Anything you do on the internet comes with a warning; you have to be extremely careful because cybercriminals are on the lookout for an opportunity to take advantage of people. This is also true when you are looking for an online broker to trade in the financial markets. Scam brokers are nothing new; it is a popular tactic that these criminals use to fool and exploit people and many have become their victims over the years. Of course, you don’t want to be yet another statistic, so what should you do? You need to check this GOTcapitals review because it is important to do your homework.
You have to bear in mind that believing the claims that a broker makes is a mistake, unless you have confirmed them. Yes, it means you have to make some effort and check the company you are going to trust with your funds. If you were to believe every broker you find, then it would mean that all of them are authentic and professional platforms and no scams exist. Yet, we know they do and it is up to you to be able to avoid them. When it comes to GOTcapitals, you will see that it is presented as a CFD brokerage.
A quick look shows that it claims to be a regulated platform and checks all the boxes, but GOTcapitals is not what it seems to be and you will find this answer when you take a closer look. As a matter of fact, it appears to have all the hallmarks of an investment scam and doesn’t really seem to be a brokerage at all. Let’s take a look at the issues it has:
Licensing and regulation
If you have gone through some of the incidents of scam brokers, you will notice that they mostly have one element in common; the fraudulent platforms were unregulated and unlicensed. This means they were not answerable to anyone and neither did they follow any rules and regulations. What does this tell you? It shows that it is better to go with a regulated and licensed broker because they are held accountable and are subject to strict rules and regulations.
Most importantly, their information is known and they are not just anonymous platforms that can up and vanish when they feel like it. Where does GOTcapitals fall? Unfortunately, it is not regulated or licensed. Rather than lying about its license, the brokerage simply chooses to lie about where it is based. If you take a look at the address they have provided, you will realize that it is that of a location in Australia.
The only problem is that in order to operate there, GOTcapitals needs to have a license from the Australian Securities and Investment Commission (ASIC) and it cannot operate without their permission. But, you can check their online register and you will not find the broker mentioned there. Moreover, in their presentation, you will also discover that the brokerage claims to be registered and licensed in St. Vincent and the Grenadines.
This statement is meant to reassure people, but the fact is that a registration in St. Vincent and the Grenadines is of no value because the jurisdiction does not regulate the forex trading industry. Therefore, it has become a hotspot for scammers that can easily set up shop without worrying about answering to anyone.
Terms and Conditions
When you have to choose a broker for online trading, you would obviously consider a number of factors before you make a decision. One of them is the cost and fees you will incur when you are using their services. It is understood that you would want to know the same thing about GOTcapitals as well, but you are in for disappointment.
This is because the Terms and Conditions of GOTcapitals are devoid of any details about the fees they will charge their clients and this is a red flag because all legitimate brokers are open and transparent about their charges and fees.
The primary reason why the services of online brokers is necessary for the trading process is because of the trading platform they offer. This is the software designed to help traders in executing their trades in the financial markets and can have a big impact in your overall experience and your performance as well. But, when you try and do the same with GOTcapitals, you will come to realize that they don’t really allow trading.
This doesn’t make sense because they advertise themselves as a CFD brokerage, yet you cannot trade. You will come to know that GOTcapitals do claim to have the MT4 trading platform available, a platform that is renowned in the financial markets for its incredibly powerful technology and features. But, you will not find any link to download the platform on their website, which means it is just a claim and not really available.
Checking what kind of trading conditions you can expect from a broker is also part of the process and you may want to do the same with GOTcapitals and this is another avenue where you will be disappointed. Leverage is one of the most important offerings of any broker, yet it doesn’t seem that any kind of leverage is available and this is not surprising seeing as there is no trading platform either. The company doesn’t appear to offer trading services at all.
How will you be able to make your deposits and withdrawals? It is a must to check this aspect because you want to be able to have a safe and hassle-free experience. The only payment method that GOTcapitals appears to be accepting is Bitcoin. Cryptocurrencies are a favorite of scammers because these payments are not only permanent and irreversible, but also anonymous for the most part. Your money will be gone forever and you will not be able to do anything about it.
It is apparent that there is only one thing you can make of GOTcapitals; it is a fraudulent and scam broker to avoid.