Scam Brokers

CapitalAllianze – Is This a Scam?

Chainbits Staff | Publish date: 01/30/2020 (Last updated: March 24, 2020 08:21 AM)

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

CapitalAllianze - DO NOT TRADE WITH THIS PROVIDER

2.5/10

$100

Minimum Deposit

updated 2020

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CapitalAllianze offers its users four different account types for trading:

Micro: To use the Micro account you need to make an initial minimum deposit of $350.
Standard: To use the Standard account, the minimum initial deposit requirement is $10,000
Silver: To use the Silver account, you need to deposit a minimum of $25,000.
VIP: To be eligible for the VIP account, you need to make an initial deposit of $50,000.

Besides the account categories and the minimum deposit requirements, we don’t have any more information about the spread, leverage levels or other trading conditions for this broker.

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Website URL: https://capitalallianze.com/

Founded: 2019

Regulations: Unregulated

Languages: English, German, Italian

Deposit Methods: NasPay

Minimum Deposit: $350

Free Demo Account: Not Available

Number of Assets: N/A

Types of Assets: CFDs and Forex

Trading Accounts and Conditions

CapitalAllianze offers its users four different account types for trading:

Micro: To use the Micro account you need to make an initial minimum deposit of $350.
Standard: To use the Standard account, the minimum initial deposit requirement is $10,000
Silver: To use the Silver account, you need to deposit a minimum of $25,000.
VIP: To be eligible for the VIP account, you need to make an initial deposit of $50,000.

Besides the account categories and the minimum deposit requirements, we don’t have any more information about the spread, leverage levels or other trading conditions for this broker.

CapitalAllianze – Advantages

Here is the single advantage we could find about using CapitalAllianze as a broker:

MT4 Trading Platform Offered

Because of the fact that this broker does not offer any demo account, we opened a live account. When we did, we were able to access the trading platforms offered by CapitalAllianze.

The broker offers trading on two different platforms: the web-based Activ8 and the MetaTrader 4 desktop interface. Both are known as good trading platforms, however, the MT4 is considered the better of the two.

The fact that CapitalAllianze offers the MT4 platform is a huge plus, because this is the best trading interface available in the market today. It is easy to use, and traders of all levels of expertise can use it with equal facility.

The MT4 platform offers users nearly one hundred different market indicators, numerous customizable charting options and even automated trading bots called Expert Advisors.

CapitalAllianze – Disadvantages

After going through CapitalAllianze’s website, we found that there were some very serious disadvantages that led us to our recommendation – do not trade with this broker. Here are the problems we found:

Not Regulated

CapitalAllianze is registered in St. Vincent and the Grenadines (SVG) under the company name Allianz Capital Ltd. However, all the broker’s payments seem to be processed by another company called Masterpay Ltd., which is registered in Azerbaijan.

SVG’s Financial Services Authority has clearly stated that it does not offer regulatory oversight for forex brokers. So, this broker, being registered in SVG is not regulated.

And since the languages offered by CapitalAllianze are English, Italian and German, we also checked on the online registries of all three countries to see if the broker was registered in any one of them. We discovered that CapitalAllianze is not registered with any of the regulatory bodies in the UK, Italy or even Germany.

So, basically, this broker is not authorized to offer Forex and CFD trading services in Europe.

Plus500

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

AvaTrade

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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 CONSOB

The fact that CapitalAllianze is targeting customers in Europe has not gone unnoticed by the authorities. The CONSOB, which is the Italian financial watchdog, has blacklisted this broker for operating illegally in the country. In fact, the regulator has warned its country people that this broker is a potential scammer and that they would do well not to trade with CapitalAllianze.

Asking Users to Install AnyDesk and TeamViewer

AnyDesk and TeamViewers are applications that are installed on a user’s desktop or mobile device, which will then allow you to remotely access your PC or device.

The thing is, if you download this software from a broker such as CapitalAllianze’s website, you will be granting them access to your device. This means that all the sensitive information you have stored – your bank account details, credit card details, passwords and so on – will be accessible to this broker.

Considering the fact that CapitalAllianze has been red flagged as a possible scammer, the chances of your money not being safe are extremely high.

No Demo Account

Like we mentioned earlier, CapitalAllianze does not offer its users a demo account. This is another red flag for us, since legitimate brokers offer this facility so that traders can understand the trading conditions offered, and also practice a few trades in a safe environment.

Trading Conditions Not Clear

Another big problem we see is that this broker has not mentioned what its trading conditions are. This is another common tactic employed by scammers to con more unwary traders into investing their money with them.

Fixed Spread Very High

While there was no information given on CapitalAllianze’s website about its trading conditions, we were able to find out about the spread offered by this broker by opening a live account.

When we did so, we found out that CapitalAllianze offers a fixed spread of 3 pips for the EURUSD paid. Most brokers offer a maximum spread of 2 pips for this benchmark currency pair, and 3 pips is very disadvantageous for traders.

High Initial Minimum Deposit

CapitalAllianze requires you to make an initial minimum deposit of $350, which is higher than the industry average range of $100 to $250.

Withdrawal Fees Terms and Conditions

CapitalAllianze also has some really strange terms and conditions for withdrawal of funds. Withdrawal fees are very high, and you get charged a 10% levy in case you have not made at least 200 trades on your account.

Added to that, if you have not traded for 3 months, then this broker will charge you 10% of your capital per month as a penalty.

Trading Bonuses

CapitalAllianze also offers its clients trading bonuses, a practice which has been prohibited by most regulators because of the unfair terms and conditions. Traders have to meet ridiculously high trading volume targets before they are allowed to withdraw their funds.

Conclusion

After having investigated CapitalAllianze thoroughly, we would strongly recommend that all traders avoid this broker as it has all the signs of being a scammer.