FXCape – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
FXCape - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2024
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.
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://fxcape.net
Founded: 2023
Regulations: Unregulated Broker
Languages: English
Deposit Methods: Cryptocurrencies
Minimum Deposit: $250
Free Demo Account: Not Offered
Number of Assets: 200+
Types of Assets: Forex, Shares, Digital Currencies, Metals, Indices, Commodities, NFTs
Trading Accounts and Conditions
FXCape offers their clients the following types of trading accounts:
- Basic: $250 is the initial deposit requirement. The spreads start from 1.0 pips. There is a commission, but the amount is not specified.
- Pro: $10,000 is the initial deposit requirement. The spreads are lower, but not specified. The commissions are lower, but still not specified.
- Gold: $25,000 is the initial deposit requirement. The spreads are still not specified, although the broker claims they are lower. There is an up to 25% Bonus. Commissions are still lower, but not specified.
- Platinum: $50,000 is the initial deposit requirement. The spreads are now super tight. There is an up to 50% Bonus. Commissions are lower.
- Diamond: $100,000 is the initial deposit requirement. The spreads are now at 0.00 pips. There is an up to 75% Bonus. Commissions are $0.00.
- VIP: $250,000 is the initial deposit requirement. Trading conditions are only available upon request.
The maximum leverage for all of the above account types is capped at 1:500.
FXCape – Advantages
There are no advantages to trading with FXCape.
FXCape – Disadvantages
All of the disadvantages we found in FXCape are listed below, and these issues tell us that we are dealing with a scammer.
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Lack of Regulation
The first issue we have with this broker is that they are not regulated. Here is what we have found out.
FXCape claims to be owned and operated by Yuan Pay Group Ltd. The company is registered in the Marshall Islands and has offices in London, UK.
Added to this, when you check their Contact Us page, there are even more address provided – in Hong Kong as well as Dubai.
To have so many offices would also mean getting the requisite licenses from the relevant financial authorities: the Financial Conduct Authority in the UK, the Hong Kong Monetary Authority, the Dubai Financial Services Authority, as well as the Marshall Islands Financial Services Authority.
We have checked most of the authorities’ online databases, and there is no broker by the name of FXCape registered with any of the above-mentioned regulatory authorities.
All of this information tells us that we are dealing with an unregulated, offshore broker, one that is operating without any kind of a license. This makes FXCape 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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Flagged Off by the FCA
The Financial Conduct Authority of the UK has also noticed – and flagged off this broker’s scam. When we visited their website to see if FXCape was registered with the UK authority, we found out that the FCA has actually publicly warned traders against this broker.
In this warning, the FCA states that FXCape is operating in their jurisdiction without authorization. The FCA adds that dealing with this broker would mean that the trader would lose the regulator’s protection.
Such a stern warning clearly tells us that FXCape is a scammer.
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Parent Company is a Scammer
We also found out that the parent company that owns and operates FXCape – Yuan Pay Group Ltd – has also been exposed as a scammer. This company has been promoting itself as China’s official government backed platform for trading in the Chinese Yuan. This is a lie. This company is completely unlicensed and is a scammer.
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No Legal Documents
Despite going through this broker’s website in detail, we could not find any legal documents. These legal documents make up the contract between the consumer and the broker. They consist of the terms and conditions/user agreement, the privacy policy, the KYC policy and other related documents. Of these, the most pertinent is, of course, the Terms and Conditions document, which spells out the exact relationship between the trader and the broker.
If a trader deals with a broker that does not have these documents in place, then they cannot get any help from the authorities in the event that they do get scammed.
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Issues with Trading Platform
The trading platform is a broker’s key offering. Therefore, a legitimate broker ensures that they offer their clients the best trading platform in the market. They also offer a value-added service in the form of a free demo account where traders can check out their product offering and their trading conditions all in one go.
With FXCape, there is no demo account – which is the first issue we have with this broker.
And the more important red flag is the quality of their trading platform. What FXCape offers is a very badly designed, web-based trading platform. This kind of a platform is easy to manipulate so that the broker can still scam unwary traders despite having a working platform.
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Issues with Trading Conditions
The trading conditions presented by the broker are just more evidence of their scam. The minimum deposit of $300 is much too high, especially since there are so many great brokers that allow for account openings with as little as $50.
The commissions are not mentioned, and the spreads are also not clearly defined. The maximum leverage of 1:500 is extremely risky, not to mention illegal in most of the countries that this broker is targeting.
The lack of clarity and the skewed nature of this broker’s trading conditions tell us they are scammers.
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No Withdrawal Policy
FXCape does not even bother to tell us what their withdrawal policy is. There is no information on their fee, processing time or if there are any conditions to withdrawal. This red flag is just another indication that this broker is a scammer and should therefore be avoided.
Conclusion
FXCape is not safe; this broker is a scammer and your funds are at risk.
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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