CapitalsWise – Are They Trustworthy?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
CapitalsWise - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2023
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://capitalswise.com
Founded: 2021
Regulations: Not Licensed
Languages: English
Deposit Methods: Unspecified
Minimum Deposit: $10,000
Free Demo Account: Unavailable
Number of Assets: Unspecified
Types of Assets: Forex, Indices, Commodities, Cryptocurrencies, CFDs
Trading Accounts and Conditions
CapitalsWise offers their clients the following types of trading accounts:
- Silver: The minimum deposit is $10,000. You get an up to 25% margin loan.
- Gold: The minimum deposit is $50,000. You get an up to 50% margin loan.
- Platinum: The minimum deposit is $100,000. You get an up to 75% margin loan.
- VIP Club: The minimum deposit is $250,000. You get an up to 100% margin loan.
Other trading conditions such as spreads, leverage ratios, order execution methods, commissions and so on are missing.
CapitalsWise – Advantages
There are no advantages in dealing with CapitalsWise; this broker is out to scam innocent traders.
CapitalsWise – Disadvantages
Listed below are all the disadvantages we have found in CapitalsWise which clearly reveal their scam:
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Unregulated and Blacklisted Broker
The most important sign of a broker’s dishonesty is their lack of regulation.
CapitalsWise is not only unregulated, this broker is also blacklisted by the Financial Conduct Authority of the UK. Here is how we know.
On their website, this broker provides us with an address in London, UK as well as a UK telephone number. However, we are not told the name of the company that runs this website. We also are not given any information about their regulation status. Even their Terms and Conditions page has no corporate information.
Based on the fact that this broker claims to operate out of the UK, we went throught the Financial Conduct Authority’s databse. All forex brokers legally operating in this country need to be registered with and regulated by the FCA.
Our investigation revealed that this broker is not only not regulated by the FCA, but that the FCA has actually issued a warning against dealing with CapitalsWise. According to the FCA, CapitalsWise is a scammer that is operating illegally in the UK and that all traders should beware this broker.
A warning from one of the world’s top financial regulators should be enough warning to stay away from a broker and to let us know that they are scammers.
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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Poor Trading Platform
Another sign of a broker’s scam is the quality of their trading platform.
The trading platform is the prime offering (along with their trading conditions) from an online broker. Therefore, a legitimate broker will offer their clients only the best trading software in the market. The top two trading software in the market today are the MetaTrader 4 and MetaTrader 5 platforms. These two platforms take up more than 80% of the market share. This is because they are easy to use (even for novices), have a wide array of trading functionalities, as well as a huge third-party marketplace for apps related to trading.
CapitalsWise, like other scammers, skimps on their trading software and offers their clients a WebTrader – a web-based trading platform with very basic features. This is the kind of trading platform that would only appeal to novice traders who know nothing about trading. This is also the kind of platform that you will frequent see scammers using.
The lack of a quality trading platform is another red flag that traders should look out for.
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Issues with Trading Conditions
A broker’s trading conditions also tell us whether they can be trusted or not. Along with their trading platform, their conditions for trade are what an online broker offers. These trading conditions tell traders the cost of trading with that broker, the amount of risk the broker is willing to offer and other trading related conditions.
When these conditions are skewed, incomplete or missing, you know you are dealing with a scam. And that is why we know CapitalsWise is a scam. Let us look at the information we have on this broker’s website.
According to the Account Types section, this broker offers us 4 different types of trading accounts. The minimum deposit for the basic (Silver) account is a whopping $10,000. There is no legitimate broker that would demand such a massive deposit amount. The market average is between $100 and $250, and that average is also going down since there are so many excellent brokers that now offer account openings for as little as $10!
Another red flag is the complete lack of information on the other trading conditions such as spreads, leverages, commissions, and so on. These are key pieces of information that traders need to know and understand before they commit to investing with a broker. So, if this important information is missing, you know you are dealing with a scammer.
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Issues with Payments
We also need to highlight another red flag – the lack of information about their payment methods and their payment policies.
We do not know how clients can make payments with this broker. There is no information provided and we could even access their payments portal.
Added to that, this broker has not provided any information on their payment policies. Are there any fees for deposits or withdrawals? Is there is withdrawal limit, or are there any conditions attached to withdrawals? Are there any fees imposed for withdrawals? What are the withdrawal methods?
We have none of this information in place.
This is a huge red flag, since regulated brokers will ensure that such basic information is easily accessible for all visitors to their website.
We also need to warn first-time traders never to opt for cryptos as a payment method if you are dealing with a broker for the first time. This is because crypto transactions are permanent as well as anonymous. If you get scammed, there is no way you will ever get your money back. It is safer to use a credit card, so that you can file for a chargeback in case of a scam.
Conclusion
CapitalsWise is another unregulated and blacklisted scammer and if you deal with them, your funds are at risk.
CapitalsWise
Pros
- None
Cons
- Unregulated and Blacklisted Broker
- Poor Trading Platform
- Issues with Trading Conditions
- Issues with Payments
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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