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Duhani Capital Review: Suspected Fraud

TraderKnows
TraderKnows
09-09

Is Duhani Capital a trustworthy forex broker? The review of Duhani Capital will cover several aspects including deposits and withdrawals, regulatory licenses, trading software, and the range of trading instruments offered.

Introduction to Duhani Capital

Duhani Capital claims to be an online financial brokerage company based in the Dominican Republic. Founded in late 2022, the company purports to offer a range of financial products including currency pairs, global stocks, commodities, precious metals, global indices, and cryptocurrencies. The broker's website only supports English but claims to provide customer support in seven languages. The minimum deposit amount at Duhani Capital is only $10, with a maximum of $5000. Why is Arc World Global Ltd marked as a scam platform? Let's delve into the details.

Duhani Capital's website

Is Duhani Capital Safe and Legitimate? Does Duhani Capital Have the Relevant Regulatory Licenses?

Duhani Capital is registered under the name Duhani Capital Ltd with the domain duhanicapital.com, which was registered in October 2022. The website claims the company is located in the Dominican Republic. However, after thorough investigation, no registration information about Duhani Capital Ltd could be found in the Dominican Republic's tax office or business registry. This lack of formal registration casts significant doubts on the platform's legitimacy.

The domain duhanicapital.com was registered in October 2022

No registration information for Duhani Capital found at the Dominican Republic tax office

Legitimate registration is crucial for any financial company. If a business fabricates its operating location or misrepresents its registration information, it is likely trying to evade regulation and may even be involved in unlawful activities. This is a significant warning signal for investors to remain highly alert.

Are Customer Funds Separate from Company Funds at Duhani Capital?

Duhani Capital does not clearly state whether its company funds are segregated from customer funds, which is an aspect investors should pay special attention to. The lack of clear information on fund segregation presents a significant risk to investors.

In regulated brokers, segregation of company and customer funds is a basic requirement to ensure the safety of client assets. Fund segregation means that client deposits are kept in separate accounts from the company's operating funds. This way, even if the company faces financial difficulties or bankruptcy, customer funds are not used to pay the company's debts or other expenses. In other words, the fund segregation system is designed to ensure the safety of customer funds, allowing clients to still retrieve their investment funds even in extreme scenarios.

However, Duhani Capital does not provide any clear information on this issue nor does it explicitly state whether it adheres to fund segregation standards. This could lead to the following problems:

  1. Lack of security for client funds: If the platform does not manage client funds separately from company operating funds, in the event of financial trouble or bankruptcy, client funds could be used to pay the company's debts, causing significant losses to clients.
  2. Lack of transparency: A legitimate platform should clearly explain its funds management and use policies and be subject to regulatory oversight. If Duhani Capital lacks transparency in this regard, it suggests potential risks in their funds management methods, or even deliberate evasion of regulation.
  3. Inability to trust fund safety: Since Duhani Capital is unregulated, clients have no legal recourse or financial regulatory authority to protect their funds. This means that in the event of fund-related issues, investors have almost no viable channels to recover their funds.
  4. Potential fund misuse: Without fund segregation, the platform may improperly use client funds, such as for company operations or other high-risk investments, further increasing the investment risk for clients.
Lack of information on fund segregation at Duhani Capital

Trading Products Offered by Duhani Capital

Duhani Capital offers a wide range of trading products across multiple asset classes, including currency pairs, global stocks, commodities, precious metals, global indices, and cryptocurrencies. This diversity is often a major selling point for attracting investors, especially those looking to diversify their investments. However, while these asset classes may seem to offer good investment potential, trading on an unregulated platform like Duhani Capital carries extremely high risks.

