Beware! CMTrade is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Warning! CMTrade is an offshore Forex broker, which is headquartered at a very dodgy address that is linked to many other fishy brokers, some of them being a proven scam. CMTrade also cannot offer any adequate trading platform to its customers, there isn’t even a web based software, let alone Metatrader, which is a very major red flag. There are plenty more red flags that we discovered as well, find out everything you need to know about this Forex broker in the full CMTrade review.
CMTrade REGULATION AND SAFETY OF FUNDS
CMTrade is an offshore broker that is registered in Saint Vincent and the Grenadines. The company said to be standing behind this entity is named Ventus Stellaris LLC headquartered at Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines. There are quite a lot of other suspicious brokers residing at the exact same Suite 305, such as Proquote27, Coinsoft and Optical Invest, just to name a few! It’s an address also linked with proven scam groups such as Hanabishi Partners, which were officially blacklisted by variety of European financial regulators such as MFSA(Malta), FSMA(Belgium), CNMV(Spain) etc.
Ventus Stellaris LLC itself is an undisclosed anonymous company, which is nowhere to be found, another major red flag and a warning to the traders.
SVG is an offshore jurisdiction that loosely regulates its financial industry, in fact, it explicitly stated on their website that the Forex brokers operating from the island will remain unregulated in the foreseeable future. Unsurprisingly SVG is one of the favorite destinations for scam Forex brokers and dodgy investment enterprises. The lack of regulation practically means that the scammers, who are nothing else but financial criminals, will not be held accountable for the wrongful actions conducted by them.
Your funds are not safe if you make a deposit with CMTrade, it’s an unlicensed, unauthorized and unregulated offshore Forex broker, which is very suspicious, showing many red flags.
If you are looking for a reliable, true Forex broker choose a CySEC(EU) or FCA(UK) regulated company, which are not surprisingly the leaders in the retail Forex industry. The customer protection policy is placed on top of their priority list, not because they want to, but because they have to. In these jurisdictions the Forex brokers have to comply with many strict rules and regulations, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients accounts etc.
But most importantly, there are money protection schemes in operation, such as ICF in Cyprus and FSCS in UK, which guarantee the deposits of the traders. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
CMTrade TRADING SOFTWARE
CMTrade is probably the only Forex broker in the world, which doesn’t offer USD accounts to its clients, stay away, there is something fishy going on there. It is a major red flag, which should be enough for you to stay away from CMTrade.
CMTrade does not offer Metatrader4 or Metatrader5 trading accounts to its customers. In fact, no functioning platform that is suitable for trading was to be found, but only a chart which serves for information purposes only is presented. In fact, this is a very major red flag and an obvious evidence of scam. CMTrade claims to be a Forex broker, but doesn’t have a trading platform, it’s ridiculous, stay away!
No spreads and no leverage levels or margin requirements are known and there aren’t any advertised on their website whatsoever.
CMTrade DEPOSIT/WITHDRAW METHODS AND FEES
CMTrade offers three types of accounts to the traders, but fails to give a detailed comprehensive information.
The minimum initial deposit is said to be 250 EUR/GBP, but 500 EUR/GBP for wire transfers. At the same time CMTrade might refuse card deposits, meaning that only wire transfers are possible. Another red flag to note, in fact, the whole deposit policy presented by CMTrade is well below the acceptable standards, stay away! There are no funding methods listed, so we assume that wire transfers is the only option available!
The minimum withdrawal is 500 EUR/GBP, which is a very obvious and strong scam sign. No true Forex broker is going to impose such an unfair requirement to the traders! The withdrawal requests are said to be processed within 5-10 days, which is a lifetime compared to the legit EU brokers. No fees are charged, however, which is probably the only positive feature of CMTrade.
Bonuses are not available at the moment, but CMTrade reserves the right to offer trading incentives from time to time. Separate terms and conditions are not detailed.
No dormant account policy and fees for inactivity specified, which is yet another red flag and an evidence of scam.
The ultimate scam sign, however, emerged as we encountered their Non-Deposit Funds clause, which is identical with the one that was found in the T&Cs of many proven scam brokers such as Promarketsonline and Finlay.io! CMTrade allows indebted account, you should avoid this broker, it’s a must! Choose an EU or UK regulated true Forex broker instead, which is bound to put a negative balance protection in place for your account, meaning that you cannot lose more than the total sum deposited.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centers. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Fraudsters are working in the social media nowadays, an increasing number of scammers is approaching people in Facebook, Instagram, Telegram, you name it. They will create pages showing lush lifestyle, cars, yachts, celebrities etc. and will insist that you will make even more money if you click on the like button. Often the scammers will give a free advice or a tryout and before you know it they will be asking for your money upon subscription. You will see pictures showing profits of tens of thousands of dollars and if you have no FX experience you might easily believe them.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!