Cfdtrades – The Warning Signs to Look for

Cfdtrades

Choosing an online broker is the first and most important decision that you will take in your trading journey and you should never make compromises in this respect. There are thousands of companies that are offering their trading services, which means that you will definitely be able to find a reasonable and professional option, as long as you are willing to do your homework. Not all platforms are up to the mark, as you will find in this Cfdtrades review, so it is good to be thorough in your research.

After all, it is only going to benefit you in the long run because you will be able to find the right broker in the first attempt. Not only does this save time because you do not have to give multiple platforms a try, but also saves your money. You do not have to deposit on several platforms and suffer losses because of bad trades, or because the brokerage was fraudulent. Indeed, fake platforms also exist and they are not that easy to identify. A glance at their website will not tell you anything until you dig in.

When you start doing so, their story will fall apart if they are a fraud. If they are genuine, you will not find any warning signs and this will give you peace of mind. When you come across the Cfdtrade website, it can be quite tempting to open an account with this brokerage. They seem to tick all the right boxes and are offering world-class services. It appears to be legitimate and transparent, which is what you will want in a broker.

But, when you take a closer look, you will come across the warning signs soon enough. What are the warning signs about Cfdtrade? Take a look here.

License and regulation

The first thing to check about any online brokerage is their licensing and regulation because this tells you just how much security you can expect from them. A licensed and regulated company can be held accountable and provides high quality services, along with other protections. They have to follow set rules and laws, while their unlicensed counterparts do not. The license and regulation depend on where the broker is based and Cfdtrade claims to be based in Dublin, Ireland.

However, this does not seem to be true because Ireland is a member of the European Union, which has high standards for regulating forex markets. The Central Bank of Ireland is the regulatory authority in Ireland, but if you go through their online register, you will not find Cfdtrade listed. Moreover, the brokerage is also breaking the rules outlined in the EU’s regulatory framework and this is a big warning sign.

It means that Cfdtrade is not being honest about where it is based, or if it is truly operating from Ireland, then it means it is working illegally. Does that sound like a good broker? Of course it does not and you should avoid it.

Terms and Conditions

You have to agree with the Terms and Conditions of a broker upon signing up with them, so it is best to go through them to know what you are agreeing with exactly. These legal documents outline the policies and rules you have to comply with, as well as the charges and fees you can expect and other relevant information. A look at the Terms and Conditions on the Cfdtrade website will give you another warning.

This is because you will come across their bonus policy, which is quite malicious. First off, the fact that Cfdtrade is offering trading bonuses is a big warning sign because brokerages in the European Union are not allowed to do so. This practice has been banned in the jurisdiction, like many others, because of its exploitative nature.

Hence, their availability is already a problem at Cfdtrade and it gets worse when you go through the bonus policy because it makes it clear why they were banned in the first place. They have the non-deposited funds clause mentioned, which means that profits generated through bonuses are not subject to withdrawal. That sounds reasonable until you realize that there is no way to separate the profits you make from your funds and those from the bonus.

Essentially, it means that this policy gives Cfdtrade the opportunity to entirely block withdrawals from your trading account. They will be able to keep your money and you will not be able to do anything about it since you agreed with it in their Terms and Conditions.

Trading platform

The software that an online broker offers to you for accessing the financial markets and actually executing your trades is called the trading platform. Since you use it for your primary activity, you obviously want access to a good and professional platform because it can affect your performance and bottom line. Unfortunately, you will not find one in the case of Cfdtrade because they are offering a very basic web trading platform.

A quick search will tell you that some of the top trading platforms in the market are the MT4, MT5 or the cTrader that offer their users state-of-the art trading tools and functionalities. They are highly advanced and intuitive, but the web trading platform that Cfdtrade is offering is extremely basis. It has nothing special to offer and is a common platform that many fraudulent brokers offer to create the illusion of being legitimate.

Leverage

The trading conditions of a broker are of the utmost importance because they affect your profits as well. When you check the leverage ratios offered by Cfdtrade, you should be warned right away because the ratios are as high as 1:200. A brokerage that claims to be operating from Ireland should not offer such ratios because the EU has restricted leverage to 1:30 for retail traders because of the risk associated with it.

Final Word

Now that you are aware of the warning signs associated with Cfdtrade, you should avoid this brokerage altogether and look for a better option.