Is CapitalGates.io a scam? This CapitalGates review will shed light on why we don’t recommend this broker.
When it comes to securing your finances, prioritizing safety is paramount. It’s strongly recommended to choose a broker that has a proven history of transparency and regulation.
If you’re searching for a reliable forex broker, it’s advisable to avoid CapitalGates. Despite its well-designed website and attractive trading deals, CapitalGates does not have adequate regulation, potentially exposing investors to significant risks.
In this CapitalGates review, we will shed more light on why we don’t recommend the broker.
Regulation
CapitalGates presents itself as a legitimate broker based in the UK. However, a thorough investigation reveals a concerning truth: CapitalGates is not listed on the Financial Conduct Authority (FCA) registry in the UK.
This absence suggests that the broker operates outside the legal boundaries of the UK, raising significant doubts about its credibility.
To make matters more worrisome, Spain’s Comisión Nacional del Mercado de Valores (CNMV) has issued a warning to traders, emphasizing that Capital Gates lacks the necessary licensing within their jurisdiction.
Considering these findings, it is recommended to exercise caution and steer clear of CapitalGates. Instead, consider exploring investment opportunities with more reputable and properly regulated brokers.
Prioritizing your financial security is crucial, and selecting a trustworthy broker is a vital step in safeguarding your investments.
Trading Platform
CapitalGates may present a TradingView web-based trading platform that seems legitimate at first glance.
However, due to the unclear and dubious nature of the broker, we strongly recommend traders avoid it.
If you are looking for a sophisticated and user-friendly trading platform, it’s essential to consider MT4 and MT5 as superior choices. These platforms offer exceptional charting features and a comprehensive range of technical analysis tools, making them the preferred options for many traders.
Note that investing in a platform with a proven track record can enhance your trading experience and provide a higher level of security for your investments.
Minimum Deposit
Capital Gates provides various trading account options, each with specific minimum deposit requirements. The entry-level option is the Basic account, which requires a minimum deposit of $5,000.
For a Silver account, the requirement increases to $10,000, while those interested in a Gold account should be prepared to deposit at least $25,000. Opting for a Platinum account requires a more substantial commitment, with a minimum deposit of $100,000.
At the highest tier, a Diamond account requires a significant commitment of $1 million.
Unlike the more common entry-level deposits of up to $250 found with many brokers, Capital Gates sets higher requirements. It’s crucial to thoroughly evaluate your financial situation and risk tolerance before committing to an account with such elevated minimum deposit requirements.
Payment Methods
Capital Gates reportedly supports conventional payment methods such as Credit/Debit cards and Wire transfers.
Nevertheless, you need to be cautious and conduct comprehensive research before engaging with this broker. There have been concerns raised regarding its legitimacy and regulatory status.
Trading Instruments
Capital Gates claims to provide a wide range of trading tools on their platform. These tools comprise CFDs (Contracts for Difference) on different assets like Forex, Stocks, Cryptocurrencies, and ETFs (Exchange-Traded Funds).
While having different trading tools can be appealing for traders, it’s crucial not to base your choice of a broker solely on this factor. It’s essential to conduct thorough research, check the regulatory status, and evaluate the overall reputation of the broker.
Taking these steps is crucial for making an informed decision before getting involved in trading activities with Capital Gates or any other broker.
Fictional Company Ratings
With a total of eight reviews on TrustPilot and none on SiteJabber, the authenticity of the testimonials displayed on the questionable site is dubious. Among the available comments on these platforms, approximately one-third are 1-star ratings.
Those expressing their dissatisfaction with the company claim they felt pressured to deposit money, facing persistent phone harassment from the company’s representatives.
On the other hand, those giving the company above-average ratings mention positive interactions with their account manager, potentially unaware of any deceit.
Lack of Transparency in Costs
Capital Gates keeps customers in the dark regarding taxes, fees, costs, and commissions. Although the trading floor suggests an attractive spread of around 0.8 pips on EUR/USD, it’s challenging to believe. Leverage, available with specific account types, reaches up to 1:1000.
