Updated on January 26, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding CedarFX due to the issues we've identified.
Is CedarFX Scam or Legit Broker? ▲
Regrettably, CedarFX falls short of being classified as a trustworthy brokerage firm, primarily due to its registration in a jurisdiction lacking stringent regulatory oversight. Specifically, CedarFX is based in St. Vincent and the Grenadines, a locale that is often associated with the absence of rigorous financial regulation. This lack of a reputable regulatory framework significantly undermines the broker's credibility, posing a risk to the security of traders' investments. Therefore, it is paramount to engage with brokers that are under strict regulatory scrutiny from recognized bodies to ensure the safety of your funds.
CedarFX positions itself as a Forex and CFD brokerage, with a business registration in Saint Vincent and the Grenadines. The broker extends its trading services across a broad spectrum of asset classes, including but not limited to currency pairs, cryptocurrencies, stock indices, commodities, and equities, all with margin trading options. CedarFX promotes a low entry threshold with a minimum deposit requirement of $10 and advertises floating spreads starting from 0.6 pips. The broker facilitates trading through the widely acclaimed MT4 platform, which is accessible via mobile, desktop, and web interfaces. However, upon closer examination, we've identified several areas of concern regarding CedarFX's operations, such as its inadequate regulatory framework, potential risks of market manipulation, negative customer feedback, and issues related to withdrawals.
Based on our comprehensive assessment, significant concerns have emerged regarding CedarFX's reliability and adherence to regulatory standards. As such, we find ourselves unable to endorse CedarFX with a favorable evaluation. CedarFX's Overall Ranking stands at 1.0 out of 5, following our examination and in comparison to over 1000 other brokers. This rating reflects our reservations about the broker's trustworthiness and commitment to providing a secure and transparent trading environment.
CedarFX offers Bitcoin as the primary method for both deposits and withdrawals, supplemented by options for Credit Card or Bank Wire Transfer through third-party services. While the minimum deposit for transactions via Bitcoin is set at $10, it is crucial to be aware that all Bitcoin transactions are subject to blockchain and miner fees. For other payment methods, the threshold for minimum deposits increases to $50. Bitcoin transactions may vary in processing time, ranging from a few minutes to an hour. CedarFX promises expedient processing of Bitcoin withdrawal requests within 24 hours, ensuring the swift transfer of funds to clients' Bitcoin wallets. The minimum amount for withdrawals is also set at $10. Despite these provisions, we strongly urge traders to exercise caution and diligence when dealing with brokers, especially those lacking stringent regulation, as it may significantly impact the security of their funds.
CedarFX differentiates its service offerings through two distinct account types: the 0% Commission Account and the Eco Account. The primary difference between these two account options lies in the commission structure. The 0% Commission Account allows traders to execute trades across all available assets without incurring any commission fees. In contrast, the Eco Account imposes a $1 commission fee per lot traded, with the collected commissions dedicated to funding environmental projects via Ecologi. Aside from the commission rates, all other aspects, including spreads, leverage options, and the range of available trading instruments, remain consistent across both account types.
Upon concluding our extensive investigation into CedarFX, it is with considerable caution that we advise against engaging with this broker. The glaring absence of robust registration and regulatory compliance, coupled with a plethora of negative customer testimonials, casts significant doubt on the broker's reliability. As such, we strongly advocate for the selection of brokers that boast stringent regulation and a solid reputation within the industry. Opting for a broker regulated by esteemed authorities such as the FCA, ASIC, or CySEC ensures enhanced protections and a more secure trading environment. Unfortunately, CedarFX's overall ranking and experience are marked as negative, reflecting our concerns about the broker's capacity to provide a dependable and transparent trading service.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
CedarFX Review 2024
