Choosing the right Forex broker is a very important step towards success in the market. With so many Forex brokers available in the Forex trading market, it can get very overwhelming for a beginner and experienced traders alike to find a company they can trust.To get more news about cxm direct review, you can visit wikifx.com official website.
Today, we are going to review CXM Direct, one of the Forex brokers that claim to be offering safe and secure services to their clients. However, after doing throughout research about the offerings of the Forex broker, we were able to find several things that lead us to believe that there are some reasons to avoid this Forex broker.
Apart from the actual problems that the broker has, we were able to find several forums where people have complained about the offerings of CXM Direct. So, follow our detailed CXM Direct review and find out everything you should know about this Forex broker.
CXM Direct – Safety & Security
It is vital for Forex traders in the market to ensure that at any moment of trading, the safety and security of their hard-earned funds is their top priority. No matter which broker you decide to use, the first thing that you should check is how safe it is for you to use and what are guarantees that the broker has for your safety.
Usually, one of the things that can help you find safe Forex brokers is to take your time and learn about the regulations and trading requirements that the broker has to follow. CXM Direct claims that it offers services to countries and jurisdictions like the Asia Pacific, the US, and Europe.
But, the fact of the matter is that for a Forex broker to be able to offer services to jurisdictions such as the EU and the US, it is required to be licensed by the regulatory agencies of these countries. This is where things get a bit complicated about CXM Direct. While working on our review of CXM Direct, it was very hard to find any information regarding the regulatory status of the company on their official website.
Also, on its official About Us page, the broker claims that it offers services to the citizens of the US. But, if you scroll down just a bit, the broker lists some of the countries where it restricts services. Among these countries are USA and UK. The information provided by the broker simply does not add up, which leads us to believe that CXM Direct is a scam.
Regulations of CXM Direct
A very confusing part of the way this broker functions and offers services is its regulatory status. As we were able to find out from the website of the Forex broker, the company is registered in the UK, under one of the leading Forex regulators in the market – the Financial Conduct Authority.
At first, this might sound like a great thing, leading to many believing that this is a legit Forex broker. But, when you scroll down just a bit, you can see that the broker lists the United Kingdom among the countries where it does not offer services. Once again, the things that the broker claims on its official website simply do not add up. This is a sign that the broker is lying about the regulatory status and traders should not trust the things the broker claims.
The broker also claims that it is also regulated by the Financial Services Commission of the Republic of Mauritius, having the Investment Dealer License. While having a license might be an advantage, it being from Mauritius does not really make any difference.
The regulatory agency of Mauritius is known for having a very light regulatory framework, which does not guarantee the safety and security of Forex traders. In fact, there have been several instances over the past few years when brokers having a license from Mauritius were found for practicing fraud.