Originally Syndicated on May 19, 2024 @ 7:26 am
A forex trading firm called Stonewallcapital.co.za maintains great secrecy. Although it’s difficult to tell, they most likely hold a license. However, their website and trading conditions give the impression that they may not be based in the United States. Their deposit and bonus policies require improvement. In general, we believe that trading with them is not a wise idea.
Stonewall Capital: Regulation
Stonewall Capital claims to have a license from the Financial Sector Conduct Authority (FSCA) in South Africa. However, this regulatory body isn’t very strict, meaning there are fewer protections for clients compared to firms under stricter regulation.
Stonewall Capital lacks Guaranteed Funds, Segregated Accounts, and Negative balance protection. While the FSCA doesn’t require businesses to implement measures like a Negative Balance Policy, it does maintain a list of regulated brokers, which adds transparency and makes it harder for scammers to operate.
On Stonewall Capital’s website, the licensed entity’s name and license number are displayed in small text at the bottom of the page. However, upon cross-referencing with the FSCA register, it’s unclear if the company is listed due to technical issues with the regulator’s database. As a result, it’s uncertain if Stonewall Capital is licensed at the moment.
Although the company claims to be licensed, trading with it may not be very competitive. Given the FSCA’s relatively lax broker regulations, we do not generally recommend trading with Stonewall Capital.
Stonewall Capital: Trading Platform
Stonewall Capital offers clients a web-based trading platform, but it falls short compared to more popular programs. The platform lacks advanced tools, auto trading capabilities, custom indicators, and mobile versions.
While the platform includes some useful features like an embedded emotion indicator, its basic functionality limits its usability. Without technical analysis tools and automatic trading options, we cannot recommend Stonewall Capital’s platform for trading.
Stonewall Capital: Minimum Deposit
The minimum deposit required by Stonewall Capital is $250.
In our review, we find this minimum deposit to be very high compared to other brokers. Nowadays, many authorized companies offer micro accounts with minimum deposits as low as $10. Even less common brokers typically require no more than $100 to $200 to get started. We believe this is a significant area where Stonewall Capital falls short.
Stonewall Capital: Payment Methods
Stonewall Capital accepts deposits via two e-wallets and credit cards, specifically PerfectMoney and FasaPay. While these options provide a decent range of possibilities, the company does not accept other forms of payment such as wire transfers and cryptocurrency. Compared to many other registered brokers, Stonewall Capital’s payment options may be limited, as they typically offer a wider variety of choices to make trading more convenient for their customers.
Stonewall Capital: Trading Instruments
Stonewall Capital offers various markets for trading, including Forex, Indices, Stocks, and Commodities. Additionally, there are other asset categories available such as ETFs and cannabis. While there’s a respectable range of instruments, cryptocurrency trading is notably absent.
Stonewall Capital Spread
The spreads provided by Stonewall Capital are generally competitive, with no additional commissions to pay. For instance, spreads start at 0.6 pips for the EURUSD pair. However, compared to other brokers with even lower spreads and stricter regulation, Stonewall Capital may not offer the best options.
Stonewall Capital Leverage
Clients of Stonewall Capital can access FX assets with leverage of up to 1:200. While regulated brokers typically restrict leverage to prevent inexperienced traders from overexposing themselves, there’s no such requirement under South Africa’s less stringent regulatory framework. This lack of regulation may also mean that Stonewall Capital has less incentive to limit leverage.
High-leverage trading can be risky, especially if you’re unsure of your ability to handle it. It’s crucial to ensure the company is licensed before engaging in high-leverage trading to avoid potential fraud.
Stonewall Capital: Withdrawal Requirement
Withdrawal requirements at Stonewall Capital should be approached cautiously, especially due to certain limitations commonly encountered with suspicious brokers. When planning a withdrawal, it’s crucial to consider the following:
- Bonus Clause: Stonewall Capital’s legal documents include a concerning Bonus Clause. It states that upon withdrawal, promotional funds are retracted. This tactic seemingly discourages customers from withdrawing funds to avoid forfeiting their bonuses.
- Minimum Trading Volume: There might be a prerequisite of reaching a minimum trading volume before being eligible for withdrawal. Typically, this volume is significantly higher than the initial deposit, sometimes spanning several hundred times the deposited amount.
- Withdrawal Fees: Fortunately, Stonewall Capital does not impose withdrawal fees, which is relieving given the questionable nature of such charges.
- Minimum Withdrawal Thresholds: Be mindful of potential minimum withdrawal thresholds that may restrict withdrawals below a certain amount. These limits, often exceeding total deposits, are unjust constraints on your funds.
In navigating withdrawal processes with Stonewall Capital, vigilance and careful consideration of these factors are imperative to safeguard your financial interests.
