CFD Station Review
Safety is one of the top concerns of people when they are thinking about venturing into the world of online trading. The internet has become a stomping ground for cybercriminals and they are using different tactics to entrap people. One of the most popular tactics is to present themselves as genuine online brokers and offering trading services to people. They add a ton of features and services that often attract people, but your priority should be to ensure the authenticity of a broker because only they can offer you a safe trading environment. Checking this CFD Station review can help you make the right decision.
After all, you need to dig deep into a broker and know their ins and outs before you can come to a conclusion about their authenticity and safety. An overview of their website will not reveal any flaws outright and you will have to make a bit of effort. Scammers are smart enough to present a sophisticated to attract potential victims and trap those who don’t look beneath the surface. This is exactly what CFD Station does. If you take a look at their website, you will notice that the brokerage presents itself as a platform that can be your fastest track to success.
They offer a leverage as high as 1:500 and access to the top MetaQuotes trading software i.e. the MetaTrader5. These offerings can be very attractive and most people who don’t go beyond the surface will fall for this tactic. But, a closer look at what CFD Station is promising you will show you just how scammers can make fools out of you. Ready to look? Let’s get started:
Licensing and Regulation
The safest brokerage is one that has a proper license and is regulated by a renowned authority or organization. You will discover that scam brokers are usually unlicensed and unregulated, so these are the ones you need to avoid. When it comes to CFD Station, you will find that it is owned and operated by a company named Finnovative Capital LLC. This is registered in Saint Vincent and the Grenadines and incorporated as International Business Companies.
The problem is that it doesn’t matter how the company is registered because St. Vincent and the Grenadines is an offshore jurisdiction that has outright stated that the forex industry is not regulated in the region. Therefore, it has become a hotspot for scammers because they can easily set up their operations and are not subjected to any oversight. This means they don’t have to follow any rules and can do pretty much whatever they want.
One of the most important factors to consider when choosing a brokerage is the spreads they charge. The spreads will determine how much trading costs you incur and the kind of profits you can walk away with. The problem with CFD Station is that they are advertising a spread of 2.5 pips for the Standard account. These are extremely high spreads, while most authentic brokers usually offer you spreads from 1.5 pips or lower. Thus, this is not exactly a competitive offering.
You also need to know what kind of leverage the broker you are considering can offer to you because it tells you how much flexibility you can have in trading. The leverage offered by CFD Station goes as high as 1:500, which might be impressive and lucrative to some people. Nonetheless, you need to bear in mind that such high leverage ratios also mean higher risks.
In addition, high leverage ratios are not usually offered by legitimate brokerages because most regulatory authorities have put a cap on the amount of leverage that can be offered. Hence, this is just further confirmation that CFD Station is not a regulated and licensed platform.
It is the norm for most online brokers to ask their clients to make a minimum deposit for opening a trading account. Yes, some have begun to offer their clients the option of opening micro accounts for as low as $10, but others do charge a minimum deposit of anywhere between $200 and $250. Consequently, the fact that CFD Station also requires a minimum deposit is not surprising.
However, what does surprise is the amount of minimum deposit CFD Station asks for, which is a whopping $1,000. This is four to five times the average amount charged by even the top brokers and this should immediately trigger an alarm. Only scam brokers would demand such a high minimum deposit because they want to get as much as possible in the first go.
It is a must to take a look at the payment options at your disposal when you are going through a broker’s offerings. You want to find a convenient, quick and safe method for your deposits and withdrawals. The problem with CFD Station is that you will find only two methods available to you after you have registered; these are 9Pay and PayBnB. The issue is that these are very questionable methods because there isn’t much known about these online payment platforms.
Furthermore, getting a refund from these payment methods wouldn’t be possible, as in the case of credit cards that come with the option of chargeback. This gives you 540 days to file for a chargeback in case something goes wrong. Legitimate brokers will usually provide credit cards as payment options for reassuring their clients, but CFD Station has done no such thing.
The fact that the MetaTrader 5 software is available at CFD Station is what most people look at when they are checking out their offerings. But, you have to bear in mind that going with an unlicensed and unregulated platform is never a smart move. You can find licensed and regulated brokers that offer the MT5 and other strong features. With CFD Station, there are just too many issues for you to ignore and you can easily determine that this is not an authentic brokerage at all and is just trying to scam its users.