CedarFX is a Forex broker that claims to offer traders a safe, secure, and smooth trading environment. However, we came across many traders who claimed that they have lost their money after trading with this broker. After hearing about such experiences, we have decided to take a close look at the services of this company.
The most important promise of this broker is its eco-friendliness and how they plant trees for each lot traded via its trading platforms. This is very positive and welcoming behavior on CedarFX’s side. They may be just focusing more on eco issues and global warming and are spending most of their revenues from their super low commissions for the planet. But the nature of humanity is not generous behavior in general and proper regulations are still of utmost importance.
This, and many other things, lead us to believe that CedarFX is a highly risky broker. So, follow our review to find out more about the peculiarities that this company has, and the dangers that the traders using it are facing.
The safety and security of CedarFX
While reviewing CedarFX in great detail, we were able to identify some problems. One of the most dangerous things about this company is that it is an offshore broker, which is not licensed by any trustworthy Forex regulatory agency. This is very dangerous for traders and means that they will not have a guarantee of safety. However, there are very mixed opinions and comments on various social platforms and the broker seems to be legit despite the lack of any license. But we have to still warn our readers that trading with unregulated brokers may bear the risk of losing all your funds.
As we were able to find out, CedarFX is registered in St. Vincent and Grenadines, where, Forex regulatory framework is not safe at all. The regulatory agency of this jurisdiction hardly ever conducts any type of research regarding the brokers that are registered there. But the overall experience of our readers seems very mixed and positive in general, so we will be extra cautious to call this broker scam or fraud. They me be a legit broker and we hope CedarFX gets its license and enables us to update this review with super positive scores in this department.
CedarFX Fees and spreads
This broker claims that it offers more than 170 trading assets through the MetaTrader 4 platform. Although MT4 is a very good trading platform, it is not good when you are using a scam broker.
The spreads for major pairs as gained from their website starts from 0.6 pips which is very competitive when compared to other brokers in the industry. The commission for zero spread accounts is also super low at 1 USD per lot traded. We have not tested these claims by the broker and we advise traders maximum caution when dealing with an unregulated broker with super attractive terms.
The company claims that you can trade Forex, commodities, CFDs, and several other assets with them. You can do all of this without having to pay any commissions. Now, this might sound very good for many traders. What’s better than not paying any money for commissions and simply using it for trading?
Well, it is simply too good to be true. Forex brokers need some type of income to function and create a stable trading environment. When a broker claims that it does not charge any commissions, it means that either it is lying or the services are very bad. In both of these scenarios, you are in a very bad situation and should not trade with the broker.
Accounts, deposits, and withdrawals of CedarFX
This is another reason for us to believe that CedarFX is a scam Forex broker. When reviewing its services and offerings, we found that this broker offers two types of trading accounts, but the thing is, we did not understand the differences between these two accounts.
The only difference that the broker says is between these accounts is that one is commission-free, which, as we already said, is very hard to believe. On the other hand, the second one costs $1, and this money will be used to plant a tree. Which, technically, makes this account type free as well.
Simply put, the broker says that the money that you will pay will be spent on planting a tree, and not making the services better. Now, the differences between the account types that might be important for traders, such as leverage, minimum deposit, available assets, etc. are not provided by the company.
While reviewing CedarFX broker, we found many very problematic things. One of them was the account types. Simply put, the broker does not say what makes these two accounts different for traders. This leads us to believe that this broker is a scam company, which is simply trying to attract as many people as possible.
The no-commission offering is targeted at those people who are trying to save as much money as possible while trading. This way, the company is attracting traders on its platform, after which, it is stealing their money.
CedarFX Trading assets and features
For example, the Forex broker does not provide any relevant information regarding trading experience with them. You will only be able to find very basic information on their website. Even this information is very hard to find. This was one of the first things that made us believe that CedarFX might be dangerous for traders. But after digging deeper the broker seems to have updated their website recently and provide somewhat improved information and clarity. This is a very positive sign for CedarFX as they may be heading towards becoming one of the best and most reliable brokers.
Because the broker is registered in an offshore jurisdiction, in the case of CedarFX, it is not regulated in a comprehensive manner. The thing is, the regulatory agency of St. Vincent and Grenadines does not provide enough tools to make trading with its regulated brokers safe.
This means that trusting this Forex broker can be very risky. We came across many people who are claiming that they have lost all of their funds. They lost their hard-earned money because they trusted a company that is not willing to safeguard trader’s money. But some other people call the broker legit and share the experience of trading for more than 9 months with this broker without issues regarding their profits withdrawal. Once again, very mixed opinions.
The website of CedarFX and customer support
The website of the Forex broker does not look good at all. From the first visit, you might think that it looks decent, but after taking some time, you can tell that the website was created without any thinking. The information provided on the website is not useful at all.
There simply is not enough information about the offerings of the broker on the website, which further makes us believe that CedarFX is a scam broker.
As for the customer support team, they are useless. We tried contacting them through several different solutions, but we were not able to contact them. After a few hours, the customer support team finally got back to our email, but the answer was not accurate. While trading Forex, you might come across many problems.
In this situation, you need to be sure that the broker that you are using is willing to help you out. In the case of this company, the customer support team can’t provide any help.
The representatives of this Forex broker have many times noted that they are striving to get international exposure. This is nowhere near the truth, simply because the broker is not authorized by any top-tier regulatory agency. It means that CedarFX is not able to offer services to the citizens of the USA, the EU, and many other parts of the world. But USA has banned CFDs trading so all brokers are in the same position in this regard.
Education from CedarFX
CedarFX lacks an educational and market research department, but this can not be of an issue. The main idea for a good broker is its safety and cost of services. We hope CedarFX gets licensed and continues planting trees as the world needs this kind of socially responsible activity now.
Should you consider CedarFX broker?
After reviewing CedarFX, we found that this company has a lot of problems. All of these lead us to believe that CedarFX is a scam and should not be trusted by traders. If you decide to trade with a CedarFX broker, your funds will be in great danger. We believe that this company is running a very dangerous scam, and traders should not trust this broker.
Is CedarFX a regulated Forex broker?
Is CedarFX a reliable broker with good customer support?