CMLFxtrade review – 5 things you should know about cmlfxtrade.com

Beware! CMLFxtrade is an offshore broker! Your investment may be at risk.

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The most important thing to know about CMLFxtrade is that it is not the trustworthy forex broker it claims to be. In this review, we will look in detail at the clues that this is not a legitimate financial services provider and point you towards more credible alternatives for investing in the financial markets.

CMLFxtrade Regulation and safety of funds

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

CMLFxtrade  does not disclose the company behind this website, nor does it provide access to a Customer Agreement or Terms and Conditions. If you don’t know who you are dealing with and what the terms of the deal are it would be an inexcusable mistake to put your money on the line.

CMLFxtrade claims to be based in the United States. Such an anonymous website could not really operate as a forex broker in one of the most tightly regulated jurisdictions. To operate as a forex broker in the United States, a company must be registered as a futures commission merchant and foreign exchange dealer with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA).

The NFA database does not list a broker using the CMLFxtrade trade name and domain.

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.

Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.  In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

CMLFxtrade Trading software

After registering an account, we get access to a poor imitation of trading software, as even the menu for placing orders is not active.

But even if CMLFxtrade had a more convincing platform, that would not make this website credible. Fake brokers use rigged trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are 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.

CMLFxtrade Trading instruments

CMLFxtrade does not provide clear and detailed information on tradable instruments and trading conditions. But as we have already seen, this website has neither the legal authorisation nor the technological capacity to facilitate trading in financial instruments.

CMLFxtrade Spreads and cost of trading

Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.

The only specific information on the CMLFxtrade website is about an outrageously high 15% commission on profits. Real brokers don’t charge such commissions.

CMLFxtrade Maximum leverage

High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

CMLFxtrade Deposit and withdrawal methods

We weren’t at all surprised that the only payment method accepted by CMLFxtrade is Bitcoin. Cryptocurrencies are the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person to ask for a refund.

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 Skrill.

CMLFxtrade Minimum deposit

CMLFxtrade requires a minimum investment of 1,000 USD. With as little as 10 USD you could open a Micro Trading Account with some of the industry’s leading brands.

CMLFxtrade Withdrawal requirements

The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet  withdrawal terms.