Overview
RED LION CAPITAL, a company registered in Seychelles, presents a rather unfavorable picture for potential traders and investors. Its regulatory status as a “Suspicious Clone Entity” immediately raises red flags about its legitimacy and trustworthiness. While the broker offers a maximum leverage of up to 1:100 and a variety of tradable assets including forex, stocks, and cryptocurrencies, the lack of educational tools and the absence of alternative customer support channels beyond limited email communication is concerning. Additionally, the fact that its website is down adds another layer of uncertainty and makes it difficult for potential clients to access essential information. As such, due diligence and careful consideration are crucial before engaging with RED LION CAPITAL in these circumstances.
Regulation
RED LION CAPITAL is currently listed as a suspicious clone entity operating with a Market Making (MM) license under the regulatory oversight of the Cyprus Securities and Exchange Commission. The license, numbered 299/16, is associated with Magic Compass Ltd and was issued on April 12, 2016. However, it is important to note that this license type does not permit sharing. The licensed institution, Magic Compass Ltd, is based in Limassol, Cyprus, with an address at Sarlo 9, Agios Athanasios, 4106. They can be reached at +357 25 023 880 and their email is info@magiccompass.com. As no expiry date is mentioned, it is crucial to exercise caution and conduct thorough due diligence when dealing with RED LION CAPITAL and its associated license information due to its suspicious clone status.
Pros and Cons
RED LION CAPITAL presents a mixed picture for traders and investors. On the positive side, the broker offers a range of CFDs, diverse account options, competitive leverage choices, and various deposit and withdrawal methods. However, there are significant drawbacks to consider. It operates under a regulatory cloud due to its suspicious clone entity status, which raises concerns about its legitimacy. Additionally, customer support is primarily limited to email, potentially resulting in delays and inconvenience. The absence of educational resources further restricts clients' ability to make informed financial decisions, and the pricing structure can be complex. Therefore, potential clients should weigh these pros and cons carefully before engaging with RED LION CAPITAL.
Market Instruments
The company offers a range of CFDs (Contracts for Difference) on its platform, including:
Forex (FX):
Description: Forex CFDs allow traders to speculate on the price movements of currency pairs without the need to possess the physical currencies themselves. These pairs consist of two currencies, with one serving as the base currency and the other as the quote currency. Traders can profit from both upward (going long) and downward (going short) price movements in these pairs.
Examples: Common forex pairs include EUR/USD (Euro/US Dollar), GBP/JPY (British Pound/Japanese Yen), and USD/JPY (US Dollar/Japanese Yen), among others.
CFD Stocks:
Description: CFDs on stocks enable traders to speculate on the price movements of individual company shares without owning the actual underlying stocks. This provides traders with the opportunity to potentially profit from both rising and falling stock prices.
Examples: CFDs are available for a wide range of individual stocks from various stock exchanges worldwide. Examples may include Apple Inc. (AAPL), Google parent company Alphabet Inc. (GOOGL), or Amazon.com Inc. (AMZN).
Crypto CFDs:
Description: Crypto CFDs are contracts that allow traders to speculate on the price movements of cryptocurrencies such as Bitcoin, Ethereum, Ripple, and more, without requiring them to own the actual digital assets. These CFDs provide a way to trade cryptocurrencies within the framework of traditional financial markets.
Examples: Common cryptocurrency CFDs include BTC/USD (Bitcoin/US Dollar), ETH/USD (Ethereum/US Dollar), and XRP/USD (Ripple/US Dollar), among others.
Account Types
The broker offers three tiered trading accounts: Gold, Silver, and Bronze, each tailored to meet the distinct needs of traders.
Gold Account:
Benefits: This account includes 24/7 live chat support, 1-hour withdrawals, a +50% bonus, a demo account, Copy Trading tools, Master class sessions, the first 3 risk-free trades, and a personal success manager.
Silver Account:
Bronze Account:
Leverage
The broker offers a maximum trading leverage of up to 1:100, allowing traders to control a position size up to 100 times their initial capital. High leverage can amplify both profits and losses, so it's essential for traders to use it cautiously and employ effective risk management strategies to protect their investments. Understanding the implications of leverage and trading according to one's risk tolerance and experience is crucial when utilizing this level of leverage.
Spreads & Commissions
The company employs a flexible pricing structure that involves spreads and commissions, which can vary depending on the specific financial instruments and trading accounts used.
Spreads: Spreads are commonly applied as trading costs and are dynamic, taking into account factors like market liquidity and competitiveness. The company reserves the right to adjust spreads, particularly during periods of increased volatility or market illiquidity.
