CMSTrader offers its clients several account types, depending on their initial investment amount. All account types provide commission-free trading and fixed spreads (except the Gold one, where there is an option to use floating ones). Micro tradeable lots are offered solely on the Mini account, however this account offers solely a web-based platform, and what is more, CMS Credit card is not available. Gold & Silver account holders get some extras, such as Personal account manager & Risk management plan.
Besides, CMSTrader offers Islamic (swap-free) accounts with no swap or rollover interest on overnight positions to investors of Islamic belief.
While the minimum initial deposit of $500 required by CMSTrader is not common for the forex market, it is too high for a non-regulated brokerage. Spreads of 3 pips for the EUR/USD pair are way too wide, as most brokers provide spreads within the range of 1.0 – 1.5 pips for this pair. Besides, we suspect that this broker uses a Market Maker model, as it offers only fixed spreads, and no ECN trading environment.
The Company. Security of Funds
Pandorx Ventures Ltd.
Established in 2013, CMSTrader is a UK-based broker that offers online trading in more than 120 currency pairs, commodities, indices and stock CFDs, as well as precious metals on the Sirix platform. It has offices I the UK, Australia, Bahrain, Dominica and Singapore.
There are several companies mentioned on this broker’s website and at first, we got a bit confused: IDT Financial Services Ltd., Pandorx Ventures Ltd., and Side Side Trading Ltd.
Pandorx Ventures Ltd. is registered in the UK, but is not regulated by the FCA. According to the broker’s website, it only provides the payment services of CMSTrader. The company has filed only one balance sheet in 2015, stating entitlement to tax exemption relating to dormant state.
Meanwhile, IDT Financial Services Ltd. is regulated by the Gibraltar Financial Services Commission (GFSC). One can easily get into thinking that this broker is licensed by the GFSC and is also EEA authorized. Unfortunately, this is not the case. IDT Financial Services Ltd specializes in European Prepaid Financial Services and only issues the CMS Trader Card. On the terms and conditions section of CMSTrader’s website it becomes clear that clients of the broker actually contract Side Side Trading Ltd. When we searched this company in the Internet, we found out that it features solely on CMSTrader’s website. To our surprise, when we registered a demo account to try out the broker’s platform, we got an e-mail from Pandorx Ventures Ltd.
Obviously, this broker is not regulated and what is more, it could be a scam. In February 2016 the Ontario Securities Commission has issued a warning against CMSTrader for doing business in Canada without being authorized to do so. Besides, all user reviews in the Forex Peace Army forum are negative, and most traders say that this CMSTrader is a fraudulent broker.
Unlike most brokers, this one does not support the MetaTrader 4 (MT4) platform. Instead, it offers Sirix, available as desktop, web and mobile versions.
Sirix’s format is convenient to use. Sirix Station (desktop version) has a user-friendly interface, advanced charting and provides fast execution and sophisticated social trading service, allowing traders to observe and mirror other users’ trading performances.
Methods of Payment
CMSTrader offers its clients the following payment methods: bank wire transfer and via credit/debit cards (Mastercard, Maestro, Visa), as well as CMS MasterCard. Popular e-wallets such as Skrill and FasaPay are not available.
Note that the minimum withdrawal amount is $500 and that wire transfers are charged $20.
CMSTrader is offers trading in wide range of financial instruments on the Sirix platform. Unfortunately, this is the only positive thing about this broker – it is not regulated by any authority, its spreads are too high, we suspect that it acts as a Market Maker, and what is worse, CMSTrader could be a scam.
CMSTrader Review Conclusion
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