CapitalProf: reviews of working with a broker and analysis of their documents
CapitalProf: reviews of working with a broker and analysis of its documents
The broker CapitalProf appeared on the Russian market relatively recently, at least there are few reviews and mentions of it. Therefore, we decided to examine its activities and find out how safe it is to open an account here. The results of the check and the conclusions of the experts can be found in this review.
Main information about CapitalProf
It should be noted immediately that the official website of the company is quite well done, there is the necessary information, and documents are presented. However, such data is not always sufficient for unambiguous conclusions.
For example, the website states that CapitalProf has been providing its services on the international market for over 7 years. And right in the documents section, there is a certificate of registration on the Marshall Islands of the managing company Alpheratz Intl Ltd. The registration date is 14.06.2021. So, what about these 7 years mentioned then?
The short tenure is also indicated by the domain creation date – 31.08.2021. Of course, before that, the company could have rented another domain. But the first reviews about CapitalProf are also very recent, not a single one before the date mentioned above. It seems that the broker lied about the experience.
It is also worth noting that the site has no other localization besides Russian. On the contacts page, there are only email addresses and the phone number of a Russian communication operator. How can traders from other countries contact CapitalProf managers? They can’t because this company is created exclusively to cater to the local population.
Regulation of CapitalProf
The website repeatedly emphasizes that the company operates in accordance with Russian laws and has the necessary documents. But we are dealing with an international organization, why is there no mention of this? Because CapitalProf has no right to provide its services in the EU or other countries. The broker does not and cannot have a license issued at the place of registration, as there is no financial regulator on the Marshall Islands. It is possible to obtain a license from any international regulatory body, but CapitalProf chose not to do so.
As for regulation in Russia, it is carried out by the Central Bank. This is stated in the same laws that are repeatedly referenced on capitalprof.com. But scammers reasonably decided that no one would read the laws, so they can feed any story. For example, they claim to be regulated by a certain CRFIN (or IFMRRC in the English version) and even provide a screenshot of the license. But this piece of paper has no value.
CRFIN supposedly is an independent regulator overseeing the quality of services provided by brokers and participants in the cryptocurrency market. But at the same time, the organization… does not exist. Proving this is not easy, as this sham carefully hides its details. Only on the stamp can you see the OGRN and check it in the Unified State Register of Legal Entities.
And the check shows the following: a completely different organization is registered under this number, which is also no longer active.
The fakeness of CRFIN has already been written about on Vkadre and in reviews, after which the stamps of this sham’s licenses simply stopped being stamped to avoid unnecessary questions. But we already know that we are dealing with a fake company created specifically for licensing scams. Over the years of its existence, CRFIN has issued a bunch of licenses to pseudo-brokers, most of which are already on the Central Bank’s blacklist.
Trading conditions in CapitalProf
After registration, the user gains access to educational videos and can choose a trading account. There are a total of 4 accounts, with a minimum deposit size ranging from $500 to $35,000.
Each client, regardless of the chosen trading account, is entitled to a welcome bonus ranging from 30 to 100%. It is worth noting that regulators in the EU, the USA, and other regions restrict the imposition of welcome bonuses, thus protecting newcomers from active trading.
Information about commissions and fees was not found, but they undoubtedly exist. The User Agreement stipulates the trader’s obligation to pay for whatever the scammers want to impose on them.
What do reviews say about CapitalProf?
There are very few mentions of this sham on the Internet. Obviously, the scheme is just starting its operations. Nevertheless, we managed to find a few reviews.
How money is lost on the CapitalProf platform?
Without a license from a broker regulator, the broker cannot execute traders’ deals on the financial market. All CapitalProf can offer its clients is trading with virtual money on a demo account. Hence, such generous offers and promotions. In reality, it’s all just numbers; real money immediately goes to the scammers’ offshore accounts.
To encourage users to invest more and more, scammers resort to various tricks: they offer to insure the account, pay taxes on profits, and sometimes even return money, supposedly given to you on credit. As mentioned in reviews, persuasions are constant and aggressive.
To lull vigilance, CapitalProf may allow users to earn by drawing quotes favorable to the trader. However, it is still impossible to withdraw the money; the scammers will simply block the account, inventing some violation of the rules by the client.
Expert conclusions: CapitalProf is a scam project of scammers
After checking all the company’s data, we found that it was registered in an offshore zone a few months ago, is not licensed, and hides behind a paper from a non-existent regulator. The initial reviews confirm that collaborating with this scheme is not advisable.