Note: UM Capitals official site - https://unitedmarketscapital.com/ is currently not functional. Therefore, we could only gather relevant information from the Internet to present a rough picture of this broker.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information contained in this article is for general information purposes only.
General Information
What is UM Capital？
UM Capital is a financial trading platform that offers a wide range of investment opportunities across various asset classes. Although the company is registered in Luxembourg, it is important to note that UM Capital currently lacks valid regulation and oversight from government or financial authorities. Besides, accessing the official website of UM Capital is currently not possible, which may indicate potential issues or even an absconding of the trading platform.
Despite the aforementioned concerns, UM Capital claims to offer a diverse selection of financial instruments and different account options.UM Capital offers a maximum leverage of 1:30 and competitive spreads starting from 0.1 pips are advertised, potentially offering favorable trading conditions to clients.
In the following article, we will analyze the characteristics of this broker from various aspects, providing you with simple and organized information. If you are interested, please read on. At the end of the article, we will also briefly make a conclusion so that you can understand the broker's characteristics at a glance.
Pros & Cons
UM Capital Alternative Brokers
There are many alternative brokers to UM Capital depending on the specific needs and preferences of the trader. Some popular options include:
LegacyFX - A leading brokerage firm providing comprehensive trading solutions across a wide range of financial instruments, including forex, stocks, commodities, and indices.
eToro - A popular social trading platform that allows traders to follow and copy the trades of other successful traders.
Tickmill- A reliable and reputable trading broker with competitive spreads and a wide range of trading instruments, making it a good choice for experienced traders.
Is UM Capital Safe or Scam？
UM Capital currently has no valid regulation, which means that there is no government or financial authority oversighting their operations. Besides, the official website of UM Capital is inaccessible, indicating that the trading platform may have absconded. These make investing with them risky.
If you are considering investing with UM Capital, it is important to do your research thoroughly and weigh the potential risks against the potential rewards before making a decision. In general, it is recommended to invest with well-regulated brokers to ensure your funds are protected.
Market Instruments
UM Capital offers trading in wide range of financial instruments, covering various asset classes such as forex, indices, commodities, precious metals, stocks, and some of the most popular cryptocurrencies.
- Forex: UM Capital offers a comprehensive range of Forex pairs for traders to invest in, including major, minor, and exotic currency pairs. Foreign exchange, or Forex refers to the trading of currencies.
- Indices: Traders can invest in global stock indices such as the S&P500, Nasdaq, DAX30, and FTSE100 through UM Capital . Indices are calculated based on the market capitalization of the component companies.
- Commodities: UM Capita provides traders with access to a range of other commodities, including metals, agricultural products, and energy products like oil. Commodities are traded on the futures markets, and their values can be impacted by a variety of factors, such as supply and demand, geopolitical events, and weather patterns.
- Metals: The company offers investors the opportunity to trade precious metals such as gold and silver. Regarded as portfolio diversifier various metals such as gold, platinum and silver each present traders with a unique set of opportunities and benefits with prices rooted in demand and supply.
- Cryptocurrencies: The platform offers traders access to major cryptocurrencies such as Bitcoin, Ethereum, and Ripple. Cryptocurrencies present the opportunity to trade 24/7. Cryptocurrencies only exist in blockchain and are accessible through codes called private and public keys.
Accounts
UM Capital offers a range of account options designed to cater to the varying needs and preferences of their clients. These account types include the Basic account, the Bronze account, the Silver account, and the Gold account, each requiring different minimum deposits.
This is the entry-level account, with a minimum deposit requirement of €250. It is suitable for those who are new to trading or prefer to start with a smaller initial investment. Traders with this account can access UM Capital's trading platform and basic features.
The Bronze account requires a higher minimum deposit of €5,000. With this account, traders may gain access to additional features and services compared to the Basic account. It is often chosen by traders who have a moderate level of experience and are looking for more advanced trading capabilities.
The Silver account requires a minimum deposit of €10,000. It offers enhanced features and benefits compared to the previous account levels. Traders with a Silver account may have access to a wider range of trading tools, educational materials, and personalized support, making it suitable for those who want a more comprehensive trading experience.
The Gold account is the highest-tier account offered by UM Capital and requires a minimum deposit of €25,000. This account level typically comes with the most extensive range of features, benefits, and personalized services. Traders with a Gold account may have access to exclusive research reports, premium customer support, and other tailored perks.
Leverage
UM Capital offers a maximum leverage of 1:30 to its clients. Leverage is a common tool in financial trading that allows traders to control a larger position in the market with a smaller amount of capital. It works by borrowing funds from the broker to amplify potential profits or losses.
With a leverage ratio of 1:30, traders can trade with 30 times the amount of their capital. For example, if a trader has €1,000 in their account, they can potentially control positions worth up to €30,000. The advantage of leverage is that it can magnify profits, allowing traders to potentially earn higher returns.
However, it's important to note that increased leverage also amplifies potential losses. While leverage can enhance gains, it can also lead to larger losses and increase the risk of losing more than the initial investment. It's crucial for traders to fully understand the risks associated with leverage and implement proper risk management strategies to protect their capital.
Spreads & Commissions
UM Capital provides competitive spreads starting from as low as 0.1 pips for their clients. The spread refers to the difference between the buying and selling prices of a financial instrument. A tighter spread indicates a smaller difference between these prices and can result in lower trading costs for the trader. With UM Capital offering spreads as low as 0.1 pips, traders may benefit from accessing the market at competitive rates.
Besides, due to the unavailable website, there is no access to find out the commission of UM Capital.
Below is a comparison table about spreads and commissions charged by different brokers:
Note: The information presented in this table may be subject to change and it is always recommended to check with the broker's official website for the latest information on spreads and commissions.
Trading Platforms
UM Capital's website presents a range of images displaying a fully functional web trading platform, which creates an expectation of comprehensive trading services for potential users. However, upon completing the registration process and accessing the platform, users have encountered a significant discrepancy. Instead of the anticipated trading platform MT4, they are met with a simplistic chart that solely provides information on the current Bitcoin prices. This chart lacks essential trading functionalities, indicating that UM Capital may not possess the technical capacity to fulfill the services they promote.
Such a situation raises concerns about the platform's credibility and the accuracy of the information presented on their website. It is advisable for individuals considering UM Capital to exercise caution and conduct further research before committing any funds or providing personal information. Contacting their customer support to seek clarification on the available trading features and platforms could also be helpful in gaining a clearer understanding of their services.
See the trading platform comparison table below:
Customer Service
Customers can visit their office or get in touch with customer service line using the information provided below:
Telephone: +(352) 284 87 449
Email: support@unitedmarketscapital.com
Moreover, clients could get in touch with this broker through the social media, such as Twitter and Facebook.
Twitter: https://twitter.com/markets_united
Facebook: https://www.facebook.com/United-Markets-Capital-2032150550414527/
Conclusion
In conclusion, UM Capital is a financial trading platform registered in Luxembourg. However, it is important to note that UM Capital currently lacks valid regulation and oversight from government or financial authorities, which raises concerns about the transparency and safety of its operations. Additionally, the fact that the official website of UM Capital is currently inaccessible adds to the skepticism surrounding the platform. These factors indicate potential risks and make investing with UM Capital a risky proposition.
Frequently Asked Questions (FAQs)
