Are you looking for a genuine Eightcap review? Are you thinking of joining Eightcap but you feel like some things are not adding up? Don’t worry, we’ve got your back.
Here’s the thing:
Forex trading is a generally risky and complex investment. Some experts say it is similar to gambling. The volatility and unpredictability of forex trading require traders to acquire a substantial amount of knowledge, especially when dealing with brokers.
Investors must carry out extensive research. Much as the likelihood of losing money is high in this industry, sometimes brokers will scam investors, causing them to lose money when they shouldn’t. Of all the types of companies that are scammy, online brokers might just be the worst.
Have you been a victim of an online broker scam? All hope is not lost. You can start the process of getting your money back by scheduling a free consultation with an expert right now.
In a 2019 article, the Australia Broadcasting Corporation (ABC) reported that some Eightcap clients lost hundreds of thousands of dollars each in October 2018. That day, Eightcap’s pricing feed had indicated a massive and sudden decline in the New Zealand dollar price. It happened in a matter of minutes.
The clients noted that the drop was not reflected in other brokers’ prices or the official exchange rate. Initially, Eightcap explained that it was a mistake in the price feed. However, the broker, later on, changed their statement claiming that it was a true and accurate price obtained from their liquidity provider.
A liquidity provider is connected to the client through the broker. They can either buy or sell an asset class or exchange rate. The liquidity provider is independent of the broker. ABC carried out investigations and revealed that Eightcap’s liquidity provider was a company called GO Markets.
They also discovered that this company was in the same corporate structure as Eightcap, with headquarters in Singapore. It doesn’t get more scammy than that.
Eightcap Review in a nutshell
Here, we’ll check out what Eightcap is, who regulates it, and what concerned customers are saying about it. We’ll also show you some important red flags that you shouldn’t ignore. This will clearly show you that Eightcap is a scam, just like EuropeFX and USGFX. In case you lost any money with Eightcap, we’ll also tell you what to do to start the recovery process.
What is Eightcap?
Eightcap, an online financial trading company, was founded in Melbourne, Australia, in 2009, although it’s been active as a broker since 2015.
It is located in Australia and regulated by the Australian Securities and Investments Commission (ASIC) under license number 391441. It is also regulated by the Vanuatu Financial Services Commission.
The company provides trading services to institutional and retail clients using two trading platforms: MetaTrader 4 and MetaTrader 5. They provide services across various markets:
- Over 40 major and minor forex pairs
- Gold, silver, and oil
- The world’s largest stock indices round the clock with instant execution
- Australia’s largest stocks/shares
- Cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Ripple
Eightcap features two account types. The Standard account is designed for any trader, especially those that trade small amounts or are new to the trading industry. It’s free to set up and maintain, with spreads from 1.0 pips and a minimum deposit of $100.
The Raw account is for more experienced, large-volume traders. It’s also free to set up and maintain, with spreads from 0.0 pips, a minimum deposit of $100, and a $3.5 commission.
For prospective investors that are looking to get their feet wet in the industry, Eightcap has the option of a free demo account limited to 30 days.
The Danger Signs
1. No Global Regulation
For any company that’s going to take your money to trade forex on your behalf, you must ensure that they are properly regulated. It helps if they are regulated in more than one country, especially countries that are hard on scammers like the US and the UK. Global regulation is a good sign that they are reliable and legitimate.
Although Eightcap is regulated in Australia by the ASIC, it is unregulated in the rest of the world. When you look at the Eightcap website, you’ll find that they claim to have global regulations.
However, they fail to mention who else apart from ASIC regulates them. They only mention that the Vanuatu Financial Services Commission (located on an island east of Australia) regulates Eightcap Global Ltd. Probably that’s their definition of ‘global regulation’.
They claim to have 5 offices across the globe. However, they don’t list their office locations anywhere on the website. What does it take to list just 5 regions? Wouldn’t a genuine company want their clients to know where their offices are located around the world? This is a huge red flag.
2. Poor Reviews
You can’t afford to invest large sums of money without knowing the experience of people that have done it before you. The poor reviews about Eightcap from former and current investors are a clear indication that this broker is often up to no good.
One of the complaints from several investors is that Eightcap deletes their transaction history, especially if the investor identifies any questionable transactions. This means they won’t be able to refer to them in case they need to file a complaint. That’s no doubt scammer behavior.
Other complaints include:
- The broker deducting money from their accounts
- Imposing charges when the investor chooses to withdraw their money
- No responses to complaints by the investors
- Accusations of investors breaching contracts without evidence to keep their money
Here are some Eightcap reviews in Forex Peace Army.
Eightcap Review: Conclusion
There’s no other way to say it, Eightcap is a scam. Stay far away from this broker. They create the impression that they are globally regulated, and yet they can’t mention where else except Australia. Unkeen investors could easily fall for this.
Also, the number of bad reviews from several review websites is a clear indication that they are not worth your time. Some novice investors ‘go with their gut’ despite negative reviews. You’ll end up in a financial hole that will be difficult to come out of.
Research, research, research. We can’t stress that enough. Before investing in any online trading platform, you must have as much information as possible to make a sensible decision. The critical factors to look out for include reviews, regulation, terms and conditions, deposit and withdrawal policy, and legal documents.
You also need to get proper forex trading training so that you don’t blindly trust any broker out there.
Are you a victim of an online broker scam? Start the process to get back your money by scheduling a free consultation with tried and proven experts.