Capital ForexLive has been flagged up by the FCA as a scam broker to avoid and we have confirmed its place on the ForexFraud list of brokers to avoid. The UK’s regulator’s statement, which was released on 16th June 2022, highlights the unregulated firm’s practices that make it appear anything but a legit broker.
FCA Clamps Down On Capital ForexLive
The FCA’s statement on Capital ForexLive throws up some of the classic red flags to look for in a broker.
“This firm is not authorised by us and is targeting people in the UK.” This means that anyone depositing funds with Capital ForexLive won’t be protected by the Financial Ombudsman Service or protected by the Financial Services Compensation Scheme (FSCS). In other words, “you are unlikely to get your money back if things go wrong”.
How to Spot a Scam Broker
There are some other worrying signs that, as the FCA puts it, “something could go wrong”. For a start, the claims made by the firm in terms of investment returns are massively unrealistic. The Premium Plan claims to offer a return of 8% after just 48 hours of holding an account with the broker.
Source: Capital ForexLive
If any investment manager could generate returns like that, they wouldn’t need to set up an operation managing other people’s money. Instead, they would be sitting on the beach by now. The minimum deposit amount for this account is a concerning $10,000 and points to its operation being more about luring unsuspecting investors to wire funds that are never seen again.
The second major red flag is the absence of any indication that the broker is regulated – anywhere. The About Us section of the site instead offers a ‘back story’ that the firm used to be a crypto miner (red flag) but has moved into managing funds for investors. This points to the difficulties that crypto miners face as regulators around the world clamp down on their operations and force them to look for new business models – many of which aren’t legit.
Who are Capital ForexLive?
The firm has gone to the trouble of registering a UK-based office, but this looks like little more than a front for fraudulent activity. It is unfortunately relatively easy for scammers to fill out a few forms, claim to have a UK-based business operation, and present themselves as a legit operation.
Unauthorised firm – CAPITAL FOREXLIVE
- Address: 71-75 Shelton Street, Covent Garden, WC2 9JQ
- Telephone: 07400106532
- Email: [email protected]
- Website: www.capital-forexlive.com
In the case of Capital ForexLive, the contact details to avoid are as per the above, but as the FCA site states: “Be aware that some firms may give out other details or change their contact details over time to new email addresses, telephone numbers or physical addresses.”
It looks like the process of changing contact details is already happening, with the site now offering the below methods of contacting it, something that all traders and investors should avoid.
- Call: +1 (208) 994-4582
- Email: [email protected]
Trading the markets is inherently risky, though there are some ways to position yourself to make a return from trading that beats the currently soaring rate of inflation. Capital ForexLive is instead a firm where account holders look set to lose everything with their funds disappearing overnight. Safe trading starts with choosing a trusted broker, and heading to this list of legit brokers takes you to a list of firms that have been reviewed by the ForexFraud team and offer the best first steps into the market.
Crowdsourcing information about scam brokers can help others to avoid falling into the traps set by disreputable brokers, and you can share your experiences here. If you would like to know more about this particular topic, or have been scammed by a fraudulent broker, you can contact us at [email protected].
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