The Capital Stocks – Are They Legit?

Website URL: www.thecapitalstocks.com

Founded: 2020

Regulations: Not Regulated

Languages: English

Deposit Methods: Bank Wire, Visa, MasterCard

Minimum Deposit: $250

Free Demo Account: Yes

Number of Assets: 500+

Types of Assets: Commodities, Shares, Forex, Indices

Trading Accounts and Conditions

The Capital Stocks offers you the following trading accounts:

• Silver: To start a Silver account, you first need to deposit a minimum of $250. The spreads start from 1.3 pips and the maximum leverage is 1:30.
• Gold: The minimum deposit you need to make to use this account is $5,000. The spreads start from 1.5 pips and the maximum leverage is 1:30.
• Platinum: The minimum deposit requirement is $50,000. The spreads start from 0.1 pips and the leverage is fixed at 1:5.

This broker also offers its clients an Islamic Account.

The Capital Stocks – Advantages

Here are the advantages of trading with The Capital Stocks:

• MetaTrader 4 Supported

The Capital Stocks offers support for the MetaTrader 4 platform, which is always a plus for any broker. The MT4 platform is so easy to use that even novices can navigate it without any problem. And for the more advanced traders, this platform has charting and market analysis tools as well as automatic trading bots called Expert Advisors.

• Demo Account Offered

The Capital Stocks offers you the chance to check out their trading conditions and trading platform via a free demo account, which is another plus for them. A demo account is important so that you can verify whether the trading conditions claimed by the broker are true or not. You can also check the quality of the trading platform when you have access to a demo account.

The Capital Stocks – Disadvantages

Here are all the disadvantages we found with The Capital Stocks:

• Unregulated, Offshore Broker

The Capital Markets claims to be owned and operated by a company called Kleinman Enterprise Ltd. This company is based out of St. Vincent and the Grenadines (SVG), which means that this broker is an offshore one.

SVG’s financial regulator has announced numerous times that they do not regulated forex brokers, and since The Capital Markets does not have a license to operate from any other jurisdiction, we can only conclude that this broker is unregulated.

Another worrying indication is that in the broker’s Terms and Conditions section, The Capital Markets suddenly mentions being governed by Estonian laws. The font for this is also very different from the rest of the script, as if added as an afterthought. To be sure, we check the Estonian financial watchdog’s register to see if this broker was licensed by them. They are not.

Dealing with unregulated brokers puts your funds at risk. This is because they are not governed by any laws that afford traders protection against broker bankruptcy or fraud. So, if you deal with such a broker, you are leaving yourself unprotected since they can do what they wish with your funds, and there won’t be much that you will be able to do about it.

When you deal with a regulated broker, on the other hand, you are given protection from misuse of your funds. All regulated brokers are required to segregate their accounts from their clients’ so that your money cannot be used for operational expenses. Plus, such brokers are required to participate in a financial compensation system – a kind of insurance, if you will – where if they lose money due to bankruptcy or fraud, then you are compensation for any losses you may incur due to that.

Plus500

$100

Minimum Deposit

Start Trading

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AvaTrade

$100

Minimum Deposit

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• Withdrawal Conditions on Trading Bonuses

The Capital Stocks offers its clients trading bonuses, which is another red flag that concerns us. Trading bonuses such as those offered by this broker come with unfair conditions.

If you avail of the bonus, then you are bound by the conditions laid out by the broker. You will be expected to achieve a certain trading turnover (in this case, a minimum of 30 times the deposit amount) or you will not be allowed to withdraw your funds. There are two things very wrong with this condition.

First, no legitimate broker will ever stop you from withdrawing your own funds. They may charge you a fee for it, but they will not deny your request.

Second, the trading turnover that this broker demands you should meet is so high that most traders – even the experienced ones – cannot hope to meet that target. This gives the broker the perfect excuse to cancel any withdrawal request you may submit. It’s the perfect scam; you will never see that money again.

• Limited Payment Options

The only ways that you can make deposits or withdrawals from The Capital Stocks is via debit or credit card, or by bank wire. Today, most regulated brokers offer a wide range of payment options – e-wallets such as Skrill, Neteller and PerfectMoney, to name a few, as well as cryptocurrencies, and payments providers such as Western Union.

• Conflicting Information about Number of Assets

While this is not such a big deal, when you’re dealing with an unregulated broker, all issues need to be treated with suspicion. The Capital Stocks states on its landing page that it offers more than 5000 assets with which you can trade. However, on the same page, a little later, the broker states that they have about 500 assets available for trade.

Conclusion 

On the surface of it all, The Capital Markets looks like a legit broker that offers you very attractive deals to trade with them. However, this broker is unregulated and offers trading bonuses, which makes it suspect. Trading with such a broker is not a good idea, since you can end up losing all your money – not to the market in a fair trade, but by being scammed.

The Capital Stocks

2.5

User Experience

3.3/10

Payment Options

2.2/10

Security

2.3/10

Support

2.4/10

Reputation

2.5/10

Pros

• MetaTrader 4 Supported
• Demo Account Offered

Cons

• Unregulated Offshore Broker
• Withdrawal Conditions on Trading Bonuses
• Limited Payment Options
• Conflicting Information about Number of Assets