Scam Brokers

Digital Capital Markets – Can You Trust Them?

Chainbits Staff | Publish date: 07/26/2022 (Last updated: May 03, 2023 07:56 AM)

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

Digital Capital Markets - DO NOT TRADE WITH THIS PROVIDER

2.4/10

$100

Minimum Deposit

updated 2022

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

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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://digitalcapitalmarkets.org

Founded: 2021

Regulations: None

Languages: English

Deposit Methods: Bitcoin

Minimum Deposit: $300

Free Demo Account: No

Number of Assets: Unspecified

Types of Assets: Cryptocurrency, Binary Trading

Trading Accounts and Conditions

Digital Capital Markets does not mention anything about the kinds of trading accounts they offer. By what is written on their website, there seems to be only one account that everyone can register for.

Added to that, there is no mention of trading conditions anywhere on this broker’s website. And since there is no trading software available either, we do not have any way to check this information for ourselves.

Digital Capital Markets – Advantages

There are no advantages to trading with Digital Capital Markets.

Digital Capital Markets – Disadvantages

Digital Capital Markets is a scammer and here are all the red flags that prove it:

Lies About Regulation Status

The first thing we check when we are reviewing a broker is whether they are operating legally or not. Obviously, if a broker is operating without the proper sanctions, then they are out to scam traders. Here is what we found out about this broker.

This broker claims that their company name is digitalcapitalmarkets, and that this is a company that it registered in the United States. The broker also claims that they are regulated by the US SEC (Securities and Exchange Commission). Then, they also provide a Company Registration number: CRD#:298311/SEC#:8-70183. This broker also provides a US address and a WhatsApp number for communication.

It all sounds very official and would almost have people believe that they are legitimate. However, here’s the rub.

Brokers in the US are NOT regulated by the SEC. They are regulated by the CFTC – the Commodity Futures Trading Commission. Added to that, to be able to operate in the US, broker also need to be members of the NFA – National Futures Association.

We checked whether this broker was actually incorporated in the US, and of course, they were not. And there was no entity by this name registered with either the CFTC or the NFA.

This the first sign that this broker is a scam. They are unregulated and they have blatantly lied about their regulation status.

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.

No Legal Documents

The second indication of this broker’s scam is the fact that there are absolutely no legal documents available anywhere on their website.

The legal documents are critical since they are the contract between the broker and the customers. These are the documents that detail all the services the broker offers, the terms of the services they offer, the policies under which they operate and expect their customers to operate, the cost of doing business with them and so on.

The lack of legal documents means that if you sign up with this broker, you are basically giving them the right to anything they want with your money and your personal information.

This is the reason why we urge traders strongly to read through the legal documents a broker has on their website before signing up with them

No Trading Software or Conditions

As we mentioned earlier in our review, this broker has not bothered providing any information with regard to the types of trading accounts they offer or even the trading conditions they have in place.

It is only in the FAQs section that we find out that the deposit range is from $300 to $50,000. Otherwise, when you use the payment portal, you can make a deposit of as little as $1; there is no limit set.

However, it becomes perfectly clear why they have not bothered to do so once we found out that Digital Capital Markets do not even have a trading software in place.

We did find a link to an MT4 software, however, when we checked it, we found out that it was the demo account offered by MetaQuotes (the maker of the MT4 software) as a trial; there is no way to carry out actual trades on this demo account. Besides this, when we checked the client area, we found some limited third-party charts that are useless to trading.

We have noticed a growing trend in scammers that they do not even bother to attempt to cover up by offering their clients (read: potential victims) a working trading software. And this broker is not better than this new generation of scammers. They too haven’t even made an effort to acquire a trading software. Their entire scam seems to be dependent on the naivete of the novice trader who doesn’t know what to expect from a forex broker.

Lies About Payment Options

Digital Capital Markets claims to offer multiple payment options – Skrill, Bitcoin, Western Union, Bank Transfer and MoneyGram. However, when we checked the payment area, we found out that the only payment option that is actually available is Bitcoin; there is no other payment method available.

This another typical tactic employed by scammers. Cryptocurrency transactions are all permanent and anonymous, which means that your money cannot be traced at all once you have gone through with that transaction.

Binary Options Trading

Another issue that clearly shows that this broker is a scammer is the fact that they advertise binary options trading. This type of trading is highly controversial and banned in most countries. In the US, there is only a limited number of brokers who are allowed to offer this trading option, and that too in extremely tightly controlled environments. Therefore, the fact that this broker is advertising something like this clearly tells us that we are dealing with just another liar out to get your money.

Conclusion

Digital Capital Markets is yet another one of those sloppy scammers that seem to be mushrooming with great rapidity in the market today. It would not be wise to invest with this entity.