EU-Capital Broker Summary
- Overall Rating
EU Capital should not be trusted by new and experienced traders alike. If you are drawn by their deposit bonus options, you should know that it is indeed too good to be true because you will not really get anything out of it.
When you have decided to trade online, your first priority would be to find a good broker to get started. As soon as you initiate your search, you will realize that there are plenty of options available and you can find a broker who meets your budget, leverage and other trading requirements with ease. However, you need to bear in mind that not every trader you come across can be relied upon. There have been a boatload of scams in the trading world, all because of online brokers, and you don’t want to be a victim. The problem occurs in identifying these suspicious brokers.
They come off as fully legitimate and their offerings are very tempting, which makes them difficult to resist. One such online broker is none other than EU Capital. Operating as a Forex and CFD broker, the primary selling point of the firm is the huge first deposit bonuses they offer to their clients. These bonuses are available for the various account types, which range from 20% for basic account holders and can go as high as 100% for traders who are willing to deposit $100,000. Obviously, such bonuses are a huge draw for traders, particularly new ones who don’t have a lot to invest.
Apart from bonuses, there are several other features of EU Capital that make it seem as an attractive option. These include:
- Great choice of trading instruments
A relatively wide array of forex pairs and CFDs on indices, commodities, several stocks and even cryptocurrencies are offered by EU Capital. Cryptocurrencies include some of the top ones, such as Bitcoin, Litecoin, Ripple and Ethereum.
- Plenty of payment methods
EU Capital has offered its customers several methods for depositing funds into their accounts. They have given the traditional option of bank transfer and debit and credit cards, but that’s not all. Some new innovative methods, such as Neteller, GiroPay, Skrill, PaySafe card, AstroPay, Qiwi and iDeal have also been added.
- Leverage of 1:200
Most traders are satisfied with the leverage ratio that EU Capital has to offer i.e. 1:200. But, you should remember that this only applies to Forex majors as the requirements for CFDs are different. In addition, it is essential to proceed with caution when you are trading on margin.
Due to these offerings, traders often get attracted to EU Capital and immediately sign up for an account. But, the fact is that these features blind you to some of the problems associated with the broker and this can cost you a lot of money and also create other problems in the long run. Some of the downsides of EU Capital are:
- No regulation and no information about the company
If you do some research on the internet and try to find out tricks for identifying a scam, the first thing you will be told is to look for information about the company. Only scams and frauds will be vague about their background and history and will have nothing to show. This seems to be the case with EU Capital. The broker doesn’t provide any information about the legal entity behind it.
A legitimate brokerage usually displays this information clearly on their website. They are also transparent about their registration and are mostly registered with a trusted and recognized financial regulatory agency. EU Capital doesn’t seem to be registered or regulated and this is a major red flag.
- The bonus offers are not that good
The deposit bonuses offered by EU Capital do attract traders, but when you look at the fine print and check out the exact conditions, you will realize that they are not that special. They have applied a number of conditions that traders have to fulfill before they are able to withdraw funds and this can create a lot of difficulties for them. These conditions can be very annoying to those traders who may want to withdraw their money after they have suffered a serious loss or need the money urgently. When this program is compared to the others being offered by regulated brokers, it will not appeal much.
- The poor presentation
Overall at EU Capital, you will notice there is a lack in presentation. An excellent example is not mentioning the conditions of the deposit bonuses in an obvious place. This should be taken as a warning because if the broker has not disclosed these conditions openly, they may not display other conditions either and you may end up dealing with hidden costs later on. They have not mentioned the trading conditions on a single page, which can be used for reference. Even though the broker offers a free platform demo, it is not possible to create a demo or paper money account with them. Such poor presentation is usually seen in suspicious and fraud websites that shouldn’t be trusted.
- Comparatively high deposit requirements
The minimum deposit requirement of this broker is $250. Even though it is not too drastic, it can limit a lot of traders who have just begun their trading journey and don’t have a lot of money to invest. Moreover, since they have complicated withdrawal requirements, such a high deposit comparatively may create issues for some traders. Most brokers in the market don’t ask for more than $100 and some of the top brokers have eliminated the minimum deposit requirement completely.
- Wide spreads
The spreads for the EUR/USD pair on the broker’s web-based platform is around 3 pips. Anyone who is familiar with the trading world will be aware that this is quite a high level, particularly in the existing competitive environment. Even 2 pips is considered quite high for a major currency pair. You can compare their spreads with some of the best brokers and realize exactly how far off they are, which doesn’t make EU Capital a good choice for your investment needs.
- New and unproven trading platform
There are some traders who prefer to use a browser-based trading platform for conducting their transactions instead of a standalone app. This certainly offered an advantage because you are able to log onto different devices, even those that are not yours and the same cannot be said for the app. But, there is a reason why trading platforms, such as MT4, have gained a positive reputation in the market and have managed to stand the test of time. EU Capital has introduced its own web-based platform, which may be appealing, but the fact is that it is a new and unproven platform. It doesn’t really have much to offer, as compared to MT4 and other notable trading platforms. There is nothing special that can make it stand out in the market.
When combined, these facts show that EU Capital is not a broker you can rely upon. One of the biggest warning signs is that the broker is not regulated, which means it will not offer you any form of security. Being regulated means that a broker is subject to some rules and regulations and also provides security to its clients. With EU Capital, you will not have any such benefits and this means you will be putting your money at risk. Apart from that, EU Capital is also not transparent or open about their policies, which is something to be worried about.
You should be able to read the terms and conditions of a broker before you sign up with them. As EU Capital have failed to provide this information, it is best not to put yourself at risk because you don’t know what you are agreeing to when you make an account with them.
In a nutshell, EU Capital is not regulated by any entity and it hasn’t provided any background of the team behind the brokerage. The fact that you don’t even know who has created this broker and where they are based is enough for any trader to avoid using their services. To add to it, they are not offering anything impressive. The deposit bonuses are not that lucrative once you go over the fine print and can actually lead to limitations when it comes to withdrawing funds. Plus, they don’t have the popular MT4 trading platform and have introduced their own offering, which is nothing special. Likewise, their wide spreads are also a disadvantage for traders, especially when you compare them with what other brokers are offering.
Suffice it to say, EU Capital should not be trusted by new and experienced traders alike. If you are drawn by their deposit bonus options, you should know that it is indeed too good to be true because you will not really get anything out of it. The risk of signing up with an unregulated broker outweighs any benefits you might get from their bonus offers, which have too many conditions to make them a viable option for many traders. When you take a close look at EU Capital, you will come to know that it has nothing to offer and there are other better options available.