Overview of CedarFX
According to research in South Africa, CedarFX is a CFD broker launched in 2020 in St. Vincent and the Grenadines. It offers a wide range of tradable assets, including digital assets, currencies, stocks, and commodities. The company provides various account types, including a limitless demo account, 0% Commission Account, and Eco Account. Traders can access the trading platforms MetaTrader4 and a web-based platform. The minimum deposit required to start trading is $10, and the maximum leverage offered is 1:500. CedarFX operates without regulation and offers customer support through 24/7 live chat and a web form. Deposit and withdrawal options include Bitcoin, credit card, and bank wire transfer.
Is CedarFX legit or a scam？
One important aspect to consider when evaluating the safety of a broker like CedarFX is the regulatory oversight it operates under. However, it should be noted that Cedar FX, headquartered in St. Vincent and the Grenadines, is currently not regulated by any government regulatory authorities. The lack of regulatory oversight means that there may be fewer safeguards and protections in place for clients compared to brokers that are regulated by reputable authorities. Traders should exercise caution and carefully consider the potential risks involved when choosing to trade with an unregulated broker.
Pros and Cons
On the positive side, CedarFX provides a 0% Commission Account with low spreads, enabling traders to enjoy cost-effective trading. Additionally, the broker offers multiple account types, catering to different trading preferences and needs. The low minimum deposit requirement makes it accessible for traders to start their journey with a small investment. CedarFX offers a diverse range of trading assets, allowing clients to access various markets and investment opportunities. However, one notable drawback is the lack of regulatory oversight, as CedarFX is currently not regulated by any government authorities, which may raise concerns regarding client protection and safeguards. The customer support channels and educational resources may be limited.
Markets Instruments
CedarFX offers a diverse range of trading assets to its clients. These assets include:
1. Digital Assets: CedarFX provides the opportunity to trade popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, and many others. Trading digital assets allows investors to take advantage of the volatility and potential profit opportunities in the cryptocurrency market.
2. Currencies: Clients can trade a wide variety of currency pairs in the forex market. Major currency pairs, such as EUR/USD, GBP/USD, and USD/JPY, as well as minor and exotic currency pairs, are available for trading. Currency trading allows participants to speculate on the exchange rate fluctuations between different currencies.
3. Stocks: CedarFXoffers the option to trade shares of publicly traded companies. Clients can speculate on the price movements of individual stocks without owning the shares themselves. Trading stocks provides an opportunity to participate in the performance of specific companies and sectors.
4. Commodities: Clients can also trade a range of commodities, including precious metals like gold and silver, energy commodities like crude oil and natural gas, agricultural products, and other commodities. Trading commodities allows investors to take advantage of price movements in these physical goods.
Account Types
A forex account at CedarFX functions similarly to a bank account but is specifically designed for trading currencies. Forex Islamic accounts, also known as swap-free accounts, do not charge any interest or rollover fees on overnight positions. The availability and types of accounts offered by a broker may vary depending on the country and regulatory authorities governing its operations. CedarFX provides the following account types: a limitless demo account, which requires regular usage to remain active, and two live account options—the 0% Commission Account and the Eco Account.
0% Commission Account
This primary standard account that most traders prefer is the 0% commission account. It has no commissions or additional fees and ultra-low spreads. No deposit or withdrawal fees are charged, and cryptocurrency withdrawal requests are processed the same day to reflect in a users wallet.
Eco Account
The Eco-account is designed to allow traders to help reduce the carbon footprint of humans on the planet. The Eco-account does come with a $1 commission on each lot traded, with CedarFX matching this commission and sending each months proceeds to Ecology, a non-profit entity that plants trees and works to reduce the carbon footprint on the Earth. For each lot traded 10 new trees are planted.
How to Open an Account？
To open an account with Cedar FX, please follow these steps:
1. Visit the official website of CedarFX at https://www.cedarfx.com/.
2. On the homepage, locate and click on the “Open Live Account” button. This will typically be prominently displayed on the website.
3. You will be redirected to the account opening page. Here, you will need to provide personal information such as your name, email address, phone number, and country of residence.
4. Select the type of account you wish to open. CedarFX offers different account types, such as Individual, Joint, or Corporate accounts.
5. Agree to the terms and conditions. Read through the terms and conditions carefully and ensure that you understand and accept them before proceeding.
6. Complete the verification process. CedarFX may require you to verify your identity and address. This typically involves submitting a copy of your identification document (such as a passport or driver's license) and a proof of address (such as a utility bill or bank statement).
7. Fund your account. Once your account is approved and verified, you will receive instructions on how to deposit funds into your trading account. CedarFX supports various funding methods, including bank transfers, credit/debit cards, and cryptocurrency deposits.
