Scam Brokers

Capital WealthManagement – Are They a Scam?

Chainbits Staff | Publish date: 02/03/2024 (Last updated: February 29, 2024 07:19 AM)

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Capital WealthManagement The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you'll be asked to enter your name, email address, phone number, and password. You'll also be asked to accept their Terms and Conditions and confirm that you're over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account. - DO NOT TRADE WITH THIS PROVIDER

2.5/10

$100

Minimum Deposit

updated 2024

Try other platforms

The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker

Plus500CY Ltdauthorized & regulated by CySEC

try this broker

82% 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

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

Website URL: https://capitalwealthmanagement.co

Founded: 2024

Regulations: No License

Languages: English

Deposit Methods: Cryptocurrencies (Bitcoin)

Minimum Deposit: €250

Free Demo Account: Not Available

Number of Assets: 100+

Types of Assets: Metals, Cryptos, Commodities, Indices, Forex, Stocks, ETFs

Trading Accounts and Conditions

Capital WealthManagement claims to offer their clients the following types of trading accounts:

Mini: €250 is the minimum deposit. Leverage is 1:50.
Standard: €5,000 to €20,000 is the deposit range. Leverage is 1:100.
Gold: €20,000 to €100,000 is the deposit range. Leverage is 1:200.
Platinum: €100,000 to €150,000 is the deposit range. Leverage is 1:400.

The broker claims that their spreads are floating, but does not give us any numbers. Order execution is immediate and all traders are afforded a free 7-day trial period.

Capital WealthManagement – Advantages

There are no advantages to trading with Capital WealthManagement.

Capital WealthManagement – Disadvantages

Listed below are all the reasons why we have marked Capital WealthManagement a scammer:

Unregulated Broker

Legitimate brokers usually present all their corporate details on the footer of their website. This information includes their company name, their location, their contact details and their regulation and registration information.

Capital WealthManagement shows us no such details. We had to search for it ourselves. We found out from their Contact Us page that this broker is supposedly based in the United Kingdom. We are not given any phone number or even company name – just an address.

There is also no information about their regulation status on their website. We had to check this broker’s Terms and Conditions to get a little information about this. We found out that this broker claims that they are operating in accordance with the International Financial and Money Laundering Laws as per the MiFID Directive laid out by the European Union.

The broker also claims to operate in three regions: Asia, Europe and North America.

All of these claims are lies. This broker is not based in the UK; we checked the Financial Conduct Authority’s online register. The UK’s financial regulator clearly has no record of this broker, which means that they are not regulated by the FCA.

Furthermore, operating in accordance with the EU’s MiFID means nothing. This is a law, not a regulatory authority.

Everything we have checked about Capital WealthManagement tells us that we are dealing with a scammer – an unregulated broker operating illegally.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% 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

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

Start Trading

Read Review

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 FCA

UK’s Financial Conduct Authority has also noticed that Capital WealthManagement is not a trustworthy broker. This regulator has blacklisted this broker and has issued a warning to all UK traders about them.

According to the FCA’s warning, Capital WealthManagement is operating in the country without authorization. The regulator has also stated that dealing with this broker would lead to a loss of protection from the FCA.

When a regulator of the stature of the FCA issues a warning to traders about a broker, it is wise to pay attention. This clearly means that that broker is a scammer and should never be trusted.

Lies About Trading Platform

Capital WealthManagement claims to offer their clients the MT7 trading platform on their Account Types section. However, when you click on their Platform section, we get contradictory information. We are told that the broker offers three different types of trading platforms – a mobile trader, a web trader and the much-acclaimed MetaTrader 4 platform.

To verify the truth, we created an account with this broker so that we could check their trading platform for ourselves. And that is when we found out that Capital WealthManagement has just told more lies.

We found out that this broker has none of the above-mentioned trading platforms. What we are really offered is a very basic web-based trading software that has barely any functionality.

When a broker skimps on the very product that they are supposed to offer, then you know that you are dealing with a scammer.

Issues with Trading Conditions

The service a broker offers is a set of trading conditions for using their trading platform. These conditions need to be advantageous to a trader so that they may avail of that broker’s services.

When there are issues with those trading conditions, you can be sure that that broker cannot be trusted.

With Capital WealthManagement, we see some serious issues with their trading conditions. First, the minimum deposit at €250 is too high. Most broker today allow for account openings with deposits that range from $100 to $250, and there are a growing number that invite you to open account with them for less than that.

Next, the cost of a trade is not specified. All we are told is that the spreads are floating – and we know nothing about their commissions.

The leverage ratios are also too high. This makes them too risky and illegal in all the countries this broker is targeting.

Other trading conditions are simply ignored.

All of these issues are indicators that we are dealing with a scammer.

Crypto Only Payment Option

The fact that the only payment option offered by Capital WealthManagement is cryptocurrencies – Bitcoin, to be exact – is a huge red flag. Crypto transactions are permanent and anonymous – you do not know where your money has gone and there is no way to get it back.

This is the reason why this payment method is so popular with scammers.

So, if a broker offers only a single payment method, and that payment method is cryptos, it is a clear indication that you are dealing with a scammer.

When dealing with a new broker, the safest payment option is credit cards. If you are scammed, then at least you can file for a chargeback and have a chance to get your money back.

Conclusion

To answer our question at the beginning of this review – is Capital WealthManagement is scam? Unfortunately, yes. This is yet another scammer entering the market in a bid to scam novice traders.