Beware! Cinda Securities 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.
The interface of Cinda Securities is made to look professional and to impress any potential trader. However, is it safe to entrust your hard-earned money to this broker? We did deep into the information on its website to find out.
Cinda Securities Regulation and safety of funds
From the information provided on its website, we find out that the company owning the website, Cinda International Futures Limited, is registered with the Securities and Futures Commission (SFC) in Hong Kong. Our search in the register of SFC confirmed this information (image below).
If you are interested in trading with Hong Kong forex brokers, we must tell you that to be registered in this jurisdiction, brokers must have a minimum deposited capital of 5 million Hong Kong Dollars ($640,000) and participate in the local Investor Compensation Fund which insures up to $150,000 of the trading capital and covers trading in securities and futures contracts. Another measure set in place to protect clients’ funds is the requirement to include a clause in the Terms and Conditions according to which clients can claim damages if they deem that they have been recommended or sold financial products not reasonably suitable for them.
In addition to that, the broker has registrations in Australia, Canada, the US and the UK which you can see and check on the company’s website.
Cinda Securities Trading software
Cinda Securities trades in forex, metals, futures and cryptocurrencies. The trading software offered to its clients consists of MetaTrader 5. This is an excellent choice of a platform as MT5 is one of the most popular platforms among forex brokers thanks to its package of trading tools and instruments that include the auto trading option, VPS, an app market, a financial calendar, trading signals, code base with customs scripts, etc. Similarly to its ‘older brother’ MetaTrader 4, it offers an amazing choice of charting options that offer different charts, time frames, colours and even the option for customised templates. We must also mention the array of technical analysis indicators, such as moving averages, Fibonacci retracement, Bollinger Bands, etc., that help traders predict the future direction of exchange rates and make a profit. When in 2016 the hedging option was added to the platform it became even more popular with brokers and traders alike.
In the image below, you can see what the platform looks like. On the left-hand side is the menu with trading instruments which here shows the forex currency pairs with their bid/ask price. Beneath is the navigator that opens the accounts, indicators, expert advisors, scripts and services. In the top horizontal bar are the buttons for charts, tools, algo trading, placing orders, etc. In the middle of the screen are the charts which may vary in numbers as per the trader’s needs. Here you see displayed 4 charts of 4 different currency pairs that show the fluctuation in price in a given time frame and their bid/ask price. If we take a closer look at the top left pair, we see that this is the EUR/USD currency pair. From the bid/ask price, we calculate that the spread is 2.2 pips. We must say that this spread is high and above the industry average of 1.5 pips. The implications for traders will be that the cost of transactions will be high and they won’t be able to make a sustainable profit.
In addition to that, we must also note that the leverage offered by this broker is high – up to 1:400. High leverage signifies either a big profit or a big loss. Keeping in mind that 70% of traders experience loss in transactions, the chances are that the high leverage will amplify the exposure to risk for clients’ funds. We do not recommend trading with high leverage. For your information, one of the measures undertaken in the EU, the UK and the US to protect clients’ funds is imposing capped leverage which cannot exceed 1:30 in the EU and the UK and in the US, 1:50.
Cinda Securities Deposit/Withdrawal methods and fees
Although we successfully registered an account on this broker’s website and we were sent the verification code, due to the broken link for login we were not able to open the trading account, hence we cannot find out what the minimum initial deposit is. The information about the accounts is missing from this broker’s website we cannot comment on the payment methods for deposits and withdrawals or the fees Cinda Securities may charge.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.