Digital Capital Markets Review – The Warning Signs to Look for

Digital Capital Markets Review

When you take an interest in online trading, you will learn quickly that the services of a broker are needed for accessing any financial market. You don’t have to worry about a shortage of brokers because there are hundreds, or even thousands, which exist nowadays. Yet, this is a process that still causes a great deal of problems. Why? This is because not all brokers that are offering their services are authentic. Some may offer you poor trading services, while others are downright shady and illegal. Most people don’t know how these operate and this Digital Capital Markets review can help you understand this.

It is necessary for people to understand this because most scammers are smart enough to portray themselves as reliable platforms and people end up learning the truth the hard way. This means financial losses because you don’t get your deposits back and your personal information also ends up in the wrong hands. These are consequences that people want to avoid and the only way to do this is by looking for some warning signs. You will find these in fraudulent platforms and this can help you in making the right decision.

Like other scammers, Digital Capital Markets appears to have gone to great lengths to convince people that it is a genuine platform when it really isn’t. It has presented itself as a regulated broker based in California and has gone as far as offering guaranteed returns on every deposit. They have also added some external links to give proof of their credibility, which includes a forex license, an insurance certificate and a company report by the US SEC (Securities and Exchange Commission). At first glance, it does look quite convincing, but there are warning signs that you can uncover upon a closer look. What are they? Take a look:

All license credentials are fake

As mentioned above, you will find a link on the Digital Capital Markets’ website that leads to a report about the company from the US SEC, but this is not authentic. When you open it, you will find that the domain address where the report is published is https://sec.report, while the official domain address of the Securities and Exchange Commission (SEC) in the US is www.sec.gov. Likewise, the insurance certificate comes from a British firm known as Chesterfield Insurance, and this is also fake and not even found on an external webpage.

As far as the licenses are concerned, you will find that Digital Capital Markets provides a license from the Financial Industry Regulatory Authority (FINRA). Even if this is genuine, it does not make a difference because it cannot be used as a substitute for a forex license. This is because FINRA is a non-governmental organization and not an official regulatory association. To operate in the United States, Digital Capital Markets would need to have a license from the Commodity Futures Trading Commission (CFTC) and be a member of the National Futures Association (NFA).

A check of the online registers of both these entities shows that Digital Capital Markets is nowhere to be found, which makes its licenses fake.

Website is virtually anonymous

Fake licenses are already a problem and it gets worse because you will find that Digital Capital Markets does not really offer any information about itself. Their website is virtually anonymous because when you go through their contact section, you will not find a corporate address. There is no contact number given either and this is not something a genuine broker would ever do. Likewise, the website does not have any corporate background mentioned either, so you don’t have any knowledge of who you are dealing with.

Unrealistic guaranteed returns

One of the prominent offerings that you will come across on the Digital Capital Markets’ website is their 3% guaranteed profits on each deposit. This alone should be considered a warning sign because no authentic brokerage would ever make such claims. The financial markets are known to be volatile as well as unpredictable and even the most professional and expert traders cannot give you a guarantee of profits. Anyone who does so is an outright scam, one you should be wary of. In addition, it should also be noted that most regulated brokers will usually publish a warning on their website, informing potential traders about the risks associated with trading forex and CFDs. They even provide statistics to back this statement, so a legitimate broker would never guarantee returns.

Offering asset management services

Another problem you will discover at Digital Capital Markets is that it doesn’t just claim to be a trading company, but also an asset management service. This is a conflict of interest because brokerages are market makers, which means that they profit when their clients lose a trade. Therefore, it is not possible for them to provide asset management services.

Providing asset management services means that Digital Capital Markets will take your deposits and manage your trading account on your behalf. As they are market makers, it gives them all the incentive to deliberately make losing trades because when their clients lose, they will make profits. Thus, they are likely to squander away your money and leave you with no profits at all.

Lack of trading software

One of the most important features that a broker offers to its clients is the trading software used for executing your trades in the market. It shapes the experience of a trader, which makes it extremely important. The problem with Digital Capital Markets is that it does not appear to have a legitimate trading platform at all. When you complete your registration and want to start trading, you will be provided with a funny looking dashboard that does not support any trading. Essentially, you are just required to make a deposit and after that, you will not see your money and not be able to do anything about it.

Final Thoughts

When you put together all of these warning signs, you can determine that Digital Capital Markets is up to no good.