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I am considering to start trading Forex and registered on a specific website (capitalhall.com) They are promising me huge gains and I would like to identify if they are legitimate. What are the things that I can do to verify this?

They installed MetaTrader4 on my pc and are guiding me through it using AnyDesk.

P.S. This question has been modified many times. My complete story with the company Capital Hall is now an answer.

locked by JoeTaxpayer Nov 17 '18 at 12:23

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  • 9
    Get out now while you can. Do not authorize anymore trades. If you continue, your money will be gone. – Pete B. Sep 10 '18 at 16:43
  • 6
    It may be like the Hotel California: You can check out any time you like but your money can never leave! – Bob Baerker Sep 10 '18 at 16:54
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    You should ask yourself why they needed to install stuff on your computer when they're the ones making the trades. Time to wipe your computer, do a fresh install of your operating system, and change all your passwords. – ceejayoz Sep 10 '18 at 19:19
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    Is this a scam question, or a forex question? If forex, read money.stackexchange.com/questions/84143/… else, I’d only do any business with a local US based broker. – JoeTaxpayer Sep 10 '18 at 19:20
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    This sounds really shady to me. A trader doing a few trades with your money to show you easy it is to make money sounds really wrong. If it was a trade in a test account with play money to show you how to do some trades that happened to make money, that's fine. (Note that those are almost never realistic!) But if this was a show with your money, that's just not how real brokers, or real forex, works. You can't just quickly make a bunch of money unless you just happen to get very lucky, which is gambling. Strategy and risk management come first. There aren't generic good trades all can take. – David Schwartz Sep 11 '18 at 2:31
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Per their website, they are located in the Marshall Islands, which means they're effectively an unregulated, off-shore broker

Capital Tech ltd.

Ajeltake Road, Ajeltake Island, Majuro republic, Marshal Islands

The CFTC warns against Foreign Exchange Currency Fraud

How do the scams work?

Forex scams attract customers with sophisticated-sounding offers placed in newspaper advertisements, radio promotions, or on Internet sites. Promoters often lure investors with the concept of leverage: the right to “control” a large amount of foreign currency with an initial payment representing only a fraction of the total cost. Coupled with predictions about supposedly inevitable increases in currency prices, these contracts are said to offer huge returns over a short time, with little or no downside risk.

In a typical case, investors may be assured of reaping tens of thousands of dollars in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted—stolen— for the personal benefit of the con artists.

Even if they don't take off with your money, your trades are still unlikely to be profitable in the long run. Retail traders are at a severe disadvantage when it comes to FX trading.

If I were you, I'd try to liquidate the account and save my money or use a reputable broker to invest in a broad-market ETF.

  • 2
    @Harre It means that you have little to no recourse when things go wrong. – 0xFEE1DEAD Sep 10 '18 at 17:45
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    @Harre please don't take this the wrong way but your questions suggest that you don't know what you're doing. You don't seem to realize that the risks you're taking have nothing to do with market risk. You're not trading, you're gambling. – 0xFEE1DEAD Sep 10 '18 at 18:31
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    @Harre There are at least two ways you can lose more than your initial investment. One is if your leveraged currency loses more value than your collateral. Some brokers forgive this but others will collect it. I don't know your broker's policy. The other is some of your internal fund movements are subject to claw back. For example, you can invest $1,500, be up to $5,000, drop down to $1,500 and your $5,000 be subject to clawback, putting you at a $3,500 loss. Though unlikely, this can theoretically happen if an unregulated broker goes bankrupt. – David Schwartz Sep 11 '18 at 2:21
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    @DavidSchwartz The other option of course is that this is a scam and the money is not invested at all – Eric Sep 11 '18 at 10:46
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    @Harre - How could Bernie Madoff have been scamming people when all of his client's account statements were showing healthy profits month after month??? :->) – Bob Baerker Sep 11 '18 at 16:16
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  • I did not sign a contract
  • I had to upload ID documents and a monetary statement.
  • I researched them online but could find nothing of substance
  • The comments were all good.
  • Can I check this brokers track record somewhere?

It's possible that they may be legit but based on your statements, it sounds very likely that they are not. Your skipped your due diligence and went right to "Show me the money!".

In the US, we can check on brokers at https://brokercheck.finra.org/

Find out where this firm is located and check with the regulatory agency in charge in that country to see what's up.

