NextCap – Are They a Scam?

Website URL:  https://nextcap.co.uk/

Founded:  No information found on the website

Regulations: Unregulated

Languages:  English and Vietnamese

Deposit Methods:  Debit/Credit cards (Visa and Master) and Wire Transfer

Minimum Deposit:  $100

Free Demo Account: Yes

Number of Assets: No information is given on its website.

Types of Assets: Stocks, Indices, Commodities, and Bonds

Trading Accounts and Conditions

NextCap offers three types of accounts but does not explain their related conditions.

•         Standard Account
•         Prime Account
•         Elite Account

NextCap – Advantages

NextCap does not offer any incentives or advantages to the customers for investing money with them.

NextCap – Disadvantages

• An Unregulated Enterprise

The footer section of the official website shows that NextCap is the registered brand of Glastrox Trade Ltd, which is a licensed investment enterprise, registered and regulated by the Marshall Islands Business Corporation Act under the authorization number 91438. Nonetheless, if you notice that the Marshall Islands is an offshore jurisdiction located in the middle of the Pacific Ocean, which lacks the regulatory authority to regulate the forex industry. On top of that, the country has also refused to collaborate with the Organization for Economic Co-operation and Development (OECD) on exchanging the tax information agreement. Moreover, anyone who wants to register an offshore forex brokerage firm in this area can easily register and launch it over the internet without ever having to set a foot on Marshall Island. Due to this fact, lots of suspicious forex brokers and other dodgy businesses who only pretend to offer authentic financial services choose this offshore zone to register and operate their shell firms.

On top of that, when the regulatory status of the parent company of NextCap “Glastrox Trade Ltd” was checked, it was discovered that it is the parent company of many other brands and entities as well, out of which many entities have been issued warnings by different governmental supervisory agencies. For example on May 20, 2020, Brazil’s Securities and Exchange Commission (CVM) warned the securities market and public about the irregular performance of Glastrox Trade Ltd. While only a month later Spain’s National Securities Market Commission also issued a warning against this firm that it is not authorized to offer financial services. As a result, this leads to conclude that it is a questionable broker that is operating under many names and brands to target different markets. While talking about the NextCap, it is most probably a Vietnamese investor firm because it is the only language the website is translated into.

Summarizing it all together, NextCap is apparently trying to trick the traders into believing that it is a legit regulated forex broker while in fact, it is an unregulated offshore broker operating anonymously with zero credibility.

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• Bonus Traps to Deny Withdrawals

One of the most favorite tools for canceling the withdrawal requests used by fraudsters like NextCap is their so-called trading bonus schemes because it comes with additional withdrawal conditions. NextCap requires clients to trade 1 standard lot or 100,000 base currency units for every 10 USD customer has received as a bonus. What is the more disturbing fact is that these offshore brokers have no trouble in changing their bonus policies. So, you will never be able to reach the minimum trade volume requirement. These bonus schemes might look attractive at first but they are not more than a trap. Suspicious brokers like NextCap are not obliged to follow any rules, as they are not supervised by any official financial authority and this is why they can make any lame excuse to deny, delay or cancel the withdrawal requests. On the other hand, these kinds of promotions are altogether banned in the regulated markets of the UK, USA, and EU regions.

• High Trading Leverage and Risky Spreads

As talking about trading conditions, NextCap advertises the leverage as high as 1:500 which entails significant risks especially to the investors with little or no trading experience. Although such high leverage can result in bigger profits clients may incur bigger losses too often much greater than the invested funds. This is why leverage caps have been imposed by the regulatory authorities for non-professional investors.

Along with that, if you notice that the trading platform shows 2.8 pips spread for the EUR/USD currency pair. Trading with such a wide and risky spread will make the cost of trading very high and it is not to the customer’s advantage but guarantees profits for brokerage.

• Inadequate and Misleading Information

NextCap has mentioned on their website the types of trading accounts while there is no information mentioned related to the trading conditions and minimum deposit requirements. Whereas, all legit brokers never miss such a piece of important information to mention.   

Furthermore, the FAQ section of the official website states that NextCap payment options include credit and debit cards (master and visa) and wire transfer. While in the client dashboard area there is only an image placeholder of debit credit card, which cannot be selected as an option leaving customers with only one deposit method. Secondly, they also claim to accept deposits via a wide variety of currencies. Despite that, when an account is opened, there is only a US dollar currency option available.

Consequently, NextCap has only tried to trick the clients by giving inadequate and misleading information.

Conclusion

No one is immune to fraud and anyone can fall into the trap because swindlers like NextCap always use and look for different ways to swindle the clients. Likewise, NextCap also pretends to be a reliable and regulated broker providing financial services to global consumers since 2014. Additionally, they also claim to be the best online trader who is devoted to maximizing investor’s profits. All the claims may sound like a great trading opportunity if it was a legit regulated broker. Unfortunately, it is also an unregulated offshore broker like other dodgy enterprises who are operating anonymously and are making false claims in a deliberate attempt to mislead potential investors. Hence, investing your funds with this suspicious broker entails significant risk to the money.

NextCap

2.5

User Experience

3.2/10

Payment Options

2.4/10

Security

2.3/10

Support

2.2/10

Reputation

2.5/10

Pros

• None

Cons

• An unregulated enterprise
• Bonus traps to deny withdrawals
• High trading leverage and risky spreads
• Inadequate and misleading information