53 Capital Trades Review
53 Capital Trade supposedly offers forex trading and/or binary options. Their website is so unclear, it’s hard to tell exactly what they are offering. We have strong reasons to believe the company is a scam and would not recommend dealing with them. The trading account types only offer different extra benefits, but no change in the trading conditions. That being said, there is no information about these conditions.
The Company. Security of Funds
53 Capital Trade does not have any financial regulation. The company is supposedly registered in the UK, but doesn’t claim any affiliation with the local financial watchdog, the FCA.
You may already know this, but financial regulation should be the first and foremost thing you look at, when seeing a forex broker for the first time. Different countries have different agencies, which oversee the financial services industry. The aforementioned FCA is the one in the UK, while lets say in Cyprus the equivalent is the CySEC. These organizations impose certain rules upon the forex broker. A CySEC regulated broker must keep client’s funds in the so called segregated accounts. This is a measure which prevents the company from spending your money for its own purposes. Furthermore all brokers, under CySEC are part of a compensation scheme. This basically acts as an insurance policy – companies pay a portion of their profits to a collective pool, which then guarantees clients’ funds against broker bankruptcy. The level of protection with such a broker is EUR 20,000 per account.
53 Capital Trade is associated with 53 Option. Both companies have received negative client reviews on reputable on-line forums. The story usually goes as follows: You receive a call by a company representative, you are convinced they are knowledgeable and providing sound investment advice, you deposit money and let them operate your account. This is then followed up by the account growing in size and after a certain point you receive a call, demanding an extra deposit because one of the positions has gone horrible. Usually at this point your account has more than doubled and you feel the need to protect your investment. The process is then repeated several times, as long as you keep adding money. However, when you want to withdraw your finds, everything from technical issues, to requests for more money follow.
Minimum Initial Deposit
The minimum deposit at 53 Capital Trade is $1,000, which is a quite a lot. Nowadays, with the technological advancements and economy of scale, companies can process client documentation for low costs. The minimum deposit at FXCM, for instance is $50.
That being said, a high minimum deposit is not that illogical for a company, which appears to be a scam. Their sales pitch will take significant resources, so they better turn-up with a solid result.
Average spreads & Commissions
We don’t have any information on the trading conditions at 53 Capital Trade. As mentioned above, we are not entirely sure what kind of instruments they offer as part of their website indicates forex and CFD trading is available, while another part has a binary option field. In the meantime, you can check the spreads offered by some of the world’s most reputable forex brokers here.
Usually in this part of the review, we would compare the maximum leverage offered by the broker to the current industry standard. That being the case, you would probably not be surprised to hear, there is no information on the trading conditions (including leverage) at 53 Capital Trade’s website.
When it comes to trading platforms, things get tricky at 53 Capital Trade. One portion of their website shows a platform similar to Sirix (you can tell by the clearly visible social trading bar on the right):
Another portion of their website gas a typical binary options platform:
At the end of the day we can’t really determine what trading platform (if any) you would be receiving.
Methods of Payment
53 Capital Trade offers few payment methods: Bank Transfer and Credit/Debit card. That being said we do not recommend sending them money at this point.
53 Capital Trades Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about 53 Capital Trades Review.