Rox Capitals Ltd is an online financial trading platform suspected of fraud. The platform claims to offer a variety of trading services, including Forex and CFDs trading. However, it lacks transparent registration information and effective financial regulatory protection, especially with its alleged registration in Comoros and FinCEN regulation, which cannot be verified in public records. This significantly increases the likelihood of it being a potential scam.
Company Background:
Rox Capitals Ltd (commonly referred to as Rox Capitals) is an online financial trading platform with its official website at https://www.roxcapitals.com. The domain was registered on June 9, 2020. The company claims its registered address is on Anjouan Autonomous Island, Comoros, at Mutsamudu Hamchako. However, no registration information matching this address or company name can be found in publicly accessible company records. The lack of clear regulatory information often means that investors' funds may not be secure. Potential users are advised to verify the legal and regulatory status further before engaging in any financial transactions with this platform.
Regulatory Information:
Rox Capitals claims to be regulated by the U.S. Financial Crimes Enforcement Network (FinCEN) and holds a cryptocurrency license (license number 31000281166426). However, FinCEN's duties do not include directly regulating Forex platforms. Its primary tasks are to prevent financial crimes such as money laundering and terrorist financing, not to oversee trading activities. Therefore, Rox Capitals can currently be viewed as an unregulated platform, using the FinCEN license as a promotional tactic to obscure its lack of regulation under other more stringent financial regulatory bodies like the UK FCA or Australia ASIC.
Account Registration Process:
At Rox Capitals, traders can easily register an account and start trading by following a few steps. First, visit the official website and click on the "Open a Real Account" button, then fill out the basic information form to create an account. Next, traders need to complete the verification process, which includes filling out a trading experience questionnaire and submitting identity and residency proof. Once these steps are completed, the platform will conduct a real-name verification review to ensure compliance with the relevant requirements. After passing the review, traders can fund their accounts using various payment methods and start trading by logging into their accounts and exploring the market.
Account Types:
Rox Capitals offers four types of accounts to meet the needs of different traders: Micro, Mini, Standard, and ECN accounts.
- Micro Account: Minimum deposit is only $10, suitable for beginners or those willing to trade with lower risk.
- Mini Account: Minimum deposit is $100, offering higher trading limits, suitable for investors ready to level up their trading.
- Standard Account: For more experienced traders, the minimum deposit is $1,000, allowing for greater trading volume and more orders.
- ECN Account: Designed for professional traders, the minimum deposit requirement is $5,000, featuring the highest trading volume, tightest spreads, and a swap-free (Islamic) option.
Common features across all account types include a 70% margin call level, 50% stop-out level, and a minimum trading volume of 0.01 lots. Although the broker maintains a no-slicing policy, which may be a disadvantage for short-term traders, each account comes with a dedicated account manager to provide personalized support.
This flexible account selection ensures that traders can choose the right trading tools and strategies according to their needs.
Trading Software:
Rox Capitals connects customers with financial markets through the MetaTrader 5 (MT5) platform. With its comprehensive features and tools, MT5 has become the preferred choice for trading financial products such as Forex, stocks, and futures. Through MT5, traders can access real-time market data, execute trades, and perform in-depth technical analysis. The platform supports desktop, web, and mobile devices, ensuring users can manage their trades anytime, anywhere. MT5's user-friendly interface and powerful charting features are particularly favored by both beginners and experienced traders.
Trading Products:
Rox Capitals offers a wide range of financial instruments, including:
- Forex: Allows trading of major, minor, and emerging market currency pairs globally.
- CFDs: Covers global indices, stocks, and cryptocurrencies, suitable for traders speculating on market price fluctuations.
- Precious Metals: Includes trading gold and silver, providing long-term value preservation and short-term speculation opportunities for investors.
- Cryptocurrencies: Offers popular cryptocurrency trading in the form of CFDs, such as Bitcoin, Ethereum, etc.
- Stocks: Covers more than 40 major global stocks.
Spreads, Leverage, and Commissions:
Rox Capitals offers leveraged trading with different maximum leverage ratios based on account types: Micro and Mini accounts offer 1:500, Standard accounts offer 1:200, and ECN accounts offer 1:100. ECN accounts are tailored for professional traders, providing the tightest spreads and direct market access. The platform also sets different spreads based on account types, ranging from 2.0 pips to raw spreads. While ECN accounts have lower spreads, a fixed commission of $6 per lot is charged. This model does not offer a competitive advantage compared to other regulated brokers and may have hidden fees. Additionally, Rox Capitals does not specify if negative balance protection is provided, meaning users could potentially lose more than their account balance during significant market volatility.
Promotions:
Rox Capitals also attracts new users through simulated trading contests, claiming to offer cash prizes. However, such activities are typically baits to lure new users into high-risk trading. For inexperienced traders, these activities can create a false sense of profitability while overlooking the inherent risks of actual trading.
Copy Trading
Rox Capitals claims to offer social trading features, allowing users to copy the strategies of successful traders. These features are usually designed to attract novice traders. However, social trading on unregulated platforms lacks transparency and fairness, and users might end up copying non-compliant or fraudulent trades, resulting in significant financial losses.
Educational Resources
Rox Capitals' educational resources are primarily aimed at helping traders understand the market, but their effectiveness and quality have not been independently verified. The platform offers weekly ZOOM meetings that traders can join using provided meeting IDs and passwords. While these meetings are intended to provide market insights for traders of different levels, the depth and quality of the content are unclear and may lean more towards marketing-oriented training.
Additionally, the website offers some basic tools like an economic calendar and a spread calculator, common on most trading platforms but not an indication of any particular advantage in education. For an unregulated platform, the utility and reliability of these educational resources remain questionable, and traders should consider combining them with independent learning resources for making informed decisions.
Deposit and Withdrawal Methods:
Rox Capitals supports various deposit and withdrawal methods, including bank transfers, PayU Money, UPI, credit cards, and cryptocurrencies. The minimum deposit is $10, and the minimum withdrawal is $0.1, with a maximum amount limit of $20,000. Withdrawal processing time ranges from 1 minute to 1 day. While deposits are fee-free, withdrawals incur a 0.5% fee. However, this could present potential fund security and delay risks. Particularly given the platform's lack of effective regulation, users' deposited funds might be at risk of being misappropriated.
Customer Support:
Rox Capitals provides customer support channels, including email (support@roxcapitals.com) and phone (+971 562298078). Additionally, customers can stay in touch with the company through multiple social media platforms, including Facebook, Twitter, LinkedIn, Instagram, YouTube, and Telegram. Through these channels, customers can receive the latest announcements and updates from the company.
Summary:
Given Rox Capitals' lack of transparent registration information, absence of effective regulatory protection, high-risk leverage mechanisms, and potential fund and data security risks, the platform shows significant signs of fraud. Investors should exercise caution and avoid depositing funds in such an unregulated platform to prevent financial losses and personal information breaches. Those seeking legitimate and regulated platforms are advised to select well-known brokers regulated by authorities like the UK's FCA or Australia's ASIC.
