BitCapitals

B

The website of BitCapitals (bit-capitals.com) seemed as if it was an introductory site for the BitCapitals app. But when I explored it further, I discovered that itís a full-fledged website.

Even though the broker claims to have an app, there doesnít exist any. It is very suspicious and odd. The website of BitCapitals has a very generic UI and thereís nothing impressive about it. 

Iíll discuss a whole lot more in my BitCapitals review. So, letís dive in.

Bitcapitals website

BitCapitals License and Regulation

The first thing I look for when checking the reliability of any forex broker is its address. And the address of BitCapitals is in the Commonwealth of Dominica, an offshore region. 

The Commonwealth of Dominica doesnít have a financial regulator which means, BitCapitals is an unregulated and unlicensed broker.†

Bitcapitals address

Be wary of unlicensed and unregulated brokers. These brokers donít follow the stringent rules and regulations of popular authorities such as the FCA or CySEC. Such brokers can use shady techniques to steal your funds or data and get away scot-free because of their unregulated nature. 

Regulatory authorities keep a close watch on licensed brokers so they donít act against their clientsí interests. In case a broker does act against their clientsí interests, the clients can get insurance compensation from their respective regulator. For example, CySEC offers Ä20,000 in case the broker files for insolvency. Regulators ensure that the broker keeps their operation funds separate from their clientsí trading funds as well.  

Unregulated brokers donít provide such benefits and thatís why itís very risky to trade with them. If you want to keep your funds and data safe from fraudsters, itís best to avoid trading with unregulated brokers. 

BitCapitals is an unregulated broker so it would be unsafe to trade with them. Your data and funds would be in danger with them. So please avoid them!

BitCapitals Trading Conditions

Checking the trading conditions of a broker can help you a lot in understanding its reliability. I always recommend checking the trading conditions of the broker before signing up with them. It ensures that you donít sign up with the wrong broker. Letís see if BitCapitalsís trading conditions are okay or not:

Trading Platform 

In terms of trading platforms, Metatrader is always the best. Metatrader 4 and 5 are among the most popular trading platforms in the forex industry because of the vast amount of benefits they offer. MT4 provides you with real-time and historical data, interactive charts, as well as, online quotes to help you make better trading decisions. You donít get such facilities with other trading platforms. 

Itís clear that the people behind BitCapitals understand the value of a good trading platform because they have MT4 on their website too. However, many shady brokers use the good reputation of MT4 and MT5 to promote their illegal operation. 

It seems to me that BitCapitals is one of those organizations as it doesnít hold a license to operate as a forex broker. 

Minimum Deposit

The minimum deposit requirement for this broker is $250, which is a very substantial number. To give you an idea of how high it is, the industry average is $100 and some brokers go as low as $10!

You shouldnít trust brokers that have high minimum deposit requirements. Itís usually an indication that the broker is a fraudster. Because most regulated brokers keep their minimum deposit limit very low to make them accessible to a wider audience. 

Shady brokers keep their minimum deposit limit high so they can steal a substantial sum of funds right away. 

Leverage and Spreads

BitCapitals offers multiple account types and they all have different leverage ratios. However, the minimum leverage they offer is 1:100 and with a higher account, it can even go up to 1:400. This is too high and increases your risks considerably. 

Brokers that offer very high leverage ratios, such as the one BitCapitals offers, are usually scammers. FCA, the financial regulator in the UK, doesnít allow its brokers to offer more than 1:30 leverage to their customers. They have added this restriction to ensure that clients donít lose their funds because of recklessly high leverage ratios. A very high leverage ratio can cause you devastating losses.

Shady forex brokers keep their leverage ratios high so they can trap their clients in large piles of debt. 

Their spreads werenít any attractive either. The lowest account (Bronze) gives you 2.8 pips, which is a lot higher than the industry standard of 1 pips. Their spreads just give me more reasons to suggest avoiding this broker. 

Trading Accounts

BIt-capital accounts

BitCapitals offers you four kinds of accounts. They are as follows:

Bronze

This account requires you to invest $250 minimum and offers 1:100 leverage. You get a personal account manager and trading news along with the usual advantages. 

Silver

This account requires a minimum investment of $2000 and offers 1:200 leverage. You get the same benefits as the Bronze account but also get access to expert advisors. 

Gold

The minimum deposit requirement for this account is $10,000 and the offered leverage is 1:300. The rest of the benefits are the same as the previous accounts. 

Platinum

This account requires a minimum investment of $50,000 and offers 1:400 leverage. Rest of the benefits are the same as the Gold account.

You can see that all of these accounts are made to seem very attractive to new traders. They are quite dangerous and their offered leverages are a great indication of that fact. 

BitCapitals Payment Methods and Charges

Transaction Methods

The available payment methods with this broker include bitcoin, debit card and credit card. They havenít provided their users with many payment options which is quite a disappointment. However, thatís not all.

You can deposit funds into your BitCapitals trading account without submitting your KYC documents but you canít withdraw the funds without them. 

This is another sign that BitCapitals is a scam. They will take your funds easily but will prevent you from withdrawing your funds. I donít recommend giving your sensitive information to a shady company like this forex broker.

The minimum withdrawal limit on this site is $50 and they claim that you can expect to get your payment after seven days of withdrawal requestís approval.  

Fees

BitCapitals doesnít give much information about its fees. They have hidden all of this information behind their Ďverification wallí. 

When a broker doesnít specify their fees, it gives them the opportunity to charge you hidden fees (made-up charges) and steal your funds. This is a big reason why I donít suggest trading with BitCapitals. 

Is BitCapitals a Scam? Yes!

Itís clear by now that BitCapitals is a scam. The forex sector has many kinds of scammers. Usually, the scammers in this field focus on attracting new and inexperienced traders to their platforms through fake claims and bonus offers. They get the user to sign up on their platform and accept their fishy terms and conditions. Such brokers hide their unfair conditions in the fine print and people usually ignore them while signing up.

Then, they either use hidden fees or make excuses to take away the deposited funds from their userís trading accounts. Having a high minimum deposit ensures that they get a substantial amount to steal from every user.

The best way to combat such scams is to do thorough research before signing up on any new brokerís website. You should check the brokerís regulation, license, address, and its reputation online. Some brokers even spend money on fake reviews to create a fake positive reputation on the internet. 

BitCapitals Review: Conclusion

BitCapitals is an unlicensed broker based in an offshore area. Offshore regions have become havens for forex scams and fraudsters. Thatís why I donít suggest working with brokers based in those areas. 

Apart from these reasons, BitCapitals has a terrible KYC policy for hiding its data and excessive minimum deposit requirements. I donít recommend working with this broker. Avoid it all costs!

Be sure to share this BitCapitals review with others. The more people know about this scam, the better. 

This review has been syndicated from The Skeptic Tank To read the full review, go to – www.skeptictank.org/bitcapitals/

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