CapStar FX – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
CapStar FX - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2022
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://capstarfx.com
Founded: 2022
Regulations: None
Languages: English, Arabic
Deposit Methods: FastPay, AsiaHawala, NassWallet, Tether, ZainCash
Minimum Deposit: Unspecified
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Metals, Forex, Stocks, Indices, Energy, Crypto Currency
Trading Accounts and Conditions
CapStar FX offers their clients two types of trading accounts: Standard and ECN. The broker does not tell us what the minimum deposit requirement is. And besides a one-liner that states that the leverage is 1:100, we have not been given any information on trading conditions.
CapStar FX – Advantages
There are no advantages to trading with CapStar FX.
CapStar FX – Disadvantages
Given below are all the disadvantages and red flags that tell us that we are dealing with a scammer here:
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Lack of Regulation
CapStar FX claims that they are based in St. Vincent and the Grenadines (an address is given) and their parent company’s name seems to be CapStar FX. We checked the SVG FSA’s (St. Vincent and the Grenadines Financial Services Authority) database and found that there is a company by that name registered. However, the problem is that being registered in SVG doesn’t really help a forex broker since this financial authority has clearly – and repeatedly – stated that they do not regulate forex, CFD and binary options brokers at all. Therefore, for brokers registered in this jurisdiction to offer legal services, they need to be regulated by another financial authority.
The broker has also provided contact details for their branch in Iraq. While there is an Iraqi Securities Commission that monitors the capital market, we could find any company by this name listed with this regulator.
Beyond these two pieces of information, CapStar FX has not bothered to provide us with any licensing and regulation details. Therefore, we can only conclude that this broker is unregulated and operating illegally. Which makes them a scammer.
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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No Legal Documents
Another red flag that tells us that CapStar FX is not to be trusted is the complete lack of legal documents. All regulated brokers mandated by law to present details legal documents on their website. These documents are the contract between you and them. They detail exactly what types of services the broker offers, the costs associated with those services, the terms of using those services, and so on.
If these documents are not in place and you sign up with a broker, then you are leaving yourself vulnerable to being scammed. The broker can do whatever they like with your funds and your details and there will be nothing you will be able to do to stop them.
This is the reason why it is so important that you check and read through legal documents before you sign up with a new broker.
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Lies About Trading Software
CapStar FX claims that they offer their clients the use of the MetaTrader 4 trading software. The MT4 software is one of the most popular platforms for trading in the world. In fact, it is second only to its sister software, the MetaTrader 5 platform.
After we registered with CapStar FX, we found out that this broker did, indeed, have a MT4 software on offer. However, what we get is only the demo version of the software. There is no actual functioning trading platform at all!
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Issues with Trading Conditions
We also need to mention the fact that this broker does not bother with trading conditions. While their trading conditions don’t matter since this broker doesn’t even have a working trading platform, it is important to clarify a few points.
Brokers need to advertise their trading conditions since this is what tells traders whether it would be advantageous to trade with that broker or not. The lack of information on trading conditions is typical of scammers since they do not wish to let their intended victims know how disadvantageous it would be to trade with them.
The lack of something as basic as the minimum deposit amount tells us that we are dealing with a scammer.
We also need to mention that leverages that are as high as 1:100 (which is what CapStar FX offers) are dangerous. They are also illegal in many jurisdictions.
A legitimate broker, unlike CapStar FX, will give you all the details about their trading conditions so that you can make an informed decision about trading with them.
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Unknown Payment Options
Another disadvantage that also makes us suspicious about CapStar FX is the fact that the payment options that they offer are rather obscure. Payment providers such as FastPay, AsiaHawala, NassWallet, and cryptocurrencies such as Tether and ZainCash are not too popular.
There are two issues we have with these payment options. Firstly, they are not very well known and don’t have an established reputation. Legitimate brokers ensure that they provide their customers with a wide range of established payment options – credit cards, debit cards, bank transfers, wire transfers, online payments options such as Skrill, Neteller, PayPal and so much more.
The second issue we have is that this broker offers cryptos as 3 of the 5 payment options. Scammers prefer to use crypto transactions since these are permanent and anonymous. Which means that once you have made your payment, you can never get that money back.
Thus, we strongly advise all customers to check for reliable payment options before signing up with a new broker.
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No Information on Withdrawals
CapStar FX does not even provide a hint of what their withdrawal policy is. We do not know if there is a limit to how much you can withdraw at a time, what payment option you can use for withdrawals, how long withdrawal requests take to get processed, if there are any fees attached to withdrawals and so on.
Conclusion
CapStar FX is another scammer and you cannot trust them with your funds.
CapStar FX
Pros
- None
Cons
- Lack of Regulation
- No Legal Documents
- Lies About Trading Software
- Issues with Trading Conditions
- Unknown Payment Options
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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