MaxCFD Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this MaxCFD Review.
MaxCFD is a company providing a service which appears to be a mix between trading and binary options. In essence their trading platform allows a slightly better risk control. However, this is done by changing the amount you are willing to risk (and win) per trade, instead of picking the price levels you are willing to set your stop-loss and take profit to. This is the reverse of how most traders manage their risk.
Only one account type is available at MaxCFD. While this is neither a good or bad thing, although many companies treat clients slightly differently, based on their initial deposit.
MaxCFD is owned by Chemmi Holdings Limited, a UK-based company, which is also associated with Binary Tilt. That being said, they don not fall under any specific financial regulation. While this is common in the binary options world, it does carry a lot of risk. When ever you are trading with an unregulated entity, there is a chance they will simply not pay you back.
This is why most countries have created special regulatory bodies, whose purpose is to protect the interest of clients. One of the most popular such agencies, which also oversees binary options is the Cyprus Securities and Exchanges Commission (CySEC). Keep in mind, this may not be the case soon.
On top of the lack of regulation, MaxCFD has received some negative reviews in popular online forums.
Trading Options: Call/Put “CFDs”. As we described in the beginning, there is a level of control in these so called “CFDs”. We will get into more details, in the trading platform section.
Assets: Currencies, Commodities, Indices, Stocks, ETFs, Pairs, Cryptocurrencies
Minimum Initial Deposit
The minimum deposit at MaxCFD is $100, which is about average for the current state of the industry. That being said, even some forex brokers (who should arguably require more capital) have lowered the entry barrier significantly. For instance, the FCA-regulated industry pioneers ar IG do not have a minimum deposit barrier.
The payout amount at MaxCFD varies a lot, given the fact you can change a lot of the parameters of any particular trade. The maximum which we managed to achieve, while tinkering with the platform was 1:500.
MaxCFD offers a browser-based trading platform. It feels like a hybrid between a regular trading platform and a binary options one.
As you can see, a trader has the option to adjust his potential lost and profit, which determines your payout percentage. As we mentioned in the beginning this is the exact opposite of the process which most forex traders use – they initially determine their stop-loss and take profit levels, and then figure out the position sizing, to fit a minimal portion of their account.
Methods of Payment
MaxCFD provides a few payment methods: Bank Transfer and Credit/Debit Card. We should remind you, international bank transfers can be rather slow. This is why the lack of e-wallet support is a bit of a negative, as some traders prefer using Skrill or Neteller.
MaxCFD is an unregulated company which provides a service which is a hybrid between binary options and spot trading. While the concept is interesting, we feel it doesn’t allow for proper risk management as the process is done in the reverse to the way, which most traders use. On top of the minimum bet size is quite large. Finally, the company has received a lot of negative reviews in popular forums.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
MaxCFD Review Conclusion
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