Arb Capital Review
If you have been searching for an online broker to help you start trading in the financial markets, you will notice that there isn’t exactly a shortage of options. There are a number of companies that are touting their services, each offering something to draw in more clients. However, this doesn’t mean that you take their word for it and sign up because not all of them are being honest with you. This Arb Capital review will show you just how brokers can often manipulate people into signing up.
You have to exercise caution because there are fraudulent companies that are trying to lure in people in order to exploit them in one way or another. Unless you don’t have a problem in becoming a victim of such a platform, you should learn to avoid such shady brokers. Arb Capital is one of them and here is why you should avoid this broker:
The Financial Commission in Hong Kong (FinaCom) has issued a warning against Arb Capital and this is an excellent reason to avoid this broker altogether. According to its website, the company shows an address in London, United Kingdom, but if you check their Terms & Conditions, you will find that it is actually an offshore brokerage and is registered in St. Vincent and the Grenadines. This jurisdiction is renowned for housing scam brokers because they don’t have to be licensed there are at all.
If it was really operating from London, then it would have to be registered with the Financial Conduct Authority (FCA) in the UK, which is one of the most reputable regulators in the world. The fact that Arb Capital is trying to mislead its customers is reason enough to not use its services.
If you check out the Terms & Conditions of Arb Capital, you will find that the broker imposes an inactivity fee on trading accounts that are not used by their clients within 90 days. This sounds reasonable, as this practice is widely used by other brokers as well, for encouraging their clients to use their accounts. But, you will notice right away that this fees is extremely high in the case of Arb Capital because they are imposing 5% charges on a monthly basis.
This is certainly not the norm and their charges don’t end here. A fee on withdrawal has also been imposed by Arb Capital on accounts that have conducted less than 5 independent trades and this is also 5%. These charges are very high and not something you would ever find when you choose a legitimate broker.
Anyone even remotely interested in online trading has probably heard of the MetaTrader, which is the top trading platform in the market. Any decent brokerage would offer this trading solution to its clients, but you will not see this anywhere on Arb Capital. Instead, they claim to support a platform known as ActTrader, which doesn’t even come close to the MT4 or the MT5. Moreover, the registration link on the website is absent, which indicates that the broker has the practice of picking its own clients.
No Trading Conditions
The only trading condition that has been disclosed by Arb Capital on its website is 1:100, which is significantly high than it would be allowed to offer, if it was truly regulated by the FCA. You will find no other information available about the spreads they charge and neither have they mentioned anything about the minimum deposit you will be required to make and this is definitely shady.
No Confirmation about Payment Methods
The legal documents on the Arb Capital website indicate that it supports bank transfer and credit card payments, but there is no way to determine if it is true or not.
These are solid reasons for you to avoid Arb Capital when you want to start trading and look for a legitimate broker to start.