Smartfxcapitals – The Troubling Aspects of the Broker

Smartfxcapitals

Online frauds and scams are quite well-known and despite people being aware of them, they still manage to find new victims on a regular basis. The financial markets have also seen a massive surge in the number of these scams in the last decade or so, given that there is a lot of traffic in the space and a great deal of money involved. Lots of people have been defrauded and if you go through the stories, you will find that it is mostly because people ended up with the wrong broker. Going through this Smartfxcapitals review will help you understand this better.

The number of online brokers has multiplied in the last couple of decades, as more and more people have shifted to online trading as opposed to the traditional model. It is a fact that no two companies can offer you the same quality of services, or even features and there will always be differences. But, in the case of online brokers, you will find that it is not just about quality, or offerings. There are some platforms that are just masquerading as brokerages and are frauds.

Hundreds of thousands of people have lost their money to one of these fraudulent companies because they did not know what they were signing up for. In today’s age, you should be smart enough to figure out how to steer clear of scams. There is a great deal of awareness and information available that can help you avoid any devastating consequences. Most of the time, people end up as victims because they did not do their homework. It is a must to check a brokerage properly before you open an account with them.

This is also what you should do with Smartfxcapitals, but you need to look beyond its offerings to learn the truth about it. It presents itself as a licensed and award-winning brokerage at first glance, but it is nothing more than an outright scam. How can you know? Here are some troubling aspects of Smartfxcapitals that make it evident.

The lack of licensing

One of the first things that will catch your eye at Smartfxcapitals is the fact that the brokerage claims to be globally regulated and licensed. If you have done your research, then you would be aware that unlicensed brokerages are the ones that turn out to be scams, so those should be avoided at all costs. But, this does not mean that you sign up with a company that claims to be regulated and licensed.

After all, anyone can claim anything over the internet and it does not make it true. This also applies to Smartfxcapitals that claims to be based in the US. It would require a license from the Commodity Futures Trading Commission (CFTC) and be a member of the National Futures Association (NFA), but you will not find it listed in their online registers.

The broker also claims to be regulated by the Cyprus Securities and Exchange Commission (CySEC), the Financial Sector Conduct Authority (FSCA) in South Africa, the Financial Services Commission (FSC) in Mauritius and the Financial Conduct Authority (FCA) in the UK. This makes Smartfxcapitals a well-regulated broker and the perfect choice, but if you check the online registers of these regulatory authority, you will find that these are all lies.

As a matter of fact, the FCA in the UK has actually issued a warning against Smartfxcapitals, which shows that you are certainly not dealing with a legitimate brokerage. Any company that lies about its regulation and licensing cannot be relied upon.

The absence of a trading platform

While an online broker will offer you a ton of features and services, none are as vital as the trading platform. After all, there can be no trading at all without this particular piece of software. But, not all trading platforms are the same and every trader would obviously want to have access to the best one that enables them to trade profitably.

One of the top draws of Smartfxcapitals is that it claims to give you access to the MT5 trading platform, which is known as the best one in the market. It is renowned for it is cutting-edge technology and top-notch trading tools that can make for a seamless trading experience. Unfortunately, you will discover that Smartfxcapitals is outright lying here as well because it does not offer the MT5.

As a matter of fact, there does not seem to be a functional trading platform available at Smartfxcapitals at all. They just present something that looks like a platform, but it does not come with the option to trade. The only option it does have is that of deposit, which makes the intention of the ‘broker’ obvious. It only wants your money and nothing more.

The uncompetitive trading conditions

Since trading conditions are directly connected to your bottom line, they are worth checking and you are promised unparalleled trading conditions at Smartfxcapitals. This is yet another false claim because the spreads that you are offered here start at 1.9 pips, which are certainly not very appealing. Most professional brokers would offer you spreads under 1 or 1.5 pips.

In addition, the leverage that Smartfxcapitals is offering goes as high as 1:100, which is excessive. In fact, regulatory authorities like CySEC and the FCA have actually banned such ratios for retail traders. The maximum leverage that can be offered is 1:50 in these jurisdictions where Smartfxcapitals claims to be regulated. It should not be offering such high leverage all.

The option of crypto deposits

Another troublesome aspect of Smartfxcapitals is that it only supports deposits and bitcoin and Ethereum. The problem with crypto deposits is that they do not come with a chargeback option, which means you will not be able to get your money back once you have deposited it. These payments are irreversible and this has made them very popular amongst scammers because they can easily steal your money.

Bottom Line

These troublesome aspects of Smartfxcapitals make it apparent that you are dealing with a scam broker and should not choose it for your trading journey.