Beware! Firstradecfd 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.
Firstradecfd can best be defined as the exemplary scammer broker- uninformative website, lack of a license, poor website design, etc. There isn’t much to be said about this one that has not been said about hundreds of others like it. We leave our readers with the review.
We signed up in seconds. Considering how hard it is to actually create an account with most legit FX brokers, the registration process at Firstradecfd seems like a joke. Not to mention that it is a sign that the broker is definitely up to something, and it ain’t good.
The EUR/USD cost of trade flickers between 0 pips and 0.2 pips. This is definitely a spread value that is way too good to be true. Now, we did locate a couple of vague mentions that the broker may include commission on spreads, even if the claims we not supported by further evidence. In our experience, such low spreads are always commissioned unless the client is using the top account type, but here’s the thing- we opened a Micro account with a low minimum deposit requirement. And juts to have it out here, illicit brokers don’t have to say that they take a commission from spreads; they might as well do so behind the user’s back!
The available trading instruments are forex currency pairs, indexes, commodities, stocks, and cryptocurrencies. The leverage is capped at 1:1000.
The website is available in English.
FIRSTRADECFD REGULATION AND SAFETY OF FUNDS
The broker is owned and operated by a firm that is allegedly located in London. If that were true, then we would be able to find an official presence of this firm in the FCA register. Safe to say, we did not, meaning that if Firstradecfd really is located in the UK it is operating without a license or illegally.
However, the terms and conditions have a very different say. They reveal that the broker is actually governed by the laws of Saint Vincent and the Grenadines (SVG). This is a complete shift from the supposed UK address. The SVG claim once and for all staples the broker as unregulated! This Caribbean islands nation does not have an official FX license issuer, and therefore does not regulate the FX market. Out of the thousands of brokers registered there, none is regulated locally. And neither is Firstradecfd.
It doesn’t take a genius to conclude that Firstradecfd is not licensed, and is a risk to all investments!
Any UK, EU, US, or Aussie-regulated broker is your best hope of getting back on the trail and avoiding scams. Investing, and even dealing with unregulated brokers is both a waste of time and money! Licensed brokers tend to the need of their users, and provide a safe and fair trading environment, accommodated with all the necessary tools to bring clients a superb trading experience. Not to mention that the FCA and CySEC, offer reimbursement schemes that see users getting covered for any losses should their broker fall into insolvency. The FCA guarantees up to £85 000, while CySEC guarantees up to €20 000 per person.
FIRSTRADECFD TRADING SOFTWARE
The MT4 is the biggest surprise addition to the broker, but it isn’t enough to redeem the company.
Nothing personal against this platform. As a matter of fact, we revere it deeply, it’s just that any scammer broker nowadays seems to be able to easily access the software.
FIRSTRADECFD DEPOSIT/WITHDRAW METHODS AND FEES
Not long after creating an account, we were kicked out of our account and were subsequently blocked. This could not have happened at a worse moment, because now all the payment details will have to be quoted from the website, and it is obvious that the website of Firstradecfd is in no way to be trusted with these very important details.
It turns out that there is very little ane can take form the website, as Firstradecfd has meticulously avoided most payment details, if not all of them. Seriously, we found a lot of talk on deposits and withdrawals but zero important details like a minimum deposit amount or any payment methods. The same goes for withdrawals.
We should be mad, but then we remembered that Firstradecfd is not regulated and therefore we shouldn’t waste energy on the broker, to begin with. Firstradecfd is first and foremost unregulated and a scam! All investments in it are a risk!
HOW DOES THE SCAM WORK
The scam works very easily. Users are lured by online ads that promise unrealistic, and therefore unattainable things. Then they are redirected to the investment schemer website, and from then on the manipulation begins.
First, users will be asked to provide contact details so that the broker can directly contact them and ask them for payment. But this is not done directly; there are scripts upon scripts with psychological tricks and tactics that lead to users being charmed into investing.
These tricks range from all the imaginable to the impressive. What the main goal is to keep the user invested in the scam, and deposit at least once!
After a while, each user will feel the pressure and will want to withdraw. This is where the last line of defence of the fraudulent broker will deploy, cutting the user from his or her funds by means of shutting down the account, stalling clients, or simply shutting the website. The scammer will do everything not to let you withdraw!
WHAT TO DO IF SCAMMED
File for a chargeback with your credit or debit card provider. It’s the surest way to get your money back, although it is not set in stone. MasterCard and VISA have a chargeback period of 540 days.
Bank transfers are harder to trace and are most like lost for good. Although, certain banks might have a special plan-of-action ready for scammed users, so be sure to check with your local bank for more info. It is also a good idea to change your bank account password and user name.
Crypto investments are lost for good. The only way to get them back is if the broker itself reimburses the money back.
Do not trust recovery agents that promise to return your lost money without ever giving any technical details. These are separate fraudsters that will ask a commission for the “service” and will alter disappear without a trace!