Beware! CFDS100 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.
CFDS100 is a unregulated forex and CFD broker, based in Estonia, about which there are fresh warnings by the Commissione Nazionale per le Società e la Borsa (Consob) in Italy and the Belgium Financial Services and Markets Authority (FSMA).
Otherwise the CFDS100 offer includes 48 currency pairs, some of which exotic like USDTRY, USDCNH, USDNOK, USDPLN, USDCZK, USDDKK, USDRUB, USDMXN, USDSEK, USDZAR, USDSGD and USDHKD, as well as lots of CFDs on silver, gold, oil, cocoa, stocks, 16 indices and crypto coins like Bitcoin, Ripple, Bitcoin Cash, Ethereum, Litecoin and Dash.
All of that is offered on the Meta Trader4 platform and with leverage of up to 500:1.
The platform, however is offered by a third party – Traders Volt and the benchmark EURUSD spread was fixed at 3 pips, which is about two times higher than the levels, traders would usually consider as normal with a standard account.
And yet our biggest concern with the broker is their regulatory status and the recent warnings by the European authorities.
CFDS100 Review regulation & safety of funds
CFDS100 is owned and operated by the Estonia based TRSYSTEM Limited, but all payments are processed by Masterpay LTD, which is based in Azerbaijan. And as we noted the broker is flagged by Consob in Italy and the FSMA in Belgium for targeting customers in the European Union without proper authorization.
Bear in mind that all brokers offering their services on strictly regulated markets like EU, the USA, Australia, Canada or Japan should be properly licensed by the local financial authorities such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) or let say the Australian Securities and Investments Commission (ASIC).
Regulation gives security to your investment and besides with brokers regulated in the EU you even get in insurance policy on your trading account. For example, if you trade with a FCA broker your insurance will cover 50 000 of your funds, while with CySEC and other EU brokers it will cover no less than 20 000 EUR.
CFDS100 Review deposit/withdrawal methods and fees
CFDS100 accepts payments with VISA, MasterCard, AstroPay, VoguePay, bank wire and even Bitcoins.
The broker, however, has a series of unusual fees like a 3,5% service fee (minimum 30 USD) on all withdraws, combined with a profit clearance fee and a monthly maintenance fee in the amount of 20 USD.
Also CFDS100 may offer you a trading bonus of up to 100% of your deposit. The profit and the bonus itself however are nearly impossible to withdraw as they are subject to a rather harsh minimum trade volume requirement. For example if you have received 100 USD bonus, you will have to trade at least 25 standard lots or 2,5 million USD before you will be able to withdraw.
How does the scam work?
Although scam scenarios vary, they all come down to some irresistible offer of fast and easy returns with a minimal, totally “risk free” investment. And if you happen to come across one of the so called robo scam websites like CryptoContractsApp or Crypto Revolt, you will surely be greeted by such an offer.
If you get hooked, all you will be asked for in the beginning will be your e-mail and phone. And then, you may not even notice, but promptly you will be transferred to the web page of a unregulated scam broker, where you will be awarded a trading account in exchange of about 250 USD.
Take a note that your initial trades will seem amazingly successful. That however is just a prat of the scam and the whole idea is that latter you will be fooled to invest a larger sum. And besides, you will be receiving phone calls and e-mail as well. It will be your “senior account manager” with trading signals and suggestions, but in the end he or she will be insisting that if you care to make some real money, you will surely invest more – let say 10 000 USD for a start.
And chances are that you will never realize you have been scammed until the very moment you decide to withdraw some of your funds. Then all of a sudden it will turnout you do not have right to withdraw, because of some minimum trade volume requirement, you have agreed with without noticing, when you accepted your trading bonus. Of course it could be something else, but the bottom line will always remain the same – your withdraw requests will be canceled.
What to do if scammed?
There is probably one adequate step you may take in case you have been scammed and that is to file for a charge back with your credit card company immediately. Besides, since last October both VISA and MasterCard extended the period in which you will be allowed to do that to 540 days and that is good news. However, if scammers have tricked you to send them copies of your ID and a proof of address, your chances to receive back your deposit will be smaller.
And if by any means scammers have managed to get to your banking details, immediately block your credit card and change your online banking password.
Finally, if you do not want to be scammed a second time, stay away form the offers of the so called recovery agencies. The only thing that will happen, if you deal with them, is that they will squeeze you out of some cash again, basically leaving you even deeper in to the red.