SafeCaps Review Reveals an Offshore Scam
There are those miscreants that think that if their company HQ is far enough from the continental mainland, they can get away with their activities scoff free. There are many lies about this fraudulent company.
In our Review, we will show you how SafeCaps pretend to be another, licensed company. This has prompted one of the most important regulators, the UK FCA, to issue a scam warning about this lot.
|Broker status:||Unregulated Broker|
|Regulated by:||Unlicensed Scam Brokerage|
|Blacklisted as a Scam by:||FCA, CONSOB, AFM, CSA|
|Owned by:||Aegion Group Ltd|
|Headquarters Country:||St. Vincent and the Grenadines (Alleged)|
|Supported Platforms:||Web Trader|
|Minimum Deposit:||$5 000|
|Cryptocurrencies:||Available – BTC, ETH, XRP, DASH|
|Types of Assets:||Forex, Cryptocurrencies, Commodities, Stocks, Indices|
|Free Demo Account:||No|
|Accepts US clients:||US clients are not accepted|
Is SafeCaps a Regulated Broker or Not?
First and foremost – SafeCaps claim to be owned by Aegion Group Ltd, a company that is allegedly based in St. Vincent and the Grenadines. We can confidently say that this is false information, as the SVG’s main regulator, FSA, has no information about this company.
Even if the company was legally registered in SVG, it isn’t necessarily regulated. SVG is a small island nation, and the FSA has ceased regulating brokers recently because of the lack of resources. For this reason, many offshore brokers have since obtained a trading license from another regulatory body.
This leads us to another big problem with this broker. SafeCaps lie about their company credentials, pretending to be another, licensed entity. In legal terms, this is what we call a Clone Company. It wasn’t long before one of the more prominent regulators, the FCA from the UK, caught wind of this and issued a scam warning.
The FCA regulation in the UK requires at least 730 000£ in starting capital. There is a similar condition in the EU, where this initial capital can be no less than 730 000€. The conditions are similar in Canada and Australia, where this starting fund must be larger than 1 000 000 CA$ or AU$ respectively.
Further risk mitigation lies in leverage restriction. For the UK, Australia and the EU, this is 1:30. Canada allows for a greater leverage of 1:50. Either way, this is a far cry from the 1:500 leverage that SafeCaps offer to their clients. Bonuses are forbidden in all these jurisdictions, except Canada. European brokers also need to conform to MiFID and ESMA guidelines to obtain a license.
If scamming was an art, SafeCaps would be cheap rip-offs. Their website is poorly made and lacking, but some people were still caught on the idea of low trading costs. See the remainder of our Review to learn why you should stay away from SafeCaps.
Before we reached a conclusion, we needed to be certain SafeCaps is indeed a fraud. For this purpose we have searched the databases of FCA, BaFIN, CySEC, CONSOB, New SRO, ASIC and more… And what we found was not a license number, but a number of scam warnings!
Warning Issued by Financial Authorities
SafeCaps is a known scam company. Their fraudulent behavior has caught the attention of many financial regulators.
You may see the warnings in more detail by following these links:
SafeCaps Software – The Trading Platform is Missing
It is not unusual for the fraud brokers to offer a trading platform to their victims. This way they can continue the charade, and let these poor people believe in the fairy tale. The most common software scammers use is the Web Trader, as you’ve seen in our XpressTrade Review.
This is not the case with SafeCaps. Their entire website is poorly made, and their trading platform is non-existent at the time of writing of this review. There are no download links, and no pointers that would direct you toward the online trader. Needless to say, this is not how a legitimate broker functions. With authorized companies, you can expect high quality industry leading software like MT4, MT5 and cTrader.
SafeCaps Advertise Many Trading Tools
SafeCaps brag about a large number of trading tools and aides. When we tried to see what all the fuss was about, we found a couple of web pages that have plain text on them, with some general pointers about trading strategies.
It was nothing groundbreaking, just simple beginner tips even the most novice trader knows about. There is a very simple pricing calculator, that just multiplies the numbers, depending on the parameters you entered. The most important tool for any trader – the Demo Account, is absent from this broker.