You can also try to close your account and get your money. That will be very telling as to whether this is legit or you have been scammed.

  • When I search them on Google all I find is review sites like this: signal-means-profits.com/… like I said the comments are positive but how do I know these are not bots? I cannot find them in a list, not on broker check at least. Don't know where to search instead. They are located on the Marshall Islands. Thanks for helping out btw! – Aaaargggh Sep 10 '18 at 17:14
  • I made a withdrawal right after I made the first trade, to check if they would allow that, and they did. For me that was the check that they are probably a legitimate business. – Aaaargggh Sep 10 '18 at 17:19
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    A partial withdrawal may mean that they are legitimate or it may be their way of giving you a false sense of security and psychologically convincing you that they are legit. Time will tell and good luck. I hope that you make millions! ;->). – Bob Baerker Sep 10 '18 at 17:22
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    If you don't know what you are trading or the risk involved in trading it (going into debt) then you shouldn't be trading it. – Bob Baerker Sep 10 '18 at 17:23
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    @Harre no offense, but you should focus on the "think" part first, and the "grow rich" part second... – 0xFEE1DEAD Sep 10 '18 at 17:33
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In the end I discovered that I had better listened to what the others had to say. All the answers to this post were ment to help me, although I was too stubborn and continued.

I have come to the conclusion that I have been scammed. The broker was manipulating the trades server side, there seem to be various tools for that. More info here:

Is my Forex broker manipulating my trades?

I will post my story here for those who are on the same path:

I started Forex trading with Capital Hall. They guided me through installing MetaTrader4 using the tool AnyDesk to control my pc and show me what trades to do.

My first deposit was $250 which quickly rose to $350 so I withdrew $50 to test if they would let me. Then I deposited $1000 and the total amount reached quickly to $2100. I would get a call from this guy daily where he instructs me to buy NAS100 or UsOil or some other commodity.

At this point I started becoming suspicious because this went all too well. I researched the company online and found only positive reviews. I read their documents and it said I could not go into debt, what the employees told me as well. I posted this question here and asked friends what they thought and everyone told me it's a scam. So I thought I should try to withdraw using a story about a friend who wanted to invest but first see me withdraw $1000.

The $1000 was nicely withdrawn into my Bitcoin wallet, but now the guy started asking me to deposit more funds which I didn't. At a certain point he would not call me or send me WhatsApp messages anymore, except sometimes when he asked me to please deposit everal thousands promising I would have it returned and doubled in a few days. Then he told me that he has a situation in his private life and I did not hear from him for some time.

After some time I got called by another guy who said he was going to continue the trading from the point where his colleague had stopped. Quickly my $1100 rose to about $1650 and I was quite happy.

Then he explained to me that with more credit I would be making money even quicker. And that his company was making a special offer because it was the end of the month and if I would deposit $2000 now I would get $4000 worth of credits. When I declined at first he reduced his offer to 'deposit $1000 and get $2000 credit' which I took.

So I deposited $1000 and he told me to buy a stock. This time the trade would quickly drop to $-1500. After the weekend he called me again and said he has a huge opportunity if I deposited $3000 now. I eventually agreed to deposit $1500 instead and got $3000 in credits. Then we bought another stock which then dropped to $-5000 while the total balance reached $-8000.

Now I got a call from this guy again and later his friend saying that I have to deposit $2500 now to save my account. I almost tried to transfer more but this went wrong. Now this guy and his friend kept calling me and he wants to login to my crypto wallets. He says that I have to call my friends and family to borrow their money. When I kept saying that I would not do that he hung up on me. My account was then closed.

Later I discovered that there were scam warnings about this company: https://www.forexbrokerz.com/brokers/capital-hall-review https://theforexreview.com/2018/11/09/capital-hall-review/

Lost almost $3000.

  • 4
    Wow. Thanks for coming back and posting your story here; it'll hopefully be a useful warning to others tempted by similar offers. – timday Nov 17 '18 at 12:39
  • @Aaaargggh did you seriously just un-accept my answer to accept your own?! – 0xFEE1DEAD 2 days ago
  • @0xFEE1DEAD it was per accident. I came back after a while, had a quick glance at it and thought I saw no accepted answer. I made your answer the accepted one again. – Aaaargggh 18 hours ago

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