Golden Capital FX is a Forex broker providing trade-able assets in spot metals and CFDs. The company offers multiple trading accounts and we also noticed that the minimum deposit gap is very wide between them. For instance, their Micro account is asking for a minimum deposit of $200 while standard account requires at least $5,000. Pro account costs $15,000 and VIP $50,000. This is indeed a wide gap. It is also not very clear what type of trading conditions apply for each of these trading account. There are some issues related to lack of transparency, and this is working against Golden Capital FX.
Therefore, in this Golden Capital FX review, we will discuss this brokerage in details and if there is a red flag or red flags to consider, we will also let you know. In that case, you will have to sign up with these Forex brokers instead because they are regulated plus they have a reputation of professionally handling their customers.
Golden Capital FX is owned and operated by a company known as Golden Capital FX Inc Ltd. The company’s activities are registered at Saint Vincent and is regulated by the Saint Vincent and the Grenadines Financial Services Authority. It is generally an acceptable fact that any company that is situated in the offshore and claiming to offer trading services is not a reliable entity and trusting their operation can be tricky. You have to conduct due diligence when intending to invest with offshore brokers. Most of them cheat their clients.
Saint Vincent and the Grenadines is not as notorious as Vanuatu. Vanuatu requires brokers to have a minimum capital of $2000 to run their business. This is a very small amount of money and every type of brokerage out there can afford it including those who are intending to scam traders.
But on the other hand, there are other islands which are known to house reputable brokers. For example, Cyprus. Many brokers are situated in this region, and Cyprus is also a member of the EU. So they follow MIFID rules. Cysec implements strict rules which are then followed by brokers who are registered under this watchdog. One of the rules dictating how registered brokers should operate is that all client funds must be kept in a segregated account where the broker cannot access them. This makes life hard for scammers who want to set up a brokerage business with the intent of taking people’s money and disappearing. Is Golden Capital FX one of them? We will see at the end of this review/
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We would like to know if Golden Capital FX is regulated by the CYSEC because this financial watchdog is always fighting for the rights of the consumer. One of the ways through which they fight for the rights of traders is by forcing brokers to part with a small percentage of their profits which is then used to form what they call a collective pool.
This collective pool protects clients money in case the broker goes bankrupt. That means if you trade with a CYSEC regulated broker, the safety of your investments in the hands of this broker would be guaranteed up to the tune of $20,000. On the other hand, if you trade with a scam platform, nothing is going to be guaranteed. The scammer will simply take your money and disappear because they are not regulated and there is nothing you can do.
Golden Capital FX needs at least $200 as minimum deposit for opening their basic account. However, if you need better trading conditions, you will be forced to consider trading account with higher privilege. But as you have already seen, the minimum deposit for these accounts is absurd.
Therefore, if you are new to trading, you should look for a brokerage that lets you deposit a very small amount and if you can perform well, you can gradually increase your deposits to meet the demands of your trading style.
The other problem that has manifested itself on the Golden Capital FX website is that they are not stating the trading costs on their platform. This is a red flag because the broker isn’t upfront with us in the first place. Traders need this type of information in order to avoid surprises later on.
This forced us to test one of their trading accounts. We attempted to trade EURUSD on a demo and found that spreads were as high as 1.2 and there was also a $10 commission if we traded one lot. We believe that these costs are irrational and there are many better brokers out there who can beat the pricing model set forth by Golden Capital FX.
Golden Capital FX does not seem to offer favorable spreads, and this is a big problem considering that many other professional brokers are now competing in terms of spreads. Golden Capital FX is not doing the same, which will make it even more difficult for them to acquire and retain customers.
Golden Capital FX is operating the famous MT4 platform. This platform is robust and dynamic. You can use it with several other trading software including indicators that aid in trading. There is no limit to what you can do as a trader on the MT4 platform. It is therefore the most preferred trading platform out there and Golden Capital FX offers it.
Golden Capital FX does not provide a number of funding methods. Outside traditional methods like MasterCard and Visa, they are only supporting Skrill.
Golden Capital FX is located in an off shore region. Although they are regulated in Saint Vincent and the Grenadines, this does not instill in us the confidence that we need in order to even consider depositing funds with this broker. The other problem is that trading conditions are not even competitive. This broker is simply not providing an ideal service. For that reason, you should seek to use a regulated and professional broker who is mindful of their traders’ affairs.
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