In forex trading, it is a common occurrence to lose money through a string of unsuccessful trades. In a few instances, traders could lose their hard-earned cash to theft. A good brokerage firm will, therefore, encourage you to learn how to trade first, before engaging in actual trades.
They will offer demo accounts that assist you in learning without the risk of losses. You will also be advised to use strong passwords and robust virus scanners that make it difficult for hackers to access your accounts.
An honest CFreserve review
To start this CFreserve review, you need to understand that, while the above steps are all it should take to keep your money safe, there is one more risk.
Traders often find themselves caught in a scammers’ web. Illegal activities such as the CFreserve scam outlined below, have become part of the forex trading landscape, and you need to become smart to stay safe.
To trade safely, trade smartly
Experienced forex traders say that the only way to stay safe from scammers is to learn what scams look like. Fraudulent online trading schemes mostly manifest themselves in the form of guaranteed returns, no risk robots, or managed accounts.
In a rush for quick profits, anyone can fall prey to fraud. Fortunately, you can consult us to guide you on how to get back your lost cash.
To ensure trading safety, use forex brokers who are regulated by national agencies. They should have certifications and licenses that are accessible via thorough background checks.
Is CFreserve regulated?
In December 2019, the Financial Conduct Authority issued a statement on this broker. They first noted that CFreserve is operated and owned by an Ireland based entity, Richfield Limited. In Ireland, the Central Bank regulates forex trading.
According to the FCA’s investigations, CFreserve’s name does not feature in the Central Bank register of forex firms. Therefore, this broker is placing its traders’ investments at risk.
CFreserve falls in the jurisdiction of the EU’s regulatory framework and is, therefore, under ESMA guidelines. It should feature its Irish license clearly on the website, but it doesn’t. Consequently, our thorough CFreserve review concludes that this firm is unregulated, its biggest red flag.
Let’s talk some more about that.
CFreserve is unregulated
As part of its regulatory and enforcement policy, FCA ensures that licensed firms, not only protect your money but also pay into an £85 000 compensation fund. That helps to pay you in case your trader goes insolvent.
Consequently, FCA advises every FX trader in the UK to first access registration information on their Financial Services Register for protection against scams.
Many legitimate site put their licensing or regulation information at the footer. There’s nothing like that in CFreserve. Here’s what you get instead:
Does CFreserve use MT4?
These offshore brokers have a native web-based trading platform. They do not offer access to the popular MetaTrader 4 platform. Any brokerage firm without the MetaTrader 4 (or 5) platform, places you at a distinct disadvantage due to its many advantages.
Also known as, MT4, the trading platform is state of the art and has a vast following among brokers and traders worldwide. A product of MetaQuotes Software, you can use MT4 to close, open, or manage your accounts and market positions through your agent.
It is also very beneficial for advanced trading operations, and unlike many other platforms, it is free for download. MT4 also has no conditions attached to its usage.
Simply said, CFreserve not using MT4 or MT5 is a huge red flag.
What benefits does CFreserve use to make it sound legit?
Any scam broker will want to look legitimate. For that reason, they’ll strive to win you with lots of apparent benefits. Let’s see what CF reserve uses as bait for people to join (and lose money):
- The broker claims to offer over 35 currency pairs, including exotic types like USDZAR, USDSEK, USDPLN, USDMXN, USDDKK, USDNOK, USDRUB, and USDSGD. Additionally, you will access several popular cryptocurrencies such as Ethereum, Bitcoin, Litecoin, Dash, Ripple, Monero, Zcash, and List. If you would like to trade stocks and CFDs, they have seven indices available.
- It has a very juicy 0.4 pips spread advantage for their EUR/USD pair. However, it does not allow you first to try using a demo account. Consequently, you might sign up unaware of extra trading commissions.
- CFreserve has the industry average $250 minimum deposit threshold. If you, however, want the best conditions, visit brokerage firms that do not require these minimums for beginner traders.
- The platform accepts four currencies, including AUD, EUR, GBP, and USD.
CFreserve’s red flags (and why you shouldn’t trust this firm)
Now that you know what they’ll use to try sounding trustworthy, let’s look at exactly why you should keep off. Here are some clear red flags.
- CFreserve’s does not have any other access option apart from its browser-based platform. You can’t run your trades on MT4 or MT5.
- You can fund your account with as much money as you want. The platform has set itself up as a free for use platform for all trader demographics, which is perfect for swindling.
- Since CFreserve is unregulated, it could also use your credit card information unlawfully. As an illustration, by revealing your CVV code to the website’s owners, your savings could be emptied without notice.
- CFreserve does not support money transfer services such as Skrill or Neteller that have robust anti-scam policies. If legitimate firms like Skrill can’t trust it, why should you?
- It has some unusual cash withdrawal conditions that could be used in defrauding traders. A compliant and legitimate broker will not place any unreasonable rules between you and your money.
- The offer of bonuses is another red flag because it is banned by ESMA. CFreserve offers trading bonuses but with accompanying withdrawal conditions.
- On CFreserve, you can place trades on a 1:10 leverage in most pairs. Legit brokers offer leverage of up to 1:30, in the Eurozone, and 1:50 in North America. The maximum leverage cap is 1:75. This low leverage shows that they are not compliant with industry policies.
Warning: Here’s what you should know about some of these unregulated brokers
So, what should you expect when dealing with an unregulated firm like CFreserve? Let’s paint the picture for you:
Once you join, someone calls and pitches a few dollars. You humbly oblige. After a few days or weeks, the $250 may make some considerable profit and get to $500.
They do not use white label trading platforms like MT4. So, they have full control of the back end. Knowing this, they keep you investing more and more money.
$250 may quickly turn into $5k, and then you’re encouraged to deposit $5k more to make even more money (tens or hundreds of thousands of dollars).
Soon, they may start imposing funny rules as to why you can’t withdraw your profits. They may even tank the account and disappear.
In other instances, you may be given the exact trades to place. The first few trades may make you some “profit”. Only for the next trades to go on and blow your account, making you lose all your capital in a whim.
Go for regulated and trusted platforms. Take time to learn forex strategies properly. Use a demo account to practice your trades. And only go on to a live account once you’ve totally understood how to make real profits.
CFreserve review: The final verdict
This CFreserve review aims to help you not to lose any money to CFreserve. As clearly seen, this is a scam broker preying on innocent traders.
Have you lost your money to CFreserve? Reach out to us now for a free consultation. We’ll do our best to help you get your money back. We’ve helped many people like you to get back lost cash from scam forex platforms like CFreserve.