September 19, 2020

Capital TradeFX Review

Overview

Capital TradeFX is an offshore broker registered in St. Vincent and Grenadine. The company in it’s footer on their website also mentioned that it is registered in Hong Kong as well. The trading platform is owned by Capital TradeFX Ltd. The company chose to be registered in St. Vincent and Grenadine which is infamous in the financial world for its lax regulations and almost non existent overlooking. The company has a lucrative leverage to offer. The leverage differs from account type to account type. And there are three account types. The broker offers CFDs on a variety of forex pairs, gold, silver and indices. Read the full Capital TradeFX review here.

About Capital TradeFX

The first thing we usually look at is the origins of a company, which we do know is from shady regions of the world. There is however not a lot of information mentioned about the leadership of the company on their website. But the most important thing to look at is it’s validity to offer financial services. We are talking about the licences it has. Unfortunately for Capital TradeFX, we did not find it to be regulated by any legitimate financial regulator. While it suggests that it is registered in Hong Kong, research shows that it is not licensed or regulated by the Securities and Futures Commission(SFC) in Hong Kong. What’s worse is that the spanish financial regulator Comisión Nacional del Mercado de Valores (CNMV) has blacklisted Capital TradeFX and warns the Spanish people against investing with them. 

Looking past that, we see that the broker uses the Meta Trader 4 platform which is the market’s choice. However the downloadable version of Meta trader 4 is not supported with Capital TradeFX. As mentioned before the company has three types of account types to offer, but with not a lot of distinction. While most of the details are exactly the same, the difference between the three account types is mainly the minimum deposit requirement, which starts at 100 USD and goes up to 300 USD. And the different highest leverages that are made available, which lie in the range of 1:200 to 1:500. Now a high leverage might seem lucrative, but such a high leverage also means that high a risk. One last thing we noticed was that the average spread offered by Capital TradeFX of 1.8 is higher than the market average of 1-1.5.

The Verdict

Given that the company is not regulated to offer financial services is perhaps the biggest red flag an investor needs to see. Also the fact that a government financial regulator has blacklisted the company just adds to worries. Based on these facts, it is safe to say that investing with Capital TradeFX can be very risky and investors should use caution.