Make Capital is a contract-for-difference broker established in Australia on December 29, 2023. The broker primarily offers investment services in forex, indices, metals, commodities, and cryptocurrencies for investors. It does not provide services to countries and regions where it might violate local laws or regulations, such as the United States, Israel, New Zealand, Iran, and North Korea.
Company Registration Information and Regulatory Status
Make Capital (makecapital.com) is registered in both Australia and South Africa and is regulated by the Australian Securities and Investments Commission (ASIC) and the Financial Sector Conduct Authority (FSCA) of South Africa, respectively.
The company registered in Australia is MAKE CAPITAL PTY LTD, with an ACN number 673 903 396. On February 1, 2024, it was authorized by HANDPAY FUND MANAGEMENT PTY LTD and holds an ASIC authorized representative license with the number 001307785.
The company registered under the FSCA in South Africa is MAKE CAPITAL MARKET (PTY) LTD, with FSP license number 53179.
Currently, Make Capital operates three websites: makecapital.com, makecapital-asia.com, and www.makecapital.com (which is no longer accessible).
Trade Options:
Make Capital offers a variety of trading products, including forex, indices, metals, commodities, and cryptocurrency contracts for differences (CFDs).
- Forex: Forex trading involves the exchange of different currencies and is known for its high liquidity, enabling traders to profit from exchange rate fluctuations.
- Indices: Index trading allows speculation on the performance of entire markets or specific sectors without trading individual stocks, offering diverse trading opportunities and potentially enhanced returns through leverage.
- Commodities: Commodity trading encompasses key resources in global markets, allowing traders to buy and sell various raw materials including metals, energy, and agricultural products.
- Precious Metals: Precious metals trading involves the buying and selling of gold, silver, platinum, and palladium in financial markets. Due to their scarcity and industrial uses, they are often viewed as a hedge against inflation and a store of value.
- Cryptocurrencies: Cryptocurrency trading involves the buying and selling of digital currencies in the cryptocurrency market. With the advancement of blockchain technology and the popularity of digital currencies, crypto trading has become a major investment field for global investors.
Opening an Account
To open a trading account with Make Capital, visit the broker's website, click on "BEGIN HERE" on the homepage or "Register" at the top right corner to go to the account registration page. Fill in your name, email address, and set a login password as required, then proceed to the next step for KYC verification. Complete the account application and submit it. Once approved, the account registration will be successful.
Trading Accounts
The Make Capital website does not disclose key information about trading accounts, including account types, spreads, trading leverage, margin call/stop-out levels, trading commissions, minimum/maximum trade sizes, maximum position/order sizes, and minimum price precision.
This information is crucial for traders as it directly affects trading costs, risk management, and trading strategies. The lack of detailed information may lead to uncertainty and increased trading risks for traders. Therefore, traders should carefully consider this factor and ensure they have a thorough understanding of all platform terms and conditions before choosing a platform.
Trading Platform
Make Capital claims to provide the MT4/MT5 trading platforms, including web and mobile versions. However, the broker was only found on MT5, where it is shown to be operating through the South African registered company "MAKE CAPITAL MARKET (PTY) LTD."
Deposits and Withdrawals
Make Capital supports deposits and withdrawals via Maestro, Skrill, VISA, NETELLER, MasterCard, and other methods.
Risk Warning
The ASIC authorized representative license is a significant regulatory tool in the Australian financial services industry, but there may be some potential risks or "loopholes" in practice. Here are some common issues:
- Nominal Authorization vs. Actual Control: Some companies may nominally obtain an ASIC authorized representative license, but the actual operations are controlled by other unregulated entities or individuals, which can lead to regulatory failure and make it difficult to protect investors' rights.
- Outsourced or Rented Licenses: Some companies acquire an ASIC license through outsourcing or renting but lack actual operational capabilities or expertise. Such operations usually carry high risks as the license holder may lack effective supervision over the outsourced entity.
- Misleading Claims: Some companies may exaggerate the scope or effectiveness of their ASIC authorized representative license, misleading investors to believe that the license covers more financial services or products, which are actually not directly regulated by ASIC.
- Fake or Expired Licenses: Some fraudsters may forge ASIC authorized representative licenses or continue to operate with expired licenses, deceiving investors.
- Compliance Issues: Even authorized representatives can fail to comply with regulations in practice, such as not ensuring the safety of client funds or not providing appropriate financial advice, leading to potential losses for investors.
Meanwhile, the regulatory requirements for the South African FSP license are relatively lenient, with low application thresholds. Additionally, South Africa was placed on the Financial Action Task Force (FATF) grey list until 2025 in February 2023 due to issues such as inadequate anti-money laundering measures, insufficient anti-terrorism financing regulation, lack of enforcement, and corruption.
Conclusion
Make Capital is a CFD broker established less than a year ago. Although the broker holds an FSCA license in South Africa and an authorized representative license from ASIC in Australia, both of these licenses have relatively weak regulatory oversight and are not stringent enough. Additionally, the broker has not provided detailed information about trading accounts on its website. Investors are advised to choose brokers with transparent information, strong regulation, and a good reputation to avoid unnecessary financial losses.
Currently, this broker is labeled as "Operating Illegally" on Traderknows.
