CFDBuy is a broker, which allegedly offers forex and (of course) CFD trading. The company’s website feels rather unpolished and we stumbled upon some issues with their platform. These difficulties may be temporary, in which case we will update the review in the future. The minimum lot size for the ECN Pro account seems to high, given the deposit requirement.
The Company. Security of Funds
The company behind CFDBuy is called Wilkinson development Ltd., which the website claims to be registered on the Marshal Islands. They do however claim to be regulated by the Vanuatu Financial Services Commission (VFSC). A search in the agency’s register yields Wilkinson Investments as a registered company. This may be a coincidence or the “development” company is simply an error on the website. This is an interesting off-shore mix..
We would give CFDBuy credit as actually being registered with the VFSC, as this does not mean much. Vanuatu has attracted shady forex brokers, as the country has very low entry requirements. In order to register as a “dealer in securities”, a company must prove it has capital amounting to $2,000. This is an absurdly low requirement, when compared to those in other popular destinations. For instance, the Australian Securities and Investments Commission (ASIC) demands AUD 1 million. This condition alone prevents most scammers from attempting to register. Furthermore, there client funds must be kept in the so called segregated accounts, which brokers can not freely access. The combination of the two regulatory conditions make ASIC a reputable watchdog.
Minimum Initial Deposit
The minimum deposit at CDDBuy is $250, which is a rather high level, given the current offers by other brokers. Some of them have even removed the entry barrier altogether, like the FCA-regulated industry pioneers at IG.
As a single factor the minimum initial deposit does not impact a forex broker’s credibility. That being said less experienced traders may prefer depositing lower amounts.
Average spreads & Commissions
CFDBuy claims to offer two different spread levels, based on the account types. The higher offer of 1.7 pips is slightly higher than the current industry averages. That being said, we could not confirm the conditions provided by CFDBuy, as we had issues with logging in their platform. On the other hand we can provide you with a comparison of the spreads offered by some of the world’s top forex brokers here.
The maximum leverage, for the smaller accounts at CFDBuy is 1:200, while bigger traders are capped at 1:100. In general, this policy is something we view as good for traders’ own safety. Both of these ratios are perfectly fine for a balanced trading strategy, despite the fact you may think otherwise, given the current offers by other brokers, which go as high as 1:500.
Be cautious, when trading with leverage, as it can be a double-edged blade. It amplifies your losses, the same way it affects your winning trades. Over-leveraging is one of the classic beginner mistakes.
CFDBuy offers MetaTrader4(MT4), the world’s leading currency trading platform. Traders enjoy its advanced charting capabilities, combined with the relative ease with which it handles multiple trading instruments being loaded at the same time.
The most unique feature of MT4 is the easy to learn programming language, which has led to the creation of many custom tools for the platform. They include mostly new technical indicators and automated trading systems (or Expert Advisors, as they are known).
The platform also has mobile and web versions which are solid. That being said, we couldn’t log in to our newly create account at CFDBuy for the purposes of this review.
Methods of Payment
The payment methods at CFDBuy include Bank Transfer Credit Card, CashU and Neteller. This is a decent line-up.
CFDBuy is an off-shore broker, which is supposedly regulated by the Vanuatu Financial Services Commission (VFSC). This does not inspire a lot of credibility. Trading conditions are slightly worse than the current industry averages. We couldn’t get the trading platform running properly, in order to verify their claims. The entire website feels slightly unpolished.
CFDBuy Review Conclusion
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