Reviewing CXM Direct – Can this broker be trusted?

Reviewing CXM Direct – Can this broker be trusted?

Starting capital

$5

Gearing up to

1:2000

Licensed by

MFSC

Software

MT4

Choosing the right Forex broker is a very important step towards success in the market. With so many Forex brokers available in the Forex trading market, it can get very overwhelming for a beginner and experienced traders alike to find a company they can trust.

Today, we are going to review CXM Direct, one of the Forex brokers that claim to be offering safe and secure services to their clients. However, after doing throughout research about the offerings of the Forex broker, we were able to find several things that lead us to believe that there are some reasons to avoid this Forex broker.

Apart from the actual problems that the broker has, we were able to find several forums where people have complained about the offerings of CXM Direct. So, follow our detailed CXM Direct review and find out everything you should know about this Forex broker.

CXM Direct reviewed

CXM Direct – Safety & Security

It is vital for Forex traders in the market to ensure that at any moment of trading, the safety and security of their hard-earned funds is their top priority. No matter which broker you decide to use, the first thing that you should check is how safe it is for you to use and what are guarantees that the broker has for your safety.

Usually, one of the things that can help you find safe Forex brokers is to take your time and learn about the regulations and trading requirements that the broker has to follow. CXM Direct claims that it offers services to countries and jurisdictions like the Asia Pacific, the US, and Europe.

But, the fact of the matter is that for a Forex broker to be able to offer services to jurisdictions such as the EU and the US, it is required to be licensed by the regulatory agencies of these countries. This is where things get a bit complicated about CXM Direct. While working on our review of CXM Direct, it was very hard to find any information regarding the regulatory status of the company on their official website.

Also, on its official About Us page, the broker claims that it offers services to the citizens of the US. But, if you scroll down just a bit, the broker lists some of the countries where it restricts services. Among these countries are USA and UK. The information provided by the broker simply does not add up, which leads us to believe that CXM Direct is a scam.

Regulations of CXM Direct

A very confusing part of the way this broker functions and offers services is its regulatory status. As we were able to find out from the website of the Forex broker, the company is registered in the UK, under one of the leading Forex regulators in the market – the Financial Conduct Authority.

At first, this might sound like a great thing, leading to many believing that this is a legit Forex broker. But, when you scroll down just a bit, you can see that the broker lists the United Kingdom among the countries where it does not offer services. Once again, the things that the broker claims on its official website simply do not add up. This is a sign that the broker is lying about the regulatory status and traders should not trust the things the broker claims.

The broker also claims that it is also regulated by the Financial Services Commission of the Republic of Mauritius, having the Investment Dealer License. While having a license might be an advantage, it being from Mauritius does not really make any difference.

The regulatory agency of Mauritius is known for having a very light regulatory framework, which does not guarantee the safety and security of Forex traders. In fact, there have been several instances over the past few years when brokers having a license from Mauritius were found for practicing fraud.

Review of CXM Direct – Offerings

The process of finding a trustworthy Forex broker usually looks something like this: understanding the safety and security standards of the Forex broker, checking out the offerings, deciding which account type is a better fit for you, opening an account, depositing funds, downloading the platform of your choice, and start opening trading positions.

We have already discussed the regulatory framework that the CXM Direct claims to be following, now it is time to move on to other factors that leads us to believe that this broker should not be trusted.

CXM Direct offerings review

When checking out the information about the offerings of the broker, the information that CXM Direct provided on their website is very inconsistent and vague. For example, on the main page of the Forex broker, you can see that it claims to be offering leverage up to 1:1000. But, on the pages, this particular information is different. In one of the pages, the broker claims to be offering leverage of 1:2000.

Now, it does not really matter which one of these is true. Offering such high leverage is something that not many Forex brokers do anymore, the main reason for this are the risks that are associated with offering such high leverage to Forex traders. Also, it is pretty much restricted in the majority of the jurisdictions around the world to offer traders leverage of over 1:30, or 1:50.

However, the bigger problem is the inconsistency of the information that is provided by the broker. It is very common for Forex scammers to pay very little attention to their websites. Usually, they are just trying to get as many people as they can without having to spend too much time on it.

Trading Assets of CXM Direct Reviewed

According to the information provided by the broker, there are 6 different asset classes available for Forex traders. Among them are cryptos, energy, Forex, indices, baskets, metals, and stocks. The broker claims that these assets are offered thanks to the CFD instruments.

