Beware! CaratCapital is an offshore broker! Your investment may be at risk.


Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.


There is an instantaneous feeling of doubt that overcame us the moment we opened CaratCapital. At first, it reminded us of a downgraded online casino, but then we were reminded that this is a broker, what with all the bitcoin imagery flying around. Even with the label of a broker, CaratCapital does not seem trustworthy. In fact, it now seems even less authentic. It’s all there, we don’t even need to look at the trading conditions to mold an impression of CaratCapital that will echo throughout the entire review. Sadly, our view of CaratCapital is anything but positive. There are way too many obstacles that stand in our way of appreciating the broker. Please read on for all the necessary details.

Even though we technically registered, the second step of the process did not allow us to continue. We just had to input some basic credentials, but after each try, the page only refreshed without telling us what went wrong. Ultimately, after 5 tries, we gave up. We can theorize that we were not let into a user area because the broker does not like us. If this were so, it would confirm that CaratCapital adapts one of the most popular broker scams, one that we have detailed in the last sections of the review.

But later we found a clause in the Terms and Conditions that the broker can deny an account to anybody without giving a reason.

This is unfortunate for both us and the review because without a registration we have to rely on the website with all the important trading and payment information. Anyway, CaratCapital is in fact a crypto-only broker, offering a range of digital coins to trade with, including bitcoin, ethereum, and ripple. CaratCapital’s website claim that in the future the broker is planning to include a range of CFDs like commodities, stocks, and bonds as its additional trading instruments. There are no disclosed spreads or leverages. The usual crypto spread centers around 1:5.

The website is available in English.


The two main regulatory assertions are in direct contradiction with one another. The first claims the broker to be regulated by the CFTC, while the second puts CaratCapital in the hands of CySEC.

The US global market is the most regulated one in the industry. The excruciating requirements of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) are revered by all FX players. One such requirement is for all brokers to hold a capital of at least $20 million. There are a number of other demanding prerequisites that must be met, like the First In, First Out rule (closing older positions, to open new ones, when trading with the same currency pair). We are 100% certain that CaratCapital is not regulated in the United States.

As for the proclaimed CySEC regulation, we only need to point our readers to the official CySEC warning towards CaratCapital:


Through the legal documents, the company confirms its illusory beliefs that it works under US laws and operates a legal forex business in the most demanding FX environment. However, at times the broker mentions CySEC, and that it actually functions under Cypriot laws. All empty promises. CaratCapital is UNLICENSED and a risk to all investors.

There is absolutely nothing one can gain from depositing in an unregulated broker. We urge readers to check for a license prior to investing. The FCA and CySEC are the most popular and some of the best regulators in the world. These two, among other superb overseers, have gained the reputation of being the best through years of regulating some of the world’s top brokers. Watchdogs employ a huge set of rules by which every single broker under them has to abide. They include minimum capital requirements, segregated client bank accounts, the guarantee of funds’ safety, etc. All users under the FCA or CySEC, are eligible for compensation, in case the broker at hand cannot pay its dues. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.


It is our belief that the firm does not come with a trading software. We believe so because the website offers a TradingView chart. The presence of this third-party chart is a reminder that the broker might be also using it as is “trading” terminal. These graphs are in no way connected to actual FX trading. They are just for show.


The website is very scarce where payment info is concerned. In fact, information on payments doe snot exits. There is no minimum deposit, no payment methods, no withdrawal means.

Whats’ more is that even the Terms and Conditions revealed nothing on payments, except for a couple of fees. We found a clause with three separate fees. The first is a withdrawal charge of 15 percent. Then there is a 6% commission for “accounts under closure”, which we suppose means that accounts that are closed with be feed by 6%. The last is a maintenance fee of 2%.

In case the user’s account becomes dormant, the broker has the right to close it. A dormant account is classified as one that has not seen any trading activity for more than six months. However, the account closer happens if an account has been inactive for more than 12 months.

Bear in mind that the broker has included an indemnification clause that limits its liability to nothing. If users suffer any sort of loss, the broker will not be held responsible for it. This is basically a clause that the broker can use when the user files for any legal actions against it.

CaratCapital is incredibly shady and is actually a scam. Every single cent you deposit here will be forever lost!

How does the scam work?

Most fraudulent brokers gain their reputation because of the usage of the scheme, the most popular scheme of all in fact. Its ultimate goal is to steal from users and continue doing so until the users sniff them out, or he or she gives up. The scam follows a number of simple steps, but it is worth noting that many unregulated brokers put their own unique twist on it.

The first step is to bait the user. This happens through the usage of online ads, that appear mostly on social media websites or other similar online sources. The scammer ads are distinguishable by their outrageous promises of wealth and profit through trading, investing, or binary options trading. These advertisements showcase a luxurious life and a care-free lifestyle.

Once a user falls for these tempting clicks, he or she will be asked to provide a telephone number or an email address. Giving these away means that the broker’s first wave of representatives will be contacting you. Their one and only goal is to make one deposit. Furthermore, some brokers choose their targets based on how easily manipulated they are.

An initial deposit means that you are knees deep into the scam. The time has come for the expert scammer, a.k.a the account managers. These are relentless, compelling, and at times charming. They can easily enforce their influence on a trader, and sooner or later this trader will be depositing a second, or third, or fourth time.

At some point during the scam, the user will start getting suspicious as to why she hasn’t been paid yet after only deposit for weeks on end. Every withdrawal request will be met with resistance, and depending on the broker the ways of refusal vary. Some might change your mind and solicit you to deposit more, others might close down the user account, or shut down the entire website. A popular method is to stall until the scammer can completely disappear.

What to do if scammed?

The best advice we can give for those that have been scammed is to file for a chargeback as soon as possible. All credit and debit card companies should have this option on the ready. Note that MasterCard and VISA have extended their chargeback period to 540 days.

Bank transfer payments mean that the scammer can potentially get access to your bank account, so it is crucial to change your password and user name. Another good piece of advice is to contact the bank itself and check with them if they have a ready to go plan for such circumstances.

As for crypto deposits, they most surely are gone. That is what it is paramount to remember never to invest in a shady broker through any sort of cryptocurrency.

A final piece of advice. Victimized users might stumble on recovery agents or agencies, who will promise to get your money back, but not before you pay them a hefty fee. Once the charge is paid, they will sooner or later disappear without helping you even one bit.

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