Scap Trade – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Scap Trade - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2022
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
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://scaptrade.com
Founded: 2022
Regulations: Unlicensed
Languages: English
Deposit Methods: Cryptocurrencies – Bitcoin, Ethereum, USDT
Minimum Deposit: $1,000
Free Demo Account: No
Number of Assets: Unknown
Types of Assets: Forex, Digital Currencies, Commodities, Indices, Pre-IPOs, ETFs, Stocks
Trading Accounts and Conditions
Scap Trade offers their client the following investment plans:
- Starter Plan: The minimum deposit is $1,000. Pips range from 30% to 80%.
- Pro Plan: The minimum deposit is $10,000. Pips range from 80% to 170%.
- Business Plan: The minimum deposit is $50,000. Pips range from 170% to 250%.
- Gold Plan: The minimum deposit is $100,000. Pips range from 250% to 350%.
- Diamon Plan: The minimum deposit is $500,000. Pips range from 350% to 500%.
- Master Plan: The minimum deposit is $1,000,000. Pips range from 500% to 800%.
The leverage is supposedly at 1:20 for cryptocurrencies and the minimum deposit for this type of trading is $500.
Scap Trade – Advantages
Scap Trade is not a broker to be trusted. It would be best to avoid trading with them.
Scap Trade – Disadvantages
The disadvantages we have listed here about Scap Trade clearly tell us that this broker is a scammer:
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Lack of Regulation
The first thing we notice about Scap Trade is the fact that there is no information provided about this broker’s parent company. There is an address provided on their home page – a US-based address. And they also claim to regulated by the SEC (Securities and Exchange Commission), the ATC (American Trading Council) as well as the FSC (Financial Services Commission).
The problem is that these claims of regulation are all lies. None of the above-mentioned government bodies are responsible for regulating forex and cryptocurrency brokers. To be able to operate as a broker in the US, companies need to be registered with the CFTC (Commodity Futures Trading Commission) and also be a member of the NFA (National Futures Association). Scap Trade is neither registered with the CFTC, nor are they members of the NFA. We checked the online registers of both authorities.
These are not the only claims that we have debunked. Scap Trade also claims to be regulated in Europe by the CySEC (Cyprus Securities and Exchange Commission). And then the broker claims (in another section of their website) that they are regulated by the MFSA (Malta Financial Services Authority). And finally, in the FAQ section, Scap Trade claims to be based in New Zealand.
All of this confusing information only tells us one thing – that we are dealing with a broker that is offering their services illegally and that they are a scam.
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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Possible Serial Scammer
While wading through all the false information that this broker had littered through their website, we also found the name of another company/brokerage mentioned – FX-PRIME TRADES.
What it looks like is that this broker was careless while copying content from another project or website. This leads us to suspect that we are possibly looking at serial scammers – entities that create multiple brokerages in an effort to scam as many people as possible.
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Blacklisted by The Financial Commission
We also found out that not only is Scap Trade unregulated, it is also blacklisted by The Financial Commission, a private organization that helps resolve disputes related to the forex market.
According to the warning on the Financial Commission’s website, Scap Trade is a scam and that traders across multiple locations have already notified the organization about their scam operations.
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No Trading Software
On their website, Scap Trade claims to offer their clients the use of both the MetaTrader 4 and the MetaTrader 5 trading platforms. These are two of the world’s best trading platforms, offering traders a wide range of tools and functions that make trading extremely efficient and easy.
These claims, of course, were just more lies. The first thing we noticed was that the broker seemed only to offer the web-based version of these platforms. And when we registered for an account and accessed their client area, we found out that there wasn’t any trading platform at all.
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Issues with Trading Conditions
The trading conditions offered by this broker are all bogus. First, the minimum deposit amount is just too high. The minimum amount that this broker demands for you to open an account with them is $1,000. The market average is between $100 and $250, and there are many brokers who will invite you to open an account with them for less than $10.
Next, the spreads (pips) are listed in percentages. This is a clear indication that these people known nothing about the forex market. Spreads are listed in decimals (0.5 pips, 1.0 pips, 1.5 pips and so on), no in percentages the way this so-called broker has. This is yet another sloppy sign of a scam.
And then, there is the issue of the leverage this broker mentions. Scap Trade offers a leverage of 1:20 for cryptocurrency trading. There is no leverage mentioned for forex trading. A leverage of 1:20 is much too high and illegal to boot. In Europe, brokers are not allowed to offer a leverage of more than 1:2 when trading cryptocurrencies.
Everything about this broker’s so-called trading conditions is fake.
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Cryptocurrencies Only Payment Method
The only way that you can make payments with Scap Trade is via cryptocurrencies – Bitcoin, Ethereum and Tether. This is also a clear sign of a scam. Crypto payments are completely anonymous and untraceable, which means that there will be no way for you to get your money back if you get scammed by this broker.
This is why we suggest that traders use credit cards as their payment option when testing new brokers.
Conclusion
Scap Trade is part of a serial scam and it would safest for all traders to avoid this broker.
Scap Trade
Pros
- None
Cons
- Lack of Regulation
- Possible Serial Scammer
- Blacklisted by The Financial Commission
- Issues With Trading Conditions
- Cryptocurrencies Only Payment Method
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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