CedarFX looks like a great broker; the website looks appealing and the offer isn’t bad either. However, there is one big issue with this broker – no license.
In the CedarFX Review, we’ve analyzed what’s on the table in terms of regulatory status, trading platform, leverage, costs, instruments and payment methods.
CedarFX is run by Cedar LLC, a company registered in Saint Vincent and the Grenadines (SVG) with the local Financial Services Authority (FSA).
However, SVG is a controversial offshore domain because the FSA clearly stated on its website that the Forex market isn’t regulated in that country. That means that CedarFX is unlicensed to provide trading services.
Yet, the broker carries on. Some traders disregarded the fact that CedarFX is unregulated and ended up having withdrawal issues.
Your funds aren’t safe with CedarFX, which is why you should find a reliable broker, preferably licensed by Tier 1 authorities such as the FCA, BaFin, ASIC, FINMA, etc. If you’re from the US, make sure your provider is registered with the CFTC and the NFA.
CedarFX is an “eco-friendly” offshore broker from Saint Vincent and the Grenadines that offers Forex, CFD and crypto assets trading. CedarFX has no Forex trading license, which makes this brokerage risky.
There are numerous complaints against CedarFX. On Trustpilot, we found 32 reviews of this broker at the time of writing this text.
Withdrawal issues seem to be a common theme in the complaints. Keep in mind that it’s illegal for a broker to ask you to pay a fee in advance before performing your withdrawal request. Here’s a recent case of a trader that got scammed by CedarFX:
And you won’t know what hit you until everything you have is gone. When I tried to get my initial balance out, they gave me various reasons why I couldn’t unless we put more down…
When it comes to trading software, CedarFX offers two different platforms – the popular MetaTrader 4 and a simple WebTrader.
MT4 is a renowned trading platform designed by MetaQuotes. Ever since its release, MT4 has been setting standards in terms of what a trading platform should offer. On this platform, traders can utilize automated trading, in-depth analysis, advanced charting, live market reports, etc.
On the other hand, WebTrader is a pretty basic browser-based terminal with limited features, i.e. it has none of the above-mentioned tools, only some rudimental charts and graphs.
CedarFX’s MT4 is available as both a desktop and mobile trading app. There are versions for Android and iOS. The only problem is that CedarFX is unregulated, meaning neither platform is safe.
CedarFX offers a wide range of trading instruments. According to the broker’s website, users can trade Forex currency pairs, digital assets (crypto), and CFDs on popular assets.
The broker also offers Futures trading on the US dollar. Here’s a list of the available trading instruments with some examples:
It seems that CedarFX was present in various countries. The common trait of these countries is the fact that English is an official language:
To reiterate, CedarFX is unlicensed so it cannot legally offer services in these counties. Especially not in the UK and the US, two pretty heavily regulated domains.
CedarFX offers two different account types:
These accounts differ in just one aspect. The Zero account, as the name suggests, charges zero commissions to enable traders to fully utilize their funds.
Then there’s the Eco account. According to CedarFX’s website, if you use the Eco account, “you’ll be charged $1 in commission. We will match that amount and 100% of funds collected will be sent to Ecologi,” and the funds will be used for plating trees.
Whether this is a legit initiative or not, we cannot confirm, but the fact remains that CedarFX is unregulated and could easily embezzle all your funds.
In terms of trading costs, i.e. spreads & commissions, CedarFX looks pretty favorable. The broker’s variable spread for the EUR/USD pair starts from 0.6 pips with zero commissions, which is amazing.
So the average spread for Forex trading with CedarFX is around 1 pip. CFD spreads are a bit wider but still competitive.
The leverage can be set all the way up to 1:500, typical of offshore brokers. Keep in mind that the onshore caps are 1:30 (UK, EU, Australia) and 1:50 (US, Canada) for retail clients. High leverage is really risky.
Yes. CedarFX included a free demo account. Users can open a demo account and try out the broker’s MT4. However, caution is advised.
It’s good news that the broker offers a demo account but problems could appear when you start trading for real. Investing in a live account with an unregulated broker is risky.
CedarFX provided a thorough Terms and Conditions section. There’s no shady bonus policy that offshore brokers usually include, which is a good thing.
But, there are a few deceiving claims we already debunked in this review, such as this statement – “the laws and regulation of St Vincent and the Grenadines.” SVG’s FSA doesn’t regulate Forex trading so this “regulations” part is void.
If you’ve been scammed by CedarFX, please let us know. We want to hear the whole story and help you get your hard-earned money back.
Since CedarFX accepts payments via credit/debit cards, wire transfers and Bitcoin, there are different methods of getting a refund. We can help you with the chargeback procedure.
A chargeback is used to reverse credit/debit card transactions. It can be requested at the issuing bank within 540 days. As for wires, a recall is needed, but it can only work if the transaction hasn’t gone through yet.
Crypto transactions need to be traced to a wallet within an exchange. Afterward, you can request a refund from the exchange. Book a free consultation with our experts and find out what you should do!
Contact us today and start your chargeback process.
CedarFX is an offshore broker from SVG that offers FX, CFD and crypto asset trading on MT4.
No. CedarFX is not licensed to provide Forex trading services.
Yes. CedarFX is available in both the United States and the United Kingdom.
Yes. Traders can open a free demo account and practice trading on MT4 risk-free.
CedarFX is an offshore broker from SVG that offers FX, CFD and crypto asset trading on MT4.
No. CedarFX is not licensed to provide Forex trading services.
Yes. CedarFX is available in both the United States and the United Kingdom.
Yes. Traders can open a free demo account and practice trading on MT4 risk-free.
The post CedarFX Review – This Offshore Broker Has No Forex Trading License appeared first on Global Fraud Protection.
