CM CryptoFX – Is It a Safe Broker?

Website URL: https://cm-cryptofx.com/

Founded: 2020

Regulations: Not Licensed

Languages: English

Deposit Methods: Vload, Skrill, Cryptocurrencies, Neteller, PerfectMoney, Debit Card, Credit Card, Bank Transfer

Minimum Deposit: $300

Free Demo Account: No Demo Account Available

Number of Assets: Not Given

Types of Assets: Fiat and Crypto Currencies, CFDs

Trading Accounts and Conditions

CM CryptoFX offers its clients the following accounts for trading:

• Bronze Account: You are required to make a minimum initial deposit of $300 to start trading on this account.
• Silver Account: You are expected to make a first deposit of at least $1,000 to begin trading on this type of an account.
• Gold Account: To use this account, you first need to put in a minimum sum of $3,000.

Besides the minimum deposit amounts, this broker has not provided any other information about its trading conditions. We do not know the leverage levels or the spreads offered by CM CryptoFX.

CM CryptoFX – Advantages

Try as we might, we have not been able to find anything that could be advantageous about trading with CM CryptoFX. Therefore, we have kept this section of our review empty.

CM CryptoFX – Disadvantages

Here are all the reasons why it would be disastrously disadvantageous for traders to do business with this broker:

• False Claims of Being Licensed in the US

CM CryptoFX is operated by a company by the name of Algobit Ltd which, the broker claims, is based in California in the United States. Algobit Ltd allegedly operates this broker on behalf of another company called Finance Group Corp., a company that is based in Vanuatu.

We checked the US NFA (National Futures Association) online register to confirm CM CryptoFX’s regulation status. What we discovered was that neither company that owns or operates this broker is licensed to operated by the US financial watchdog.

What this means in essence is that this broker is not regulated in the US the way it claims it is. Getting a license to operate a financial services platform in the US is an extremely difficult task.

To be able to obtain a license from the NFA, the broker must first get a license as a RFED (Retail Foreign Exchange Dealer). Then, the broker must also get a license called the FCM (Futures Commission Merchant) from the CFTC (Commodity Futures Trading Commission). Only after obtaining these licenses can a broker become a member of the NFA.

Added to these licenses, a broker also needs to have a capital of not less than $20 million at any given time, be open to frequent audits and follow all the other very stringent regulations laid down by US law.

The fact that this broker would lie about its regulation status is the first red flag that warned us that CM CryptoFX cannot be trusted with traders’ funds.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Unfair Withdrawal Conditions

CM CryptoFX has some very strange and unfair withdrawal conditions. First, for a trader to be able to withdraw their funds, they need to achieve a 1x trading volume target. If you do not meet this target, then you will be charged a 20% levy on every withdrawal you make.

Second, if you make an international bank transfer, you will be charged $50 for every transaction. If you make a withdrawal via credit or debit card, you will be charged a fee of 5% of the withdrawal amount.

And third, if you do not trade at least once every month, you will be levied a fine of $10.

These conditions are not just unusual, they are also unfair. No legitimate broker would ever impose such conditions on its customers.

• No Demo Account

CM CryptoFX does not offer its clients a demo account, which is something a legitimate broker would not do. A demo account is required so that traders can verify the trading conditions and assess the trading platform’s performance.

• Unknown Trading Software

CM CryptoFX does not offer the MT4 trading platform. Instead, it claims to offer another kind of web-based trading platform. However, since this broker does not even have a demo account, we could not assess the quality of this platform.

We also tried opening a live account with CM CryptoFX, but the registration failed. The icon for the platform does not function. When you click on it, you get redirected to the website’s account page.

This leads us to suspect that this broker may not actually have a trading platform.

• No Confirmation of Deposit and Withdrawal Methods

This broker’s website features the logos of the top payment methods, however, since we were not able to create an account with them, we don’t really know if CM CryptoFX does, in fact, offer such a wide range of payment options.

• Offering Trading Bonuses

Trading bonuses are banned in most regulated forex markets for a reason. They are used as bait by scammers to trick traders into giving up their money. These bonuses look very attractive, which is why traders fall for them. And then once they avail of these bonuses, they are told that they cannot withdraw their funds until they meet almost impossibly high trading volume targets.

Added to that, these unscrupulous brokers put in added conditions that they can change the terms of the agreement at their discretion.

In effect, traders end up losing their money since they are unable to get their money back.

So, CM CryptoFX offering trading bonuses simply points to the fact that they are in all probability scammers that are out to get your money.

Conclusion 

After reading our review, you will realize, just like we did, that CM CryptoFX is a scammer and that your money is not safe with this broker. We would recommend that you look for a broker that is honest, transparent and operates within the bounds of the law.

CM CryptoFX

2.6

User Experience

3.5/10

Payment Options

2.2/10

Security

2.3/10

Support

2.5/10

Reputation

2.4/10

Pros

• None

Cons

• False Claims of Being Licensed in the US
• Unfair Withdrawal Conditions
• No Demo Account
• Unknown Trading Software
• No Confirmation of Deposit and Withdrawal Methods