Capitalix Review – 4Square SY Ltd Scam and Key Data Exposed

The FSA Seychelles has granted Capitalix, an offshore broker run by 4Square SY Ltd, a Security Dealer license. The offshore broker’s payment agent is 4Square (CY) Ltd, a Cyprus-registered company.

Capitalix is affiliated with the CySEC-regulated investment businesses iTrade Global (CY) Ltd and Titanedge Securities Ltd., and it runs boiler rooms in Romania, Columbia, and Cyprus. The broker scheme is now a part of our Red Compliance list.

Most recent update

Based on fewer than 100 reviews, Capitalix has a poor degree of trust and a 1.5-star scam rating as of our review on April 7, 2023, on Trustpilot. The offshore broker has gained multiple 5-star ratings on Trustpilot since our last review, moving the rating from “Bad” to “Average” (2.8 stars).

But in recent days, there have been more and more one-star scam reviews from people who claim they have lost a lot of money or have not gotten their money.

Whistleblowers in the MENO region have also informed us that Capitalix employs aggressive tactics to draw in consumer finances and advertise with fictitious celebrities. On his channel, a YouTuber has uploaded recordings of him speaking with agents in the boiler room.

Short narrative

The offshore brokerage industry is still expanding. There was a threefold increase in monthly website visitors from February to April 2023, reaching nearly 300,000. India accounts for over 40% of these visits, with Mexico and Chile in South America coming in second and third. Romania and Switzerland, both members of the European Economic Area, are in the top 5 visiting countries.

At the very least, Capitalix has a personal connection to iTrade Global (CY) Ltd., a company regulated by the CySEC under licence number 298/16 d/b/a InvestFW, TradeFW, and TradedWell. The banking watchdog in Cyprus levied a €1 million fine on iTrade Global (Cy). The fine was applied because of many infractions of Cyprus’s market legislation, which the company’s Spanish-based linked agent is said to have committed.

A director of the penalised iTrade Global (CY) is Lee Ron More. Additionally, he is listed as a contact for the Seychelles-based 4Square SY Ltd, which is governed by the FSA. On the regulatory file there is also iTrade Global’s email address.

InvestFW, a broker regulated by the CySEC, has stopped taking on new retail customers and is concentrating on providing services to institutional investors. TradedWell will no longer be available as a brand.

Our whistleblowers claim that Titanedge Securities Ltd., d/b/a TradeEU (www.tradeeu.com), which is governed by the CYSEC, is connected to Capitalix as well. Yehuda Dahan is on Titanedge Securities’ board of directors. In addition, he is a director of the Cyprus-based digital marketing firm XLMedia.

Compliance Exam

Although Capitalix has an FSA Seychelles licence, it is not permitted to service retail clients in other regulatory regimes by virtue of this licence. However, information from whistleblowers and Similarweb data suggests that clients from Switzerland and other EEA countries have been included.

It is crucial to remember that having an FSA licence in the Seychelles does not entitle one to regulatory approval in other countries, such Mexico, Peru, or India. As a result, Capitalix’s operations in the MENA, Asia, and South America are seen as unlawful.

Our Red Compliance list now includes Capitalix because of several client complaints and regulatory concerns.

What is the function of Capitalix?

A platform for trading assets targeted at the capital market. Through app-based platforms, users can purchase, sell, and trade cryptocurrencies, stocks, FX, indices, metals, and commodities. The platform provides news updates, trading tools, economic calendars, and market data to help with investment planning. It offers brokers a plethora of resources, including blogs, articles, and instructional videos. Both Android and iOS devices support the application.

An overview of an account with an offshore brokerage

An offshore brokerage account is a financial account kept in a foreign nation by an individual or company, usually with advantageous financial and regulatory terms. Investing in different financial products, including stocks, bonds, mutual funds, and other assets, is the main usage for these accounts.

Usually, you are the one who opens an account with a brokerage company. As soon as you fund this account, either with cash or credit, you will be able to trade and swap different kinds of investment assets at your own discretion.

Foreign brokerage account

• Demands a substantial minimum deposit
• Allows for financial instrument selection flexibility and offers a wide range of investing possibilities.
• Allows the usage of several different currencies
• It has a more liberal regulatory environment and can receive favorable tax treatment.
• Carries a larger potential danger

Bottom Line

To put it briefly, creating an offshore brokerage account has advantages and disadvantages. Therefore, careful planning and financial preparation are required if you intend to invest overseas using a brokerage account.

Additionally, you should pick a reputable offshore jurisdiction and brokerage company to engage with to maximize its advantages in terms of legality, tax implications, improved asset protection, or global investment options.

Capitalix Review – 4Square SY Ltd Scam and Key Data Exposed