Prize Capital is an offshore broker with a generic website. At first, I didn’t think they would be an offshore broker. However, as I researched more, I realised that this broker is certainly an unreliable one.
A noticeable problem with this broker is that it doesn’t provide any useful information on its site. This is a huge red flag and an indicator that Prize Capital might be a scam.
In my Prize Capital review, I’ll discuss the reasons why this broker is suspicious and not a good option for you:
Prize Capital License and Regulation
Prize Capital does not provide any information about its license or address. Now, there’s no reason for a regulated broker to hide such information from its clients or prospects. So it’s obvious that Prize Capital is an unlicensed and unregulated broker.
In fact, there’s a good chance that Prize Capital is a scam and aims to steal from its clients.
You shouldn’t trade with unlicensed and unregulated brokers. There are many scams in the forex industry and so, financial regulators exist in many regions such as the US and Europe. These regulators impose heavy restrictions and laws on forex brokers (and similar service providers) to ensure that the broker doesn’t act against the interests of its client.
Read about: BitCapitals
However, an unregulated and unlicensed wouldn’t have to follow those restrictions. They can act against your interests (such as steal your data) and get away scot-free.
On top of that, regulators like FCA offer insurance compensation in case the broker steals the funds of their clients. For example, FCA can give you up to £85,000 if a FCA-regulated broker steals your funds. You don’t get such facilities with unregulated brokers. This is a strong reason why I don’t recommend trading with an unregulated forex broker.
Prize Capital does not provide any information about its address or license on its website. This is proof that it’s an unregulated broker and quite possibly a scam. You should stay away from such a shady broker
Prize Capital Trading Conditions
Before I discuss the various trading conditions, I must point out a very important thing.
When I tried to create an account at the broker’s website, I received the following alert on my browser:
It means the broker might be trying to steal information from me and is a potential threat. Because of this error, I wasn’t able to set up an account with Prize Capital and I don’t think you should too.
This broker is clearly running a fishy operation and might try to steal your personal data!
I noticed a huge discrepancy while trying to find which trading platform they offer. In the Platform Information section of their website, they don’t give any information about their trading platform:
But in the footer of their website, they have given a download link for MetaTrader 4, which is among the best trading platforms available in the industry.
Almost all reputed forex brokers use these platforms because they offer a ton of features. MetaTrader 4 offers automated trading, code base with the option to add custom scripts, trading bots, and many other advantages which make it a market leader. Due to these benefits and over 15 years of industry experience, MT4 has garnered a strong reputation in the industry.
Now, why would the broker offer you to download MT4 but not mention it anywhere on its ‘Platform Information’ section? The only reason for this could be that the broker doesn’t offer MT4 to its clients. It has given a download link to MT4 to make it ‘seem’ as if it offers this platform
You see, many shady brokers try to use the pristine reputation of MT4 to appear trustworthy. I believe Prize Capital is trying to do the same here.
Many forex scams keep their initial deposit requirement high which allows them to grab a lot of funds immediately. Such brokers are aware of their pathetic services and so, they don’t give you a chance to test out their services beforehand. Instead, they force you to make a big financial commitment. In case you decide to discontinue availing their services, they will steal the huge deposit you had made.
It’s a common strategy among shady forex brokers and that’s why I don’t recommend trading with such brokers.
Leverage and Spreads
High leverage is usually a sign of a scam. This is why financial regulators restrict their brokers on how much leverage they can offer to their clients. For example, the UK-based regulator FCA doesn’t allow its brokers to offer a leverage ratio higher than 1:30.
High leverage ratios can wipe out all of your earnings and even put you in debt quickly. They are very risky, especially if you’re a beginner.
Prize Capital Payment Methods and Charges
Prize Capital has kept most of its information very inaccessible and hard to find. I found a small mention of payment methods in its ‘Platform Information’ section of the website.
According to the broker, the available payment options are credit cards, Alipay, China UnionPay, wechat and offline wire transfers.
Apart from that, there’s no mention of minimum deposit requirement or minimum withdrawal limit.
Prize Capital provides zero information about the fees it charges. This is quite shady because brokers tend to keep this information open. Reliable brokers want to make the decision-making process easier for their prospective clients and maintain transparency in such matters.
However, Prize Capital has maintained secrecy in this matter and it makes me suspect that it has very high fees.
There are no terms and conditions on the broker’s website as well making it more challenging to figure out a reason to trust them.
Prize Capital has mentioned a few times on its website that it offers promotions and bonuses, which makes it more suspicious.
A common strategy among shady forex brokers is they would offer you a ton of bonuses. Bonuses in the forex industry are notorious as they allow the broker to complicate the withdrawal process for the user. The funds you receive in a bonus always belong to the broker, not you.
Is Prize Capital a Scam? Yes!
The forex industry attracts a lot of scams and they are of various sorts. Some scammers tend to give an unsolicited call and claim that you’re eligible for a random bonus. Others would run ads on the internet claiming to offer attractive deposit bonuses or easy profits.
Creating a website and filling it with lies is very easy. And these scammers target inexperienced traders too. Usually, these brokers operate from offshore areas such as St. Vincent or the Commonwealth of Dominica. They operate from such areas because these places don’t have financial regulators like the US or the UK. So they don’t have to follow any strict laws and can easily steal the funds of their users without facing any legal repercussions.
You should always check a broker’s regulation and T&C’s before trading with them.
Prize Capital Review: Conclusion
Prize Capital is an unlicensed and unregulated broker who is probably a scam. They have kept their terms and conditions and have a website filled with technical errors. Your funds would be in a lot of danger with these people.
There are many scams in the forex industry like Prize Capital. And they keep growing. The best way to combat these scams is to spread the truth about them so their schemes would fail before they even start.
If you know someone who’s interested in forex trading, share this article with them. They should know the truth about such scammers.