Trading products offered by Duhani Capital

  1. Currency Pairs: As a major component of the global foreign exchange market, currency pair trading boasts a huge market size and liquidity. Duhani Capital offers a wide variety of currency pairs, but the unregulated nature of the platform means that the trading process may be manipulated. Unregulated platforms may arbitrarily adjust spreads, especially during high market volatility, potentially leading to significantly increased trading costs for investors. Investors might also face risks of increased slippage, trade delays, or even order manipulation.
  2. Global Stocks: The stock market is a key choice for many investors, particularly when buying stocks of well-known companies globally. However, trading stocks on an unregulated platform like Duhani Capital makes it difficult for investors to get transparent market quotes. Legitimate platforms usually offer direct market access (DMA) and real stock market data, whereas Duhani Capital may use fake prices or delay order execution, affecting investor returns.
  3. Commodity Trading: Trading commodities like crude oil, natural gas, and agricultural products is also popular among investors. On an unregulated platform like Duhani Capital, investors might encounter data manipulation or sudden changes in margin requirements. Given the high price volatility of commodities, arbitrary changes in trade conditions by the platform at critical moments could result in significant losses for investors.
  4. Precious Metals Trading: Gold and silver are often viewed as safe-haven assets, particularly during times of global economic uncertainty. Duhani Capital offers precious metal trading services, but the platform's unregulated nature means there is no guarantee for fund safety. The platform might manipulate market volatility, causing investors to incur losses even when they should be making a profit. Legitimate platforms are overseen by regulatory bodies to ensure that precious metals prices are determined by market supply and demand rather than platform manipulation.
  5. Global Indices: Duhani Capital offers trading of major global indices such as the S&P 500 and NASDAQ. However, an unregulated platform might exploit time differences in index trading, manipulating prices or stipulating artificial slippage to prevent investors from seizing market opportunities. Legitimate platforms usually strictly adhere to market rules in index trading, but Duhani Capital might use non-transparent methods to influence trading outcomes.
  6. Cryptocurrencies: With the rise of the cryptocurrency market, more investors are looking to trade digital assets like Bitcoin and Ethereum for high returns. Duhani Capital offers various cryptocurrency trading options, but trading cryptocurrencies on an unregulated platform carries higher risks. Due to the market's inherent volatility and the potential for the platform to manipulate trading data or create technical issues artificially, investors face additional risks beyond market fluctuations.

Trading these financial products on a platform like Duhani Capital, which lacks regulation and transparency, leads to significant uncertainty. Typically, legitimate trading platforms operate under strict market rules, ensuring a relatively fair and transparent trading environment, and protecting investor funds and trading data under regulatory oversight. However, Duhani Capital's operational environment lacks any regulation, preventing investors from ensuring their trading environment is fair or that their funds are protected.

High-risk trading environment due to lack of transparency at Duhani Capital

Trading Software Used by Duhani Capital

Duhani Capital uses the MetaTrader 5 (MT5) trading platform, which is one of the most popular trading platforms globally, known for its powerful technical analysis tools, automated trading features, and flexible trading environment. For many traders, the functionality and stability of MT5 are crucial factors in choosing a platform. However, even advanced trading software cannot ensure investor safety on an unregulated platform. The use of MT5 by Duhani Capital does not cover up significant issues regarding its regulation and transparency.

Duhani Capital's trading software

MetaTrader 5 is regarded as an industry-standard tool due to its technological maturity and wide application. It provides advanced charting tools, technical indicators, and automated trading (Expert Advisors, EA) functions to meet the needs of traders from beginners to professionals. Additionally, MT5 supports multi-asset trading, including forex, stocks, futures, and cryptocurrencies, aligning with Duhani Capital's claimed diverse trading products.

MT5

However, MT5 is just a tool, and its robust features do not endorse the platform's compliance. Many scam platforms, like Duhani Capital, leverage this well-known software to attract investors, attempting to mask their lack of regulation and operational transparency by using industry-leading trading software. Investors should not let their guard down just because they see MT5 since the quality of the trading software has no relation to whether a platform is legitimate or regulated.

Even if traders use the advanced MT5 at Duhani Capital, they may still face risks of platform manipulation of trading outcomes. Unregulated platforms can manipulate the trading environment in the background, such as creating slippage, delaying order execution, altering market prices, or even faking price movements. On the surface, investors see real-time data and market trends on MT5, but actual trading results may already be manipulated by the platform.

