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OTCapital Review - is it scam or safe?

OTCapital Review - is otcapital.com scam or good forex broker?

RATING: 0.5 / 2 REVIEWS
OTCapital is an offshore broker. Your money is not safe.

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Trading Accounts & Conditions

 

Account type

Minimum deposit

Maximum leverage

Spreads

Silver

Not specified

1:200

3.0 pips

Gold

Not specified

1:400

2.5 pips

Platinum

Not specified

1:500

2.0 pips

 

OTCapital is an Australian forex and CFD broker that offers the above account types. Obviously, it is one of the many fraudsters in the forex industry, so we don’t recommend it.

 

 

OTCapital Advantages

 

MT4 platform supported

As the MetaTrader 4 is the most popular forex trading platform, we always consider its availability as a strong side. This user-friendly trading terminal is equipped with solid charting, many built-in indicators, wide range of automated strategies (EAs), and more. Besides, it is easily customizable.

 

This platform is offered by the majority of forex brokerages, so if you are keen on trading on the MT4, you’ better select among other trustworthy brokers who support it.

 

 

>> Find a better MT4 broker <<

 

 

Leverage up to 1:500
According to the information on its website, OTCapital offers leverage up to 1:500 (on Premium account types). Such leverage ratios are comparatively high, and their availability is definitely a nice option. Yet, we advise traders, and especially inexperienced ones, to use high leverage with caution, as it can multiply both your profits and your losses.

 

Many instruments (allegedly) available

OTCapital claims to offer trading in different asset classes: forex, CFDs on indices, stocks, commodities, cryptocurrencies, etc. We are not sure it does, as it does not offer free demo accounts and we didn't test its services.

 

In case you are willing to diversify your trading portfolio with Bitcoin CFDs, we suggest that you choose a tightly regulated broker that offers such.

 

 

>> Trusted Bitcoin brokers <<



OTCapital Disadvantages

 

A scam broker

The website of OTCapital claims that the brand is owned by OT Markets Pty Ltd. - a company that operates as a Corporate Authorized Representative of AGM Markets Pty Ltd. Furthermore, the latter allegedly holds a license from the Australian Securities & Investments Commission (ASIC). In fact, OTCapital has been exposed as scam by ASIC and it turns out AGM Markets is a clone of the officially licensed one.

 

There are numerous complaints and negative reviews about OTCapital in various websites and forums and it seems it has scammed a lot of people of their money

 

We are not surprised, as there are a lot of things that seem suspicious about this broker, only by looking at its website.

 

Unclear trading conditions

First of all, there are many unclear things with regards to OTCapital’s trading conditions – the broker does not specify what are the minimum deposits required for the various account types, what payment methods are accepted, nor whether the indicated spreads are fixed, variable, minimum or average.

 

That being said, the spreads announced by OTCapital are very wide, amounting to 3 pips on EUR/USD, but that doesn’t matter much, does it?

 

No demo accounts

We downloaded the broker’s MT4 and tried to test it in demo mode, but to no avail. Let us give you a piece of advise: never trust a broker that does not offer free demo accounts and does not specify its trading conditions in a clear and precise manner.

 

 

Conclusion

 

Allegedly an authorised representative of an ASIC-licensed broker, OTCapital is a broker you should avoid. The Australian financial watchdog has issued a warning against OTCapital (and the clone of AGM Markets) in February 2018 and launched an investigation. It resulted in a court order that puts restrictions on the operations of these firms in Australia. Their assets are now frozen in two specified bank accounts.

 

When you invest with a scam broker, it does not matter what trading platform it uses, what are the spreads, the leverage levels, etc. It only matter how much you have deposited and lost.

 

That is why we strongly advise you against doing business with OTCapital and any other unregulated broker. Instead, we suggest that you select a forex broker licensed by a reputable authority, such as Australia’s ASIC, UK’s FCA, or Cyprus’s CySEC, which impose strict rules and see to their compliance.

 

Here is our summary of OT Capital:

 

Pros

Cons

MT4 available

A scam broker

High leverage levels

High spreads

Many instruments (allegedly) available

No demo accounts

 

Unclear trading conditions

 

 

 

Latest news about OTCapital
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Spread

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Slippage

Pros

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Requotes

Pros

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Price feed

Pros

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Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

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Traders` reviews for OTCapital

OT Capital is a scam

I opened an account with OT Capital after seeing an ad by OT Capital. After a short enquiry I "found "that they are Australian based and regulated(ASIC). I deposited $500 to test the meta trader, but the broker named Jacob who was assigned to help me used high-pressure techniques to get me to deposit more. I resisted his pressure and I said I will try to use your Metatrader to see If I can get any good trades. I never traded and I asked him to postpone any bids for a few weeks as he was calling me every day. I checked my balance yesterday to withdraw the funds, there was 6.60 left in the account. Their telephone is disconnected. How can I recover these funds from the frozen account? who do we contact?

Ghattas George Beshara 05/16/2018

Scam - I invested $250

I invested $250 with this company and just got an email stating that it has ceased offering trades and I could withdraw my money. I went into their website and it is now only showing I have $100 and I haven't traded at all. They told me when I invested my money went into an account in my name and no-one else could touch it and I could make withdrawals as I liked. Well I now have lost $150 and don't know how I will get the rest back

Elaine Wilson 04/19/2018
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