Review of CedarFX Forex broker – Is it a scam broker?
CedarFX is one of the new Forex brokers online. As we found, many people are curious about whether it is a legit Forex broker or not. To find an answer to this question, we have decided to review CedarFX in great detail, and we found that this Forex broker has some major problems that traders should know about.
For starters, the company claims that it is not aimed at any specific jurisdiction, and it strives to have world-wide popularity and success. The thing is, for a broker to be successful at this, it would need to be licensed by at least a few regulatory agencies.
We tried to find the regulatory status of the company, but the only thing that we were able to find is that it is an off-shore company, registered in St. Vincent and Grenadine, which means that it simply does not have the right to offer its services in a number of countries around the world.
But, there is more than just the regulatory status of the company that makes us concerned. Follow our review of CedarFX broker to find out how this company is running a very dangerous scam.
CedarFX review – Regulations
Forex trading has become very popular in recent years, but many challenges have come with this popularity. One of the biggest problems that traders are facing today is scams. In this situation, one of the few things that can be a guarantee of your safety is regulations.
There are many regulatory bodies around the world, some of them safer than the others. This Forex broker is not regulated by any of the leading regulatory agencies, which is a huge problem. In general, getting a license is not that hard. Although it can be challenging, if a broker is ready to provide any necessary documentation proving that it is safe and secure, it should not be that hard to get a license.
If a company decides to not have a license, it means that they are doing something shady, in most cases. We believe that it is the case for CedarFX, which claims to be striving to become a leader in the Forex market.
As we were able to find, the Forex broker is actually registered in St. Vincent and Grenadine, which means that it is an off-shore company. This infamous jurisdiction is known for its lack of adequate and appropriate financial regulations, which means it a perfect place for scammers.
The jurisdiction actually has a local financial authority, SVGFSA, however, the services of this regulatory body is simply not enough to make the market safe for traders. It does not even give out licenses to brokers, nor does it control their activities.
We believe that because of the lack of regulations, Forex trading with this broker is simply not safe enough for traders. By trading with this company, you are opening yourself up to many risks, and you might be in danger of losing a lot of your hard-earned money.
Review of CedarFX – Major offerings
While reviewing this Forex broker, we were able to find that it works very hard to attract as many people on their platform as possible, which is another sign that it might be a scam broker. The company claims that it offers traders direct access to global financial markets and more than 170 tradable assets. CedarFX claims that their commissions stand at 0%.
Now, this is something that further makes us believe that this broker is a scam. Claiming to offer traders 0% commissions and super-tight spread is almost impossible. The thing is, for Forex brokers, one of the only ways to make an income is through commissions and spreads.
If a broker claims that they are not charging any amount of spreads or commissions, it means that they are just trying to attract as many people as possible. After you start trading, you will notice that there actually are some commissions being charged on your account, you might even lose all of your deposits at once. When you feel like some offerings of the broker are simply too good to be true, in most cases, they are.
When it comes to trading accounts, you can see that there are only two types of accounts available at the broker. in reality, these accounts can’t even be called ‘account types’. They are just two things that the broker promises will do with your money. The first one is the ‘No Commission Account’.
The broker promises you that you will be able to make the most of your money, which, we believe is not true at all. This no commissions, perfect account, in our opinion, is a way for the company to attract as many people as possible and take their money away.
Another account that this company offers is the Eco Account. This scam goes as far as promising that it will plant a tree for you if you pay $1 as a ‘special commission’. The company claims that it is ‘passionate about giving back to the community’, which, we believe, is another lie, to make them look professional.
When it comes to the actual differences between these two account types that might have been important for traders, the broker simply does not say anything. The company prefers to tell its clients that it would plant a tree, rather than the actual Forex trading services that each of these accounts might offer.
The customer support team of CedarFX
While reviewing CedarFX, we decided to take a look at the customer support team of the broker. When it comes to Forex trading, one very important aspect is that you should always be able to contact the support team. The thing is, there might be some problems when you trading Forex, and having a reliable support team is a huge help.
Sadly, we tried contacting the support team several times, once, through the official form on the website, but we received the answer only a few hours after. The answer had nothing to do with our original question, which means that they did not even read it.
As for the live chat, although it got back to us faster, they were not able to provide us with any information at all. This means that even if you manage to somehow trade with this Forex broker without losing all of your money, you will have a very hard time coming over any problems that you might encounter.
CedarFX broker review – the website
The website of this company is useless. While working on our review, we tried to find different types of information on the website without any luck. First of all, we could not find information about the regulatory status of the company, about the team behind the broker, and about any other aspect that might be important for traders.
This leads us to believe that this Forex broker is a scam and they are not even trying hard enough to make themselves look legit. The website looks very bad, the colors are weird and it looks like something that anyone could create in under an hour.
Is CedarFX a scam broker?
After reviewing this company and going through the major details about them, we believe that this Forex broker is actually a scam. Although it claims to be offering industry-leading services, it is not licensed by any trustworthy Forex broker in the market. We do not recommend anyone using this Forex broker.
This company is trying very hard to attract as many people as possible by offering them unrealistic services. If you want to start trading, try to look for other Forex brokers that are well-regulated and offer you a safe and secure environment for Forex trading.