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CDFX Capital Review

CDFX Capital Review by professional Forex trading experts the “” FX trading team, Finding out everything you need to know about the broker is in this CDFX Capital Review.

CDFX Capital Review

CDFX Capital is a forex and CFD broker, which requires a relatively high initial deposit. Islamic (swap-free) accounts are also offered.

The Company. Security of Funds
Company Country Regulation
CD Capital Limited UAE N/A

The name of the company behind this broker is CD Capital Limited. They were founded 2015 in Dubai, UAE. Despite claiming to be a legitimate and honest partner, they are not registered with the Dubai Financial Services Authority (DFSA).

As you may already know, there is a difference between owning a company and being registered with an appropriate regulatory body. The financial services sector is prone to fraud, due to its very nature. When it comes to trading, you deposit money with a forex broker, then you trade and eventually withdraw some or all of it. When dealing with a dishonest company, you may never see your money back.

This is why most countries have a created special agencies for that purpose. In the United Kingdom, this is the Financial Conduct Authority (FCA), which oversees a lot of companies, including forex brokers. It has the power to enforce a lot of rules upon the industry, but two rules stand out the most, when it comes to the security of your funds.

First and foremost, all client deposits are held in the special segregated accounts. This means, the broker can not freely access your trading capital (and steal it).

The second key states brokers must be part of the Financial Services Compensation Scheme (FSCS). In the off-chance such a company goes bankrupt, clients will be compensated with 90% of their account balance, up to £50,000.

Trading Conditions

Minimum Initial Deposit

The minimum deposit at CDFX Capital is $5000. We initially thought this is a typo, or meant to be applied for premium accounts. That being said, it is written in bold, which leaves to believe they have put extra effort in underlying it.

Of course, other brokers offer a much lower entry barrier. You can start trading with FX Pro, after depositing only $100.

That being said, the high deposit level does not speak volumes, in terms of the credibility of this broker. However, when combined with the lack of regulatory oversight we described above, this doesn’t look good.

Average spreads & Commissions

Spreads at CDFX Capital start from an average of 1.5 on EUR/USD. This is barely competitive, when compared to the rest of the industry. For a more detailed comparison of some of the leading brokers, be sure to check our special page.

Leverage

CDFX Capital provides a maximum leverage of 1:300. This is a perfectly suitable level for most trading strategies, although you may not think this is the case, if you follow the offers of most brokers. Nowadays a lot of companies allow traders to utilize 1:500 or even higher levels. This doesn’t do beginners any favours, as some studies have found a negative correlation between the leverage ratio used and a trader’s profitability.

Trading Platforms

CDFX Capital offers the industry-leading platform MetaTrader4 (MT4). This is a solid choice, which is appreciated by a lot of traders. The platform has a standard desktop version, a web-based one and mobile apps, available for iOS and Android.

The key advantages of MT4 over other platforms are the speed of execution (which does also depend on your broker and internet connection), the fact it is relatively light on the hardware and the multitude of custom tools available. The latter can be purchased at the MQL marketplace and feature mostly new technical analysis tools and automated trading systems (more commonly known as Expert Advisors).

Methods of Payment

There is a surprising lack of information on the methods of payment provided by CDFX Capital. That being said, the front page of this broker, features а warning that all e-mails who are not from their particular support e-mail may be phishing attempts. This leads us to believe the company will provide willing clients a bank account via e-mail. The lack of e-wallet support (featuring services like Skrill or Neteller), is a bit limiting.

CDFX Capital is an unregulated broker allegedly based in Dubai. They have set a very high minimum deposit requirement (for a forex broker) at $5,000. While the trading conditions are on the border of the current competitive standards, the company doses a relatively poor job with the rest of its presentation.

The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.

CDFX Capital Review Conclusion

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