Originally Syndicated on February 23, 2024 @ 4:47 am
Forex trader Stonewall Capital is known for being secretive. While it’s complicated to understand their regulation, they probably have a license. However, their trading conditions and website suggest they might be an offshore company. Their bonus scheme and deposit policy need to be better. Overall, it’s hard to say trading with them is a good idea.
Regulation Status of Stonewall Capital
Stonewall Capital claims to hold a license from the Financial Sector Conduct Authority (FSCA) in South Africa. However, this regulatory body is not known for its strict oversight. Consequently, clients may not have access to certain essential protections typically offered by firms under stricter regulation.
Stonewall Capital lacks Guaranteed Funds, Segregated Accounts, and Negative Balance Protection. While measures like a Negative Balance Policy are not mandatory for FSCA-licensed businesses, the regulator only requires brokers to provide basic company information, which helps increase transparency and makes it harder for scammers to operate.
While having a license from the South African authority is better than having no regulation at all, it doesn’t provide significant security for clients. Despite Stonewall Capital’s claims of being regulated, it’s challenging to verify its license status.
Due to the less competitive trading conditions and the FSCA’s lenient regulations, we don’t generally recommend trading with Stonewall Capital.
Stonewall Capital: Trading Platform
Stonewall Capital offers its clients a web-based trading platform. However, this platform falls short in several areas compared to other popular trading programs available today.
The Stonewall Capital platform lacks advanced tools, auto trading capabilities, custom indicators, and mobile versions. While it does provide some useful features like an embedded emotion indicator, the absence of technical analysis tools and automated trading makes it difficult for us to recommend the basic platform.
Stonewall Capital: Minimum Deposit
The minimum deposit required by Stonewall Capital is $250.
Compared to other brokers, Stonewall Capital’s minimum deposit is considered quite high. Many authorized brokers offer micro accounts starting at just $10. Even less common brokers typically require no more than $100 to $200 to get started. We view this high minimum deposit requirement as a significant drawback for the company.
Stonewall Capital: Payment Methods
Stonewall Capital accepts deposits through two e-wallets and credit cards, namely PerfectMoney and FasaPay. While these options provide some flexibility, the company does not support other payment methods such as wire transfers and cryptocurrency. Compared to many other registered brokers, Stonewall Capital’s payment options may be considered limited, as they typically offer a wider range of choices for greater convenience to their customers.
Stonewall Capital: Trading Instruments
Stonewall Capital offers various markets for trading, including Forex, Indices, Stocks, and Commodities. Additionally, there are other asset classes available such as ETFs and cannabis. While there is a respectable number of instruments to choose from, cryptocurrency trading is notably absent.
Stonewall Capital Spread
The spreads offered by Stonewall Capital are relatively competitive, with no additional commissions to pay. They start at 0.6 pips for the EURUSD pair. However, other brokers may offer even lower spreads and benefit from stricter regulation, surpassing Stonewall Capital in this aspect.
Stonewall Capital Leverage
Clients of Stonewall Capital can access FX assets with leverage of up to 1:200. Typically, regulated brokers must prevent inexperienced traders from using excessive leverage and limit their margin to certain percentages.
However, due to South Africa’s less strict regulatory system, there’s no such requirement. If Stonewall Capital is not licensed, there’s even less need for them to limit leverage. This could be used by companies as a marketing tactic.
It’s important to be cautious with high-leverage trading, especially if you’re not confident in your abilities. Additionally, ensure the company is licensed before trusting them with your money to avoid potential fraud.
Stonewall Capital: Withdrawal Requirement
Stonewall Capital imposes ambiguous trading volume requirements and lacks specified tax or minimum withdrawal amounts. However, caution is advised when dealing with this broker, as certain limitations may arise during the withdrawal process:
- Stonewall Capital includes a Bonus clause in its legal documents, creating a concern. According to this clause, promotional funds are deducted upon withdrawal, potentially discouraging customers from accessing their funds to avoid forfeiting bonuses.
- A minimum trading volume condition might be in place, often set at several hundred times the initial deposit, serving as a hurdle for users looking to make withdrawals.
- While there are no withdrawal fees, it is essential to remain vigilant, considering Stonewall Capital’s questionable reputation.
- Be aware of potential minimum withdrawal thresholds that could exceed your total deposits, constituting an unjust restriction on your funds.
Exercise caution and thoroughly review the terms and conditions before engaging with Stonewall Capital to avoid any unforeseen complications during the withdrawal process.