SafeCaps’s Trading Assets and Instruments
SafeCaps mention a rather good variety of instruments for their trading platform. As you’ve already noticed earlier in our Review, they do not offer a functional platform. This leads us to another question – how are you supposed to trade these assets in the first place?
Nevertheless, the trading instruments are worth mentioning, so we’ve made a list:
- Forex – EUR/USD, AUD/CAD, CHF/JPY, EUR/GBP
- Cryptocurrencies – Bitcoin, Ethereum, Polkadot, DogeCoin
- Stocks – Tesla, Meta, Amazon, Microsoft
- Indices – Nasdaq 100, Dow 30, DAX, Nikkei 225
- Commodities – Crude Oil, Natural Gas, Gold, Platinum, Coffee
Where do SafeCaps Victims Live
In order to pinpoint where the SafeCaps scam is most active, we have measured the traffic to and from their website.
Here we can see where the majority of victims live:
- United Kingdom
From this, we can deduce that this scam is oriented towards wealthy nations. It is not strange that scammers should target these countries, as their citizens have good salaries with large disposable incomes.
What Are The Different SafeCaps Account Types?
SafeCaps seems to offer a variety of trading accounts. This is not really the case, as the only difference between them is the minimum deposit, and varying leverage. As we already mentioned, there is no Demo.
Here is a list of different accounts on offer:
- Standard – €5 000; 1:40 – 1:100 leverage
- Premium – €25 000; 1:200 – 1:300 leverage
- Business – €100 000; up to 1:500 leverage
The extremely high leverage reminds us of another scam, GSL Markets, which we reviewed previously.
Can a Trader Use a Demo Account?
You should not take the absence of a Demo account lightly. This is a very important tool for everybody, novice and professional alike. Where novices would use a demo for training, seasoned traders can test new strategies in a risk-free environment.
By omitting a demo account, the scammers put their clients at greater risk. Without it, the only way you can test the trading environment is by speculating with real money!
Many faux brokers implement affiliate programs. It unfortunately goes hand in hand with a fraudulent company. Over the years, many scams like pyramid schemes have used the idea of a close friend recruitment to attract more victims.
This behavior is more common than you think. Thankfully, this is not the case with SafeCaps, as their scheme is not as developed, and they do not offer a partnership program.
Terms and Conditions With SafeCaps
You should always carefully read the Terms and Conditions with any broker, even the fine print. The document you will find at SafeCaps is vague, and often contradicts itself. If you manage to find it, that is, because of how well it is hidden. It says, among other things, that the broker withholds the right to deny a payout, and freeze or terminate an account “[…] for any reason or for no reason. […]”.
Leverage, Spreads and Fees
Now, we’ve already told you that SafeCaps do not adhere to international regulation when it comes to leverage. The leverage of 1:500 is quite high, and unnecessarily exposes the trader to the market.
If that wasn’t bad enough, high-end accounts have larger fees and looser spreads, which is simply contralogical. These start at 0.1 Pips and no commission for Standard, and go up to 1.5 Pips and €4 for 1.o Lots! Talk about pricey!
There are other problems, unfortunately. You may expect withdrawal fees ranging from $50 to $250 fee on different payout methods. A dormant fee of unreasonable 10% per month is charged from inactive accounts after 6 months!
What Should I Do If I Have an Issue With SafeCaps?
First of all, don’t panic. Your assets are not completely lost, there are ways to recover them. Our professional team is on hand to help you resolve your payout issues. If you, or somebody you know have fallen for SafeCaps Scam, you should consider contacting us for legal advice and support.
The more information we gather on these miscreants, the better our chances at presenting the case to the authorities. Don’t delay – your chances grow slimmer as time passes! Contact our staff as soon as possible via Live Chat for the fastest response time!
What Is SafeCaps ?
SafeCaps is a front for an unscrupulous online scam. These people pretend to offer broker services, but are just fancy thieves!
Is SafeCaps a Scam Broker ?
Yes, SafeCaps is a scam company which has been blacklisted by multiple financial authorities!
Is SafeCaps Available in the United States or UK ?
The SafeCaps scam does operate in the UK, but does not accept US clients.
Does SafeCaps Offer a Demo Account ?
There is no Demo Account available with the SafeCaps broker. Only live accounts are available