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East Capital Markets Review - is it scam or safe?

 Review - is east-capitalmarkets.com scam or good forex broker?

RATING: 1 / 0 REVIEWS East Capital Markets
East Capital Markets is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit  Max. leverage Spread
Standard  N/A 1:100 3 pips, fixed

  

East Capital Markets doesn’t seem to offer different account types, and is not very clear about its offer. Here are our impressions of this broker, after we made a thorough research on the company and tested its platform. Make sure you read it prior to investing with East Capital Market. Be sure to check out at least the first two points of the Disadvantages section, if you are going to skim through the review.

 

 

East Capital Markets Advantages

 

MT4 & Web Trader available

East Capital Markets supports the ever popular MetaTrader4 (MT4) platform, which is always good news, as this trading software is preferred by most traders. The MT4 is known to be reliable, user friendly, and offers numerous features and options, with great charting and useful analysis tools. Besides, it is very popular for its auto trading bots, called Expert Advisors.

 

 

>> Choose some of the best MT4 brokers <<

 

 

Trading with East Capital Markets can also be done on some web-based platform (Web Trader), where actually the trading conditions seem better.

 

Wide range of assets

Furthermore, East Capital Markets’ offer seems very broad in terms of assets available for trade. The broker’s product portfolio covers currency pairs, CFDs on indices, commodities, precious metals, stocks, and a lot of cryptocurrencies. In case you are interested in trading digital assets like Bitcoin in the form of CFDs, check out our list of reliable brokers who offer that type of trades.

 


>> Trade Bitcoin with a well regulated broker <<

 

 

East Capital Markets Disadvantages

 

Inconsistent company info. No license

Overall, the information about the entity operating East Capital Markets is quite chaotic. While the website is mainly available in French and features a contact number in France, the broker is allegedly operated by a Hong Kong-based firm, called MUU Group Limited. To make matters worse, the broker’s terms and conditions mention UK law as governing.

 

 

 

Furthermore, East Capital Markets’ website mention nothing about license, nor regulation. So, we can safely conclude that the broker is not licensed and therefore not allowed to operate on any regulated financial market such as the US, EU, Japan or Canada.

 

Blacklisted by the French AMF

Obviously, the broker illegally targets French investors, as it was blacklisted by the Autorité des Marchés Financiers (AMF). The regulator warned the public against doing business with East Capital Markets and said that the broker provides unauthorized online investment services in derivatives in France.

 

Click on the image to zoom in.

 

Zero clarity on trading conditions

As we mentioned in the beginning, East Capital Markets’ website does not contain any relevant information on essential trading conditions, such as maximum leverage levels, the initial deposit required, nor any reference spreads. All decent forex brokers who are transparent with their services and pricing specify these important trading details. So, this is a major disadvantage.

 

High demo spreads on the MT4

When we tested the broker’s MetaTrader4 in demo environment, we found the benchmark EUR/USD spread fixed at 3 pips, which is significantly higher than the industry’s average.

 

 

Click on the image to zoom in.

 

Most fixed-spread brokers offer a spread of 2 pips on EUR/USD, and some even less – easyMarkets for example provides a spread fixed at 1 pips for this pair. 

 

MT4 demo not functional, provided by a third party

We find it odd that one has to first sign up with East Capital Markets in order to be able to download the broker’s MT4, which is provided by a third party – Solutionmarkets Software. What is worse, we could not initiate a single trade, which defies the purpose of demo accounts. Such lack of transparency is a worrisome sign, especially on the part of a regulated broker.

 

 

Conclusion

 

East Capital Markets seems to target mainly French investors, while it is not regulated by the AMF, nor by another EU financial authority. The broker is therefore blacklisted by the French financial watchdog as a potential scammer, and not recommended. Besides, its offer is far too unclear, and the cost of trading does not seem attractive at all, at least in demo environment.

 

Unfortunately, there are many con-artists in the trading world. That is why it is extremely important that traders are well-informed and invest solely in reputable and licensed brokerages. Prestigious financial regulators such as the UK’s FCA or Cyprus’ CySEC require compliance with a number of strict rules that give significant assurance for the safety of clients’ funds.

 

 

>> Looking for a broker regulated in Cyprus? <<

 

 

And finally, here are the highlights of the present review of East Capital Markets:

 

Pros Cons
MT4 & Web Trader available Inconsistent company info. No license

Wide range of assets

Blacklisted by the French AMF
  Zero clarity on trading conditions
  High demo spread on the MT4
  MT4 demo not functional, provided by a third party

 

Latest news about East Capital Markets
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Traders` reviews for East Capital Markets

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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