruments and powerful trading tools. It also offers innovative and advanced trading platforms, along with dedicated account managers, the ultimate support traders need and generous trading bonuses. All of this makes the brokerage sound like a fantastic platform, but the reality is quite different.
How can you tell? Check out the following CapitalXN review to learn more:
Every brokerage needs a license to provide its services to traders in the financial markets. It is the responsibility of a financial regulator to issue this license and you need to ensure that the platform you choose has the proper license for operating in the market. Unfortunately, you will soon come to realize that CapitalXN is not a licensed brokerage at all. According to their website, it is owned and operated by a company named Aus Capital Group Pty Ltd., which claims to be based in the United Kingdom.
There are certain issues with this claim because first off, if it was really based in the UK, then it would have to have a license from the Financial Conduct Authority (FCA), which is the regulator for the region. Yet, a check in the online registers of the regulator shows that no such company is registered. This means that either they are operating illegally, or simply lying about their location. The latter is more likely because when you check the address provided on the CapitalXN website, you will notice that it appears to be incomplete.
There is no postal address given with the UK address, which means it is incomplete because a postal code is an essential part of any address in the country. Thus, it is safe to say that CapitalXN is not a genuine platform and not one that deserves your trust.
Unfair Terms and Conditions
No matter what platform you sign up on, you are required to agree to the Terms and Conditions they have. These are meant to outline the relationship you have with the company and focus on areas like fees, withdrawal policies and more. The terms and conditions on the CapitalXN website send up multiple red flags. Firstly, you will come across the mysterious name of ‘Platinumstrade’ in the Terms and Conditions, which shows that they have done a rather poor job of editing the content from their last scam website.
Next up, you will find that CapitalXN offers trading bonuses, which they shouldn’t be doing if they are really operating from the UK, as these are forbidden by the FCA. Not only are they offering these bonuses, but they also come with strings attached. You will not be allowed to make withdrawals until you meet some minimum trading volume requirements. A look at the requirements indicate that they are nearly impossible to fulfill, which means you cannot withdraw anything at all.
In the event that you do manage to get even a little bit close to achieving the requirement, CapitalXN has added that they can change the conditions whenever they deem fit, which is another excuse to prevent you from withdrawing your money.
Problem with the trading platform
Every trader is aware that the trading platform provided by a broker is its most vital feature and this is one aspect of CapitalXN that may take many by surprise. In fact, it is the one that ends up drawing traders to the platform because they appear to be offering a web-based solution, as well as the MetaTrader4. The former is nothing special at all and is just the usual platform that most scam brokers are already offering.
It is the second one i.e. the MT4 that draws attention, given that it is one of the leading platforms in the market. However, you will find problems here because you will notice that the MT4 platform that’s available for download on the broker’s website hasn’t been branded with the CapitalXN logo. In addition, the platform is being offered by a third party company named Pay Tech Solution Ltd and this doesn’t make any sense.
No clarification about payment methods
You will notice that the CapitalXN website does mention a variety of payment methods, which include VISA and MasterCard. The problem is that you cannot possibly confirm that this option is available. Since bank cards are the only method that offer a chargeback, you shouldn’t settle for any other because your money will be gone if you are scammed.
When your evaluation of the offerings at CapitalXN is complete, you will easily see that it is a fraudulent platform you should avoid.