A.B.Capitals – Is It a Scam?

| Publish date: 02/12/2020 (Last updated: March 24, 2020 02:45 AM)
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Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

A.B.Capitals - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Deposit
X

updated 2020

A.B.Capitals offers its clients 5 different accounts on which to trade:

  • Green: To open a Green account, you need to first deposit €5,000. The commission rate is 6%.
  • Premium: You need to deposit €10,000 and the commission rate is 5%.
  • Platinum: Before you can trade on this account type, you need to deposit €50,000, and you get a commission rate of 4%.
  • Executive: To use the Executive account, you first need to deposit €100,000, and you get a commission rate of 3%.
  • Presidential: For opening a Presidential account, the initial deposit requirement is €250,000, however, the commission rate is not mentioned.

The maximum leverage offered for all of these accounts is just 1:4.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker
Europe's #1 CFD Trading Platform

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

Website URL: https://abcapitals.com/

Founded: N/A

Regulations: Unregulated

Languages: English

Deposit Methods: N/A

Minimum Deposit: €5000

Free Demo Account: No

Number of Assets: N/A

Types of Assets: 800+ Cryptocurrencies, Forex

Trading Accounts and Conditions

A.B.Capitals offers its clients 5 different accounts on which to trade:

  • Green: To open a Green account, you need to first deposit €5,000. The commission rate is 6%.
  • Premium: You need to deposit €10,000 and the commission rate is 5%.
  • Platinum: Before you can trade on this account type, you need to deposit €50,000, and you get a commission rate of 4%.
  • Executive: To use the Executive account, you first need to deposit €100,000, and you get a commission rate of 3%.
  • Presidential: For opening a Presidential account, the initial deposit requirement is €250,000, however, the commission rate is not mentioned.

The maximum leverage offered for all of these accounts is just 1:4.

A.B.Capitals – Advantages

When we review a new broker, we try and present a balanced picture – both what is good about the broker as well as the bad. Unfortunately, for A.B.Capitals, there is nothing we could find on its website that would be advantageous for any trader.

A.B.Capitals – Disadvantages

After going through A.B.Capitals’ website in great detail, we found so many red flags that we can say right at the outset that this is one broker everyone should stay away from. Here’s why:

  • Anonymity and Lack of Regulation

The first thing that any trader should look for to check the credibility of a broker is its corporate and licensing information.

With A.B.Capitals, however, none of this information is available. There is no company name or address. What we do have is a phone number which has country code of the UK prefixed to it.

There is also no license or registration number given anywhere on this broker’s website.

What this essentially means is that if you sign up with A.B.Capitals, you will be dealing with an entity you know nothing about, and one that is not regulated in any way. So, your funds are not safe with this broker.

Plus500
$100
Minimum Deposit

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

AvaTrade
$100
Minimum Deposit

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

 

  • Blacklisted by the FCA

Since there was a UK phone number given on this broker’s website, we decided to check the Financial Conduct Authority’s (FCA’s) online registry to check if A.B.Capitals was in any way regulated.

Of course, we did not find its name on the regulated companies’ list. However, we did find that the UK’s financial regulator had blacklisted this broker.

The watchdog has issued a public warning against this broker, stating that it is offering financial services without authorization, and that it is a potential scammer.

  • No Demo Account

Another black mark against this broker is that it offers its users no demo account.

Legitimate brokers give their clients the opportunity to test the trading conditions they have set before they put real money on the table. This transparency on the broker’s part builds trust between the two parties.

A.B.Capitals, on the other hand, is not just anonymous, but it is also hiding its trading conditions. This is definitely a clear sign that this broker is not well-intentioned and that you will be in danger of losing all that you invest with them.

  • Difficulty Registering Account

Since A.B.Capitals has no demo account, we decided to register for a live account to try and check the trading conditions offered by this broker. However, after we input all our details, there was no registration confirmation. We also did not get a confirmation mail that our account had been registered. It was just a blank.

  • No MetaTrader 4 Platform

While we were unable to get a look at the trading platform or the trading conditions offered by A.B.Capitals, we can assume from the pictures on its website that this broker does not offer support for the MT4 trading platform.

The MT4 (MetaTrader 4) platform is the world’s best software for forex trading, used by over 80% of all traders. This software offers users a range of tools – charting options, market indicators and trading bots, all of which can be customized.

  • Massive Initial Deposit Requirement

Based on the information given on this broker’s website, to be able to open even a basic account (Green account) with them, you need to make an initial deposit of €5,000.

This is an absurdly high minimum deposit requirement, substantially higher than the industry average, which ranges from just $100 to $250.

  • High Fees and Unfair Terms

A.B.Capitals also charges some pretty hefty fees to its customers. For example, if your account goes dormant, then you need to pay a monthly fee of €10.

Added to that, even if you do not take advantage of the trading bonuses this broker offers, you will still need to meet a trading volume target to be able to withdraw funds from your account.

If you try to withdraw your funds, before you have reached your trading volume target, then you will be charged a 33% handling fee from the initial deposit you made.

  • Trading Bonuses

Like we mentioned in the point above, A.B.Capitals offers its clients attractive trading bonuses that are actually a trap. Once a trader has accepted the promotion, then they need to meet a trading volume target that is all but impossible to achieve.

And if the trader does not meet that target, then their withdrawal requests are cancelled. Basically, they have to wave goodbye to their hard-earned money.

Conclusion 

A.B.Capitals is a broker that is clearly out to scam unsuspecting traders and rob them of their money. This broker operates illegally and has terms and conditions that are clearly unfair and designed to take money from its customers.

We would advise all our readers to avoid trading with this broker.

A.B.Capitals

2.5

User Experience

3.0/10

Payment Options

2.3/10

Security

2.2/10

Support

2.3/10

Reputation

2.5/10

Pros

  • None

Cons

  • Anonymity and Lack of Regulation
  • Blacklisted by the FCA
  • No Demo Account
  • No MetaTrader 4 Platform
  • High Fees and Unfair Terms

Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:

Plus500
$100
Minimum Deposit

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

AvaTrade
$100
Minimum Deposit

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

eToro
$200
Minimum Deposit

eToro is a multi-asset platform which offers CFD and non CFD products. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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