Beware! CFDxp 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.
CFDxp is an offshore CFD broker focused on the crypt market. They do not deal with traditional forex pairs, but offer more than 80 crypto CFDs with coins including Zcahs, Ripple, Monero, USD Tether, Steem, Ethereum, Bitcoin, Litcoin, OmiseGO, Ethereum Classic, Dash and Bitcoin Cash.
On their web base trading platform we also found CFDs on several indices, stocks, silver, gold, platinum, oil and coffee.
CFDxp regulation & safety of funds
CFDxp is owned and operated by FBR Investments Ltd, which is based in Dominica. Unfortunately, the broker does not have a legit license to operate on well regulated markets like the European Union, the US, Australia or Japan, so basically if CFDxp is targeting customers on those markets, they are doing this illegally.
Remember that you can feel secure about your investment only with brokers, regulated by legit financial institutions like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).
Such brokers are obliged to abide by strict financial and ethical rules, among which to file regular reports, to allow external audits, to provide a negative balance protection to their customers, to keep their money in a segregated, trust account, to refrain form offering trading bonuses and in certain cases even to insure traders money.
So for example if you are trading with a FCA broker, in case the broker is unable to pay you will be compensated with up to 50 000 GBP. Similarly, if you are trading with a CySEC broker you will receive a compensation of up to 20 000 EUR.
CFDxp deposit/withdrawal methods and fees
CFDxp accepts payments with VISA, MasterCard and bank wire, but not popular e-wallets like Neteller and Skrill. Besides, Skrill has a new anti scam policy – they do not service unregulated brokers on the European market.
Here we should note as well that the broker has some rather unusual withdraw conditions and fees.
For instance, customers with the so called PAMM Account Trading Program will not be able to withdraw any funds for a period of 6 months, while with a Fully Managed Bitcoin Account you will have to actively trade for at least 1 year and will be allowed a partial withdraw not earlier than 4 months. Besides, with CFDxp you can withdraw just once a month, and that is also highly unusual.
On top of that, if you wish to close your account and you have more than 1000 USD, you can not withdraw those money immediately, but you will have to wait for some monthly installments.
Finally, talking about fees, there is a 25 EUR withdraw fee, 1,5% Quarterly Trading Commission and 3.25% Management Fee, collected every 6 months. Have in mind that such fees are not common with legit, well regulated brokers.
How does the scam work?
Browsing on the Internet you may stumble on one of the so called robo scam websites like Crypto Revolt and Bitcoin Evolution, where you will most probably watch a video add, promising you fast and easy returns, with a minimum investment and guaranteed results.
And if you get hooked, you will be asked to fill a simple registration form with your e-mail and phone, after which you will be instantly transferred to the web page of a unregulated, offshore broker and offered a trading account for the initial deposit of about 250 USD.
And besides do not be surprised when your first trades prove to be so successful. After all you are dealing with a scam broker and they will simply manipulate your trading account in order to trick you to invest a larger amount.
And also, that is when you will receive a call from “your senior account manager”, who will expertly explain you that in order to make real cash, you will definitely have to invest more – like at least 10 000 USD.
And chances are you will invest those money as well, without realizing that you have been scammed until you decide to withdraw some of your funds. Than it will turn out you can not withdraw anything, because you have not met some minimum trade volume requirement, you have agreed with when you have so carelessly accepted your welcoming trade bonus.
Certainly it could be something else, but the bottom line will be the same – you will not be able to withdraw anything.
What to do if scammed?
The most adequate step is to immediately file for a charge back with your credit card company. Besides, the good news here is that recently MasterCard extended the period in which you will be able to do that to 540 days, while VISA will follow suit in December, also extending the charge back period to 540 days, form the current 180 days.
Scammers may have tricked you to tell them your online banking password or credit card number. In such a case you should immediately block your credit card and change the password for your online banking service.
If scammers have stolen money form you, do not be fooled by the offers of the so called recovery agencies, promising to recover your capital. They will not render you any service, but will simply collect an upfront payment and basically that will be the end of the story.