Is Capital TradeFX a scam or legit broker?

No, it is not safe to trade with Capital TradeFX. Capital TradeFX is owned by Capital TradeFX Ltd., which is an offshore company licensed in St. Vincent and the Grenadine.

St. Vincent and the Grenadines is notorious for its practically absent requirements and regulations. Due to the setup cost is low and it does not regulate forex trading. Therefore, it became an offshore zone for shady forex brokers such as 4xincome, Monfex and more. You can read our detailed article about the risk of trading with brokers from St. Vincent and the Grenadines.

According to the website, Capital TradeFX Ltd is an International Foreign Exchange broker offering tailored trading services to clients from all over the world. However, the company doesn’t provide any regulation information besides the offshore one. It claims to be registered and located in Hong Kong, but it is not authorized by its local Securities and Futures Commission (SFC).

Moreover, the broker has been blacklisted by the Spainish regulator CNMV (the National Securities Market Commission):

“Capital TradeFx Ltd is not authorised to provide the investment services of the Securities Markets Law, which include investment advice, or to provide auxiliary services in relation to the financial instruments including, for those purposes, foreign currency transactions.”

We advise all investors and traders to avoid Capital TradeFX and other brokers from St. Vincent and the Grenadines. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as HYCM and Plus500.

 

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