Is Capitalix a Scam? The Facts You Need to Know

The dealing center capitalix.com is now actively conducting an advertising campaign to attract traders. The broker has a doubtful reputation and does not have a strict license to regulate its activity. Its trading platform is of very low quality, and the functionality is minimal. Most user feedback has a strongly negative character; people often accuse this company of outright fraud. This review will show if the broker is a scam.

Company Highlights

Key Capitalix Trading Features

Capitalix is a CFD broker with three trading account options: Silver, Gold, and Platinum. It doesn’t explain which privileges will be granted to one account holder over another. From the information provided, it is only known that spreads and leverage are different. So, the significant disadvantage of all accounts is the impossibility to learn about other services from the very beginning.

The minimum deposit is $250. No specific recommendation is given on the amount to open a new position, but rather CFD trading is encouraged. Spreads range from 2 to 25 pips, so the profitability of the basic Silver account will be at a minimum level.

The leverage level reaches up to 1:200 for currency pairs. This is an extremely high leverage ratio, considered illegal in both European and offshore regulatory frameworks. In other words, clients are highly at risk of losing their investments early in the trading process and possibly building up debt to the broker.

In a word, the adverse trading conditions have the hallmarks of fraud. The administration artificially inflates leverage and spreads on purpose to make any profitability impossible.

Overview of Available Trading Instruments

Capitalix promises more than 300 trading instruments: currency pairs, cryptocurrencies, stocks, indices, and commodities. At the same time, using a browser-based terminal, one cannot be absolutely sure whether all the assets will be available and whether prices will be correct.

What’s more, the platform is mainly based on CFDs. Brokers offering contract-for-difference trading are very often accused of market manipulation, and quite rightly so. There is a basic conflict of interest here: the dealer earns not only from excessive spreads and commissions but also from clients’ losses.

Trading Platform Analysis

Capitalix says its proprietary trading software is one that contains integrated tools, indicators, and additional features, but ultimately relies on the core WebTrader system, which also only comes in a desktop version. The main flaws of this platform are the lack of liquidity and fictitious quotes. Another scam has a similar problem – Groshare Limited review.

The main point is that company managers can emulate fortunate trades and falsely widen spreads and commissions. There is no mobile trading application because the links to GooglePlay and AppStore are broken.

Additional Services

Some educational materials and expert guidance are included in the additional services provided by Capitalix. Specifically, the broker advertises access to a glossary and a section with frequently asked questions. Access to a private Telegram channel is also advertised, but access is only available after making the first deposit, according to company representatives.

Other claimed privileges include negative balance protection and transaction data privacy. Besides, Capitalix advertises the availability of trading indicators and an economic calendar.

Fee Structure. Are You Paying More Than You Should?

The company’s commission policy is not transparent. Although Capitalix promises zero commission trading and ‘unique’ partnership conditions, no figures are provided. No deposit and withdrawal fees are mentioned, regardless of the payment method chosen. In this case, given the broker’s reputation, it is highly doubtful that such transactions actually do not have additional fees. This is also another red flag.

Legitimacy of Capitalix

Capitalix is regulated by the offshore regulator FSA. At the same time, the administration claims to operate outside the EU countries, even though the functionality and language version are adapted for the corresponding region. Holding an FSA license does not guarantee security, as such regulators often ignore customer complaints and do not properly oversee brokers. Furthermore, even a tier-3 regulatory license held by the broker wouldn’t have promised profitable and safe trading because of multiple regulatory violations along with the risks involved in CFD trading.

Further verification of the company’s registered address heightens concerns about the platform. The intermediary has no physical headquarters or identifiable personnel. Moreover, there is no information about the company’s board of directors. Scam brokers typically provide random addresses in offshore jurisdictions to appear legitimate.

The Broker’s Past and Present

According to the records of WebArchive, the dealer was established in 2020. A Whois search has shown domain name updates and associated manipulations. The broker has been in the market for several years but still doesn’t have a good reputation among traders. The reviews about the company are bad, and many accuse it of scamming. Given these facts, skepticism about the dealing center is justified.

Conclusion

We strongly don’t recommend investing with the Capitalix platform. The broker doesn’t have any regulatory authorization in European countries, no physical offices, or official representatives. The trading conditions are very unfavorable, and the platform itself is subject to manipulation.

Weighing the Pros and Cons

Common Questions