ForexCEC – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
ForexCEC - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2022
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
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.
Website URL: https://forexcec.com
Founded: 2022
Regulations: Unregulated
Languages: English
Deposit Methods: Unspecified
Minimum Deposit: $200
Free Demo Account: No
Number of Assets: Unknown
Types of Assets: CFDs on FX pairs, Commodities, Indices
Trading Accounts and Conditions
ForexCEC fails to mention what types of accounts they offer. Here is the information we were able to get from their website about their trading conditions. We know that the minimum deposit amount is $200. The maximum leverage offered by this broker is 1:100. Spread on their MetaTrader 5 platform started from 0.4 pips for the benchmark currency pair, the EURUSD. However, we could not find any information on the kinds of commissions and fees this broker charges.
ForexCEC – Advantages
There are no advantages to trading with ForexCEC. Please read on to find out why.
ForexCEC – Disadvantages
Here are all the reasons why we stated that there were no advantages to trading with ForexCEC:
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Lack of Regulation
ForexCEC claims to be the brand name of the company called DNBC Global Markets Ltd. This company is supposedly regulated in multiple jurisdictions. The broker then states that their parent company is regulated by the Financial Services Commission of the Republic of Mauritius (and then they provide their Investment Dealer license – GB20026009). DNBC Global Markets is also incorporated in St. Vincent and the Grenadines and is registered with the country’s financial regulator, the FSA (Financial Services Authority). And finally, this broker also says that they are registered under Chapter 622 for a Non-Hong Kong Company because of which they do not need to be regulated by the local Securities & Futures Commission of Hong Kong.
All of this information sounds extremely official and legitimate. However, we decided to verify these details for ourselves.
We first checked the online register of the Mauritius FSC. We found that there was no company by the name of DNBC Global Markets registered with them. Thus, their first claim of being regulated by the financial regulator of the Republic of Mauritius turned out to be lie.
Next, we needed to verify their claims regarding St. Vincent and the Grenadines. We did not find them registered here either. We also need to point out that forex and CFD brokers are not regulated by the SVGFSA at all – the financial regulator has, in fact, published a notice that clearly states that they do not offer financial regulations for such brokerages. Therefore, even if this broker were registered with this regulator, it would make no difference; the broker would still not be appropriately regulated.
We could not get any details about their claims about the Hong Kong sector.
Overall, we have come to the conclusion that ForexCEC is an unregulated broker. This means that they are operating illegally and are therefore a scam company.
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.
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.
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Poor Trading Conditions
Besides the fact that this broker is operating illegally and has lied about their regulation status, they also offer rather poor trading conditions. The minimum deposit fee is $200. Considering the fact that there are a large number of reputed and legitimate brokers that allow you to open a trading account with them for less than $10, this broker’s deposit requirements are too high.
ForexCEC’s leverage ratios are also too high at 1:100. It must be understood that regulated brokers are now required to offer much lower leverages due to the dangers that high leverages pose. The EU, UK and Australia now only allow leverages of up to 1:30. And in Hong Kong (which is one of the jurisdictions this broker is targeting), that number is just 1:20. Therefore, that kind of leverage offered by this broker is actually illegal.
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No Information on Payment Methods
What we found rather disturbing about ForexCEC is that the broker was not willing to provide any information about its payment methods until we had provided proof of identity. The broker also not let us deposit funds without said proof. Legitimate brokers also will not allow traders to deposit funds without them first providing some proof of identity, but they will always advertise the payment options they have available for their customers.
With ForexCEC, until you provide your personal details, the broker will not even share their payment options with you! And since we know that this broker is a scammer, we were not willing to share our personal information with them.
Having said this, we suspect the only mode of payment is via cryptocurrencies. We reached this conclusion because of the broker stating that once you complete a Level 1 Verification, you would be allowed to deposit using cryptocurrencies. We would like to warn all traders to never use cryptocurrencies as a payment option unless you are dealing with a trusted broker. This payment option is popular with scammers since crypto transactions are all anonymous and permanent. Therefore, once you have made a payment to a scammer, there will be no way to get your money back.
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Links Not Working
The links on the broker’s homepage do not work. While the top of the page clearly shows Overview, Trading, Platform, Markets, Education and so on, none of the links work – they are only there for show. To get to the relevant pages, you have to search for the links at the bottom of their homepage to navigate to other pages. There are also a number of links that simply lead to a 404 Error message; these links are broken.
This kind of a website is sloppy and clearly shows that the broker has done just enough to hopefully con novice traders who don’t know any better.
Conclusion
Besides having a very sloppy website where most of the links to other pages do not work, ForexCEC is a scammer through and through. Dealing with this broker will only lead to losses. We would recommend that all traders avoid this broker.
ForexCEC
Pros
- None
Cons
- Lack of Regulation
- Poor Trading Conditions
- No Information on Payment Methods
- Links Not Working
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
eToro is a multi-asset platform which offers CFD and non CFD products. 74% 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.