Cedarfx Domain: www.cedarfx.com.
This unbiased CedarFX review seeks to answer a frequently asked question of whether CedarFX is legitimate or a scam. The public’s opinion regarding this broker’s authenticity is divided, with many maintaining that they are legitimate and others cautioning that they are a scam.
For example, most CedarFX reviews on Trustpilot maintain that this broker is good. On the contrary, many blogs, including InsideTrade, BrokerChooser, and 55Brokers, warn that it’s not a trusted broker. Additionally, it’s on the Commodity Futures Trading Commission’s red list.
Is CedarFX a scam? The short answer is—maybe, considering the red flags below.
A Brief About CedarFX
The broker promises access to a range of assets, including stocks, commodities, currencies, digital assets, futures, and indices. Further, they purport to offer MT4 and WebTrader trading platforms across Windows, iOS, and Android platforms. On top of that, they claim to provide ultra-low spreads and free trades where traders don’t pay any commission.
While these assertions make Cedarfx sound like a fully-fledged broker that is better than other brokers, nothing could be further from the truth than these claims. Cedarfx looks more like a scammer than a legitimate financial services provider.
Red Flags
1. CedarFX Claims To Allow Customers To Open As Many Live Trading Accounts As They Please
We were skeptical about this policy as many legitimate brokers will not let you open multiple trading accounts for many reasons. These reasons include:
- Compliance—Financial regulatory bodies normally require brokers to have stringent financial monitoring and reporting mechanisms. Brokers in many jurisdictions have to comply with this requirement to prevent illicit financial activities such as money laundering and fraud. Accepting multiple accounts per trader hinders these mechanisms.
- Allowing traders to have multiple trading accounts undermines brokers’ risk management approaches. This is because it makes it more challenging to assess and manage individual traders’ risk exposure accurately. Consequently, it could lead to issues with leverage limits and margin requirements problems.
- It interferes with the operational efficiency of trading platforms. After all, managing numerous accounts for each trader can be a resource-intensive and complex process. Therefore, legitimate brokers will limit the number of accounts a trader can open to one to make their operations efficient.
- Customer service challenges. It’s easier and more manageable to offer support and resolve issues when individual traders have no more than one trading account. Otherwise, it can result in confusion and difficulties in customer service provision when individual traders have multiple trading accounts.
- It creates an uneven playing field, subjecting traders with a single account to an unfair trading environment. After all, traders with multiple accounts could use some of their accounts to carry out unfair trading practices, such as manipulating market conditions.
Increased deposits are one of the plausible reasons some dubious brokers allow traders to have multiple accounts. It enables them to steal more funds from people.
2. The Broker Purports To Offer Ultra Low Spread and Not Charge Commissions
It’s a big red flag, especially considering other suspicious signs. Otherwise, how do they generate the necessary revenue to sustain the platform? Unless they have hidden costs or fraudulent intentions, a broker will not sustain their services without charging traders. A scam broker may claim to charge no commission to lure unsuspecting investors by creating a false illusion of a cost-free trading opportunity.
3. Withdrawals Can Only Be Through Bitcoin Apparently
In our experience, this is another suspicious sign as this withdrawal policy is associated with scammers. Bitcoin makes it easier for them to obscure fund trails and evade detection by authorities.
4. CedarFX Unverifiable Claims To Have Won An Award
The broker’s website displays a banner to show that the broker won an award, under the “Best Trade Executions” category, from Forex Awards(www.forex-awards.com) in 2020.
Yet Forex Awards, which operates under the domain, “www.forex-awards.com”, is not a verified trustworthy source. We couldn’t find any information about the website on Trustpilot, Reddit, Facebook, or Twitter(X).
For an entity supposedly well-established enough to offer awards, the lack of digital footprints in social media in this day and age can be a serious red flag. It may imply that the company is trying to avoid scrutiny, signaling transparency among other issues.
Plus, Forex Awards states explicitly in the disclaimer that it shall not be liable for any problem that may arise directly or indirectly from the usage of any information it presents about brokers.
However, we found some details about the broker on Scamadviser, which gives them a high trust score. The website trustworthiness checker, states that people are giving CedarFX positive reviews. However, as I stated in this review post of another scam broker called “Verbex Group”, Scamadviser is not a reliable tool to check a website’s authenticity. You may go back to the post to see why.
5. CedarFX website(www.cedarfx.com) Doesn’t Show the Broker’s Contact Information or Physical Address
Customers can contact the broker only through a web form and Live Chat. This suggests a lack of transparency on the part of the broker. Opaque brokers often have regulatory compliance, accountability, and customer support, among other issues. Many tend to be fraudulent and use the opaqueness approach to evade scrutiny.
6. Broker Operates Without Regulatory Oversight
While not all unregulated brokers are fraudulent, a broker who is not regulated, and additionally exhibits other red flags, is definitely a scammer. Fraudsters posing as brokers will avoid regulation purposely to engage in fraudulent activities without facing regulatory oversight consequences.
Final Thoughts
To conclude this unbiased CedarFX review, CedarFX is not a safe broker. We investigated the broker and discovered numerous red flags that are uncommon with a legitimate broker. Not only are they unregulated, but they also lack transparency. Additionally, they make misleading claims and have a suspicious withdrawal policy that allows customers to withdraw their funds only through Bitcoin. Considering these warning signs, it’s safe to say that this broker might be another scammer. We, therefore, don’t recommend signing up with them.
Pursue Your Funds
If you’ve lost your funds to CedarFX or another scammer, go to this page to pursue your funds. Alternatively, send an email to scamread@scamreader.info.