Beware of Capital TradeFX Scam: Protect Yourself with a Regulated Broker

While forex trading always inspires people looking to make quick returns, its massive transactional activity seems to have put it on the target list of fraudulent elements. Unfortunately, scam brokers like Capital TradeFX exploit unsuspecting and inexperienced traders. The broker is repeatedly reported for a poor code of conduct, such as trade manipulation, withdrawal processing failures, and false profit-making deals. This review provides an in-depth analysis of Capital TradeFX, enabling traders to make an informed decision about whether or not to sign up with it.

Capital TradeFX - A Quick Overview

Capital TradeFX (www.capialtradefx.com) is a forex brokerage firm that started operations in 2018. The company offers trading services among different asset classes, such as forex, commodities, indices, and cryptocurrencies. While the broker boasts of providing its customers with an easy-to-use trading interface, competitive spreads, and high leverage, it is accused of interfering with customer accounts and preventing them from withdrawing funds. 

Is Capital TradeFX Regulated?

No! Capital TradeFX is not a regulated broker. According to the broker's website, the company is registered in Hongkong and licensed in St. Vincent and the Grenadines (SVG). However, St. Vincent and Grenadine's respective regulator FSA (Financial Services Authority, a/k/a SVGFSA), neither regulates nor issues licenses to forex intermediaries.

Clientele Feedback 

We tried tracking people's thoughts about signing up with Capital TradeFX. However, we could not find client evaluations, which makes us suspicious of their lack of transparency. We believe a broker who claims to have been around for almost five years should have some public representation. 

What Makes Capital TradeFX Scam? 

Capital TradeFX is a scam due to several red flags listed below.

Firstly, the broker is unregulated, meaning that it is not subject to any regulatory authority that could hold it accountable for not adhering to industry standards. Even we didn’t find the company on the SVGFSA portal. This lack of oversight is concerning, as it can leave investors vulnerable to financial losses and other forms of exploitation. 

Besides, the absence of customer reviews and the disappearance of its reports suggest this keeps changing its identity on and off, raising concerns about the company being a potential scam that may get off the scene anytime after looting investors. 

How Does Capital TradeFX Scam Clients?

More or less, the company has the same procedure for trapping clients as other scammer firms do. It follows up with potential clients and pitch them enticing money-making deals. Typically, it offers time-capped opportunities telling clients these will end soon if not availed—for example, a 200% deposit bonus or cash rebates, etc. Once clients deposit funds into their accounts, it discloses unrealistic qualifying conditions and becomes less concerned. It doesn't even bother responding to calls and emails after realising they are all caught up. 

Bottom Line

When choosing a forex broker, sign up with a regulated entity holding regulations from authorities like NFA, FCA, or ASIC to ensure the safety of your funds and personal information as large as possible. Besides providing transparent trading conditions, some regulated brokers even offer funds compensation of up to a specific limit in case of bankruptcy or liquidation. At least if a company treats you badly, you always have the option of going to court, which is not the case with unregulated companies. Should you wish to learn more about legitimate forex brokers, please visit Brokersview.com.