Capitalix, an offshore broker operated by 4Square SY Ltd, holds a Security Dealer license issued by the FSA Seychelles. The payment agent for the offshore broker is 4Square (CY) Ltd, registered in Cyprus. Capitalix operates boiler rooms in Cyprus, Romania, and Columbia and is connected to the CySEC-regulated investment firms iTrade Global (CY) Ltd and Titanedge Securities Ltd. We have included the broker scheme in our Red Compliance list.

Latest Update
In our 7 April 2023 review, Capitalix held a scam rating of 1.5 stars on Trustpilot, accompanied by a low level of trust based on less than 100 reviews. Since our last review, the offshore broker has received several 5-star ratings on Trustpilot, raising the “Bad” trust level to “Average” with a 2.8-star rating.

Capitalix in the MENA region
However, over the last few days, there have continued to be some 1-star scam reviews from people who have allegedly not received their money or have incurred high losses.

Furthermore, we have heard from whistleblowers in the MENO region that Capitalix advertises with fake celebrities and uses aggressive methods to attract customer funds. One YouTuber has posted recordings of conversations with boiler room agents on his channel.

Short Narrative

Similarweb statistics for offshore broker Capitalix
The growth of the offshore broker continues. From February to April 2023, the number of monthly website visitors tripled to almost 300,000. Almost 40% of these visitors come from India, followed by the South American countries Mexico and Chile. The EEA countries Romania and Switzerland are also among the top 5 visitor countries.

Capitalix is at least personally affiliated with iTrade Global (CY) Ltd, which CySEC regulates as an investment firm (CIV) with license number 298/16 d/b/a InvestFW, TradeFW, and TradedWell. iTrade Global (Cy) has been fined €1 million by the financial watchdog in Cyprus. The penalty was imposed due to several violations of Cyprus’ market laws, which were allegedly committed by the company’s tied agent based in Spain.

Lee Ron More is a director of the fined iTrade Global (CY). He is also registered as a contact person for the FSA-regulated 4Square SY Ltd in the Seychelles. The email address of iTrade Global is also on the regulatory file there.

The CySEC-regulated broker, InvestFW, has ceased accepting new retail clients and plans to shift its focus towards serving institutional investors. The TradedWell brand will be discontinued.

According to our whistleblowers, CYSEC-regulated Titanedge Securities Ltd d/b/a TradeEU (www.tradeeu.com) is also affiliated with Capitalix. In Titanedge Securities, Yehuda Dahan serves as a director. He also serves as a director of the digital marketing agency XLMedia in Cyprus.

Compliance Check
Sure, Capitalix holds a license from the FSA Seychelles, but this license does not authorize the offshore broker to serve retail clients in other regulatory regimes. However, data from Similarweb and information provided by whistleblowers indicate that customers from Switzerland and other EEA jurisdictions have been onboarded.

It is important to note that the FSA license in the Seychelles does not automatically grant regulatory permission in other jurisdictions such as India, Peru, or Mexico. Consequently, the activities of Capitalix in South America, Asia, and the MENA region are considered unauthorized.

Due to numerous client complaints and regulatory concerns, Capitalix has been included in our Red Compliance list.