CapStar FX Review
CapStar FX notes that it has headquarters in Iraq and St. Vincent and The Grenadines. This is a red flag. For one, the jurisdiction has clarified that they do not license forex brokers. Therefore, working with an offshore broker means that your money is not secure. You would have no legal channel to claim your money if the company went bankrupt.
CapStar FX might seem like one of the best brokers in the market, but there are factors you need to consider before joining the platform. The foreign currency market may appear to be an uncomplicated place of business at first glance.
After all, the only thing happening is exchanging one currency for another. However, there’s more to it. Besides being difficult to master, foreign exchange trading is notoriously riddled with scammers. Every day, billions of dollars change hands, which means there are many chances for dishonest brokers to exploit traders.
Forex scams usually dupe people because they often market it as an easy way to make money. However, this does not imply that there are no legitimate forex brokers. You can put your money in the hands of numerous of them and rest assured you will not lose it opaquely.
CapStar FX is one of these FX fraud firms we are talking about. This broker looks professional due to its sleek website design. However, do not let this fool you into trusting them. In reality, they are merely dishonest traders posing as a legit forex brokerage company. Read on as we show you why you should stay away from them.
From their website, we gathered a few things about the company. One is that it describes itself as a trader’s partner in forex trading. With this broker, you will supposedly be able to trade like an expert with their online trading platforms, which feature cutting-edge technology and a robust trading engine.
The Capstar FX offers traders two types of trading accounts. With this broker, you can trade currencies, indices, metals, stocks, energy, and cryptocurrency. The platform also offers economic news for traders. They claim to provide services to people in Iraq, Saudi Arabia, United Arab Emirates, and Iran.
CapStar FX Founders and Team
Capital FX is silent on several critical issues. One is in who founded the company and when. These two are essential because they say a lot about a company. If a business has been in operation for a long, we can trust it because they have built a reputation. Many traders have tested their services and can review them.
If, however it does not want to disclose this information, it becomes suspicious. For this broker, concealing this information means they are hiding something. From whois.com, we found that their website domain was created on 2022-01-05, updated on 2022-01-05, and will expire on 2023-01-05. The company thus plans to be in operation for just one year.
This is a red flag. Also, they have not included their history. We cannot, therefore, tell who established the company and who is currently running it. The leaders are influential because they represent the company’s values. If crooks run a brokerage firm, you should not work with them. On their LinkedIn profile, they have indicated that they have between 11-50 employees. This is a red flag. Such a company should not be unsure how many people it employs.
In trading, being able to reach your broker is key. For one, the business is precarious. As such, you may have countless questions about whether your money is safe or where it went within a short time. A good broker should explain all the forex market dynamics and risks involved. They should tell you that sometimes the market moves very fast, especially when there is significant economic news.
You thus need to be in constant communication with them. This broker has given an email, phone number, and social media platforms. These communication avenues are, however, unreliable. For instance, we found some anomalies when we looked at their Facebook page. We could not find the list of page followers. There was also little activity on their other social media platforms like Instagram and Twitter.
CapStar FX Regulation
To determine whether or not a financial services provider is legitimate, you should look at their website. Here you should learn more about the organization behind it, its physical location, and the types of licenses it holds. Legit brokers will also have all the necessary contracts and agreements ready for their clients.
Having access to such data does not guarantee that they are legit. But if these things are missing, it’s an indicator that you’re dealing with con artists. Although governments have put measures in place to tame rogue forex brokers, they are still rife. They prey on gullible traders who want to make easy money without minding the broker’s legal aspects.
One of the ways to establish whether a broker is regulated is to check their location. It will likely be a scam if you realize the broker has an offshore account. On the company website, CapStar FX notes that it has headquarters in Iraq and St. Vincent and The Grenadines. This is a red flag. For one, the jurisdiction has clarified that they do not license forex brokers. Therefore, working with an offshore broker means your money is insecure. You would have no legal channel to claim your money if the company went bankrupt.
The link to the broker’s Terms and Conditions was blank. Therefore it is impossible to tell what you are signing up for when you register with this broker. With such a firm, you can easily wipe out all your funds because it will not offer negative balance protection. The broker has also not shown its financial statements on its website.
CapStar FX Trading Conditions
Although the broker offers a standard and ECN account, it has not given any information about their conditions. Parameters like minimum deposit, spread, swap, commission, and leverage are essential when choosing a broker. This broker only indicated leverage of 1:100.
This is relatively high. Regulatory bodies like the FCA in the UK demand that the leverage should not go beyond 1:30. Since the broker has omitted this vital information, it would be unwise to open an account with them. You may find they have unfavorable conditions like widespread and commissions, which make it hard to trade profitably.
Deposit and Withdrawal
The company says you can deposit through Zain Cash, Tether, Nass Wallet, Asia Hawala, and Fast Pay. Con artists favor virtual currencies like Bitcoin and Ethereum because of the lack of recourse for victims.
Since this broker has not provided access to their Terms and Conditions, it is difficult to determine their agenda. When trying to withdraw profits, scam brokers typically impose exorbitant fees and transaction volume requirements that customers cannot meet, making withdrawals difficult.
The broker claims to offer traders the MetaTrader 4 (MT4) platform. When we tried to download the platform, the links were inactive. Without access to a demo account, it is impossible to gauge yourself as a trader. The account allows you to test the indicators and trading strategies. Later, you can trade real money.
CapStar FX Customer Testimonials
We did not find any customer reviews about the broker. Even on Twitter and Facebook, the supposed followers do not comment about the broker. Nobody has confirmed that they have made money through trading with this broker. It is risky to trade with a broker with no reviews.
CapStar FX is a sham broker. Despite their attempts to appear legit, their weaknesses betray them. They have not met the threshold for an honest broker. Although there are people making money in the forex market, they only do it through legitimate forex brokers.
There are many of these online, and all their information is available. These have met all the legal requirements. Always ensure you can trust your broker before depositing your hard-earned money.