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Varalen Capital Markets Review - is it scam or safe?

Varalen Capital Markets review - is capital-markets.com scam or safe forex broker?

RATING: 1.8 / 3 REVIEWS Varalen Capital Markets
Varalen Capital Markets is an offshore broker. Your money is not safe.

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Capital Markets is a CFD brokerage owned and operated by Varalen Capital Markets llc. registered at 30 Wall Street, New Yorkd, USA. Read the whole review to find out the benefits and disadvantages in dealing with this brokerage! 

 

Disadvantages 

 

No security measures 

 

Capital Markets does not disclose on its website any security measures they might have taken in assuring the safety of the clients funds. There is an ID number given without much clarity to what exactly it may correspond. 

 

 

Having in mind the American address of the company, we did check the online registry of the relevant authorities there. We can confirm that Varalen Capital Markets is not an NFA member. Here is a screenshot to see for yourself: 

 

Click to zoom.


Also, the broker states on its website that it is owned by a number of companies – some of which registered in the Marshall islands – which further raises doubts about the legitimacy of the whole operation. The Marshall Islands is a favorite spot for scammers to register and we have come across many such instances. Furthermore, through a demo account we saw a leverage of 1:500 which should not be possible if Varalen is licensed by the NFA, because the American authorities limit the maximum to 1:50.

 

Trading with an unlicensed brokerage brings with it a hornets nest of risks and due diligence requires us to state them. There is no assurance for the safety of the clients funds, besides the supposed cordiality of the brokerage. Without regulation, we have no guarantee of the segregation of accounts i.e. the clients funds may well be mixed with those of the company and liable to all sort of illegal encroachments on part of the broker. Compliance with a regulatory agency such as the NFA also requires the broker to have a starting capital of $20 million which significantly lowers the risk of them being frauds, since not many scammers can pull through with such an amount.

 

Having in mind the uncertainty over the regulatory status of Capital Markets we advise potential traders to orient themselves to safer and more legitimate brokerages. They can check out our list of recommended NFA-regulated forex brokers: 

 

>>List of NFA-regulated forex brokers<< 

 

No information on the minimum deposit or account types

 

There is no information to be found on the website regarding account types. We could not see the required minimum deposit as well. The lack of information should always be seen as huge negative, but having in mind the regulatory status of the brokerage, it is no surprising it is missing. We would advise clients to always be as informed as possible before deciding to trade with a brokerage. 

 

High spread 

 

Through a demo account we were granted access to the trading platform, provided by Capital Markets, and could see a spread of 2.8 pips on EUR/USD. This about a pip above the industry average of 1.5 which is the margin that we like. A difference of a meager pip may not seem much at first, but bear in mind that in long-term trading, one or two pips may drive up significantly the cost of trading. And as has been underlined many times – the higher the cost of trading, the lower the raw potential profit of the client. Interested traders can check out our list of recommended low spread forex brokers. 

 

>>List of low-spread forex brokers<< 

 

Commission and fees

 

As is often the case with unregulated brokerages, Capital Markets have withdrawal and deposit fees. At least they state them on the website and are easy to find, instead of hiding them deep in “Terms and Conditions”. Clients who wish to withdraw via Visa or Mastercard will be charged with a 3 per cent commission and 0.8 per cent through electronic payment. There is no commission on the deposit, besides the 0.8 per cent fee on e-payment.

 

Leverage – way too much

 

Leverage is a two-sided issue and is always problematic deciding whether a brokerage’s leverage should be seen as an advantage or a negative. On the one hand, it allows traders the possibility of significantly higher profits than would be if they traded with no leverage whatsoever, but in contrast to that – if the market trend leads to losses, leverage will increase the losses. Through the demo account we had access to the trading platform and could calculate a leverage of 1:500. Pretty soon almost no broker in forex will be able to offer such a leverage, because regulators all over the world are arriving at the understanding that lower leverage should be encouraged, because it drastically prevents irresponsibility and risky trading behavior. 

