Red Finance Capital Review: Do Not Deal With RedFinance.Capital
Red Finance Capital review will provide you with the necessary information about this unscrupulous offshore broker company. This trader is a major red flag. One of the strongest showcases that we are dealing with yet another investment scam is two warnings from regulatory bodies.
Because of situations like these, we always recommend beginners go with proven brokers. It’s the safest way to go, and there is no room for ending up as a new cyber victim.
|Company||Red Finance Capital|
|Address||St. Vincent and the Grenadines|
|Minimum Deposit||250 USD|
|Warning||FCA / CONSOB|
Red Finance Capital Regulation and Fund Security
Red Finance Capital broker is owned by Shenanigans Consulting Ltd, registered in Saint Vincent and the Grenadines. Knowing that SVG has no financial regulator overseeing the activities of Forex and CFD brokers, we looked for Red Finance Capital regulation elsewhere.
We started by searching regulatory bodies such as FCA, ASIC, BaFin, and CONSOB. Some of them did recognize the name of Red Finance Capital, but not the way you would hope for. Namely, the brokerage was banned in two registers for illicit financial activities.
First, the FCA issued a warning about them, saying that: “Fraudsters are using the details of firms we authorize to try to convince people that they work for a genuine, authorized firm. Find out more about this ‘clone firm’.”
Almost all firms and individuals carrying out financial services activities in the UK have to be authorized or registered by the FCA. This firm is not authorized or registered by us but has been targeting people in the UK, claiming to be an authorized firm.
Not long after, the Italian regulator, CONSOB, republished the same warning.
Knowing that they have no license and don’t follow ESMA rules regarding leverage and transparency, we can safely say that your best bet is avoiding this brokerage and correlated brands altogether.
Red Finance Capital is a brand of Shenanigans Consulting Ltd, registered in SVG. Since this offshore island has no regulations, the brand operates illegally. The broker was banned in the UK and Italy.
Red Finance Capital Trading Software Overview
This company promises a “proven trading terminal trusted by millions of traders around the world”. And what they provide is a basic web-based trading platform. We’ve seen the same platform at dozens of fake brokers we’ve reviewed.
There is no reason to pick this platform when you pick a trading company that uses the best trading platforms – MetaTrader 4 and MetaTrader 5.
MetaTrader 4 is a platform for trading Forex, analyzing financial markets, and using Expert Advisors. Mobile trading, Trading Signals, and the Market are the integral parts of MetaTrader 4 that enhance your Forex trading experience.
MetaTrader 5 is a multi-asset platform that allows trading Forex, stocks, and futures. It offers superior tools for comprehensive price analysis, the use of algorithmic trading applications (trading robots, Expert Advisor). and copy trading.
Trading Instrument at Red Finance Capital
Red Finance Capital offers trading with the following instruments:
- Forex Market (Currency Pairs) – EUR/USD, AUD/NOK, CAD/SEK
- Commodities – Gold, Palladium, Wheat
- Shares – Amazon, Alibaba, BOA
- Indices – AU 200, DAX 30, CAC 40
Cryptos are not a part of the broker’s offer, being yet another disadvantage. While this complies with the FCA directive that has forbidden crypto CFD trading, nothing else is in line with their rules.
Account Types Offered
You can choose from one of the four Red Finance Capital trading account types, as follows:
- Mini – $250, 100 available assets, negative balance protection
- Standard – $5,000, 500 available assets, tight spreads
- Classic – $25,000, 100 available assets, WebTrader
- VIP – $50,000, 1500 available assets, leverage 1:100
As you can tell, Red Finance Capital’s minimum deposit is $250, in line with what most offshore scammers require. On the other hand, legitimate brokers allow you to start with as low as $10.
Deposits and Withdrawals Procedure
Red Finance Capital accepts only payments with Bitcoins and USD Tether, as well as VISA and Mastercard, but only through some obscure third-party website called “abncbp.com” – something which does not help with this company’s credibility either.
The minimum deposit requirement is $250. Some legitimate brokers ask for a lot less money to start trading, so there is no reason to risk with this unregulated entity.
How Is Fraud Carried Out?
Red Finance Capital uses a scheme that does not differ from other investment scams. First of all, you find out about them by crossing on their pushy ads. These ads are catchy, and sell you a story of low-risk and high-reward investment.
If you show even the slightest interest and leave some personal information, the insisting and convincing will start, and it’ll not end until you deposit your money.
They tell you that all you have to do is to invest. But, after the first investment, they will push you to invest more and more. As soon as you suspect anything and try to withdraw you will face difficulties impossible to overcome. Trading volume requirements, meaningless paperwork, prolonging and buying their time.
They are aware that they will get busted, it’s only a matter of time. They just need a little time to fool as many people as possible, and they are out. Ready to start the scam all over.
Red Finance Capital Summary
Red Finance Capital is a fake broker firm that’s stealing innocent people’s money. They are located in Saint Vincent and Grenadines – a country known for lack of regulations for Forex brokers.
Also, they are blacklisted by the British FCA and the Italian regulator called CONSOB. Their trading platform is oversimplified, and it’s shady as every other thing about them.
Overall, this is a business that should be avoided at all costs. You can take a look at our list of recommended trading firms.
FAQs About Red Finance Capital Broker
How Secure is the Red Finance Capital Trading Platform?
Since they are unregulated, everything regarding them is shady and unsafe. That stands for their trading platform as well.
Does Red Finance Capital offer a Demo Account?
There’s a Red Finance Capital Demo account for all the users who wish to test the system. However, there’s another trick to lure you into investing.
Are Payouts Subject to Taxes at Red Finance Capital?
Bonuses and profits payout is tied up to minimum trading volume requirements. These requirements are very high – 25 times the amount of the deposit plus the bonus.