Beware! CED Capital Limited is an offshore broker! Your investment may be at risk.

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The CED Capital Limited website assures us that this is a well-established forex broker with a quarter century of experience. But fact-checking quickly reveals that this is far from the truth. This is in fact another online scam that has also already come to the attention of financial regulators. Let’s take a detailed look at why it wouldn’t be wise to trust your money to CED Capital Limited.

CED Capital Limited Regulation and safety of funds

Guaranteed FundsSegregated AccountsNegative balance protection
CED Capital Limited
UK regulated brokers£85 000YesYes
EU regulated brokers€20 000YesYes
AU regulated brokersNoYesYes
US regulted brokersYesYesNo

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

The website claims that CED Capital Limited is a UK incorporated company.

In order to offer brokerage services in this jurisdiction, a company must hold the relevant licences from the UK’s Financial Conduct Authority (FCA). But a check of the regulator’s database reveals no licence, but a warning that CED Capital Limited is a scam illegally using the details of a legitimate company.

Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.

If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA).

They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

CED Capital Limited Trading software

Analytical toolsAuto tradingCustom indicatorsMobile apps
CED Capital Limited platform
MT430+ indicatorsAndroid
MT550+ indicatorsAndroid
cTrader40+ indicatorsAndroid and iOS

CED Capital Limited uses a standard web-based trading platform that does not impress with advanced functionality. Here’s what it looks like:

While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.

CED Capital Limited Trading instruments

CurrencyStocksIndicesCryptoCommodities
CED Capital Limited
XMYesYesYesNoYes
FBSYesYesYesYesYes
FXTMYesYesYesYesYes

CED Capital Limited claims to offer trading in all major asset classes, including cryptocurrencies. But the FCA prohibits trading in crypto derivatives, so this is further evidence that CED Capital Limited is not a licensed broker based in the UK.

CED Capital Limited Spreads and cost of trading

CED Capital LimitedXMFBSFXTM
Spread EURUSD0.60.611.1
Spread GBPUSD0.81.31.21.4
Spread USDJPY0.81.31.21.4

The descriptions of the trading account types promise competitive spread levels below 1 pip. But as noted, we have no reason to believe that CED Capital Limited offers real trading.

CED Capital Limited Maximum leverage

ForexStocksCryptoGoldIndices
CED Capital Limited400:1100:110:1100:1100:1
UK regulated brokers30:15:110:110:1
EU regulated brokers30:15:12:110:110:1
AU regulated brokers30:15:12:110:110:1
US regulated brokers50:1

CED Capital Limited claims to offer leverage of up to 1:400 – another clue that this could not really be a regulated broker.

Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.

If you are willing to take the risk of trading with high leverage, the best option is to invest through an offshore division of an established brand.

CED Capital Limited Deposit and withdrawal methods

Deposit timeWithdrawal timePrice
Bank wire2-5 business days2-5 business days$25+
Credit cardInstant24 hoursFree
Crypto24 hours24 hoursFee depends on crypto

CED Capital Limited claims to offer multiple payment methods, but the only option in the deposit menu is to enter credit card or crypto wallet details without specifying which payment processor will be used.

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or iDeal.

CED Capital Limited Minimum deposit

CED Capital LimitedXMFBSFXTM
Minimum deposit€1000$5$10$5

CED Capital Limited requires a minimum deposit of 1000 EUR. For ten times or even a hundred times less, you could open a starter account with one of the industry’s leading brands.

CED Capital Limited Withdrawal requirements

Trading volumeFee/Tax on withdrawalMinimum withdrawal
CED Capital LimitedNot specifiedNot specifiedNot specified
UK regulated brokersNoNoNo
EU regulated brokersNoNoNo
AU regulated brokersNoNoNo
US regulated brokersNoNoNo

CED Capital Limited does not provide proper legal documentation, so it is unclear what traps the scammers may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.

 

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