Beware! CFDFunds 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.
CFDFunds might be one of the most cliched names for a broker that we have seen in our career spanning multiple years. It’s equally funny as it is indicative of the nature of the broker. Aside from the name of the broker, the other noticeable aspect is the blurry logo. Rarely have we been witness to a legitimate broker whose logo was blurry. It would be a sign of unprofessionalism, for the logo is the first thing new clients notice. Not only is the CFDFunds logo blurry but it does not fit the rest of the site’s aesthetic. See where we are going with this? Let us not beat around the bush. We think CFDFunds is not legitimate, and the following review will put all the evidence on the table!
We were granted a live account within 5 seconds! No, we are not exaggerating! This fast a registration process is a definite sign that things at CFDFunds are not their cleanest. There was no need to check our emails; we were just plunged into a live account. There was also no user area. Registered users are given a handful of extra sub-pages.
As soon as we saw the trading platform we knew for sure that CFDFunds was a fraud. We won’t delve into details here, but so you know, because of this so-called trading software none of the spreads, tradeable assets, and leverages are applicable here. This is not the first time that we seriously question what breed broker CFDFunds is?
The website is available only in English.
CFDFUNDS REGULATIONS AND SAFETY OF FUNDS
At this point, we do not think that CFDFunds is able to redeem itself. Judging by the clause we found in the footer, things will only get worse from here on out.
The footer reveals a classic provision that transfers the responsibility of being regulated into the hands of the user. Incidentally, the clause also acts to indemnify the broker. CFDFunds is not responsible for any damages caused by any direct or indirect transactions. It’s not your standard limited liability clause.
The path to any concrete regulatory information flows similarly, as in there is no real licensing info to be found. The Terms and Conditions have nothing on this subject, while the website is also unhelpful.
Overall, CFDFunds is as UNREGULATED as one can get, and is probably a scam. Not to mention that unlicensed brokers are a risk to all deposits and personal info.
Do not invest in unregulated brokers, because you are risking complete financial loss! The first thing you should do when considering an investment in an FX broker is to check for a legitimate license, like one from either the FCA or CySEC. These are some of the top regulators in today’s FX industry, and they have reached this level of respect by employing a huge range of guidelines that all brokers under them are required to follow. Furthermore, both FCA and CySEC offer to all clients of their brokers two compensation schemes that come in effect if a broker cannot pay back a user. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
CFDFUNDS TRADING SOFTWARE
There is a reasonable cause why none of the supposed trading conditions apply to the broker, and they can all be traced within the “trading software”.
This is by far one of the worst platforms we have seen, and keep in mind that we have thousands of reviews behind our backs. Even if it seems like the platform allows for trading, the asset values are provided by TradingView, a chart widget provider whose services are popular within the scammer broker community.
Even if the charts were broker-owned, we still would not recommend using the software. It offers absolutely no depth. A scammer broker trading software if there ever was one!
CFDFUNDS DEPOSIT/WITHDRAW METHODS AND FEES
Deposits can be made through wire transfer, debit cards, credit cards, and a very shady crypto wallet. The minimum deposit is €100.
Withdrawals can take up to 14 days to process. The minimum withdrawal according to the Terms and Conditions is 250 mBTC, which is approximately $7800. This is laughably high and as unrealistic. The withdrawal methods are the same as the ones used for deposits.
Here is the indemnification clause. We talked about a similar provision in the second part of the review, but that one seemed a bit off. This one is the real thing though. It states that the broker is not responsible for any damages or loss caused by using the site or the services of CFDFunds.
The company has the discretionary right to alter the contents of the Terms and Conditions. This way, CFDFunds has all the power against the user.
There is extensive proof that the firm charges an array of commissions and fees. The following clause is one to reveal this. Here you can read of a plethora of applicable charges. It also suggests that users are charged for opening and closing trading positions. However, as illegal brokers do, these fees have not been expanded on, and so we do not know when the broker applies nor how much there is to pay.
Bonuses cannot be withdrawn as well as any profit tied to using a bonus if the user has not completed a bonus turnover requirement of 30 times each 1 mBTC.
Furthermore, normal withdrawals are subject to turnover requirements. The amount is equal to 1 times the initial deposit.
There is also an undisclosed inactivity fee if users have not had an active trade for more than 30 days.
There is no reason why you should trust CFDFunds with your investments. This broker is unregulated and a probable scam!
How does the scam work?
There is one very popular scammer scheme that is basically the only efficient way for scammers to steal money from users. It is devised in such a way that users are lured in without realizing it. Most brokers have their own little spin on it, but the basic premise remains unchanged.
The scam follows a number of steps, with the first one acting as bait. Users from all around are witnessing all sorts of online ads on a daily basis. Some of these ads (promising a rich man’s lifestyle) lead to scammer brokers directly, or to intermediary websites. Whatever the site is, these fraudsters will always ask for some kind of contact information, including a phone number and an e-mail address. If users decide to give these away, there will start receiving calls from representatives of the broker. No matter what they are telling you, know that their ultimate goal is to induce the first deposit.
After the first deposit, the scammer broker organization will launch the expert scammers to try and compel you to deposit twice, thrice, and so on. These sometimes called expert managers are relentless, notorious, and very charming. They will make it their mission to hustle users to deposit. Some of their tactics include raising FX trading profit awareness, giving advice on how to deposit, and so on.
Sooner or later, users will start noticing a pattern, and it is at this point that they will realize they are being scammed. The next step is obviously to request to withdraw all funds and leave. Yet, the fraudulent broker is aware of this impending day and is ready to deny every withdrawal request, by using an excuse, shutting down the account, closing the whole website down, or just stalling the user.
What to do if scammed?
The first step to (trying to) retrieving lost funds is to apply for a chargeback with their credit or debit card company. The good news is that MasterCard and VISA have extended their chargeback period to 540 days.
Those users that have deposited through a bank transfer, and lost their money due to a scam, should immediately change their back account credentials, that is user name and password. Users can also contact the bank for it may have a procedure ready for such occasions.
Never invest in dubious brokers through a crypto method. Most of them are untraceable and there is no way to get your payments back.
Moreover, never trust the self-proclaimed recovery agents or agencies. These are either an extension of the initial scammer or a scheme of its own. They will promise to return all investments, however, they will require a small fee for doing so. Once the fee is paid in full, these agents will disappear without a trace.