Scam Brokers

Golden Capital FX – Can You Trust Them?

Chainbits Staff | Publish date: 04/05/2021 (Last updated: April 05, 2021 06:01 AM)

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

Golden Capital FX - DO NOT TRADE WITH THIS PROVIDER

2.6/10

$100

Minimum Deposit

updated 2021

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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://goldencapitalfx.com

Founded:2015

Regulations: Unregulated

Languages: English, Spanish

Deposit Methods:Credit/Debit Card, Bank Wire, Moneybookers, Skrill, Neteller, Bitcoin

Minimum Deposit:$100

Free Demo Account:Yes

Number of Assets:N/A

Types of Assets:Indices, Forex, Commodities

Trading Accounts and Conditions

Golden Capital FX offers its clients 3 types of trading accounts:

Standard: The deposit amount ranges from a minimum of $100 to a maximum of $4,999. Spreads start at 1.5 pips.
Premium: The deposit range is from $5,000 to $49,999. Spreads start at 1.2 pips.
VIP: The minimum deposit you are expected to make to use this account is $50,000. Spreads start at 1 pip.

The maximum leverage offered by this broker stands at 1:500.

Golden Capital FX– Advantages

Here are the few advantages of trading with Golden Capital FX:

MetaTrader 4 Platform Available

The biggest plus of doing business with this broker is that you will get to use the MetaTrader 4 trading software which is one of the best in the world. The platform is available in both desktop as well as mobile versions (for both iOS as well as Android).

Competitive Spreads

As we mentioned earlier, spreads for the Standard account begin from 1.5 pips, which is very competitive by industry standards. Lower spreads means that the cost of transacting trades is lower too.

Demo Account Offered

You can try out the trading conditions on their demo account before your actually invest money with Golden Capital FX, which is yet another plus.

Low Minimum Deposit Requirement

Traders can open an account with just $100 with this broker. Considering that the industry standard ranges from $100 to $250, this is the lower end of the spectrum. We do have to point out that there are many – more reputed and strongly regulated – brokers that have an even lower minimum deposit requirement.

Golden Capital FX – Disadvantages

When you look at the advantages, you could be tempted to go ahead and sign up with this broker. However, we would strongly recommend that you go through all the disadvantages we have listed below before you do so. There are some serious issues with Golden Capital FX because of which we would not recommend this broker to anyone. Read on to find out more:

Lack of Regulation

On its website, Golden Capital FX claims to have offices in both London, UK as well as Lima, Peru. The company is registered with UK’s Companies House and its license number is 10087272. It all looks above board. However, here’s where the complications start.

When we checked the license number, this business is listed as 62090. This means that it is not listed as a forex company but as an Other Information Technology Service Activities.

Furthermore, when we went through the terms and conditions, we found out that the broker is actually located in SVG – St. Vincent and the Grenadines. An offshore location. Again, the broker claims to be regulated by SVG’s FSA (Financial Services Authority); their license number is 23172 IBC.

The problem here is that SVG does not regulated forex brokers. So, being licensed by the FSA there is useless.

We also checked the UK’s FCA (Financial Conduct Authority) database to see if this broker was at least regulated there, but we found no trace of Golden Capital FX on the lists.

There is even further confusion when the broker also mentions that it is governed by Cypriot laws, which means that it should technically come under the purview of the CySEC (Cyprus Securities and Exchange Commission). Which is also another lie – we checked!

All of this means that this broker is operating illegally without the proper authorizations.

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

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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.

Blacklisted by CNMV

During our investigation into this broker’s regulation status, we came across a warning by the CNMV, Spain’s financial regulator – the Comision Nacional de Mercado de Valores.

The CNMV has warned its people about this broker, stating that it is operating in its jurisdiction illegally.

High Leverage

The maximum leverage that this broker offers is 1:500, which is illegally high for the regions it targets. Based on the information this broker has on its website, its prime target customers are in the UK and Spain. However, the regulators in both these countries have capped the amount of leverage a broker can offer its clients – at 1:30 and 1:40.

Vague Fees and Commissions

Golden Capital FX has remained rather vague about its fees and commissions for withdrawals and deposits. There are extraordinary expenses, but the broker fails to mention what they could be. There are fees imposed for withdrawals, but we could not find information on what that amount would be. The company also states that it will charge commissions and other fees without notice – when it wants.

Few Payment Methods

Despite the fact that Golden Capital FX advertises multiple payment options, the truth is that it only offers 3 types of money transfer methods – bank wire, credit/debit card and Skrill.

Trading Conditions are Vague

Just like the lack of information on the fees and commissions, even the trading conditions are very vague and up in the air. There is a distinct lack of specificity in the trading conditions. Firstly, there is no Trading Conditions segment in their Terms and Conditions page. And the conditions that they have mentioned are couched in generalities.

Conclusion

Golden Capital FX looks like a legitimate broker. However, when you dig beneath the surface, this is an unregulated broker that has been blacklisted by the authority of the country in which it operates (Spain). Dealing which such a broker would put your funds at serious risk.

Thus, despite the pluses, we would not recommend this broker to any trader.