Policy on Non-Deposited Funds
The company openly advertises a deposit bonus of up to 125%, referred to as “non-deposited funds” in their Deposit and Withdrawal policy. Legal documents indicate these funds cannot be withdrawn.
Regardless of the terminology used, such bonuses are prohibited in numerous countries, including the entire EEA. This raises concerns, as other fraudulent entities like Gravity Trade have been known to exploit bonuses to avoid payouts. Stay vigilant and exercise caution.
Inadequate Web Trader Performance
A quick look at the available web software immediately reveals its unreliability. The absence of advanced customization and analytical tools is just the beginning of the issues.
The major concern lies in the possibility that the displayed data is entirely fabricated, enticing investors to continue investing based on misleading information. The faux software showcases appealing trading outcomes, enabling scammers to extract more funds from investors who were promised substantial returns with minimal effort.
Conflicting Asset Information
While the website emphasizes ETFs and CFDs, the instruments featured in the trading area include:
- Forex: EUR/USD, EUR/GBP, USD/AUD
- Commodities: Coffee, Silver, Cotton
- Crypto: BTC, BNB, XRP
- Indices: NYSE, AEX, FTSE
- Stocks: Alibaba, Delta, Intel Million-Dollar
Leverage
Capital Gates provides different leverage levels based on the type of account, ranging from 1:50 for their Basic account to an impressive 1:1000 for the Diamond account. This substantial variation in leverage options raises concerns about the company’s lack of regulation in the UK.
It’s essential to note that legitimate forex brokers in the UK are legally required to restrict leverage for retail clients to a maximum of 1:30. This measure aims to enhance client security and prevent excessive risks.
Capital Gates surpassing this limit should be a red flag, emphasizing the importance of selecting a regulated and compliant broker to safeguard your investments.
Withdrawal Procedures
It’s worrisome that Capital Gates mentions withdrawal fees without providing comprehensive information about them. Transparent and clear fee disclosure is a vital aspect of any reputable brokerage, enabling traders to fully comprehend the costs associated with their transactions and withdrawals.
Without detailed information on these fees, clients may find it challenging to make well-informed decisions about their financial transactions.
Confusing Payout Policy
The Withdrawal policy on Capital Gates’ website is not clear, thereby confusing users regarding whether it is poorly translated into English or intentionally confusing.
For instance, a sentence like, “The solicitation will commonly be prepared by CapitalGates inside 4-7 business long stretches of receipt,” raises questions about the clarity of their communication.
Despite advertising various payment channels such as e-wallets and crypto transfers on the website, the only methods available in the client dashboard are credit card and wire transfer.
This inconsistency adds to the confusion and underscores the need for a clearer and more consistent payout policy.
Warning from Regulators
Beware of financial scams that operate anonymously and provide false company information to create a misleading impression for potential clients. One such firm claiming to be registered in the UK, known as CapitalGates, has raised concerns.
During our investigation, we discovered that the statement of registration in the UK was false, as CapitalGates is not listed in the FCA database.
In addition, the available legal documents do not have substantial information, while regulatory bodies like CNMV have flagged this company as unreliable and engaged in illicit activities.
To safeguard your funds, it is crucial to engage with a fully licensed and certified Forex dealer recommended by regulatory authorities. Protect yourself from potential scams by verifying the legitimacy of financial entities and ensuring they adhere to proper regulatory standards.
Conclusion: Is CapitalGates Reliable?
CapitalGates is not a broker that we can endorse due to their lack of licensing for financial services.
In addition, we came across unfavorable comments on online forums. It is advisable to avoid this broker as your funds may be at risk.
Always exercise caution by thoroughly reviewing feedback and comments about a company before making any financial transactions, whether it involves a forex broker, cryptocurrency exchange, or any other entity.
If you have any information about CapitalGates, its administrators, or its facilitators, please reach out to us.
