Welcome to the Capital Markets Elite Group review. Capital Markets Elite Group (cmelitegroup.com) is also known as CMEG and many folks out there want to know whether CMEG is a good broker.
While a website called Warrior Trading is actually endorsing Capital Markets Elite Group in a review, we have a contrary opinion which is also based on factual evidence.
We’re not so naive to believe that the following “benefits” makes for a good broker:
- Standard accounts that don’t charge commission
- High leverage of up to $2,500
- Accessibility to traders and investors living in America
- Availability of multiple software
There’s much more to consider before we can ever recommend an investment broker offering managed portfolios.
Therefore, in this Capital Markets Elite Group review, we’ll look at the company’s location, regulatory status, investor insurance and reputation in general.
If our Capital Markets Elite Group review is ticking most if not all of these boxes, then it would be safe to invest.
However, you should not be in a hurry to do so because the $500 minimum capital required to start day trading on this company’s website is still a lot.
If you have less or are not willing to invest a lot of money upfront, the best thing you can do is trade Forex with these highly recommended trading tools.
Capital Markets Elite Group Review (CMEG broker)
This is an offshore stock brokerage firm doing business in Trinidad and Tobago.
Trinidad and Tobago is a small island situated in the Northern show of Venezuela.
It is so close that one can just float on a small boat from Venezuela to the office of this brokerage.
Trinidad and Tobago is led by a dictator called “Weekes”, which probably explains the high rate of crime in the area.
Some statistics depict that this island registers at least 500 murders every year, which is abnormally high to say the least.
According to a World Bank report, Venezuela is the number one illicit exporter of cocaine. Underground economy thrives in this region.
Trinidad and Tobago (where Capital Markets Elite Group is) is also infamous for hosting “romance scams”.
These money-extorting schemes typically hustle horny old men by convincing them to send money so they can get a beautiful young local girl to marry.
The island where Capital Markets Elite Group is situated at has a really bad reputation.
The local “officials” have even been accused of rigging the national lottery in a selfish bid to help family and friends.
The offshore island is so small and that means their population is equally small. Yet they are so creative so as to device scams that convince people to invest if they send money.
That is where Capital Markets Elite Group is based at.
Capital Markets Elite Group review: They ignore US Securities Laws
Their main target is a group of audience who are seeking to invest but not within the confines of US Securities Laws.
They claim that they offer an investment opportunity where persons based in the US can avoid the PDT rule.
In other words, this stock brokerage is harnessing the same rules and procedures that contributed to the closing down of Sure Trader (a defunct Bahamas-based broker).
See this review where we’ve referenced Sure Trader and their activities in relation to investors’ money.
This is the truth: The SEC and the CFTC are US regulators who loath off-shore brokerages that continue to hustle US investors when they are obviously unregulated.
And more specifically, stock brokers like Capital Markets Elite Group and others who offer an opportunity to flaunt the PDF rule are usually the target of these US regulatory organizations.
So there is no doubt that the hammer will fall on the Capital Markets Elite Group stock broker someday. It’s a question of when as opposed to if.
Yet we still know that some financially-naive individuals will stuff their hard-earned money into a scam operating in an infamous location like the Trinidad and Tobago island.
One has to wonder why these individuals can’t think straight.
Capital Markets Elite Group Review: They offer Forex, Futures and CFDs
If you’re based in the US and are trading or intend to trade CFDs, you’re potentially setting yourself up to felony charges.
This also applies to stock brokers in the US or out of US who offer CFDs trading to investors of US citizenry.
The second thing is that if you’re a broker offering Forex, Futures, swap derivatives or commodities to investors living in America, you’re required to be registered by the National Futures Association and the CFTC.
Even if you’re located in an offshore criminal island like the Trinidad and Tobago, these laws still apply.
How the stock brokerage intends to scam investors
Capital Markets Elite Group is a high-cost trading brokerage.
However, in America, it is required that stock brokers charge zero commission while providing top-of-the food chain trading platform, software and outstanding support where actual people pick up phone calls from their clients.
Anyone looking at the cost of trading with this broker compared to those based in the United States will definitely believe that Capital Markets Elite Group is a rip-off.
For instance, when you enter a trade, they charge $3.95. When you exit a contract, they equally charge $3.95.
In terms of percentage figures, this broker is 800% more expensive than stock brokers such as Schwab, TradeZero or Interactive Brokers.
As if this is not enough, this stock brokerage firm charges exorbitant “inactivity fees”.
They are essentially punishing those who are not trading enough.
Literally speaking, this means that CMEG does not want US-based investors to adhere to the PDT rule.
In fact, this stock broker just wants you to churn and burn your account since they threaten that if you don’t trade every day and quite often, you’ll be slapped with a hefty fine.
Capital Markets Elite Group review: Not registered by FINRA or any other regulator
They claim that every customer is covered up to the tune of $250,000 of SIPC insurance.
Yet we find no evidence that the stock broker’s investors are covered by any insurance. This simply means that the broker is lying and fraudulently misrepresenting their business.
Our research indicate that Capital Markets Elite Group was and is never a member of SIPC and so no insurance can be granted to any of their customers.
Just to be sure, search the database of SIPC to find out which Securities provider is regulated and insured.
This news has already reached FINRA and guess what?
They’re surprised that a stock brokerage offering securities in an offshore location is fraudulently claiming to be regulated and insured.
You can check the FINRA website to see that indeed CMEG broker or any other review claiming that they are regulated is actually lying.
Who owns this stock brokerage firm?
Our CMEG review seeks to know and shame the owner of this company for openly breaking the law.
To know the owner, we actually opened an account with the broker but at the end of the day, we would obviously be required to send money to an offshore brokerage bank account.
Before we could send any money (obviously we were not going to send), we asked the hard question.
“Who owns Capital Markets Elite Group?”
The one picking the phone refused to answer and instead put us on hold for close to one hour.
We tried calling every day and eventually someone picked the phone.
They said “Maybe this day trading opportunity is not for you, or maybe skirting the PDT rule is not for you.”
But remember they refused to tell us who owns the f**cking company.
The about us page of this company does not even disclose the person in charge. We find this very strange.
Capital Markets Elite Group lies about their physical address
This company claimed that their business was hosted in one of the largest and most previous buildings in the Trinidad and Tobago island.
However, after speaking with the Trinidad regulator, they provided a different physical address which we indeed Googled and found out that the place was actually a decorated shanty.
In addition to this, Google satellite images revealed that stray dogs were roaming around the office.
It should be noted that the physical address is also where a business named Global Financial Traders is located at.
The relationship between Global Financial Traders and CMEG
Global Financial Traders is a prop-trading business that is deeply related to Capital Markets Elite Group.
Global Financial Traders offers “get-rich-quick” day trading course on penny stocks.
In addition to this, the “prop trading firm and trading educator” is also executing all their traders from the platform of Capital Markets Elite Group broker.
We feel that there is a dirty game being played right under the nose of authorities. We feel quite uncomfortable perusing any investment relationship with this stock broker.
As we conclude this Capital Markets Elite Group review, we would like to point out that either the US regulatory authorities will shut down this scam or eventually the broker will do a runner with investors’ money.
We are actually expecting a new wave of shutdowns because currently, the SEC is investigating Guy Gentile of F1 Trade in Miami and were recently involved in the closing down of Sure Trader.
Thanks for reading our Capital Markets Elite Group review. We hope you enjoyed the review and at the same time taking this warning very seriously!