CapitalSeven – Is This Broker Trustworthy?

| Publish date: 04/04/2020 (Last updated: April 06, 2020 01:51 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.

CapitalSeven - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$100
Minimum Deposit
X

updated 2020

CapitalSeven has position itself as a safe and secure cryptocurrency broker that offers its customers 5 different types of trading accounts. They are:

  • Green Account: To open a Green Account, you need to first deposit $5,000.
  • Premium Account: To open this type of an account, you need to make a minimum deposit of $10,000.
  • Platinum Account: To open this account, you need to make a minimum deposit of $50,000.
  • Executive Account: To start using an Executive Account, you first need to deposit at least $100,000.
  • Presidential Account: To start trading on the Presidential Account, you need to make a minimum deposit of $250,000 first.

There is no information given on CapitalSeven’s website with regard to its trading conditions. So, we do not know how much the leverage ratios are for each of the accounts, or even what the spreads offered are.

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://www.capitalseven.com

Founded: N/A

Regulations: No

Languages: English

Deposit Methods: MasterCard, Visa, Skrill, Bank Transfer

Minimum Deposit: $5,000

Free Demo Account: No

Number of Assets: 800+

Types of Assets: CFDs on Cryptocurrencies and Initial Coin Offerings

Trading Accounts and Conditions

CapitalSeven has position itself as a safe and secure cryptocurrency broker that offers its customers 5 different types of trading accounts. They are:

  • Green Account: To open a Green Account, you need to first deposit $5,000.
  • Premium Account: To open this type of an account, you need to make a minimum deposit of $10,000.
  • Platinum Account: To open this account, you need to make a minimum deposit of $50,000.
  • Executive Account: To start using an Executive Account, you first need to deposit at least $100,000.
  • Presidential Account: To start trading on the Presidential Account, you need to make a minimum deposit of $250,000 first.

There is no information given on CapitalSeven’s website with regard to its trading conditions. So, we do not know how much the leverage ratios are for each of the accounts, or even what the spreads offered are.

CapitalSeven – Advantages

There is only one advantage to trading with CapitalSeven, and that is the range of CFDs on cryptocurrencies and Initial Coin Offerings that are available for trade.

CapitalSeven – Disadvantages

Here are the reasons why trading with CapitalSeven would be a huge disadvantage for traders:

  • Anonymous and Unregulated Website

When we went through CapitalSeven’s website, we realized that this broker is completely anonymous. The broker has not revealed which company owns and operates it. There is also no address or license number given.

The only two pieces of information we were able to glean were a phone number that seems to be from Switzerland, and a vague statement in the broker’s Terms and Conditions page that states that it is operates according to the laws of Bulgaria.

Any broker that operates out of Bulgaria has to be regulated by the Bulgarian Financial Supervision Commission (FSC). Therefore, we checked the FSC’s online registry, but were unable to find CapitalSeven listed there.

This means that this broker is an anonymous and unregulated entity, and that doing business with them would be highly risky. You would not have any protection against fraud or scamming, and the chances of you losing your money to them are extremely high.

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 FCA

The United Kingdom’s regulatory body, the Financial Conduct Authority (FCA), has blacklisted CapitalSeven as a possible scammer. The FCA’s warning clearly states that this broker is offering its financial services in their jurisdiction illegally, and that all citizens should be careful of being scammed.

  • Strange Conditions and Fees

We found some very strange conditions listed in CapitalSeven’s Client Agreement (Terms and Conditions) page.

First, they have stated that you will be charged 33% of your total deposit in case you wish to withdraw your funds prematurely. The problem is, the broker hasn’t defined what prematurely means. So, you don’t know under what conditions will your request to withdraw your funds will be considered premature.

Second, CapitalSeven state that you need to meet a minimum trading turnover requirement which is dependent on the type of payment method you have used. And if you do not reach your trading volume target, then you will be charged a fee.

Third, this broker states that it reserves the right to charge you various fees/charges – without telling what these charges or fees will be.

  • Offering Trading Recommendations

CapitalSeven offers its clients trading recommendations, which means that they will tell you which cryptocurrencies or ICOs to invest in. The problem here is that brokers such as these are called market makers, meaning that they make money when you lose money.

Therefore, them recommending trades is considered a serious conflict of interest and a clear indication that they are not keeping your best interests in mind.

So, considering that this broker is anonymous and offering its trading services illegally, them offering trading recommendations is rather ominous.

  • Unreasonable Withdrawal Request Processing Time

CapitalSeven states that it will take 7 working days to process your withdrawal request. And it will take 60 business days for the funds to be transferred to your bank account.

Considering the fact that regulated brokers are able to process and transfer funds in 24 hours (some can do it in just a few hours), this processing time is not just unreasonable, it is ridiculous!

  • Ridiculously High Minimum Deposit Requirement

To be able to open a basic account with CapitalSeven, you need to make a minimum deposit of at least $5,000. This is a ridiculously high amount, since the industry average stands at between $100 and $250! Added to that, there are many reputed brokers in the market who require a minimal deposit of just $5 for you to start trading on their accounts.

  • No Support for MetaTrader 4

CapitalSeven offers no support for the MetaTrader 4 (MT4) platform. A broker not offering this platform is a negative, since the MT4 platform is what most traders use today to execute trades.

Instead, what you get is an unproven, web-based trading platform that looks quite fake. There are no pending orders that you can see and neither are there any other basic features, which leads us to wonder if the platform even works

  • No Demo Account

We had to open a live account to check the trading platform offered by CapitalSeven since this broker does not offer a free demo account, which we consider another black mark against them.

A demo account allows traders to assess the trading conditions and also to check the performance of the trading platform – before they put in real money.

Conclusion 

CapitalSeven is not a broker that you should trust. If you trade with this broker, you are sure to lose your money.

CapitalSeven

2.6

User Experience

3.4/10

Payment Options

2.4/10

Security

2.6/10

Support

2.5/10

Reputation

2.3/10

Pros

  • Range of CFDs on Cryptocurrencies and ICOs Available for Trade

Cons

  • Anonymous and Unregulated Website
  • Blacklisted by FCA
  • Strange Conditions and Fees
  • Offering Trading Recommendations
  • Unreasonable Withdrawal Request Processing Time

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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