FirstCapital – Is it Safe?

Website URL: https://www.firstcapital.fm/

Founded: N/A

Regulations: Not Licensed

Languages: English, Italian, Russian

Deposit Methods: Bitcoin, Ethereum

Minimum Deposit: 250 Euro for Wire Transfer

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Foreign Currency Pairs, Indices, Contracts for Difference, Cryptocurrencies, Commodities

Trading Accounts and Conditions

Here are the accounts that FirstCapital offers its customers: Bronze, Silver, Gold and VIP. For each of these types of accounts, the maximum leverage is 1:500. The broker gives no further information about its trading conditions. It is mentioned that spreads are fixed, but the pips at which they are fixed are not mentioned.

With regard to minimum deposit requirements, once again there is a lack of clarity. The broker only states in its Deposits section that if you make a deposit via in international bank transfer or a wire transfer, then the minimum deposit you are required to make is 250 Euros.

However, when we registered for an account with the broker, we found that the minimum deposit requirement is $200.

FirstCapital – Advantages

Here are the advantages of using FirstCapital as your broker:

• High Leverages

They offer a maximum leverage ratio of 1:500. This is high enough to be appealing to a wider range of traders, including those that prefer high-risk investments.

However, it is to be noted that such high leverages also correspondingly come with significantly higher levels of risk, which is why many financial authorities do not allow regulated brokers to cross certain limits on leverages.

• Decent Minimum Deposit Requirement

The minimum deposit requirement to open a Bronze account with FirstCapital is $200, which is quite favorable. The industry standard for minimum deposits ranges from $100 to $250, but there are some really good, regulated brokers that allow you to begin trading with minimum deposits as low as $5.

FirstCapital – Disadvantages

Here are the disadvantages you will face if you decide to broker with FirstCapital:

• Confusing Corporate Information

The corporate information presented on FirstCapital’s website is very confusing. At one point, the broker claims that their website as well as their payment services are provided by a Bulgarian company called Sigma Consulting Limited. However, in another part of their website, the broker claims that they are owned and operated by and offshore company called Solt Corp. Ltd, which is based in St. Vincent and the Grenadines (SVG).

And finally, their trading platform is provided by yet another company called ECN Pool Ltd, about which there is no information given.

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• Unregulated Broker

FirstCapital has provided a license number for its registration in SVG, however, that number doesn’t hold much water since the financial authority in SVG clearly states that it does not offer licenses for forex brokers.

Added to that, we did some checking with the Bulgarian financial authority, the Financial Supervision Commission (FSC), since FirsCapital also states that a company based in that country is linked with them. Unsurprisingly, none of the companies mentioned by FirstCapital are regulated by the FSC.

This means that this broker is operating outside the law as an unregulated entity.

• Blacklisted by CONSOB

In our search for FirstCapital’s regulation status, we found something extremely worrying – this broker has been blacklisted by the Italian financial watchdog, the CONSOB for operating in the EU illegally.

There cannot be a clearer indication that this that this broker is not to be trusted with your funds.

• Lies About Payment Options

FirstCapital claims that you can make deposits using major credit cards such as Visa, MasterCard and Maestro, or through local and international bank transfers, wire transfers and e-wallets. In fact, a large section of the Accounts page is dedicated to their payment options and how you can go about depositing and withdrawing money from your FirstCapital trading account.

However, there is another page called the Funding page, which shows you how to make deposits using Bitcoin and Ethereum. And when we checked, we realized that using Bitcoin and Ethereum were actually the only ways through which you could deposit funds in your trading account.

The section about the payment methods are actually just lies.

• MetaTrader 4 Platform Offered by Third Party

We would have put the fact that FirstCapital offers its clients the use of the MetaTrader 4 (MT4) trading platform in our Advantages section, had it not been for the fact that this version is offered by a third party and not by this broker.  The third-party company that offers FirstCapital’s clients the use of the MT4 platform is called ECN Pool Ltd.

The reason this is a red flag is because it is not the standard practice for brokers to offer trading platforms that are provided by external companies. This means that the trading conditions and commissions cannot be trusted.

• Spreads Higher than Average

After we accessed FirstCapital’s demo account, we found that the spreads offered for the currency pair the EURUSD was floating at 1.7 pips, which is higher than the market average of 1 to 1.5 pips. This means that trading with this broker would be unfavorable for you.

• High Withdrawal Fee

FirstCapital claims that they don’t charge any commissions or fees at all, however, this we found was yet another lie told by the broker. There is, in fact, a massive 4% withdrawal fee that you are charged every time you make a withdrawal from your account.

Conclusion 

FirstCapital is not a broker to be trusted, and neither is it safe. This broker has lied about too many key things, is unregulated and has been blacklisted by one of the foremost financial regulators in the European Union.

Your funds are not safe if you contract with this broker. We recommend that you look for another broker – one that does not lie, is regulated and is clear about all its terms and conditions.

FirstCapital

2.7

User Experience

3.2/10

Payment Options

2.5/10

Security

2.6/10

Support

2.4/10

Reputation

2.7/10

Pros

• High Leverage Ratios
• Decent Minimum Deposit Requirement

Cons

• Confusing Corporate Information
• Unregulated Broker
• Blacklisted by CONSOB
• Lies About Payment Options
• MetaTrader 4 Offered by Third Party