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Make Capital Trading Platform Review: High Risk (Illegal Business)

TraderKnows
TraderKnows
08-13

Is Make Capital a reliable forex broker? This article details why it’s flagged for illegal operations, covering regulatory issues, trading products, platforms, and deposit/withdrawal processes.

What is Make Capital?

Make Capital, established in December 2023, is a broker whose headquarters address is not disclosed on its official website. Make Capital offers trading services across multiple markets, including forex, indices, metals, commodities, and cryptocurrencies. Currently, the Make Capital website supports three languages: Simplified Chinese, English, and Traditional Chinese. The broker claims to provide users with MT4/MT5 trading platforms.

Is Make Capital Safe and Legal? Does Make Capital Have the Necessary Regulatory Licenses?

Make Capital's Registered Entity in Australia: Make Capital operates in Australia under the name MAKE CAPITAL PTY LTD, authorized by HANDPAY FUND MANAGEMENT PTY LTD, located at 2 132 Epsom Rd Zetland NSW 2017.

Make Capital's Registered Entity in South Africa: In South Africa, Make Capital is registered as MAKE CAPITAL MARKET (PTY) LTD and is regulated by the Financial Sector Conduct Authority (FSCA) with the license number FSP 53179. The address is 36 NEWMARKET ROAD GLENHAZEL JOHANNESBURG GAUTENG 2192.

Regulatory information claimed on Make Capital's website

Domain Registration Time of Make Capital: According to Whois information, the domain of CariGold's official website was registered in 2010.

Whois search result

Regulatory Information of Make Capital: Make Capital (makecapital.com) has registered companies in both Australia and South Africa, regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Sector Conduct Authority (FSCA) in South Africa, respectively.

The South African registered company of Make Capital is MAKE CAPITAL MARKET (PTY) LTD, with the FSP license number 53179 under FSCA supervision.

Regulatory information on FSCA

The Australian registered company of Make Capital is MAKE CAPITAL PTY LTD, with ACN number 673 903 396. This company received authorization on February 1, 2024, from HANDPAY FUND MANAGEMENT PTY LTD and holds an authorized representative license from ASIC, license number 001307785.

Regulatory information on ASIC

Regulatory information on ASIC

Although these registration details may seem to offer some level of security, the actual protection provided by these regulatory bodies is questionable. ASIC and FSCA licenses have been criticized for their weak regulatory enforcement, which could expose investors to potential fraud and misconduct risks.

Risks of Nominal Authorization vs. Actual Control:

In Make Capital’s operational model, the difference between nominal authorization and actual control is a significant issue. Some companies may only have nominal authorization from ASIC while actual operations are controlled by other unregulated entities or individuals. This situation can lead to regulatory failures, making it difficult for investors to protect their rights in disputes.

Risks of Outsourcing or Leasing Licenses:

Make Capital also faces risks associated with obtaining ASIC licenses through outsourcing or leasing. In such cases, the company may lack actual operational capability or expertise, relying instead on leased or outsourced licenses. However, the licensed entity may lack effective oversight of the outsourcing party's actions, increasing the risk for investors. This method often involves higher uncertainty, as the actual operations of the outsourcing party may fall short of regulatory requirements.

Misleading Statements and Exaggerated Regulatory Scope:

Another potential issue with Make Capital is misleading statements. Some companies may exaggerate the scope or effectiveness of their ASIC authorization, misleading investors into believing their investments are fully regulated. In reality, these services or products might not be directly regulated by ASIC, exposing investors to greater risks without their knowledge.

Counterfeit or Fake Licenses: An Increasing Issue:

In the online trading sector, counterfeit or fake licenses are also a growing concern. Some fraudsters may forge ASIC authorization licenses or use expired licenses to continue operations, deceiving investors. While there is no specific evidence that Make Capital is involved in such activities, investors should remain cautious when dealing with companies that lack transparency and adequate information disclosure.

Compliance Issues with Make Capital:

Even with a legitimate ASIC authorization license, Make Capital may not be fully compliant. Some licensed companies fail to ensure client fund protection or provide appropriate financial advice, leading to significant losses for investors in volatile markets. This underscores the importance of choosing brokers that are subject to strict regulation.

FSCA License in South Africa: A Double-Edged Sword:

Make Capital’s FSCA license in South Africa, while seemingly providing some level of protection, also presents concerns. The regulatory requirements for South Africa's FSP license are relatively lenient with lower application thresholds. Additionally, due to issues such as inadequate anti-money laundering measures, insufficient counter-terrorism financing oversight, weak enforcement, and corruption, South Africa was placed on the FATF grey list in February 2023, extending until 2025. This means that companies with South African licenses may face higher compliance risks, requiring investors to be more cautious when choosing brokers.

Regulatory Loophole

Fund Security:

Make Capital claims on its website that client funds will be completely segregated in bank accounts but does not provide additional information or details. While this statement seems to protect client funds, the lack of detailed explanation and supporting information raises several issues:

  • Lack of Transparency: Investors cannot clearly understand how Make Capital manages client funds based on a simple statement. This includes details such as specific bank account information, the mechanism of fund segregation, and whether there is independent third-party auditing or oversight. The lack of transparency makes it difficult for investors to assess whether the company adheres to this commitment in practice.
  • Doubtful Fund Security: While segregating client funds theoretically protects investors from the company's financial problems, without a clear explanation of how this segregation is implemented, investors cannot be certain that their funds are safe in the event of company bankruptcy or legal issues. Additionally, the absence of independent third-party oversight increases the risk of potential misuse of client funds.
  • No Clear Legal Protections: If Make Capital’s statements lack a detailed legal framework, investors may find it difficult to assert their rights in the event of a fund dispute. Investors need to know what legal recourse they have if the company fails to uphold its commitment to fund segregation.
Fund safety statement on Make Capital's website

Trading Products Offered by Make Capital

Despite regulatory concerns, the variety of trading products offered by Make Capital might attract both novice and experienced traders:

  • Forex: High liquidity and potential for profit but also high risk.
  • Indices: Offers diversification options, but understanding market trends is crucial.
  • Commodities: Includes metals, energy, and agricultural products, providing a hedge against inflation.
  • Precious Metals: Viewed as a store of value, yet highly volatile.
  • Cryptocurrencies: Highly speculative and risky, especially in unregulated markets.