Account Types Offered by Duhani Capital

Duhani Capital offers multiple account types to meet the needs of traders with different experience levels and investment preferences. From Starters accounts to Advanced Raw accounts, the platform's account design covers all levels from low funding thresholds to high-net-worth investors, with the minimum deposit amount starting at $10 and going up to $5000. This variety of account setups may appeal to investors of different tiers, but it also presents some potential risks, particularly in an unregulated platform environment.

Account types offered by Duhani Capital

Starters Account: Low-Threshold Entry

Duhani Capital's Starters account targets new investors just starting their trading journey, with a minimum deposit amount of only $10. This low threshold reduces the cost of market entry, allowing more investors to experience financial market trading. However, while the low initial capital requirement provides convenience for novice investors, high leverage (up to 1:1000) can amplify trading risks. For inexperienced traders, even slight market fluctuations can lead to rapid capital losses.

For novice investors, although this account type may bring potential high returns, it is crucial to be aware that high leverage may increase market uncertainty, especially in volatile situations.

Intermediate Account: Suitable for Intermediate-Level Traders

Duhani Capital's Intermediate account requires a minimum deposit of $100, suited for investors with some trading experience. This account type offers more flexible conditions including lower spreads and broader market product choices. Compared to the Starters account, the Intermediate account has further optimized trading costs and market access, fitting for those with some trading knowledge looking to increase their capital investment.

However, the high leverage provided by the platform still presents potential risks, and even experienced traders need to use leverage cautiously to avoid capital losses due to market volatility.

Advanced Account: Designed for Senior Traders

Advanced account requires a minimum deposit of $1000, mainly targeting investors seeking to trade on a larger scale under more competitive conditions. Such accounts typically offer lower spreads, faster order execution, and may include additional market analysis tool support. For seasoned traders seeking higher flexibility and quicker market responses, the Advanced account holds a certain appeal.

However, investors should be aware that on an unregulated platform, even if the account type offers superior trading conditions, the actual execution effectiveness and transparency might still be influenced by the platform's operational methods. Therefore, even for senior account users, investors should remain vigilant about potential market manipulation and order delays.

Advanced Raw Account: Low Spread Choice for Professional Investors

Duhani Capital's Advanced Raw account is its highest tier account type, with a minimum deposit of $5000, primarily aimed at professional traders seeking ultra-low spreads. This account type offers extremely attractive trading conditions, such as spreads as low as 0.6 points and high leverage ratios. It is designed for experienced investors who aim to fully exploit market volatility to achieve maximum returns.

Although the Advanced Raw account offers better trading conditions, investors still need to be especially cautious when using high leverage. High leverage (up to 1:1000), although it can magnify profits, also amplifies the risk of losses. For investors with substantial capital input, adverse market conditions can result in significant losses.

Multiple account types offered by Duhani Capital

Commission-Free Structure and Potential Hidden Fees

Duhani Capital claims to offer commission-free trading accounts, which is attractive to investors looking to reduce trading costs. However, when choosing a commission-free account, investors should remain vigilant about potential hidden fees. Unregulated platforms might compensate for costs through other means, such as widening spreads or introducing slippage, increasing trading costs despite appearing commission-free. Thus, investors should carefully read the platform's terms and monitor spread and fee changes during actual trading to ensure they are not being overcharged through hidden costs.

How to Open an Account?

Opening an account with Duhani Capital is straightforward; users simply need to visit the official website, fill out the application form, submit identity verification documents, and make an initial deposit to start trading.

How to open an account?

Trading Information of Duhani Capital (Including Spreads, Leverage, and Commissions)

Duhani Capital claims to offer highly attractive trading conditions, particularly in terms of spreads, leverage, and commission structure. The platform states that its spreads are as low as 0.6 points and that trading is commission-free, with leverage up to 1:1000. These conditions appear to provide a low-cost trading environment, especially appealing to investors looking to engage in large-scale trading with small capital. However, investors need to scrutinize these seemingly advantageous conditions, as on an unregulated platform, these tempting terms might conceal deeper risks.

