Capital TradeFX Ltd Review: Is capitaltradefx.com Scam Broker? - Topedgefx.com

Capital TradeFX Ltd Review: Is capitaltradefx.com Scam Broker?

Welcome to the Capital TradeFX Ltd review. This is a broker offering Forex, Gold, Silver and indices for trading.

According to company’s marketing materials, Capital TradeFX is registered in Hong Kong but licensed in St Vincent & Grenadines.

This begs the question of why the company chose a different location from that of their “regulator”.

Capital TradeFX offers 3 types of trading accounts. All the 3 accounts don’t charge any commission plus the broker claims that they offer variable spreads

Capital TradeFX also allows scalping, hedging, news trading and expert advisors too.

As usual, a CFDs broker must provide MT4 or MT5 trading software in order to keep up with the competition.

Capital TradeFX claims to provide both.

In addition to this, they suggest that they’re providing “smart compounding” which literally means that their service could also include investment packages.

Capital TradeFX review

Before you think of trading with a broker like Capital Trade FX, you need to read our review to determine whether they’re a viable investment option.

In the meantime, we recommend these highly reliable automated trading software for those struggling with trading or intending to automate their trades due to other commitments. 

Capital TradeFX review

This broker claims that their services is created for traders and by traders.

This is a common phrase on the internet which shouldn’t be taken too seriously.

On the footer of the website, they show badges which suggest that Capital Trade FX has won various awards.

These include:

  • Most trusted broker
  • Best Forex research
  • Best training and education provider

Honestly these awards cannot be verified. In addition to this, they sound quite vague as neither links nor year of award were provided.

Details of Capital Trade FX account types are as follows:

Mini Account

  • Leverage
    1:1 – 1:500
  • Minimum deposit
    $300
  • Account base currency
    USD, EUR, GBP
  • Spreads Types
    Variable
  • Commission
    No
  • Trading Platform
    MetaTrader 4
  • Minimum Trade size
    0,01 Forex& Gold & Silver
  • Maximum Open Position
    Unlimited
  • Max. number of orders
    Unlimited
  • Margin Call Level
    100%
  • Stop Out Level
    50%
  • Pricing Format
    5th decimal pricing (0.12345); Inter-Bank Quotes
  • Execution type
    Market Execution 100% STP/ECN/NDD, No Re-Quotes, No Conflict of Interests
  • Execution Speed
    Often sub 2 Milliseconds

Micro account

  • Leverage
    1:1 – 1:500
  • Minimum deposit
    $100
  • Account base currency
    USD, EUR, GBP
  • Spreads Types
    Variable
  • Commission
    No
  • Trading Platform
    MetaTrader 4
  • Minimum Trade size
    0,01 Forex& Gold & Silver
  • Maximum Open Position
    Unlimited
  • Max. number of orders
    Unlimited
  • Margin Call Level
    100%
  • Stop Out Level
    50%
  • Pricing Format
    5th decimal pricing (0.12345); Inter-Bank Quotes
  • Execution type
    Market Execution 100% STP/ECN/NDD, No Re-Quotes,No Conflict of Interests
  • Execution Speed
    Often sub 2 Milliseconds

Standard account

  • Leverage
    1:1 – 1:200
  • Minimum deposit
    $100
  • Account base currency
    USD, EUR, GBP
  • Spreads Types
    Variable
  • Commission
    No
  • Trading Platform
    MetaTrader 4
  • Minimum Trade size
    0,01 Forex& Gold & Silver
  • Maximum Open Position
    Unlimited
  • Max. number of orders
    Unlimited
  • Margin Call Level
    100%
  • Stop Out Level
    50%
  • Pricing Format
    5th decimal pricing (0.12345); Inter-Bank Quotes
  • Execution type
    Market Execution 100% STP/ECN/NDD, No Re-Quotes,No Conflict of Interests

Capital Trade FX review: Smart compounding investment tool

This broker also offers a smart compounding investment tool which allegedly manages risks and returns up to 24% per year.

While they claim that investors have total control over their funds, there is a clause which says if traders are not happy with the service, they can only cash out their money after 30 days.

We believe that this is unfair because no broker has the right to hold your money. Capital TradeFX should produce your money at a moment’s notice and not hold to it.

What we think about Capital TradeFX

First of all, their leverage is quite generous. At 1:500, their leverage can accommodate traders of all levels.

If you’re new to trading or are using one of our recommended expert advisors, you should either learn about risk management or set leverage according to the developer’s recommendations.

And of course they claim to provide MT4 and MT5 trading platforms respectively. If you’ve been trading for a while, you know how robust these platforms are.

They provide excellent charting features in addition to supporting all automated trading systems programmed in the MQL language.

Brokers can only remain competitive if they offer one of these but mostly MT4 trading platform.

Related to NoaFX and unregulated

Capital TradeFX is telling us that they’re licensed in St Vincent & Grenadines.

The truth is that Capital Trade FX is not regulated since this is an offshore location with no regulations at all.

Their marketing materials claim the company is operating from Hong Kong. We wonder why they’re claiming to be operating out of Hong Kong when they’re “regulated” in St Vincent and Grenadines.

Capital TradeFX does not hold any Forex broker’s license. This is quite a setback.

In other words, if you trust them with your money, you risk losing your investment because the company can disappear anytime without trace.

Are you ready to gamble your money with an unregulated broker?

For us, it’s a no. We can’t use them and we definitely can’t recommend them.

Furthermore, there are rumors that Capital Trade FX is related to NoaFX. We’ve not confirmed these rumors so we will be updating this Capital TradeFX review in due time.

Spread is costly

Spreads for a pair like EURUSD is 1.8 pips. This is very very expensive. Most regulated and reputable brokers don’t have crazy spreads.

We expect professional and regulated brokers to charge 1.3 or less for a pair like EURUSD.

Conclusion

We don’t trust Capital TradeFX at all because they’re unregulated and their supposed locations also raise eyebrows.

An offshore broker is simply a risky broker to trade with. No matter how attractive their Forex trading services seem, the best thing a trader can do is to ignore them.

Thanks for reading our Capital TradeFX review. We look forward to your feedback.

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