While these products offer diverse trading opportunities, trading through a broker with questionable regulation involves inherent risks.

Trading products offered by Make Capital

Trading Software Provided by Make Capital

Make Capital claims to offer MT4/MT5 trading platforms, including web and mobile versions. However, this broker is only found listed on MT5, showing that the services are provided by the South African-registered company "MAKE CAPITAL MARKET (PTY) LTD." This situation not only raises doubts about the authenticity of the platform choices but also heightens concerns over transparency.

Trading software provided by Make Capital

Lack of Information on Trading Accounts: Potential Pitfalls

It is concerning that Make Capital’s website does not provide key information about trading accounts. This includes details such as account types, spreads, trading leverage, margin requirements for additional/stop-loss orders, trading commissions, minimum/maximum trade sizes, maximum positions/orders, and minimum price precision. This lack of transparency may prevent investors from making informed decisions when selecting an account and increases potential risks. Without this crucial information, investors could face unexpected fees and unfavorable trading conditions.

Lack of information on trading accounts

How to Open an Account?

For investors looking to open an account with Make Capital, the account opening process is relatively straightforward. First, users need to visit Make Capital's official website and click on the "BEGIN HERE" button on the homepage or the "Register" button at the top right corner to access the account registration page. Here, users are required to provide their name, email address, and set a login password. Next, the system will guide users through the KYC (Know Your Customer) verification process, which includes submitting identity information and other necessary verification documents. Once these steps are completed, users can fill out and submit their account application. After passing the verification, the account will be successfully registered.

Despite the seemingly convenient account opening process, investors should exercise caution when submitting personal information. Given Make Capital's potential regulatory issues and lack of transparency, it is advisable to conduct thorough research and evaluation before deciding to open an account.

How to open an account on Make Capital?

Deposits and Withdrawals: Supported Payment Methods

Regarding fund deposits and withdrawals, Make Capital claims to support various payment methods including Maestro, Skrill, VISA, NETELLER, and MasterCard. These payment methods cover most commonly used online transaction channels, providing convenience for users. However, it is worth noting that the specifics regarding transaction times and potential fees are not detailed, which could impact users’ fund liquidity and overall trading experience. Therefore, investors should carefully consider these potential factors when choosing deposit or withdrawal methods to avoid unnecessary issues.

Make Capital's deposit and withdrawal aspects

Make Capital's Contact Information

Users can contact the customer support team via email (services@makecapital.com) or through the online chat interface on the official website. Despite these support channels appearing to be comprehensive, investors should remain cautious. Given the transparency issues in other areas of Make Capital, the actual response speed and problem-solving capabilities of the customer support service might be uncertain.

Contact information of Make Capital

In summary, while Make Capital showcases potential as a multi-market trading platform, concerns about its regulatory status and transparency cast doubt. Although the company claims to hold licenses from Australian and South African regulatory bodies, the actual effectiveness and enforcement of these licenses are lacking, potentially failing to provide adequate protection for investors. Additionally, the website lacks crucial information about trading accounts, and the actual performance of customer support services remains unverified, posing potential risks to investors.

For any investor considering opening an account or trading with Make Capital, it is essential to conduct thorough research and proceed with caution. Prioritize brokers regulated by top-tier authorities to ensure the safety of your funds and the protection of your investment rights. In the ever-changing financial markets, staying vigilant and well-informed is the best defense against falling victim to fraud.

Frequently Asked Questions

What is Make Capital?
Make Capital is a CFD broker founded in December 2023 in Australia, offering trading services in forex, indices, metals, commodities, and cryptocurrencies.

Is Make Capital regulated?
Yes, Make Capital is regulated by ASIC in Australia and FSCA in South Africa. However, these regulatory bodies are critiqued for their weak regulatory oversight.

Why should I be concerned about Make Capital?
Concerns exist regarding Make Capital's transparency, regulatory enforcement, and potential misleading statements, which could pose risks to investors.

Can I trust the licenses held by Make Capital?
Although Make Capital holds licenses from ASIC and FSCA, the possible nominal authorization and weak regulation raise questions about the effectiveness of these licenses in protecting investors.

What products can I trade on Make Capital?
Make Capital offers trading in forex, indices, commodities, precious metals, and cryptocurrencies, but the risk levels of these products vary.

How can I protect myself from investment fraud?
Conduct thorough research, verify regulatory information, be wary of high-pressure tactics, monitor your account, and seek professional financial advice if needed.

Currently, Make Capital is displayed as "Illegal Business" on TraderKnows.

Make Capital flagged as scam suspect

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Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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Forex brokers

Forex brokers refer to the companies or individuals that offer individuals and corporate customers access to trade in the forex market. These brokers act as intermediaries between the clients and the global forex market, enabling investors to buy and sell various currency pairs.

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