Capitaria – Is It a Scam?

| Publish date: 01/31/2020 (Last updated: March 24, 2020 08:19 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.

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

updated 2020

Capitaria, a Forex broker based in South America, offers its clients two types of trading accounts:

  • Start: In this account type, you need to make a minimum deposit of $400 to trade, and you are offered a leverage of 1:200. The spread is fixed at 3 pips for this account type.
  • Pro: To start a Pro account, you need to first deposit at least $7,500. You get a leverage level of 1:100, but we could not find details on the spread for this account type.

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.capitaria.com

Founded: N/A

Regulations: Unregulated

Languages: Spanish (Chile)

Deposit Methods: Unknown

Minimum Deposit: $400

Free Demo Account: Available

Number of Assets: Unknown

Types of Assets: Currency Pairs, CFDs on Cryptos, Precious Metals, Commodities, Indices, Shares.

Trading Accounts and Conditions

Capitaria, a Forex broker based in South America, offers its clients two types of trading accounts:

  • Start: In this account type, you need to make a minimum deposit of $400 to trade, and you are offered a leverage of 1:200. The spread is fixed at 3 pips for this account type.
  • Pro: To start a Pro account, you need to first deposit at least $7,500. You get a leverage level of 1:100, but we could not find details on the spread for this account type.

Capitaria – Advantages

Here are the few advantages we could find while investigating Capitaria:

  • MT4 Trading Platform Offered

The MetaTrader 4 (or, MT4) trading platform is the world’s most popular trading interface, and for good reason. It is very user-friendly, and offers traders added features to make trading even easier. With the MT4 platform, users get to choose from numerous customizable charting tools, trading bots so that you can execute automated trading, nearly 100 market indicators, and more.

The fact that Capitaria offers its customers this platform on which to trade is a huge plus for us.

  • Leverage of As Much As 1:200

Capitaria offers its clients a leverage of 1:200, which is quite substantial. With this kind of a leverage, even those traders that prefer higher risk investments will be attracted to this broker.

However, the downside of having a high leverage is that the risk factor is higher too, which means that traders stand to lose a lot more of their money. It is due to this reason that many regulators across the industry have put a limit on the amount of leverage that a broker may offer its customers.

  • Demo Account Available

Capitaria offers its clients the use of a demo account so that they can test their trading platform and also understand how the trading conditions work. This is another point in this broker’s favor.

  • Wide Range of Trading Instruments

The third advantage of trading with Capitaria is that users get to execute trades in a wide variety of assets, which range from Forex pairs to CFDs in cryptocurrencies, commodities, stocks, indices, precious metals and so on.

Capitaria – Disadvantages

Sadly, after we assessed Capitaria, we found that the disadvantages of trading with this broker were greater than the advantages. Here is the list of serious issues we found with Capitaria:

  • Unlicensed Broker

On Capitaria’s website, it is stated that this broker has offices in 3 countries in South America – Chile, Uruguay and Peru. The broker claims to be owned and operated by a company called Capitaria SA, which in turn is owned by KT Financial Group (KTFG).

Upon investigating, we found out that KTFG is actually registered offshore in the British Virgin Islands. In this territory, financial services providers such as Forex brokers are not bound by regulatory oversight. What this means is that KTFG, and therefore Capitaria is not regulated by any financial authority.

Added to that, all 3 South American countries in which this broker operates do not have regulatory oversight for Forex and CFD brokers. Despite that, there are many brokers in that region that have ensured that they are legitimate and regulated.

The fact that Capitaria has made no such effort to get a trading license raises a huge red flag about its legitimacy.

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.

 

  • Spreads Not Clear/ Demo Spreads High

On its website, Capitaria not given any information about the spreads it offers.

And the spreads that we were able to see when trying out Capitaria’s demo account were unreasonably high.

When we logged into the demo account, we saw that the spread for the benchmark currency pair, the EURUSD, was at 3 pips. This is about twice as much as what the industry average is. Most brokers offer their customers a spread of 1.0 to 1.5 pips.

A high spread is not favorable for the trader because the broker makes most of the money from such spreads. Therefore, Capitaria having a high spread is not a good sign.

  • Minimum Deposit Requirement High

Capitaria’s Start account requires you to deposit a minimum of $400 before you are able to start trading. This requirement is much higher than the industry average, where most brokers require traders to deposit between $100 and $250 to open an account with them.

This high initial deposit requirement is another red flag, especially when it is seen in conjunction with the lack of information on spreads, a lack of a trading license and the fact that Capitaria is an offshore broker.

  • No Information about Payment Methods

Another point of concern that we have with this broker is that Capitaria has not provided any information about its payment methods. Even the basic debit/credit card and bank wire options are not mentioned on this broker’s website.

  • Information about Transaction Fees Missing

Another cause for concern is the fact that there is no information with regard to the various transaction fees. For example, we do not know what the fees for withdrawing funds are.

The problem is that this doesn’t mean that the broker has not imposed a charge. It simply means that we do know how much that fee is. What this also means is that you may be surprised by the charges that are made to you when you try and withdraw your funds.

Conclusion 

Despite the fact that Capitaria has not been blacklisted by any financial regulator, and that the broker is not anonymous, there are too many gaps that lead us to advise you to stay away. We can safely conclude that this broker is not safe and you would be better off investing your money elsewhere.

Capitaria

2.6

User Experience

3.0/10

Payment Options

2.6/10

Security

2.5/10

Support

2.7/10

Reputation

2.4/10

Pros

  • Capitaria
  • Demo Account Available

Cons

  • Not Licensed
  • Spreads Unclear
  • Initial Minimum Deposit Requirement High
  • No Information About Payment Methods
  • Information About Transaction Fees Missing

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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