Beware! Digit Capital Fund is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Digit Capital Fund is a broker offering suspiciously too many products and services. Starting from standard Forex and Crypto CFDs, the so-called company also claims to provide financial planning, Mutual funds, Asset Management funds, Equity funds, Hybrid funds, Debt funds, Algo trading and even Retirement plans. Well, that’s too much for a company introducing itself as a broker. In fact, it is a fraudulent business, and we’ll explain why we claim so in the full Digit Capital Fund review.
Digit Capital Fund REGULATION AND SAFETY OF FUNDS
Digit Capital Fund or DCF, as they occasionally call themselves, pretends to be CySEC regulated. Well, we were suspicious about it straight from the beginning because they reveal no addresses or license numbers, and their contact phone is actually British. Expectedly, we could quickly disprove their claims after a simple check. The Cyprus authority is customer-oriented, so people can verify whether the broker is licensed or not by merely searching for the domain name. As you can see from the screenshot at the bottom of the section, there is no result, so your funds will be in danger if you deposit with Digit Capital Fund because it’s unregulated. Furthermore, the false claims strongly suggest it’s a scam scheme.
Avoid it, and better consider the high-rated EU brokers and British brokers on both lists if you are interested in trading and investments. The European companies are suitably regulated, but most importantly, covered by deposit insurance funds protecting traders and investors’ money. For example, CySEC brokers’ clients can claim up to 20 000 EUR in case of bankruptcy, while the British guarantees are even up to 85 000 GBP. CySEC (Cyprus) and FCA (Britain) licenses are trustworthy, and you should keep this in mind while looking for trading opportunities.
Digit Capital Fund TRADING SOFTWARE
We can’t confirm that Digit Capital Fund actually has a platform. We could sign-up, but the Traderoom page was broken, and we couldn’t access any trading software whatsoever. It makes us believe Digit Capital Fund offers a web-based platform because there are no download links, but that’s pure speculation from our side.
Digit Capital Fund is apparently a scam, so we’d like to offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists. MetaTrader distributions are market-leading platforms providing advanced features such as Expert advisors, many indicators, and excellent charting tools, to name a few. The software also includes a marketplace where traders can choose from more than 10 000 apps and third-party developed solutions.
Due to the broken platform, we can’t discuss real-time spreads and leverage levels, which are critical elements in trading. Furthermore, DCF doesn’t even bother to mention anything about the matter, so we have no information at hand. Nevertheless, we need to note that clients can quickly blow their accounts if they improperly use leverage.
In fact, it is so dangerous that most financial authorities regulate it to help reduce losses. Hence, EU, British and Australian brokers limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Swiss brokers are reputable but not leverage restricted, so experienced, and risk-tolerant traders eligible to open an account in Switzerland can safely go for it. The rest of the high-leverage companies are poorly regulated and very likely a scam, so you need to be careful.
Digit Capital Fund DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Digit Capital Fund is $100, which is actually in line with the regulated brokers’ requirements on average. However, many regulated companies can offer Micro accounts starting from 5 to 10 dollars, so it’s not challenging to find better options. The funding methods are Wire Transfers, Bitcoins and Credit/Debit cards, out of which the last one is seen as a much safer option for it’s possible to dispute transactions and get a refund for up to 540 days after the transfer.
Nevertheless, you’d better see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are well-regulated, and you won’t face scammers, so you can safely open accounts.
Next, we got on to the interesting part of this review. Just like every fraudulent creature out there, Digit Capital Fund has stuffed its legal documentation with scam clauses. First of all, the minimum withdrawal amount is mBTC250, which is around $10 000 at today’s price. That’s a scam.
However, the story goes on. Each withdrawal will be subject to an mBTC30 charge unless traders reach a 100% turnover. Well, 30mBTC equals more than $1200, so the scam should be pretty evident now.
In addition, if clients accept incentives, they will have to execute 30 times the bonus given to become eligible for withdrawal– yet another fraudulent clause. Not to mention that CySEC already prohibited bonus and promotions, which once again confirms Digit Capital Fund is unregulated and a scam.
As for inactivity fees, there are some, but the broker fails to specify. In fact, we believe they actually leave the door open to invent even more fraudulent charges on the run, which is indeed typical for scammers. Still, an account becomes dormant after only 30 days of inactivity. In contrast, most regulated companies allow at least 6 months to pass and explicitly determine the fees payable (around 5-10 USD per month on average).
Digit Capital Fund also reserves the right to collect VAT taxes for accounts with a balance greater than $100 000, but the clause is yet again laughable. First of all, we have to say that the broker claims not to accept US traders and to be CySEC regulated. Then, out of nowhere, Digit Capital Fund announces it will collect taxes according to US laws and the SEC guidelines. If that isn’t a fraud, we don’t know what is!
Overall, Digit Capital Fund is a scam scheme we just exposed, so make sure to stay away from this corrupt business.
HOW DOES THE SCAM WORK
Swindling brokers and fraudulent websites appear literally every day. Still, most of the new schemes represent a modification of common fraud that’s not typical for the local markets but similar from country to country.
Nowadays, scammers are overcrowding the Internet and social media. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders would get reassured that the people behind the broker have an excellent track record, who can secure high returns, seamless trading and guaranteed profits. The scammers intentionally make people believe Forex trading is risk-free, but actually, the opposite is true.
In the usual scenario, scammers just steal the money and won’t send a dollar back. Sooner or later, clients would ask for a withdrawal, but the con artists would delay or downright refuse transactions. If traders persist, scammers would find excuses to deny and would even ask for more money or directly cut the communication. Whatever the case, traders are going to lose some or all of the capital invested. At the end, when fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to evade further risks. Deactivate your bank card immediately, contact the bank and ask for advice.
Report what happened, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly to recover funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible
Rich Snippet Data
Digit Capital Fund