Beware! Cloud FX Trade 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.
Cloud FX Trade is introducing itself as an US broker offering binary trading to its clients. Also, they claim that for the last 30 seconds the earnings amounted to more than 187 million USD.
Their website, however, has nothing to do with a site of a true Forex broker, there are less than 10 clickable links to be found and all of them redirect the user to the sign-up page. It does also withhold important information about itself, there is nothing, but only a claim that it is a company registered in the US. You can find out more interesting details about this broker in the full Cloud FX Trade review.
Cloud FX Trade REGULATION AND SAFETY OF FUNDS
Cloud FX Trade does not show a lot of important information in regards with its legal status. There is absolutely nothing to be found on its webpage, but only a single line which reads that Cloud FX Trade is registered in Reno, Nevada, USA with some registration number provided, which is actually fake. The search for such a company was fruitless, there is absolutely no clue that it’s in existence. Actually, in their T&Cs a Vanuatu company called Cloud FX Trade Btc is mentioned, but there was nothing to be found in the database of the island financial regulator VFSC, as well.
Your funds are not safe if you invest in Cloud FX Trade, it as an unlicensed, unauthorized and unregulated Forex broker and you should stay away from it! Such anonymous entities are risky and unstable and might disappear at any moment, the customers of such enterprises are not protected, at all.
You need to make sure that you trust companies which are legit, transparent and regulated in EU, UK, USA or Australia. These put the customer protection on top of their priority list and treat your funds with an utmost care. In EU, for example, complying with the product intervention measures that the European Securities and Markets Authority has agreed, which further CySEC and FCA have implemented, the Forex brokers are required:
- to limit the leverage to between 1:30 (Forex majors) and 2:1(cryptocurrencies);
- to close out a customer position when the funds fall to 50% of the margin needed;
- to provide negative balance protection on a per account basis, meaning that losses cannot exceed the total funds;
- to restrict or completely obliterate the incentives offered to trade Forex and CFDs;
- to provide a standardised risk warning to the customers.
Failure to do so will result in disciplinary action such as salty fines or license being suspended/revoked.
Cloud FX Trade TRADING SOFTWARE
In fact, Cloud FX Trade does not offer any trading platform, there aren’t MT4 or MT5 accounts, also a web trading software is unavailable. You can find anything about their conditions only upon registration, also the sign-up page is the mere place where you can find their T&Cs.
There is only a TradingView chart on their Dashboard, which is not suitable for trading and serves for information purposes only.
Cloud FX Trade does not offer trading accounts but investment plans, so no spreads, leverage or margin requirements are available.
Cloud FX Trade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is 200 USD with their Beginner Plan, as the returns is 50% weekly for a period of 3 months, weekly payouts applicable. With their Gold Plan the minimum initial deposit is 1000 USD with 200% weekly returns for a period of 12 months. However, in their T&Cs we found that the minimum initial deposit is set at 5000 USD or the EUR equivalent, and also, on their Main page the minimum deposit required is 1000 USD! A lot of conflicting pieces of information and unquestionably a red flag, stay away!
Also they claim that losses are impossible and you should invest as much as possible. Another red flag, guaranteed returns in such a scale are at least unreasonable.
There is a single real funding method, which is Bitcoin payment, or a wallet called Changely, but it also requires Bitcoins transactions. The other payment options listed on their website are not available, which is yet another red flag. Beware, you can deposit funds without proof of identification!
There is no minimum withdrawal amount specified, but they didn’t miss the chance to put some really absurd clauses in their withdrawal policy. A maintenance fee of 20% of the withddrawal applies if the account is not active, meaning that 1Xturnover is reached, while at the same time they offer only investment plans and not trading, a ridiculous requirement. There is an upfront transfer fee for wire transfers.
The fees that Cloud FX Trade charges are quite extravagant and uncommon for the industry. For example, there is 5% fee on deposit made by Visa or MasterCard, however, as we already saw there isn’t such a payment option. A huge discrepancy and a big red flag again to be found! Stay away from this broker!
A leveraged Cryptocurrency CFD trading position will be subject to a fee of up to 5% of the transaction.
There is no dormant account policy but if the trader fail to open at least one trade per month, a maintenance fee of 10 USD per months will be levied.
There are some bonuses and an affiliate program, but no further information is to be found either in their T&Cs or on the Main page.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centers. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
It’s a scam sign if a Forex broker accept only cryptos as funding methods and that should be remembered. They are doing it for a reason, the cryptos are perfectly unregulated, there isn’t a single authority in the world to deal with cryptos, and also the payments are totally anonymous. Once you deposit cryptos with scammers, it’s virtually impossible to get a refund! Stay away from brokers who does not accept the traditional funding methods, there is something fishy going on.
The most effective way to avoid scam is to do a thorough research, get familiar with the trading conditions offered by the brokers, read their Client Agreements, use demo accounts, read reviews, be alert. With charlatans adapting their tactics daily, you’d better be always up to date with the newest scammers’ tactics!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!
Avoid Cloud FX Trade, it is a controversial Forex broker with many red flags exposed so far!
Yes agreed lost a lot of money, paying huge fees and I refused to pay a $2k transfer fee to receive funds that I many not even get. Bad enough I paid $1500.00 to get a pin, thinking after that the funds would be put in my account. Total scam
I invested R6500 around August 21 and I was asked to pay fee of 10% to unlocked my profit which I did and after that I was told to wait for payment when another email comes I was asked to pay again R1000 to increased my fee then I will receive payment which I refused and until today I never got any centfrom them.I called some of companies that I found on internet who they say they are helping people to recover the money they lost from this scammers but I was told that I should pay for fee too and I was told if I was scammed R10 000 at least they would be able to help they are also scammers why should we pay before they can help you