Cuarto Capital – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Cuarto Capital - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2023
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://cuarto.capital
Founded: 2021
Regulations: Unregulated
Languages: English, Russian
Deposit Methods: Bank Wire, Credit Cards, PayPal, Skrill, Neteller, Cryptocurrencies
Minimum Deposit: $250
Free Demo Account: Not Available
Number of Assets: Not Specified
Types of Assets: Forex, Commodities, Cryptocurrencies, Indices, Stocks
Trading Accounts and Conditions
There is conflicting information about the number of trading accounts that Cuarto Capital offers their clients. In one section, the broker states that they have 3 types of trading accounts. However, in their Accounts page, the broker has a table that lists 6 different types of trading accounts:
- Starting: The minimum deposit is $250. Spreads are basic.
- Bronze: The minimum deposit is $5,000. Spreads are basic.
- Silver: The minimum deposit is $15,000. Spreads are average.
- Gold: The minimum deposit is $25,000. Spreads are reduced.
- Platinum: The minimum deposit is $100,000. Spreads are low.
- ECN: The minimum deposit is $500,000. Spreads are minimum.
There is specific number given for the spreads. On their home page, the broker mentions a leverage of up to 1:300, but beyond that, there is no other information on their trading conditions.
Cuarto Capital – Advantages
There are no advantages to trading with Cuarto Capital.
Cuarto Capital – Disadvantages
Cuarto Capital is a scammer and here are all the red flags that prove it:
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Unlicensed Broker
The first sign of a broker’s scam is their lack of regulation. Regulated brokers clearly mention their corporate and regulation details: their company name, where they are located, their contact information and their license and regulation numbers.
With Cuarto Capital, there is information at all on their website. It is only when you check their Terms and Conditions that you find out that this online broker is owned by a company called Nexus LLC, which is based in St. Vincent and the Grenadines (SVG).
Until recently, brokers registered in SVG had a free hand do whatever they wanted as the SVG FSA (Financial Services Authority) has no regulations in place for forex brokers. Recently, due to the exponential increase of scammers in their jurisdiction, the SVG FSA has put in place a new rule – that all brokers must be regulated by another financial authority before they will be allowed to register their companies in SVG.
Now, Cuarto Capital has not provided any other proof of regulation, so we can only assume that this broker is not regulated at all. This means that this broker is operating illegally and is therefore a scammer.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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Blacklisted by CNMV
Cuarto Capital’s scam has been noticed by one of the top financial regulators – the Spanish CNMV. The Comisión Nacional Del Mercado De Valores has issued a public warning against this broker as they have been operating without the regulator’s authorization. And since the CNMV is a part of the European Union, we know that this broker is operating illegal in the entire region. And this clearly proves this broker’s dishonestly and scam operation.
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Poor Trading Platform
Cuarto Capital offers us a very basic, web-based trading platform, one that we have seen repetitively – being used by other scammers. This broker also states that they offer a desktop version of their platform. We were able to download this terminal, however, when we checked the registration details, we found out that this platform is owned by a different company altogether.
Since the trading platform (along with the trading conditions) is a broker’s key offering, regulated and legitimate brokers ensure they offer their clients the best software. This means offering either the MetaTrader 4 or MetaTrader 5 platforms. Many brokers offer both! These two platforms are so easy to use that they make trading intuitive. Added to that, there is a plethora of tools and functions that will keep even the most discerning trader happy.
The lack of a good trading platform is a clear red flag that a broker is not quite honest.
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Issues with Trading Conditions
Not only is this broker’s trading platform of poor quality, their trading conditions are skewed and incomplete. We know that the minimum deposit they ask for is $250 which, while still within industry averages, is on the higher side – especially when you consider the number of excellent brokers what allow for much lower deposit amounts, some even as low as $10.
As for the spreads, the broker does not mention them anywhere on their website. We had to check their trading platform to get that information. And we found out that the EURUSD pair has a spread of 2.6 pips. The GBPUSD spreads are 3.2 pips and the JPYUSD spreads are 2.4 pips. These spreads are well above market standards, which range from 0.5 to 1.5 pips. These spreads, along with the commissions decide the cost of trade. We have high spreads here, but no information on commissions. So, we can say that the cost of trading this broker would be extremely high – we just don’t know how high!
The leverage offered by Cuarto Capital is a maximum of 1:300. Which is illegal in all EU countries, in the UK as well as in Australia. Most strongly regulated jurisdictions now have rigid limits on how much leverage can be offered, and the 1:300 number is beyond all those limits.
Other trading conditions are not mentioned at all. This lack of information tells us that we are dealing with a scammer.
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Issues with Payments
While Cuarto Capital advertises multiple payment options, we were not allowed to verify them until we have completed the broker’s own account verification process. Since we were unwilling to do so, we do not know what payment options actually exist.
We also need to point out that this broker has not given any information about their withdrawal policy. So, we do not know what the minimum withdrawal amount is, whether there are fees, etc.
Conclusion
Cuarto Capital is not safe to do business with. This broker is a scammer.
Cuarto Capital
Pros
- None
Cons
- Unlicensed Broker
- Blacklisted by CNMV
- Poor Trading Platform
- Issues with Trading Conditions
- Issues with Payments
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
eToro is a multi-asset platform which offers CFD and non CFD products. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.