 

No crypto market 

 

The brokerage offers clients participation in the forex financial markets. Potential traders may trade CFDs on currency pairs, stocks, indices, precious metals, commodities. Potential clients of Capital Markets may not, however, offer CFDs on crypto which is among the most exciting products in the forex world. Interested traders should be sure to check our list of recommended Bitcoin forex brokers: 

 

>>List of Bitcoin forex brokers<<

 

Advantages 


MT5 trading platform

 

Potential clients have access to the MT5 trading platform. It is provided by the same company behind the MetaTrader4 which is by far the foremost platform in use at the moment. It can be accessed through almost any web browser, as well as mobile devices and has much valued by traders options in it. One such option is the MQL5 programming language through which traders can alter or design their own auto-trading bots or run ready-made ones. It is also used by more than 80 per cent of the trading world and should be counted as a big plus. Here is a list of other forex brokers that offer it as well. Here is a screenshot for traders to see for themselves:

 

Click to zoom.

 

However, having in mind the not-so-perfect regulatory status of the brokerage, we would recommend interested traders check out our list of regulated MT5 forex brokers: 

 

>>List of MT5 forex brokers<< 

 

Conclusion 

 

Capital Markets is an interesting brokerage. It’s website is very nicely done and it also provides the MetaTrader5 platform – with an available demo account – all of which is uncommon for unregulated brokers. It’s trading conditions aren’t that bad – the spread is a bit high, but there is a generous leverage to be taken advantage of. However, there is some missing information and most important – there is missing regulation. We cannot confirm the safety of the clients funds and we do not know how much a trader has to risk in order to get a taste of real-money trading. All in all, there are better trading options to which we have linked throughout the review. 

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

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Осторожно мошенники

Брокер не дает вывести деньги. На связь не выходит. Берегитесь его и ребят из Финиста.

Translated by Google:

Broker does not allow to withdraw money. The connection does not come out. Watch out for him and the guys from Finist.

GUZEL 07/13/2019

is not brokers

Это не брокер - кухня Института Финист на Павлецкой площади д 2 стр 3 7 этаж. Деньги можно ввести только наличными в соседнем здании и не вывести потом никогда . Ребята из института провожают в кассу, которую специально открывают для тебя . понятно, что никогда денег ты оттуда не заберешь. Заберешь, лишь 20 процентов, если служба поддержки института в лице романа - тебе разрешит . Бегите обирают всех!

Translated by Google:

This is not a broker - the kitchen of the Institute Finist on Pavletskaya Square d 2, p. 3, 7th floor. Money can be entered only in cash in the next building and never withdraw. The guys from the institute are escorted to the cashier, which is specially opened for you. it is clear that you will never take money from there. You will take it, only 20 percent, if the support service of the institute in the face of the novel is allowed to you. Run robbed everyone!

юлия 04/08/2019

Varalen - Это обычная кухня

Это обычная кухня, не значится ни в одних списков брокеров.
Все деньги остаются у брокера и ни на какую реальную биржу ваши сделки не выводятся.
Заводит средства в т.ч. наличные через какую-то кассу Метеор, что запрещено в РФ.
Выводит с большим трудом, если вам вообще удастся это сделать.
Несколько раз котировки просто летели в противоположную от биржевых.
Жаль у меня не сохранилось скриншотов.
Спреды огромные.
Комиссии огромные.
Большая комиссия за вывод средств.

ФИНИСТ на Павелецкой обслуживает этого брокера, поставляя ему свежее мясо.
Не гнушаясь сливать счета бабушек и дедушек!

Остерегайтесь этих мошенников.



Translated by Google:

This is a common kitchen, not listed in any list of brokers.
All money remains with the broker and your transactions are not withdrawn for any real exchange.
It raises funds including cash through some cash Meteor, which is prohibited in the Russian Federation.
Displays with great difficulty, if you can do it at all.
Several times the quotes just flew in the opposite of the stock.
Sorry I have not saved the screenshots.
Spreads are huge.
The commissions are huge.
Large withdrawal fee.

FINIST on Paveletskaya serves this broker, supplying him with fresh meat.
Do not hesitate to merge the accounts of grandparents!

Beware of these scammers.

Тамара 04/04/2019
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