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

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Carax FX is a fake broker targeting Italian and Spanish speaking audiences. In this review we will do a careful fact check to prove that this is not a legitimate forex and CFD broker. We will also offer some credible alternatives through which you can invest with peace of mind.

Carax FX Regulation and safety of funds

Guaranteed FundsSegregated AccountsNegative balance protection
Carax FX
UK regulated brokers£85 000YesYes
EU regulated brokers€20 000YesYes
AU regulated brokersNoYesYes
US regulted brokersYesYesNo

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

Carax FX  does not provide an exact contact address and does not provide access to Customer Agreement, Terms and Conditions or other documentation required by law.

The website mentions the company Carax FX RGB Ltd, but we have not found any evidence that such a legal entity actually exists.

Carax FX  claims to have offices in Italy and France, and on the home page of its website we see the logos of financial regulators in Italy and Spain.

However, a check of the records of these regulators reveals no licence, but a warning to investors that Carax FX  is not authorised.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

There are many benefits for retail traders to trade through a licensed broker in the EU. These brokers must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.

All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. EU forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.

Carax FX Trading software

Analytical toolsAuto tradingCustom indicatorsMobile apps
Carax FX
MT430+ indicatorsAndroid and iOS
MT550+ indicatorsAndroid and iOS
cTrader40+ indicatorsAndroid and iOS

We see images of an unspecified trading platform on the Carax FX website, but have not been able to ascertain whether any trading software is available. At the time of writing of this review it was not possible to register a new account. Financial scammers sometimes prefer to handpick their potential victims through social networks and online forums, which is why they do not allow free registration. Genuine brokers allow easy Demo account creation.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

Carax FX Trading instruments

CurrencyStocksIndicesCryptoCommodities
Carax FX
XMYesYesYesYesYes
FBSYesYesYesYesYes
FXTMYesYesYesYesYes

Carax FX  advertises trading in all major asset classes. But as has been demonstrated, this shady website has no legal authorization to facilitate trading in financial instruments.

Carax FX Spreads and cost of trading

Carax FXXMFBSFXTM
Spread EURUSD0.611.1
Spread GBPUSD1.31.21.4
Spread USDJPY1.31.21.4

Carax FX provides almost no specific information about the terms of the trade it claims to offer. Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.

Carax FX Maximum leverage

ForexStocksCryptoGoldIndices
Carax FX200:140:1200:1200:1200:1
UK regulated brokers30:15:110:110:1
EU regulated brokers30:15:12:110:110:1
AU regulated brokers30:15:12:110:110:1
US regulated brokers50:1

Carax FX advertises a leverage of 1:200, which is further proof that we are dealing with a scam and not with a legitimate broker operating in the European Union.

The European Securities and Markets Authority (ESMA) and accordingly all EU regulators limit leverage to 1:30 for major currency pairs, 1:20 for non-major pairs, gold and major indices, 1:10 for other commodities and non-major indices, and 1:2 for cryptocurrencies.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

Carax FX Deposit and withdrawal methods

Due to our inability to register an account, we were unable to ascertain what payment methods Carax FX uses. Experience has shown that fraudsters direct their potential victims to cryptocurrency transactions that do not allow refunds to be requested.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

Carax FX Minimum deposit

Carax FXXMFBSFXTM
Minimum depositN/A$5$10$5

The leading brands in the industry offer beginner traders starter accounts with a very low minimum deposit. You have no good reason to take chances with shady brokers like Carax FX.

Carax FX Withdrawal requirements

Trading volumeFee/Tax on withdrawalMinimum withdrawal
Carax FXNot specifiedNot specifiedNot specified
UK regulated brokersNoNoNo
EU regulated brokersNoNoNo
AU regulated brokersNoNoNo
US regulated brokersNoNoNo

The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet  withdrawal terms.

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