While these offerings might sound very exciting and such access to so many different markets might, for some people, be a good idea, you should not forget that you are dealing with a broker that gives you information that simply does not add up.  One of the only advantages of the broker is the trading platform that it offers, the MetaTrader 4. MT4 is known for being one of the best trading platforms around the world, but even this does not help CXM Direct.

Trading Conditions of CXM Direct

One of the most common things that traders are looking for in a new Forex broker is good trading conditions. This includes low spreads, low commissions, access to a lot of trading assets, and so many others. As we have already mentioned, the broker claims to be offering access to numerous trading assets, but what are the conditions?

With just one look at the conditions of the broker, one might think that they are dealing with a great broker. Very tight spreads, little to no commissions, a high-quality trading platform, the opportunity to open different types of accounts, and so much more create the atmosphere that this broker can be trusted.

But, once you take a critical look at the trading conditions of the broker, you manage to see some things that make the broker less trustworthy.

Spreads & Commissions

CXM Direct very proudly tells its clients that they are not charging any commissions or spreads. This might sound really good at first, but try to think for a moment. Why are brokers charging spreads at all? The reason behind Forex brokers charging spreads is very simple: they need to have some kind of income to ensure the highest standard of the series that they offer.

In the majority of the cases, spreads tend to be one of the only types of income that the Forex brokers have. If a Forex broker claims that they are not charging any spreads, it should actually be alarming for Forex traders as it can mean one of the two things: either the broker does not care about the services that it offers to its clients, or there are some hidden fees and costs of trading that the broker charges. Or, both of them can be correct as well.

CXM Direct low fees

As for the commissions, the broker also claims about regular commissions that they are not charging anything that makes deposits are totally free for everyone. Now, this is an overstatement, to say the least. First of all, it is very unlikely to imagine that it is only the Forex broker on whom the commissions on deposits and withdrawals depend.

The thing is, it is usually the issuer of your payment who charges the fees on deposits. Make sure to always check the information about the fees and commissions of payments with the issuer of your payment before you decide to trust the brokers.

Bonuses & Promotions

There are a lot of Forex traders in the market who believe that trading bonuses and promotions are a great way of earning more money in the Forex trading market. Among many brokers who still offer bonuses is CXM Direct. As our review of CXM Direct Forex broker offers, among many different types of bonuses, this broker also offers traders the no deposit bonus.

While this might sound a great thing, keep in mind that the broker claims to be offering services to the countries and jurisdictions where brokers are not allowed to offer their clients bonuses. This is just another example of how inconsistent the information on the broker’s website is.

It is a very common belief in the Forex trading market that the majority of the Forex brokers that offer traders different types of bonuses are just trying to get as many traders as they can on their platforms. They are just using it to attract more people to scam, which is something that every trader should be aware of.

Account Types of CXM Direct Reviewed

While reviewing the Forex broker, we were able to find out that the broker offers several different types of accounts. They are:

  • Standard Account
  • Standard Bonus Account
  • ECN Account
  • Cent Account
  • Islamic Account

At first, it might sound like great news. Many brokers offer traders different types of accounts to ensure that they can enjoy the services that fit their needs the best. But, it only takes a few minutes to see that there are not so many differences between the accounts that the broker offers. One of the few differences between the account types is the minimum deposit requirements.

The only actual different ones are the Islamic account and the cent account. The others are basically totally the same. With the Islamic account, the broker claims that it won’t be charging any swaps to traders who open the account to ensure Muslim traders can trade without having to ignore their religious beliefs. As for the cent account, it is basically a beginner trader account that uses cents instead of dollars.

The Customer Support Team of CXM Direct

While reviewing the CXM Direct FX broker, there were a lot of things that we decided to focus on. One of the main was the customer support team. We were shocked to find to how useless the customer support team was. We tried several methods of contacting them, and none of them worked.

Even when we managed to get hold of the representative of the broker, the answers that they were providing had nothing to do with the information that we were able to find on the website of the broker.

Can CXM Direct Be Trusted?

After doing very comprehensive research and analyzing on CXM Direct Forex broker, we are able to say that we do not recommend anyone to trade with this Forex broker. There are numerous reasons why we believe that this broker should not be trusted, one of the main ones being the inconsistency of the information that the broker provides to its potential clients.

Another very important reason is the regulatory status of the Forex broker. CXM Direct claims to be regulated by the FCA, one of the best-known regulatory bodies, based in the UK, while also saying that it does not offer traders from the UK its services.

Because of this and many other reasons, we believe that CXM Direct is a scam and should be avoided by traders.

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