Beware! CFDGlobalFX 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.
CFDGlobalFX does provide a decent enough visual style to be remembered by users after they close the site. Yet, the question here is will they remember CFDGlobalFX for its visuals or its ability to provide a decent forex trading experience? Furthermore, CFDGlobalFX is a very conventional name, and it does not convey a great deal of imagination. It even does not sound like a name, rather a subsection of a website. Before going forward with investing in CFDGlobalFX, please read the review to find out all about it.
Signing up was taken seriously, however the noticeable lack of ID documents acted as a sign to not let our guard down. After an account had been created, we were surprised to enter a very aesthetic user dashboard, that gave us only one trading software, a browser based one.
There the EUR/USD spread was 2.1 pips, a value not profitable to traders; only the broker may see lucrative results from this coast of trade. The maximum leverage was 1:500, which is a common offshore brokerage leverage. The trading instruments as seen on the web-trader are as follows: currency pairs, commodities, futures, shares, indices, and cryptocurrencies, making this a very capable catalog assets.
The website is accessible in English and Italian.
CFDGLOBALFX REGULATION AND SAFETY OF FUNDS
The following provision is one that claims that the user is bound by her local jurisdiction laws in using the services of CFDGlobalFX. This clear lack of a specific regulatory environment is sign that CFDGlobalFX is does not hold a license.
We can also focus on a small number of sentences in the T/C that claim the broker to be operating under the laws of Cyprus, but that would be going down an unnecessary path. Needless to say, the Cypriot financial watchdog CySEC has no mention of a CFDGlobalFX.
Still, there is no mention on the website that the broker is an actual holder of a legitimate regulation. Seeing that, as well as what was said above, we can safely conclude that CFDGlobalFX is NOT LICENSED.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
The broker has the right to share a user’s personal information with it affiliates, which include companies that have interests in owning the firm. What these are and where they are form remains a mystery. This is a clear risk.
CFDGLOBALFX TRADING SOFTWARE
The alleged proprietary terminal for trading is presented in our credential email as the MT4, which this one is anything but.
Yet, we have to give this one some props. It holds its ground, even if the ground on which it walks is tainted. There are many chart option available under the Insert tab, as well as pending orders. However, aside from these, there is nothing really here to keep you invested for too long.
Premium ECN accounts are commissioned by $10 per round turn, which makes us uncertain whether the broker means per side or round turn. But seeing that the commission is $10, we assume that this is round turn. So, all applicable spreads commissioned by this will be increased by a full pip!
There is a provision that allows the broker to change, add content, or all together remove the trading software from the website, without notifying the user. The broker will not be liable for any losses suffered from these changes.
Similarly, any personal data transmitted through email or other means will be not be treated as proprietary nor as confidential. The broker will use this information anyway it sees fit.
CFDGLOBALFX DEPOSIT/WITHDRAW METHODS AND FEES
The depositing section in the client dashboard was broken for us, as of writing this review. We were unable to chose a payment gateway.
The website claims that the minimum deposit of $500 can be deposited by means of credit/debit cards and bank transfers. While opening an account, we were given the option to open several different account types, with just two base currencies: EUR and USD.
The Deposit & Withdrawal Policy reveals several worrying things that we shall cover. First of all, it mentions fees that have not been made clear, for both deposits and withdrawals. Next, it gives an estimated withdraw processing time of 5 days on average. Next, it reveals that a withdrawal is done only via wire transfer, which we confirmed from the user area. Finally, the most troubling provision probably in the entire website, states that users are not allowed to withdraw profits from their trading, a.k.a the Non-Deposited Funds.
Even is this last provision should be enough to conclude yours and ours involvement in CFDGlobalFX, we have nevertheless compiled all the other scammer provisions for the sake of the review.
The annual dormant account fee of $25 is activated after 12 months of no trading/depositing/withdrawing activity. This is very low for such a fee; most offshore brokers usually tax a lot higher and more often.
Here is an ambiguous provision that claims that the company can deduct certain tax from a user’s account without being liable for this. These taxes seem to have some connection to the local government, making this clause even more ludicrous.
Here is another set of very confusing smaller provisions. In the first one, the broker can take money from an account if that user owes money to it. By “set off any positive balance” we understand that the broker can turn a user’s account negative, which goes directly against the Negative Balance Protection Policy. The next clause, claims that the broker can impose variation of this at its sole discretion.
Be aware that filing for a chargeback is not allowed. A chargeback attempt will have to be reimbursed back to CFDGlobalFX. Furthermore, users who have initiated a chargeback may not be able to withdraw.
The following is but a taste of the significantly long and arduous indemnification subsection found in the Terms and Conditions. This is basic proof that the broker will not be held responsible for any losses of a user.
And how could we forget the indemnification clause? Without it, the user can easily claim his rights and take legal action against CFDGlobalFX. This is just one paragraph of the whole clause. We advice you to read through it to see just how far the broker goes to avoid compensation.
Furthermore, claims against the company will be voided after 7 days after the beginning of the dispute.
CFDGlobalFX continues down a familiar path. The firm has the right to close an account wihtout notice, and the user will not be able to claim anything against it.
There is absolutely no reason for anyone to deposit here! Through the legal documents CFDGlobalFX will find a way to scam you out of your money!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.