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Forex

FTO Capital Review - is it scam or safe?

FTO Capital Review - Is ftocapital.com scam or good forex broker?

RATING: 1 / 2 REVIEWS
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Trading Accounts

 

Account type Minimum deposit Maximum leverage Spread
Silver $250 1:200 3.0 pips
Gold Unknown 1:400 2.5 pips
Platinum Unknown 1:500 2.0 pips

 

FTO Capital, which by the way stands for Financials Trading Online, is a forex broker which offers different account types as mentioned above. That being said, they do not specify the deposit requirements for the different levels, which is inline with their rather poor presentation generally. Islamic versions of these accounts are also available.

 

The Company. Security of Funds

 

Company Country Regulation
Nona Marketing LTD Marshal Islands N/A

 

The name of the legal entity behind FTO Capital is Nona Marketing LTD. They are registered on the Marshal Islands. If this wasn’t bad enough, they do not claim to be overseen by any financial regulatory agency.

 

For those of you who are not familiar with the forex industry, we must mention, dealing with an unregulated broker is very dangerous. Once you start trading with such a company, there is no guarantee, you will ever be able to withdraw any funds.

 

This is why most governments have created specific structures which monitor the financial services sector. While in some cases this is part of the responsibilities of the Central Bank, often the “watchdog” is a separate agency.

 

In the United Kingdom, this task is given to the Financial Conduct Authority (FCA). It is a structure which oversees a lot of companies and more importantly makes them follow a lot of rules. 

 

>>UK FCA regulated brokers<<

 

Two of the rulings are the most crucial, from a security if funds perspective. First and foremost, all client funds must be kept in the so called segregated accounts. This is a system which doesn’t allow the broker to simply take all of the money you deposit with them and then not give you any withdrawals. In reality, the situation is a bit more complicated, but this is the basic version.

 

Additionally all FCA regulated brokers must take part in the Financial Services Compensation Scheme (FSCS), a mechanism, which is pretty similar to an insurance company. Traders can rest assured their money will be safe, if their broker goes bankrupt. All accounts are covered up to £50,000 by the scheme.

 

Trading Conditions

 

Minimum Initial Deposit

The minimum deposit at FTO Capital is $250. This is a relatively high entry bar, given the fact a lot of brokers, like FxPro, demand something in the $100 range. 

 

Keep in mind, this isn’t much a major factor, when it comes to the overall reputation of a broker. On the other hand, even if the aforementioned levels seem high to you, you can always try the service of the industry leaders at IG, who have removed the entry barrier entirely – one can create an account with as little as he wants.

 

 

Average spreads & Commissions

The costs of trading mentioned on FTO Capital’s website aren’t very competitive. Even if we ignore the fact the deposit levels for the different account types are not mentioned, the best possible spread of 2.0 pips on EUR/USD will not qualify as nice nowadays. 

 

 

>>Compare the spreads offered by the best brokers<<

 

When we tested the trading platform provided by FTO Capital, we saw the around 3.1 pips (2.9 to 3.5) on the most liquid currency pair. 

 

Leverage

The leverage levels provided by FTO Capital vary based on the account type. All the ratios, starting from 1:200, are very much suitable for serious trading, which involves risk management.

 

That bing said, the company is trying to market a higher leverage, as “better conditions” (the levels increase with better account types). This can not be further away from the truth. In fact, some studies into the behaviour of traders indicate the opposite – the lower leverage one uses, the higher his odds of success are.

 

Trading Platforms

 

FTO Capital provides its services with the help of the popular MetaTrader4(МТ4) trading platform. While we don’t like a lot of other aspects of this broker, this is not one of them. Developed by MetaQuotes, this piece of software has dominated the forex market for years and there are a lot of reasons for that:

 

>>Find a better broker offering MT4<<

 

MT4 offers top-tier charting, with all the analytical tools you can imagine being only a few clicks away. Even if there is some technical method which is not covered in the basic version of the platform, the MQL marketplace will most likely have you covered. This is an online store where traders can buy, sell or even lease custom add-ons for the platform. If automated trading is your thing, you are probably already familiar with Expert Advisors (or EAs).

 

MetaTrader4 is also available as a mobile app. It is one of the most complicated mobile trading solutions, which we would highly recommend to everybody who is used to serious desktop trading.

 

Here is how the platform presented by FTO Capital looks:

 

 

Methods of Payment

 

The payment options at FTO Capital are quite a few. Here is the list: Credit Card, Neteller, Qiwi, WebMoney and Yandex Money. In general, this is not a bad selection, with some emphasis placed on the Russian market. 

 

Conclusion

 

Financials Trading Online is an off-shore unregulated forex broker. Additionally, the presentation of the trading conditions is not impressive. The few things which are clear are also not satisfying. In essence, there are a lot of better brokers which you can find. Here is a recap:

 

Pros Cons
MetaTrader4 Platform

Lack of regulation

  Off-shore registration
  High spreads
  No clarity on account types

 

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Spread

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Slippage

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Cons

 

 

Requotes

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Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Traders` reviews for FTO Capital

Scam

To me this trading company should be shut down every time I tryed to get founds from my account there so call account manager would convince me to keep trading she used all the tricks on me and kept telling her that I didn't wont to do it and played on my vonerablle side to get me to keep trading I would ask her wot think were like the swap was the answer l got was it just the way trading was so in the end I lost $4;970 us witch was about my $600 aus there is $57.82 i put in a request for it and they have told me there is a minamne of minamne of $100 dollars soi am a pension and know straggling to p as
They should not be a loud to keeoperateing

Kimberli Martin 11/22/2017

Fraud company

One of the agent from FTO Capital named, Courtney Jackson (she got Filipino English accent and her personal email account she used: [email protected]) tried to convince me to open an account with them. When she realized I am not convinced, she tried to play game with me and used her colleague to force me to invest through their company mentioning that I provided my consent to open an account, which I didn't.

Redwanul Alam 11/21/2017
Forex
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