Trading information of Duhani Capital

Deposit and Withdrawal Methods at Duhani Capital

Duhani Capital supports a variety of deposit methods including popular options like bank transfer, credit cards, and e-wallets like Perfect Money and UPI. Additionally, the option for cryptocurrency deposits provides more flexibility for investors, especially those looking to make quick, anonymous payments via blockchain technology.

Deposit and withdrawal methods at Duhani Capital

Although deposit methods are flexible, on an unregulated platform, these channels might hide some risks. For instance, while cryptocurrency payments offer quick settlement and anonymity, once deposited into the platform, the traceability and recovery of funds become almost impossible. Some platforms might exploit the irreversible nature of cryptocurrencies to shirk responsibilities in case of issues and refuse to refund the funds. Moreover, fees and processing times for electronic wallet and credit card payments might not be transparent, possibly leading to high fees without investors' awareness.

In terms of withdrawal, Duhani Capital also supports multiple channels, but the withdrawal process tends to be more complex and riskier than depositing. On regulated platforms, the withdrawal process is typically transparent, quick, and with reasonable fees. However, Duhani Capital’s withdrawal methods may come with hidden risks, posing numerous obstacles for investors attempting to withdraw their funds.

Investors might face many obstacles when trying to withdraw

Customer Support at Duhani Capital

Duhani Capital offers several basic customer support options, including email (support@duhanicapital.com), phone (+355 524 20144), and 24/5 live chat services. While these contact methods seem to cover common customer service needs, relying solely on these channels can bring numerous issues, especially when dealing with complex account problems or urgent withdrawal requests.

Customer support at Duhani Capital
  • Email support delays: Contacting the platform via email is usually effective for non-urgent issues, but for urgent matters like account freezes or fund withdrawals, email response times are often slow. Investors might have to wait days or even longer to receive a reply, which can lead to significant losses during market volatility.
  • Phone service limitations: Duhani Capital’s phone support appears to be an important contact method for international customers, but its limitations, such as time zone differences (potentially not supporting 24/7) and possible language barriers, may hinder timely assistance during emergencies. Additionally, investors usually expect quick resolutions during phone calls, but on an unregulated platform, phone customer support might adopt evasive attitudes, delaying problem resolution, especially for fund withdrawal issues.
  • Effectiveness of live chat: Although live chat provides an instant communication channel, it is not available 24/7. Unregulated platforms often use automated response bots for initial inquiries, offering limited actual human support. Complex or urgent issues may not be effectively resolved through live chat, as this service often acts as a “buffer” to delay customers.

Educational Resources Provided by Duhani Capital

Duhani Capital’s website features a blog platform as an educational resource for its traders. These blog posts cover a range of global capital market topics, aiding investors in market analysis and improving their trading decisions. Recent articles discuss employment data, interest rate adjustments, and reports on manufacturing and services. While these blog articles might provide some market insights, investors should remain cautious in relying on this information for trading decisions, especially given the platform's dubious legitimacy and transparency.

Educational resources provided by Duhani Capital

Overall, while Duhani Capital offers a variety of financial products, flexible account types, and educational resources via blog posts to create a comprehensive trading environment, its lack of regulation, questionable fund safety, and limited customer support pose significant risks to investors. Simplified account registration, high leverage, and low spreads may seem appealing, but they may conceal hidden fees and market manipulation risks. In an unregulated platform, fund security cannot be ensured. Investors should be particularly cautious and avoid trading on such platforms, opting instead for regulated, transparent, and secure trading platforms to better safeguard their funds and ensure fair trading.

Currently, Duhani Capital is marked as “suspected scam” on TraderKnows.

Currently, Duhani Capital is marked as “suspected scam” on trading circle encyclopedias.

References

1. Organizations: Duhani Capital

2. WIKIPEDIA: Fraud

3. Glossary: Financial Fraud

4. Glossary: MT5

Business cooperation with Telegram Eng

Business in English

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

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Forex brokers

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