Fostercap – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Fostercap - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$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://fostercaps.com
Founded: 2023
Regulations: Not Regulated
Languages: Spanish, English (Google Translate)
Deposit Methods: Cryptocurrencies, Bank Wire, Credit Card, PayPal, Skrill, Neteller
Minimum Deposit: Not Specified
Free Demo Account: Not Available
Number of Assets: Not Specified
Types of Assets: Cryptocurrencies
Trading Accounts and Conditions
Fostercap offers their clients the following types of trading accounts:
- Foster Caps Trader 3
- Fostercaps Pro
- IA (automatic trading account)
The broker does not specify what trading conditions they have.
Fostercap – Advantages
There are no advantages to trading with Fostercap.
Fostercap – Disadvantages
Here are all the reasons why we would discourage all traders from dealing with Fostercap:
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Unregulated and Blacklisted
The first thing that tells us that a broker is not legitimate is their lack of regulation. And Fostercap is definitely not regulated. Here is how we know.
Fostercaps claims to be owned by Foster Capital LLC, a company that is a part of the Fosters Financial Limited group of companies. The broker also claims that their companies are duly registered with and regulated by international authorities – but the broker does not specify which authorities.
The broker claims to be based in England and also claims that they have permits to operate in the EU, in Asia, the United States and in Latin America. The broker also claims to have administrative offices in all of these locations (but no cities or exact addresses are mentioned).
All of this information looks very legitimate, until you actually realize that this broker has given no details whatsoever. Legitimate brokers will provide all details – their company name, their physical addresses, contact numbers, their registration and license numbers and the name of the authority that has licensed them to operate.
With this broker, we have one single registration number (09290950), but Fostercaps does not bother to tell us which authority that registration number belongs to.
We checked their regulation status with all the relevant authorities to make sure. The Financial Conduct Authority of the UK has no record of this broker. The US needs brokers to be authorized by two separate authorities – the National Futures Association and the Commodity Futures Trading Commission and this broker has authorization from neither. For the EU, an authorization from any one of the member nations is good.
Since this website was in Spanish, we checked the Spanish Comisión Nacional del Mercado de Valores (National Securities Market Commission). And we found out that not only does this broker not have authorization from the CNMV, but this regulator has actually blacklisted Fostercap for operating in their jurisdiction without a license.
Our entire investigation has revealed that we are dealing with 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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Issues with Trading Platform
We were able to successfully register with Fostercap, but we were not able to access their trading platform. This is because every time we tried to use that web-based software we only kept getting error messages.
Considering the fact that the trading platform is a broker’s only product offering, you would expect it not only to function but also be of excellent quality. Like the MetaTrader 4 or MetaTrader 5 platforms.
However, Fostercap’s trading platform is not only rudimentary in design, it doesn’t even work.
The lack of a good trading platform – or one that works – is a clear sign that this broker is a scammer.
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Lack of Trading Conditions
Along with the trading platform, the key service offering a broker has for their clients is their trading conditions. These are the conditions under which you can use their trading platform – the spreads and commissions which decide the cost of trading with the broker, the leverage or level of risk that you can take with this broker, the order execution methods and so on.
All of these trading conditions together will help traders decide whether it would be advantageous to trading with a broker or not.
Fostercap has no trading conditions whatsoever. And this is clear proof that this broker is not legitimate.
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Investment Plans Offered
Instead of trading conditions and trading accounts, what you get from this broker are investment plans. So, you basically deposit your money, and this broker supposedly invests your money for you, with promises of high returns.
This type of model is something that you will see only scammer use; legitimate brokers will never use investment plans. They offer structured trading accounts, each of which have specific trading conditions associated with them.
Scammers, on the other hand, will promise to take care of your money for you – the way that Fostercap does. In fact, this broker even has a separate investment plan for Artificial Intelligence trading!
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Issues with Payments
Fostercap claims to offer their clients a variety of payment options – Bank Wire, Credit Card, PayPal, Skrill, Neteller, and Cryptocurrencies. However, there was no way to verify their real payment methods since we did not really make a payment.
Furthermore, we also have issues with their withdrawal policies. The minimum withdrawal requirement is $100 for most payment methods, except for wire transfers, where the withdrawal requirement is $250. There is a trading turnover requirement too; you need to have a trading turnover of at least $200 if you wish to withdraw your funds. If you do not have that amount then you cannot withdraw your money at all!
The broker does state that there is a withdrawal fee, but the amount varies depending on the withdrawal method. So, if you do a wire transfer, you need to pay a $50 withdrawal fee. Credit card withdrawals incur a $25 withdrawal fee plus a $10 processing fee. eWallets have a $25 withdrawal charge.
Such heavy charges are not fair and you will not find such hefty charges when dealing with legitimate broker.
Conclusion
Fostercap is a scammer that has been blacklisted by one of the top regulators in the world; they cannot be trusted.
Fostercap
Pros
- MT4 and MT5 Platforms Available
Cons
- Unregulated and Blacklisted
- Issues with Trading Platform
- Lack of Trading Conditions
- Investment Plans Offered
- 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.