What is esCapitals？
esCapitals is a broker founded in 2011 and registered in China. Given its lack of regulation from any recognized financial regulatory authority, it poses a genuine concern regarding its credibility and safety of client funds. And the information we can find on its official website is very limited.
Pros & Cons
Pros
Cons
No Regulation: esCapitals operates without any regulatory oversight from a financially recognized authority, increasing risk and raising concern about the company's credibility and client fund safety.
Multiple Fees Are Charged: Unlike many financial providers that do not charge fees for inactivity or other reasons, esCapitals does, potentially increasing trading costs.
Limited Customer Support: esCapitals restricts its customer support to email contact only, limiting immediate assistance and causing delays in support response times.
Is esCapitals Safe or Scam？
User Feedback: Users should check the reviews and feedback from other clients to gain a more comprehensive sight of the broker, or look for reviews on reputable websites and forums.
Security Measures: esCapitals uses SSL (Secure Sockets Layer) encryption as a measure to enhance the security of data transmission. SSL is a standard security technology used to establish an encrypted link between a server and a client, ensuring that all data passed between the server and browsers remains private and integral. However, while SSL encryption is a positive step towards safeguarding information, it is a basic measure and does not provide comprehensive protection against all types of online threats.
Bonus
esCapitals offers a bonus system as part of its promotional program. These bonuses, which represent one-time trading credits, are limited-time offers subject to change depending on the company's terms and conditions.
In order to withdraw the participant's funds, a minimum trading volume needs to be achieved. This trading volume is determined based on the bonus amount and is set to 40 times for every $1 of bonus received.
Withdrawal of funds from the user's account can only occur once all bonus conditions have been satisfied.
If any fraudulent activity is detected relating to the bonus, such as manipulation or cash-back arbitrage, esCapitals reserves the right to nullify the account along with any profits or losses that have accrued.
As an additional fraud protection measure, if the bonus provided exceeds 25% of the deposited amount, no withdrawals of any kind will be permitted until the bonus volume requirement is met. This applies to both the customer's original funds and the bonus provided.
Fees
Inactive Fee: esCapitals charges a service fee of 250 Euros from customer accounts that have been active for fewer than 30 working days and have fewer than 35 trades, in the case of full liquidation.
Dormant Account Fee: An account with no transactions (trading/withdrawals/deposits) for a set period of 12 months is considered dormant. Dormant accounts are charged an annual maintenance fee of $30 or the entire free balance if it is less than $30. Accounts with zero free balance will be closed without any charge.
Commissions: esCapitals levies various commissions on its services. They include opening commission (0.8%), closing commission (0.6%), maintenance commission (0.2%), rollover or overnight commission (0.9%), and advisor fees (8%).
Taxes: Clients have two options to pay taxes on profits generated - to receive full capital and pay taxes on it or allow the company to deduct taxes from the profits and pay it to the Treasury in Spain. The latter option leads to the deduction of the remaining capital to the client's account, with taxes varying based on the profit amount.
Late Fee for Taxes: Clients have 21 business days to cover the notified taxes. Post this period, the firm can impose sanctions of up to 30% on total profits.
Sanctions: After extending the tax payment time by seven business days after the initial grace period, if the client doesn't pay, the company reserves the right to impose sanctions of up to 100% on profits.
Customer Support
esCapitals offers very limited customer support. Their only known method of communication is via email. Customers can reach out to their support team by emailing support@esCapitals.com. It does not have other forms of customer support such as a phone hotline or live chat, which are typically offered by most financial service providers. The limitations in customer support result in slower response times and could cause inconvenience for customers who prefer more immediate or real-time forms of assistance.
Conclusion
esCapitals is a broker based in China and operates without any regulatory oversight. With multiple fees charged and limited customer support, this broker does not provide users with quite advantageous features. We do not recommend users to trade with this broker.
Frequently Asked Questions (FAQs)
Q: Can I contact esCapitals via phone？
A: No, you can't. esCapitals only provides services via email: support@esCapitals.com.
Q: Does esCapitals charge an inactive fee？
A: Yes, it does.
Q: Is esCapitals regulated？
A: No, it is not.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
In addition, the date on which this review was generated may also be an important factor to consider, as information may have changed since then. Therefore, readers are advised to always verify updated information directly with the company before making any decision or taking any action. Responsibility for the use of the information provided in this review rests solely with the reader.
2024-01-11 20:29