8. Start trading. Once your account is funded, you can access the trading platform provided by CedarFX and begin trading. CedarFX offers a user-friendly interface and a range of trading instruments, including digital assets, currencies, stocks, and commodities.
Minimum Deposit
CedarFX offers a low minimum deposit requirement of $10 to open a trading account, which is comparable to what legitimate brokers typically require for a micro account. While this may appear attractive, it is important to consider that CedarFX is currently an unregulated broker. Consequently, traders are advised against registering real trading accounts with CedarFX due to the lack of regulatory oversight. Trading with an unregulated broker poses inherent risks, as there are no official bodies overseeing their operations to ensure fair practices and investor protection. It is recommended to choose regulated brokers that provide additional safeguards and protections for clients' funds and trading activities.
Leverage
Leverage is a tool that allows traders to have a greater market exposure than the initial deposit they made to open a trade. CedarFX offers varying leverage ratios depending on the type of instrument being traded. For indices and commodities, the leverage is set at 1:200. Crypto pairs have a leverage of 1:100. Forex and metals enjoy the highest leverage at 1:500, while stocks have a leverage of 1:20. It is important to note that while leverage can amplify potential profits, it also increases the risk of losses. Traders should exercise caution and carefully manage their risk when utilizing leverage in their trading strategies.
Spreads & Commissions
CedarFXdoes not impose fees for depositing and withdrawing funds. However, clients may be subject to fees charged by payment systems, cryptocurrency miners, and the block chain network. As for trading fees, CedarFX applies floating spreads, with the minimum recorded value by Traders Union analysts being 0.6 pips for the EUR/USD pair. Other spreads include 0.7 pips for USD/JPY, 1.3 pips for AUD/USD, and 1.4 pips for GBP/USD. The 0% Commission Account does not have any additional trading fees, while the Eco Account charges $1 per lot traded.
Trading Platform Available
CedarFX provides access to two distinct platforms – one is a distribution of Metatrader4 and the other is a web-based platform with some of its features.
Deposit & Withdrawal
Traders can fund their accounts with Bitcoin, credit card, or by bank wire transfer. With fiat, the minimum deposit is $50. However, with Bitcoin, the minimum deposit is only $10. In addition, Bitcoin can be deposited directly or through a third-party vendor and there are zero transaction fees. Keep in mind though: the Block chain network does charge a 0.0005 BTC fee per transaction. As for cashing out, the minimum withdrawal is $10.
Educational Resources
Before starting to trade, potential clients of CedarFX should avail themselves of all the information and trading skills needed to be successful in the world of forex and commodity trading. CedarFX offers several educational answers for traders in the form of FAQs. The demo accounts are a further help to traders to learn more about the platform and learn by trial and error. You can open as many demo accounts as you like before opting for a live account.
Customer Support
CedarFX provides 24/7 customer support through live chat, while the customer support channels are limited. Customers can only reach the support team through the following methods: Live Chat and Web Form.
1. Live Chat: CedarFX offers a live chat feature on their website, allowing customers to engage in real-time conversations with support representatives. This instant messaging option enables quick responses to inquiries and immediate assistance with any concerns.
2. Web Form: CedarFX provides a web form on their website, which customers can fill out to submit their inquiries or requests. This form typically requires users to provide their contact details and a description of their issue or query. The support team will then review the submitted form and respond accordingly.
Conclusion
Overall, CedarFX is a broker with fast withdrawals, low spreads, and zero commissions for the 0% Commission Account.CedarFX offers traders the Meta Trader suite of platforms as well as a basic web and mobile app. CedarFX has a Maximum Leverage of 1:500. However, it is worth noting that CedarFX is not regulated by any reputable regulatory agencies. Traders should attach importance to the lack of regulated license and be cautious while trading.
FAQs
Q: Is CedarFX a legitimate broker or a scam？
A: When evaluating the safety of Cedar FX, it's important to consider that the broker is currently not regulated by any government regulatory authorities.
Q: What are the account types offered by Cedar FX？
A: CedarFX provides three account types: a limitless demo account for practice, the 0% Commission Account with no additional fees and ultra-low spreads, and the Eco Account which charges a $1 commission per lot traded and contributes to tree planting efforts.
Q: What is the minimum deposit required by Cedar FX？
A: CedarFX offers a low minimum deposit requirement of $10 for Bitcoin deposits and $50 for fiat deposits.
Q: What leverage ratios does CedarFX offer？
A: CedarFX provides varying leverage ratios depending on the instrument being traded. Leverage ranges from 1:20 for stocks to 1:500 for Forex and metals.
Q: What trading platforms are available at Cedar FX？
A: CedarFX provides access to two platforms: a customized version of MetaTrader4 (MT4) and a web-based platform that incorporates some features of MT4.
Q: How can I contact CedarFX customer support？
A: CedarFX offers 24/7 customer support through live chat and a web form.
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