Beware! CarterFS is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
CarterFS is a unregulated forex and CFD broker offering over 50 forex pairs and many CFDs on a web based trading platform and a leverage of up to 200:1.
CFD trade is offered with lots of assets including silver, palladium, gold and copper, commodities like cocoa, coffee, corn, cotton, orange juice, soybean, sugar and wheat, indices, stocks, ETFs, bonds and a selection of crypto coins namely Zcash, Ripple, Monero, Stellar, Tron, Qtum, NEO, Litecoin, IOTA, Ethereum, Ethereum Classic, EOS, Dash, Bitcoin, Bitcoin Gold and Cardano.
And among the forex pairs we came across many exotic currencies, including Hong Kong Dollar, Norwegian Krone, Swedish Krona, Danish Krone, Hungarian Forint, Israeli Shekel, Mexican Peso, Polish Zloty, Russian Bubble, Chinese Yuan, Singapore Dollar, Turkish Lira and Soth African Rand.
And even thought the benchmark EURUSD spread floated about 1,4 pips – 1,5 pips, which is considered acceptable, we remain reserved about CarterFS as their regulatory status remains more than shady.
CarterFS regulation & safety of funds
CarterFS is owned by SolutionsCM LTD a company that is supposedly based in Bulgaria, but without a license from the local Financial Supervision Commission (FSC) or for that matter from any other official financial regulator such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).
That means CarterFS is not allowed to offer its services on regulated markets like the European Union, the US, Australia and Japan, and all funds invested thorough their website are completely unprotected by investor compensation schemes, such as the FCA backed Financial Services Compensation Scheme (FSCS) in the UK, which guarantees traders up to 50 000 GBP of their investment or the CySEC backed Investor Compensation Fund (ICF), which guarantees up to 20 000 EUR.
Also, do keep in mind that unfortunately most unregulated brokers are simply involved in scam, as the safety of your investment with such brokers depends solely on the integrity of the people who run them.
CarterFS deposit/withdrawal methods and fees
CarterFS accepts money in various ways – with credit cards like VISA and MasterCard, bank transfers and e-wallets like QIWI Wallet, WebMoney and Yandex. They do not mention what is their minimum deposit requirement, but most brokers usually ask for an initial investment of about 250 USD.
Here we should note, however, some rather unusual withdraw conditions we came across, while reviewing CarterFS Client agreement. For example in case you have accepted a trading bonus you will not be allowed to withdraw anything from your account until you reach a minimum trading volume of at least 30 times the amount of the bonus plus your deposit.
And on top of that clients who have received a bonus and wish to withdraw before they have reached the minimum trade volume requirement, will be subject to a penalty fee of up to “30% of the remaining trade volume ratio applied to the balance”.
Also, the Company reserves the right, at its sole discretion to impose volume or other limits on customer accounts.
Again, all that conditions are highly unusual and lower the credibility of the broker even further
How does the scam work?
The scam scenarios are elaborate and often involve the so called robo scam web site like Crypto Revolt and Bitcoin Evolution. Those sites are especially designed to appeal to inexperienced investors with promises of easy and risk free profit. And all you have to do is fill a simple registration form, leaving your e-mail and phone.
Next, you will be automatically transferred to the web page of a unregulated offshore broker, where you will have to deposit 250 USD to start trading.
And your first trades will most probably be amazingly successful. That, however will be the result of a manipulation. Scammers just want to make sure you stay hooked and willing to invest even more. And you will surely receive a phone call from your “senior account manager”, who will professionally explain that if you really want to make some real money you will definitely have to invest more – at least 10 000 USD.
And chances are you will not know you have been scammed until the very moment you decide to withdraw some of your funds. Than it will suddenly turn out you are not allowed to withdraw anything because you have not covered some minimum trade volume requirement, you have agreed with without realizing, when you have accepted your welcoming bonus in the first place. Certainly it could be something else, but in the end it will all come to the same – you will not see a single dollar back.
What to do if scammed?
Probably the only chance to get some of your money back is to file for a charge back with your credit card company. Fortunately under their new anti scam policy VISA and MasterCard will allow you to do that within 540 days.
Besides, if for any reason you have given away your credit card number or online banking password, immediately block your credit card and change the password.
And finally, do not waste time and money with the so called recovery agencies. The only thing that will happen is, they will take some payment in advance and in the end you will be left even deeper into the red.