Commissions: Commissions are charged for specific trading scenarios:
For unleveraged Cryptocurrency CFD positions, a commission ranging from 1% to 2.5% may apply.
Leveraged Cryptocurrency CFD positions may incur a commission of up to 5% of the transaction.
Swap Fee: Clients may also be subject to a swap fee for holding positions overnight, currently set at 0.07% of the position's face value. This fee calculation involves a fixed percentage and the Libor rate.
The company maintains the flexibility to modify pricing to adapt to market conditions. Clients can find details about these costs on the company's website under “General Fees,” and the company may provide prior notice of any changes in costs. Importantly, the absence of certain charges at one time does not preclude their application in the future. This pricing structure ensures transparency and allows clients to understand the potential costs associated with their trading activities.
Deposit & Withdrawal
Visa: Clients can use Visa cards to deposit funds instantly into their accounts. This widely accepted payment method offers a seamless way to fund trading activities.
Bitcoin: Cryptocurrency enthusiasts can utilize Bitcoin for both deposits and withdrawals. This decentralized digital currency provides clients with a secure and efficient means of managing their funds.
Ethereum: Ethereum, another popular cryptocurrency, is also available for deposits and withdrawals. It offers fast and secure transactions, catering to clients who prefer using Ether.
All Regions Covered: Regardless of their location, clients from around the world can take advantage of these deposit and withdrawal options. The company's services are accessible globally, ensuring inclusivity.
Instant Funding: Clients benefit from instant funding, allowing them to quickly access their deposited funds. This ensures they can initiate trades or investments promptly.
Up to 1 Hour for Withdrawal: Withdrawals are processed efficiently, with funds typically becoming available within 1 hour. This quick turnaround time provides clients with timely access to their withdrawn assets.
In summary, the company offers a range of deposit and withdrawal options, including Visa, Bitcoin, and Ethereum, with a focus on speed and accessibility. Clients can choose the method that suits their preferences and geographic location, ensuring a seamless financial experience.
Trading Platforms
MetaTrader 4 (MT4) is a widely acclaimed trading platform known for its user-friendly interface and robust feature set. Traders of all experience levels appreciate its intuitive layout, which can be customized to suit individual preferences. The platform's advanced charting tools empower users with a plethora of technical analysis indicators, line studies, and timeframes, enabling in-depth market analysis. MT4 also supports automated trading through Expert Advisors (EAs), allowing traders to implement automated strategies. Real-time price quotes, comprehensive trading history, and a wide range of order types contribute to making MT4 a versatile and powerful tool for online trading.
Customer Support
RED LION CAPITAL's customer service has limitations as it primarily relies on email communication at cs@rlcbroker.com. This singular contact method may not meet the needs of customers who prefer immediate assistance through phone or live chat, potentially resulting in delayed responses and inconvenience for those with urgent inquiries. Moreover, the absence of alternative contact channels may pose challenges for clients who value a range of communication options.
Educational Resources
RED LION CAPITAL's provision of educational resources is notably absent, which can be a disadvantage for individuals seeking to enhance their financial knowledge or gain insights into investment strategies. The absence of such resources may limit the ability of clients to make well-informed decisions about their investments and financial goals, potentially impacting their overall experience with the company.
Summary
RED LION CAPITAL falls short in several critical areas. Their regulatory status as a suspicious clone entity operating with a Market Making license raises concerns about their legitimacy. Additionally, their customer support is limited to email communication, which can result in delays and inconvenience for clients. The absence of educational resources further hinders clients' ability to make informed financial decisions. Overall, these limitations and potential risks make RED LION CAPITAL a less appealing choice for traders and investors.
FAQs
Q1: Is RED LION CAPITAL a regulated broker？
A1: RED LION CAPITAL operates with a Market Making license under the regulatory oversight of the Cyprus Securities and Exchange Commission, but it's associated with some suspicion due to its clone entity status.
Q2: What trading instruments are available on RED LION CAPITAL's platform？
A2: RED LION CAPITAL offers a range of CFDs, including forex, stocks, and cryptocurrencies like Bitcoin and Ethereum.
Q3: What are the account types offered by RED LION CAPITAL？
A3: RED LION CAPITAL provides three tiered trading accounts: Gold, Silver, and Bronze, each catering to different trader needs.
Q4: What is the maximum leverage offered by RED LION CAPITAL？
A4: RED LION CAPITAL offers a maximum trading leverage of up to 1:100, allowing traders to control larger positions, but it comes with higher risk.
Q5: How can I contact RED LION CAPITAL's customer support？
A5: You can contact RED LION CAPITAL's customer support through email at cs@rlcbroker.com, but be aware that alternative contact methods are limited.
