Scam Brokers

Digit Capital Fund – Are They Trustworthy?

Chainbits Staff | Publish date: 06/29/2021 (Last updated: June 29, 2021 01:16 AM)

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Digit Capital Fund - DO NOT TRADE WITH THIS PROVIDER

2.3/10

$100

Minimum Deposit

updated 2021

Try other platforms

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

Plus500 Review - Regulated broker

Plus500CY Ltdauthorized & regulated by CySEC

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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://digitcapitalfund.com

Founded: 2021

Regulations: Unlicensed

Languages: English

Deposit Methods: Bitcoin, Visa, MasterCard, Wire Transfers

Minimum Deposit: Not Mentioned

Free Demo Account: No

Number of Assets: N/A

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

Trading Accounts and Conditions

Digit Capital Fund has provided no information whatsoever about its trading accounts or even its trading conditions. We tried to register for an account to find out for ourselves, but the link to the broker’s trade room was broken. Because of this, we cannot provide our readers with any information about this broker’s trading conditions or the kinds of accounts – if any – they have to offer.

Digit Capital Fund – Advantages

We did not find even a single advantage about Digit Capital Fund. This broker is not safe.

Digit Capital Fund – Disadvantages

Here are the many, many reasons why it would be best to not do business with Digit Capital Fund:

Anonymous and Unregulated Broker

Digit Capital Fund, also called DCF, is an anonymous broker. We could not find any information on its website about its identity – there is no company name, no physical address, and no contact details (except for a single phone number which seems to be located in the UK). Basically, there is no way to know where this broker is located or even who owns this brokerage.

Digit Capital Fund tries to cover up this lack by claiming that it is regulated by the Cyprus Securities and Exchange Commission (CySEC), but this is a blatant lie. We checked the regulator’s online register to see if there was a company/broker by the name of Digit Capital Fund licensed by them, but we found no such name.

All of this reveals that this broker is operating outside the law and that if you invest with Digit Capital Fund, you will lose your money.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

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.

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

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.

Unknown Trading Software

Digit Capital Fund seems to be using a web-based trading software however, we were unable to verify anything about it. As we mentioned earlier, we were able to register for an account. But when we tried to access the trading room to check out the platform, the link was broken.

Thus, while this broker claims to have a trading platform, there is no way to verify it.

No Trading Conditions

As we also mentioned earlier in our review, there is no information provided about the trading conditions. We do not know what types of trading accounts are available. We do not know what the minimum deposit requirement is. We do not know what the spreads are.

The only thing we do know – but cannot verify – is that the leverage ratio this broker offers stands at a maximum of 1:500. If this is the truth, then it is also an issue.

High leverage ratios are extremely risky as traders can end up losing all their funds – and more – when they use it to speculate on the forex market. This is why many regulators across the world have put the brakes on how much leverage brokers can offer. Therefore, the maximum leverage in the UK, the EU and Australia stands at 1:30, and 1:50 in USA and Canada.

Furthermore, considering the fact that this broker seems to be targeting traders in the EU (Cyprus is a part of the EU, so any broker regulated by this body can operate in the Union), this ratio is illegal.

Unfair Withdrawal Policy

This is where things get really interesting! The withdrawal policy that this broker has formulated is ridiculously unfair. First of all, the only way you can withdraw money seems to be through your Bitcoin wallet. Withdrawals will take up to 14 days! And the minimum amount you can withdraw is 250mBTC.

Just to be clear, 250mBTC is about $10,000 (based on current BTC exchange rates)!

It doesn’t stop there. If you make a withdrawal without reaching a 100% turnover target (100% of what is not specified!), then you will be charged 30mBTC – it’s $1,200!

Bonuses Offered

Furthermore, if you accept the bonuses that this broker offers (called incentives), then you will be bound by the withdrawal conditions related to bonuses. This means that you will need to execute trades that equal 30 times the bonus amount you have availed before you will be allowed to withdraw your money. (It would also help you to know that the CySEC has actually banned bonuses and promotions, so the fact that this broker offers them means that Digit Capital Fund is breaking the law.)

Other Policy Issues

There are other policy issues we have found in this broker’s Terms and Conditions.

This broker charges a fee for an inactive account however, it doesn’t bother to specify that amount or how it will be applied. The only thing that Digit Capital Fund specifies is that if your account is inactive for 30 days, then these fees will be applied.

This is a ridiculously short time, since most brokers (the legitimate ones) will allow an account to be inactive for as much as 6 months (on average), before a nominal amount (around $5 – $10) is charged.

Added to this, this broker also states that it will collect VAT taxes on accounts that have a balance of more than $100,000 – according to US laws and guidelines! However, in another part of its Terms, the broker states that it does not accept traders from the US!

Conclusion

Digit Capital Fund is a liar and a scammer. There are contradictions in its terms of service, the broker has lied about its regulation status, and it is completely anonymous. This is a broker that cannot be trusted, and all traders would be best advised to keep as far away from them as possible.