AuxCapital Review: BaFin Exposed AuxCapital Trading Fraud

Usually, German regulators react quickly when people report a trading scam. We can see the same thing now with the official report of AuxCapital broker.

Without further talk, we’ll go straight to facts. Our detailed AuxCapital review will help you understand why some brokers are better avoided.

Is AuxCapital an Unregulated Trading Scam?

As we found out from the German warning, Aux.Capital is owned by Iridiscent Group LLC, registered in Saint Vincent and the Grenadines. And indeed, such a company entered the SVGFSA register in July 2022. 

However, here’s the issue. The Financial Services Authority is only here to register a company. They do not supervise the Forex market, nor do they issue licenses. In fact, they ask brokers to obtain a license in the country of service. Therefore, AuxCapital should’ve completed registration with the FCA, ASIC, BaFin, or any Tier 1 authority. As you can guess, they disregarded this obligation.

AuxCapital is an anonymous, unregulated trading brokerage. The company received a ban in Germany as it’s soliciting German investors without appropriate authorization.

If you’re wondering why it matters, the answer lies in your fund safety. With licensed brokers, especially those holding reputable regulations, you have a compensation fund and can always contact authorities for help. With the unlicensed offshore scheme, no official financial body can assist you and reimburse you.

Warnings Issued by Financial Authorities

In January 2023, the German regulator BaFin issued an official warning against AuxCapital. According to it, the company solicits German investors without an appropriate license. Furthermore, BaFin requested assistance from the Federal Crime Police to resolve the matter.

It only shows that there are many victims and that the scammer in question is serious in its intentions to steal the money. Be wary.

Where Does the Broker Operate? – Countries Of Service

Scam brokers advertise their offers through social media and Google Ads. They often sell something they don’t offer or can’t deliver. For instance, they may promise sophisticated tools such as trading bots or guarantee profits.

On that note, we researched where Aux Capital advertises. We found their presence mainly in the following countries:

• Turkiye,
• UK,
• Australia,
• Switzerland.

The website was registered in October 2022 in the GoDaddy WHOIS database. Since then, many negative reviews have been online, indicating a scam.

AuxCapital Trading Software Choice

As you can already guess, Aux Capital didn’t bother to offer reliable trading software. After all, this company only cares about its own profit over your fund’s safety or market success.

In fact, this is why they chose to provide WebTrader. As it’s a part of their website, they can manipulate it, change your trades, and lead you in any direction. Broker employees can convince you that you earned a lot of profit and that now is the right time to deposit more. On the other hand, if you refuse, they can make it seem as if you’re missing money for the margin.

This is why we always recommend third-party terminals such as MT4, MT5, or cTrader over any browser-based software. Not only will you get more safety, but also access to more analytical tools for market research. After all, you need the tools if you’re going to make that money.

Trading Assets Offer

Surprisingly, AuxCapital doesn’t offer access to the most popular market today, the crypto market. In fact, you can only trade in four asset classes, those being:

• Currency pairs – EUR/USD, GBP/NOK, AUD/SEK
• Commodities – gold, silver, natural gas
• Indices – AU200, BE20, DAX30
• Shares – Alibaba, Amazon, BOA

The spreads are advertised as narrow, but it means nothing. You have no guarantee that what you see today will stay tomorrow or even for the next hour. Unregulated brokers determine their own market terms, often robbing their clients.

Leverage, Spreads, and Fees

Besides the description mentioned above of narrow spreads, we know virtually nothing. Commissions are not listed, but that definitely doesn’t mean you won’t be heavily charged. 

As per leverage, it ranges from 1:10 to 1:100. Note that the EU follows the ESMA directive and sets a limit of 1:30, just like Australia. In the US, the leverage limit for retail traders is 1:50. Simply put, AuxCapital offers more leverage, exposing your money to greater risk.

Account Types to Choose From

You surely won’t lack account types created with the idea of getting more and more money out of you. Here’s what the broker offers:

• Silver – $250
• Gold – $1,000
• Platinum – $5,000
• Diamond – $10,000
• VIP – $25,000
• Partner – $50,000

With each higher account, you get a bigger order size, more trading tools, and higher leverage. 

Negative Balance Protection

Another feature mentioned with all account types is negative balance protection. It enables you to trade without fear of losing your entire account balance and going into minus. Simply put, once you lose your capital, your account is automatically closing.

While regulated brokers are obligated to provide this feature, we doubt a scammer like AuxCapital will do it.

Can I Use a Demo Account? 

You cannot use a risk-free Demo as there’s none. Companies often don’t allow you to test the system when they have nothing to offer. Or their offer is bogus enough that it’s better you see nothing.

On the other hand, legitimate brokers will be happy to provide you with a trial account so you’ll build confidence in their services. Don’t settle down, and don’t accept anything less than full service from your broker!

Withdrawal Issues With AuxCapital

Unsurprisingly, clients are reporting withdrawal issues with AuxCapital broker. In its Refund Policy, the firm lists the following payment methods:

• Debit/credit card,
• Wire transfer.

The profit has to be transferred to the same means of the deposit, up to the amount you invest. The excess shall be transferred to your bank account. However, the firm also says you’re not allowed to hold them responsible for any delays or issues with a payout.

Simply put, they can claim that they have sent you the money, and there’s nothing you can do if that money doesn’t appear on your credit card or bank account. This is illegal and you should report any issues immediately.

I Was Scammed by AuxCapital; What Can I Do?

If you find yourself scammed by AuxCapital, report it immediately. You can request a chargeback within up to 540 days since the transaction occurred, so it’s crucial to begin immediately. Don’t wait for more time to pass.

Suppose you don’t know where to begin. Our chargeback experts will gladly show you how to start the process and provide you with guidance and assistance. Don’t wait; book your free consultation now!