Cuarto Capital Review: Spanish Regulator Warns Against the Broker

Cuarto Capital might be new to the market, but its owner surely isn’t. It’s one of the offshore swindlers we’ve met before, banned all across the globe.

Let’s dive into this Cuarto Capital review and find out more. Be prepared to learn disturbing facts about the brokerage.

Is Cuarto Capital an Illegal Trading Fraud?

Cuarto Capital is owned by Nexus LLC, registered in 2021 in Saint Vincent and the Grenadines. However, SVG has no official regulator in charge of the Forex market. In fact, it’s instructing brokers to get a license in the country of service before even registering.

Since we already know Nexus LLC and its other scheme brands, including InvestPoint and BitFargo, we weren’t surprised to learn that Cuarto Capital has no regulations either. The brand operates illegally, just like those before it.

The company is soliciting EEA investors without complying with ESMA and is offering leverage of up to 1:300. Such leverage can put your capital at risk and cause you to lose 300 times quicker. And when it happens, you won’t be able to request assistance from the Financial Ombudsman or compensation from regulators.

Regulatory Warning Against Cuarto Capital Broker

In May 2023, the Spanish regulator, CNMV, officially banned Cuarto Capital. According to their warning, the brand is not authorized to offer financial services, including advising and Forex trading.

Knowing all the other warnings that the owner received, including those from German BaFin and Canadian CSA, it’s clear that you should stay away. Both the new brand and the old owner are a fraud.

Where Does the Broker Operate? – Countries Of Service

Cuarto Capital registered its domain in March 2023. It’s already widespread, lurking for clients in the following countries:

• Spain,
• Chile,
• UK,
• Sweden,
• Mexico.

The main regulator, from Spain, has already issued a ban. We expect others to follow, and your story can be the one to change the game and punish the fraudster.

Cuarto Capital Software Comparison

Cuarto Capital only offers basic WebTrader. Of course, the broker promises cutting-edge technology, a user-friendly interface, ultra-fast order execution, and more. In reality, you will get simple browser-based software whose only perk is the fact that it doesn’t require installation.

Comparatively, it cannot come near what you’d get with sophisticated terminals such as MT4, MT5, or cTrader. Each of these would allow you access to advanced functionalities, such as social trading, trading bots, and much more.

Of course, MetaTrader comes with a mobile app, unlike Cuarto Capital WebTrader.

What Assets Can I Trade?

You can trade in all five major markets, including:

• Forex pairs – EUR/USD, USD/JPY, EUR/HKD
• Commodities – gold, silver, natural gas
• Indices – AU200, NASDAQ, FTSE100
• Shares – Walmart, Netflix, Meta
• Cryptocurrencies – BTC, ETH, USDT

In addition, you can trade futures in commodities and shares. However, note that the broker is unlicensed and doesn’t disclose spreads, swaps, or other trading commissions.

Account Options Offered by Cuarto Capital

There are six different account types, all having different minimum deposit requirements. These are:

• Starting – $250
• Bronze – $5,000
• Silver – $15,000
• Gold – $25,000
• Platinum – $100,000
• ECN – $500,000

Only from the Gold account will you be able to access all trading assets. With the Silver one, you get lower spreads and a percentage on your initial deposit. Finally, only the last two types allegedly include personal meetings, which we’re not inclined to believe.

Can I Trade For Free?

Just like its counterparts from offshore, Cuarto Capital doesn’t enable a Demo account. Instead, you must pay the money before gaining access to any features. As you can already understand, it’s quite unfavorable because your money will already be trapped by the time you realize you have nothing offered.

Deposit and Withdrawal Methods

The brokerage didn’t explicitly mention available payment methods for a deposit or withdrawal. While we know the minimum deposit is $250, the minimum withdrawal sum remains unknown.

The T&C doesn’t elaborate much on the topic, making us question whether getting a payout is possible. Usually, scammers hide the payment options when the only one they have is a crypto transfer. Note that crypto is not subject to a chargeback, and you might have difficulties recovering your funds.

Using your credit card when transferring funds to an unverified merchant is always advisable. Then, you have up to 540 days to request a chargeback.

Bonus Clauses

Another concerning thing is a bonus clause. The company requires you to trade the total bonus amount divided by 5 in lots before being eligible for a payout.

Requests like this one are the main reason why regulators prohibit incentives. They’re trying to prevent illicit brokers from abusing their clients. However, Cuarto Capital doesn’t care much about regulatory demands.

I Was a Victim of the Cuarto Capital Scam, What Can I Do?

 Let us know if you find yourself scammed by Cuarto Capital or any similar brokerage firm. Our chargeback experts will gladly assist you with the matter. We’ll thoroughly evaluate cases and check whether you’re eligible for a refund.

If you deposited via a crypto wallet, our CipherTrace analysts could help by tracing your funds to a final wallet and helping you collect legal evidence for the dispute. Don’t give up. Book a free consultation now!