The website of The Capital Hunter seems quite generic and ordinary. But sometimes the most harmless thing can be a potent danger. So, I took it upon myself to review The Capital Hunter and see if this broker is worth your time and money or not:
The Capital Hunter License and Regulation
According to their website (thecapitalhunter.com), the parent company of The Capital Hunter is OneWay Solution Ltd, which is a UK-based enterprise. As a financial services provider, The Capital Hunter or OneWay Solution Ltd must hold a license from the Financial Conduct Authority to operate.
However, when I searched for their name in the FCA register, I didnít find any information about either of them. This means The Capital Hunter is an unlicensed and unregulated firm. Itís dangerous to trade with them.
Unregulated and unlicensed brokers are very dangerous as they can steal your funds (through hidden charges) and even your private data!
Regulatory authorities such as CySEC (Cyprus Securities and Exchange Commission) or FCA (Financial Conduct Authority) have many rules and regulations. These regulations make sure the broker doesnít harm the interests of their users, and doesnít deceive them.
Moreover, regulatory authorities have insurance policies in case one of their licensed brokers breaks a regulation or steals their usersí funds. With unlicensed brokers, you donít get any of these benefits.
Unfortunately, because this broker doesnít have a license, it is unsafe to trade with them.
The Capital Hunter Trading Conditions
Even though the license of a broker can tell you a lot about its reliability, the second-most important factor is its trading conditions. What trading platform does it offer? Whatís the minimum deposit limit? Weíll discuss these factors in detail to determine whether The Capital Hunter is a reliable broker or not:
The most popular trading platforms in the industry are Metatrader 4 and Metatrader 5. They pack a lot of features and benefits while providing excellent customer support. Thatís why around 80% of the industry uses these platforms.
It seems the people behind The Capital Hunter recognize the wide popularity of this trading platform too. They claim that they use Metatrader 4 which is quite a positive point. MT4 lets you create personal templates, and use many technical analysis tools that simplify trading.
So I was glad to see them using this trading platform. Because of a few broken links, I wasnít able to test their trading platform myself.
It is also possible that this broker is trying to use the popularity of MT4 to appear legitimate. Remember that itís an unlicensed broker so your funds and data would be in a lot of danger with them!
The Capital Hunter doesnít specify their minimum deposit requirement. Itís unusual for a broker to hide such information and quite alarming.
A high minimum deposit usually indicates that the broker is a scam. Most regulated brokers keep their minimum deposit requirements around $100 or $50. Thatís because they want to give their new users a chance to experience their services without making a big financial commitment.
On the other hand, shady brokers donít want you to test out their services, usually because they are terrible. They force you to invest a heavy amount at the start so they can steal at least that amount from you. You should stay away from brokers that have high minimum deposits.
Similarly, if a broker is trying to hide such a vital piece of information it usually means they are a fraud. Shady brokers donít want to expose themselves and use such tactics to hide information which might dissuade smart traders from joining them.
Leverage and Spreads
The Capital Hunter offers a very high leverage ratio of 1:300. This is quite an excessive leverage ratio by industry standards.
If a broker offers a very high leverage, you should be wary of them. Many financial regulators in different regions have imposed restrictions on how much leverage brokers can offer to their clients.
For example, in the US, a broker can offer a maximum leverage ratio of 1:50.
They have these restrictions because a high leverage ratio can cause you huge losses very quickly. Such leverage ratios are dangerous for new traders particularly.
As I wasnít able to test out their trading platform, I couldnít find their offered leverages too, which is quite disappointing.
This broker claims to offer three types of trading accounts:
However, they donít give you much information about these account types except that they exist. Like I mentioned earlier, itís quite alarming when a broker hides such crucial information from its users.
Another positive thing I noticed was they offer demo accounts to users. They offer islamic accounts too.
However, thereís another red flag with this broker. To start trading with them, youíll need to verify your account where youíll have to provide your KYC documents to them.
I strongly advise against giving your sensitive files to an unlicensed broker like The Capital Hunter. Your personal data is at risk here.
The Capital Hunter Payment Methods and Charges
The Capital Hunter offers very few payment options to its clients. You can only add funds to your trading account through bank transfer or credit cards.
They donít specify the transaction methods available for withdrawing funds.
The Capital Hunter doesn’t give any information about its fees or withdrawal limits. This is a huge red flag because it can allow the broker to charge you random (or hidden) fees and steal your funds.
Itís a common tactic among shady brokers and you should be wary of brokers who donít specify their fees beforehand.
A common theme among shady brokers is they all offer attractive bonuses. The Capital Hunter is no exception to this rule. They offer plenty of bonuses to their clients.
However, you shouldnít trust a broker simply because it offers bonuses. Bonuses can be quite dangerous as they allow the broker to impose certain restrictions on withdrawal without the user knowing about them. Forex scams use bonuses to lure people into signing up on their platforms too.
This is why the UKís financial regulator, FCA, prevents its brokers to offer bonuses to their clients.
The Capital Hunter uses its bonuses in a similar fashion. To withdraw your bonus winnings with this broker, you must execute trades worth more than a quarter of the bonus amount in volume. Thereís a catch here that you canít use more than 1:100 leverage. Obviously, this trading condition is very difficult to meet, allowing the broker to keep your funds with them.
Is The Capital Hunter a Scam? Yes!
The forex industry has expanded exponentially in the last few years. Because of that, many kinds of scams have entered this sector as well. Usually, a scammer would target novice traders through bonus offers and bogus claims so they would sign up on their platform. Such brokers usually have unfair terms and conditions but people rarely read them before accepting the same.
When a person finally signs up and makes a deposit on their account, the broker can do whatever they desire. They can steal the userís funds through hidden fees or even steal their private data.
Usually these brokers operate from offshore areas such as St. Vincent. These regions donít have financial regulators like the US or the EU so they have become havens for shady forex brokers.
The first thing you should always look for is the brokerís address. The address of a broker would determine which jurisdiction it would fall into. In case the broker belongs to an offshore area such as Marshall Islands or St. Vincent, you should stay away from them.
The Capital Hunter Review: Conclusion
The Capital Hunter doesn’t have a license. It doesnít provide any information about its fees and withdrawal limit, making it appear more suspicious. So, even though they claim to use MT4, I canít suggest working with them. You should avoid them.
I hope my The Capital Hunter review helped you make an informed decision regarding this broker. There are many scams in the forex industry similar to this one. Itís best to stay alert and do some research before signing up with a new broker.This review (The Capital Hunter) was originally published at Gripeo. To read the full review, go to – www.gripeo.com/the-capital-hunter/