Capital XN – Is It Too Good To Be True?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Capital XN - DO NOT TRADE WITH THIS PROVIDER
2.2/10
$100
Minimum Depositupdated 2021
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
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://capitalxn.com
Founded: 2021
Regulations: N/A
Languages: English, Dutch, Italian, Spanish
Deposit Methods: Credit/Debit Cards, Wire Transfer, Bitcoin
Minimum Deposit: $250
Free Demo Account: Yes
Number of Assets: N/A
Types of Assets: Not Indicated
CapitalXN presents itself as a genuine ECN broker, with a broad range of products, competitive spreads, and robust trading tools, including smart and creative trading platforms.
They also claim to offer the best possible assistance for all traders, including specialized account managers and substantial trading incentives, which sounds wonderful if only it were true. And the truth is rather different: while claiming to be located in the United Kingdom, CapitalXN is simply unregulated, which means we’re dealing with con artists.
CapitalXN claims a robust trading platform with over 200 trading instruments, safe and secure deposits/withdrawals, expert assistance 24 hours a day, seven days a week, and leverage of 1:500. That is, however, a fraud scheme, as we will demonstrate in the following assessment.
CapitalXN is a complete rip-off. In any case, it’s unregulated, so you should avoid it for that reason alone.
Trading Accounts and Conditions
Although CapitalXN advertises a variety of platforms, we were only able to obtain a MetaTrader4 distribution. However, when we entered it, we saw CapitalXN was linked to two organizations about which we have no idea—the providers are PayTechSolution and Jeosgert Limited, as shown below.
In any event, despite its outstanding platform, CapitalXN is tied to too many dubious enterprises, therefore you should avoid it.
Capital XN advertises five (5) different account types: Basic which requires $250 – $10,000 deposit, Silver for $10,000 – $25,000, Gold for $25,001 – $50,000, VIP for $50,001 – $100,000 deposit, and finally the Diamond account which requires users to deposit an amount above $100,000.
CapitalXN – Advantages
There are little to no advantages to using this online broker, since it is 100% a scam. You will definitely lose money if you ever try investing your money with this broker.
CapitalXN – Disadvantages
Sketchy Terms and Conditions
Because CapitalXN is supposedly based in the United Kingdom, it needs an FCA license to declare itself a legitimate broker. It doesn’t have any, therefore it’s unregulated, putting your cash at risk if you deposit. CapitalXN is a scam.
To make matters worse, the broker included connections to other brokers that have already been identified as fake by authorities, such as the Webtrader button, which leads to the CapitalEU domain (FCA warning). The latter’s website is now unavailable.
Furthermore, we discovered CapitalXN referencing Platinumstrade in the Terms for no apparent reason—apparently, they simply neglected to move the names over. Platinumstrade is a well-known rip-off.
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.
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.
Deceiving Spreads
The platform’s EUR/USD spread is acceptable—1.6 pips—suggesting that trading with CapitalXN isn’t too expensive in general. Still, the broker reviewed is almost certainly a rip-off, so search for legitimate brokers instead—the Forex market is teeming with licensed firms that provide even better trading conditions.
Inconsistent Leverage
It’s a case of inconsistencies when it comes to leverage, but it’s still proof of a fraud. It’s up to 1:40 according to the Account Types page, and up to 1:500 according to the About Us page. However, while creating a Demo account, we had the option of choosing between 1:1 and 1:1000.
Leverage is extremely hazardous, which is why it should be properly stated at all times. In many countries, it’s even part of the licensing process. Regulations require licensed EU, British, and Australian brokers to limit retail clients to 1:30 leverage, whereas Canadian and US brokers must limit retail clients to 1:50 leverage. CapitalXN, as you might expect, reveals itself as a sham just by claiming to give 1:500. Beware!
Deposit and Withdrawal Gets Confusing
The minimum deposit is supposedly $250 and may be made through credit/debit cards, wire transfers, or Bitcoin — the first of these being the safest choice because it enables chargebacks for up to 540 days. There are no minimum withdrawal amounts or transaction fees mentioned.
Clients, on the other hand, receive bonus cash automatically with each deposit, considerably worsening withdrawal circumstances. We can’t discuss the real bonus provisions since we discovered two sections that contradict each other. Take a look for yourself to see it for yourself—that’s a huge red flag.
Conclusion
Scammers stalk the internet, creating fake websites, social media identities, and advertisements to lure people in. Once you’ve been duped, they’ll pretend to manage your account and show you profitable transactions to persuade you that interacting with them is worthwhile.
Scammers, on the other hand, will not allow you to take your gains and will keep urging you to deposit, often for much larger amounts. Make no mistake: those thieves will attempt to get as much money out of you as possible, therefore they will urge you to invest as much as possible.
When you’re determined to get your money back, you’ll probably figure out what’s going on. Scammers will brazenly claim that you can only withdraw if you pay taxes in advance after they realize you won’t deposit again. They will just cease responding and disappear if you persist in refusing to obey their directions.
Scammers will quit the website once fraud has been publicly revealed and worn out, allowing them to get away with their crime because fraudulent brokers are always nameless and unregulated.
That is why we only recommend registered brokers. Those who hold a license issued by a reputable authority are required to follow a number of customer protection rules, ensuring that your funds are treated fairly. Client deposits should be held in segregated bank accounts by EU and UK brokers, for example, to improve transparency, security, speed withdrawals, and make things much easier when things go wrong.
Account segregation ensures that deposits are not misappropriated by the broker in the event of a financial crisis, and that clients can get their money back with far fewer complications.
Capital XN
Pros
- None
Cons
- Sketchy Terms and Conditions
- Decieving Spreads
- Inconsistent Leverage
- Deposit and Withdrawal Gets Confusing
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
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