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.
While reviewing CedarFX in great detail, we were able to identify some very dangerous 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 for safety.
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.
This, and many other things, lead us to believe that CedarFX is a scam broker. So, follow our review to find out more about the problems that this company has, and the dangers that the traders using it are facing.
CedarFX – Quick overview of its services
From the first look, everything looks very normal. Even more than that, the company claims that it is ready to plant a tree if you open a trading account. CedarFX is a company that tries very hard to look legit, however, there are many things that seem shady even from the first look.
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.
Because the broker is registered in an offshore jurisdiction, in the case of CedarFX, it is not really 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 dangerous. 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.
Who regulates CedarFX?
While reviewing CedarFX broker, we were able to find that the broker is registered in St. Vincent and Grenadines. Here, the regulatory agency is the Financial Services Authority of St. Vincent and the Grenadines. This agency was created in November 2012, eight years ago.
Although there is a huge demand in the jurisdiction, this regulatory agency does not really take care of the Forex trading market. As stated in the official warning of the regulatory agency, the regulation or even licensing of the Forex business is not part of the SVG FSA. This means that there is not a single body that is looking after the activities of this Forex broker.
Not being regulated means that CedarFX can do anything that it wants to with your funds. It can offer you any type of service, and no one will control it.
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.
If this Forex broker does offer services in one of these countries, it means that they are doing it illegally, because, offering such services without a local license in these countries is against the law.
If you have received any type of invitation from this Forex broker, remember that it is an illegal company, trying to avoid the laws. If you start trading with them, you will be facing a lot of problems and you might lose all of your hard-earned money.
CedarFX review – Trading assets & commissions
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 no good when you are using a scam broker.
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.
Account types of CedarFX
This is another reason for us to believe that CedarFX is actually 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 really understand the differences between these two accounts.
The only difference that the broker says is between these accounts is that one is totally 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, as for the differences between the account types that might actually be important for traders, such as, leverage, minimum deposit, available assets, etc. is not provided by the company.
While reviewing CedarFX broker, we found many things that were very problematic. 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 to those people who are trying to save as much money as possible while trading. This way, the company is attracting traders on their platform, after which, it is stealing their money.
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.
Final thoughts on 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.