CapitalGMA – Is this Broker Safe?

Website URL: https://www.capitalgma.com/

Founded: 2019

Regulations: Unregulated

Languages: English, Italian, German

Deposit Methods: Visa, MasterCard, Bank Wire, EFTPay

Minimum Deposit: $1,000

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex, CFDs on Indices, Stocks, Commodities, Precious Metals

Trading Accounts and Conditions

CapitalGMA claims to be a financial services provider based out of Bulgaria that offers a web-based trading platform. The broker also claims to offer 3 different account types with which you can trade.

CapitalGMA does not offer any demo account, however, we were able to create a live account and see the three account types:

• Bronze: with a minimum deposit requirement of $1,000
• Silver: with a minimum deposit requirement of $2,500
• Gold: with a minimum deposit requirement of $10,000

The broker also offers a leverage of 1:400 and a spread fixed at 3 pips. Beyond this, there is no other information on trading conditions.

CapitalGMA – Advantages

Here are the two advantages we find CapitalGMA has:

• Generous Leverage

CapitalGMA offers its clients a maximum leverage of 1:400, which is very generous and will appeal to all types of traders, from beginners to pros.

However, it needs to be kept in mind that the higher the leverage is, the more the risk.

• Variety of Tradeable Assets

Another plus that we have found with CapitalGMA is the wide variety of tradeable assets it has on offer. Traders can choose to trade in Forex, and CFDs on commodities, stocks, indices, and even precious metals.

CapitalGMA – Disadvantages

Unfortunately, CapitalGMA has more disadvantages than advantages. And these disadvantages are serious enough to raise concerns about whether this site is a scam or not.

• No Legitimate License

CapitalCMA is owned and operated by Bulgaria-based Equalizer LTD. Considering that Bulgaria is a part of the European Union, all brokers are required to be registered with a financial regulatory authority.

However, upon checking the online registry of the Bulgarian financial authority, the FSC (Financial Supervision Commission), there was no company by the name of Equalizer LTD listed with the government agency.

This can only mean that this broker is not overseen by a regulatory body. And with not regulatory oversight, this broker can do whatever it likes to its clients.

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• Blacklisted by the CONSOB

CapitalGMA has been blacklisted by the CONSOB. The CONSOB, or, Commissione Nazionale per le Societa e la Borsa, is the Italian financial regulator.

According to this agency, CapitalGMA is not authorized to operate in Italy since it does not have the required licenses. This warning against trading with CapitalGMA is also proof that the broker has been targeting European clients, which is against the law.

• Unclear Trading Conditions

There is very little information on CapitalGMA’s website about its trading conditions and the products offered. The only thing we could glean was that the Silver account had a leverage of 1:400 and the spread was 3 pips, fixed.

This lack of clarity with regard to the most important information that traders should get is indication enough that something is not right with this broker.

• No MetaTrader 4 Support

CapitalGMA offers its clients a simple web-based trading platform, rather than the industry’s favorite trading interface, the MT4 (MetaTrader 4).

The MT4 trading platform offers its users a range of features such as market indicators, trading bots for automated trading and numerous charting options.

The simple web-based trading platform employed by CapitalGMA offers none of the benefits.

• Very High Minimum Deposit Requirement

CapitalGMA has a very high minimum deposit requirement. The broker asks that clients deposit a minimum of $1,000 before they will be allowed to trade on its platform.

This amount is actually 4 times higher than the industry average of $250, which raises an alarm about this broker.

• No Skrill Support

CapitalGMA supports payments made through Visa or MasterCard, via bank transfers or through a largely unknown payments provider called EFTPay. However, the broker does not support Skrill.

This is a red flag, especially when you realize that the payments provider has recently instituted new and more stringent anti-scam policies. So, if CapitalGMA doesn’t support the popular payment services provider, then you need to wonder how legitimate it is.

• Term and Conditions about Fees

The terms and conditions on CapitalGMA’s website in relation to fees have raised an alarm for us. This broker has numerous types of fees that it charges its clients.

CapitalGMA charges its customers something called the profit clearance fee, which is between $1.50 and $5 for ever single trade you make. Added to that, you also need to pay a monthly maintenance fee of $20. And if you wish to make a withdrawal, you need to pay $20 every time.

That’s not all. You also need to pay a fee of $50 per month as dormancy fees. And this fee kicks in if you have not used your trading account for the last 90 days or more.

This is another red flag that indicates that something just isn’t right with this broker. We say this because legitimate, regulated traders do not charge a dormant fee until the account has been inactive for more than 12 months.

And finally, if you wish to withdraw your money, the broker states that it will take as much as 7 business days to process your request.

• Trading Bonus

CapitalGMA also offers trading bonuses, which are prohibited in most strongly regulated countries. Therefore, if this broker has a trading bonus, you know you need to stay away from it.

Conclusion

CapitalGMA is a broker that you need to stay away from. The broker has been blacklisted by the CONSOB for a valid reason – it is unregulated, has unfair and unclear terms and conditions, demands a very high initial deposit and offers trading bonuses.

CapitalGMA

3.7

User Experience

3.5/10

Payment Options

3.6/10

Security

4.0/10

Support

3.8/10

Reputation

3.5/10

Pros

• Generous Leverage
• Variety of Tradeable Assets

Cons

• Lack of Regulation
• Blacklisted by CONSOB
• Unclear Trading Conditions
• No MT4 Support
• Very High Minimum Deposit Requirement