CFD World review – what are the pros and cons of this broker?
CFD World is a CFD brokerage operating from Cyprus under its parent company by the name of Goldenburg Group Ltd, which is regulated and licensed by the Cyprus Securities and Exchanges Commission.
Normally we’d immediately chuck the CFD World scam question out of the window because of the regulation, especially in Cyprus, but the terms and conditions of this brokerage have left us questioning the general criteria we use to rate these companies.
CFD World is not the best CFD broker we’ve ever seen, but some of the features are so disadvantageous that we had to resurface the scam argument again. Read the review below to find out what exactly this broker does wrong.
CFD World does not comply with regulations
As already mentioned in the intro of this CFD World review, the brokerage is a subsidiary of Goldenburg Group Ltd, operating under a CySEC license, however, it seems that several of the broker’s features are contradicting that license in major ways.
One such example is the maximum leverage that it offers to traders. As we all know, Cyprus is part of the European Union, therefore it directly falls under the jurisdiction of the European Securities and Markets Authority (ESMA). Because of this, it is expected that traders get only 1:30 maximum leverage on major currency pairs.
However, CFD World promises that if the trader convinces them that they’re a professional, the brokerage will allow leverage up to 1:100. This is impossible without breaking the local law, which is why we’re even more convinced that CFD World scam is the real deal.
Parent company license isn’t always reliable
Although we trust with all of our hearts that CySEC is a very capable financial regulator, given the fact of how many companies they need to govern on a daily basis, having its license isn’t necessarily a 100% guarantee. It’s more like a 90% guarantee for safety. When it comes to due diligence, it is largely up to the traders themselves to tell between scammers and legitimate brokerages.
Furthermore, we also mentioned in the intro of our CFD World review that it’s the parent company, Goldenburg Group Ltd that holds the license and not CFD World itself. Having a hereditary license is indeed better than nothing, but it definitely isn’t the best-case scenario.
CFD World review – Outrageous trading conditions
Now that we’ve gotten all of the legal aspects of the brokerage out of the way, let’s focus on what traders will be getting in this company in terms of trading conditions.
The very first thing we’d like to highlight is the available spreads. One would think that because of the restrictions imposed by ESMA on maximum leverage brokers would be more focused on decreasing their commissions and spreads in order to at least somehow accomodate their traders and make their stay with the company at least a bit more profitable.
Unfortunately, the CFD World scam repeats itself through those spreads. According to the company’s website, spreads start at 3 pips per standard lot, which is way too much. The industry standard on spreads for major currency pairs starts at 0.1 pips and goes up to maximum 1 or 1.5. Having 3 pips as a spread tanks the customer’s profit range by a significant margin.
Add to that the fact that this is a CFD brokerage, and you get dozens of fees and payments alongside this “commissionless commission”.
Only one software and account
Just like in any other reviews we are using the same criteria for this CFD World review, and unfortunately, the broker keeps on failing most of them. In terms of diversity, there is very little to be found with this company. CFD brokers are supposed to be full of options for Forex pairs, stocks and various other assets like commodities and cryptocurrencies. Although CFD World has around six types of assets, the methods of trading those assets are below-average at best.
There’s only MT5 platform available which, although the most popular, would have benefited greatly from an alternative WebTrader option. Same goes for the trading account. Yes, account not accounts. CFD World has only one account type, which is extremely uncomfortable for veteran traders as they’d most likely prefer a larger deposit and would expect some additional benefits from it, but unfortunately, there are no benefits to speak of. The minimum deposit starts at $250, and that’s about it.
Speaking of deposits and withdrawals…
Same lack of diversity in payments
There are only two options for deposits and one option for withdrawals. These are Wire transfer plus credit/debit card and Wire transfer respectively. Needless to say, a little bit more options would be more than welcome.
Is CFD World scam actually real?
By the tone we’ve chosen to rate CFD World with, you’re probably already guessing that we’re not recommending this brokerage. But, for the sake of the CySEC license, we are refraining from confirming the CFD World scam as of yet. But even if they aren’t fraudulent, their trading conditions don’t make them enticing either way.