Cfd trading fraud

When you have been scammed and you have paid money to them with your credit or debit card, or with a direct bank deposit, you can actually get your money back if you know how regulations and financial laws are working and you build a strong chargeback case.

No deposit forex bonuses

This is why we recommend mychargeback’s experts to help you build such a case. Unfortunately, disputes involving authorized transactions are really hard to handle and require a lot of technical knowledge which means you will need the help of lawyers and experts in the field.

CFD scams

With trillons of dollars traded every single day, the forex & cfds’ market offer unregulated brokers the lure of earning huge returns in a limited amount of time.

However, it’s almost impossible to be a long term winner if you are not a professinal trader. Worse than that, a vast majority of online unregulated brokers are even manipulating prices in order to make you lose your money faster so you can deposit new funds.

Many fraudsters have seen the opportunity to scam people with cfds offers. They pretend to be a reliable broker, but you won’t hear from them anymore as soon as you make your first deposit. This is why you should make sure that you are dealing with a legitimate regulated broker and not a scam.

Can you really earn money with cfds trading?

If you have knowledge and experience in stock trading, you can have a chance with cfds trading. However, just like any other investments, there are risks involved, and risks are even higher for beginners.

Those that are successful with trading are making a huge amount of money. The more people hear about this, the more they want to try it.

And, this is where the trouble begins.

They don’t realize that cfds trading is a full time job and not a hobby. You can’t learn it overday, and you can’t profit from it as a beginner. Almost every recreational CFD traders will eventually lose their investment on the long run. Don’t be one of them.

Why are people becoming victims of CFD brokers?

The main reason is the of lack of experience and knowledge. They are seeing the advertisements for great results and guaranteed profit and they are falling for it.

Or, they tried cfds and got lucky just like some people can get lucky on any type of gambling at one point. Then, they are trying again, with even more funds, and they eventually lose everything after a losing streak.

But the biggest factor which explain the increase of victims of cfds scams is the rise of unregulated platforms offering forex trading, stealing customers funds and basically disapearing at some point.

Avoiding the CFD fraud

The best thing that you can do, is to make sure that you are avoiding any unregulated cfds broker. If you trade on a regulated platform and you are not an experienced trader, then you should also be careful and only invest money you can afford to lose. Moreover, don’t let any broker so called “agent” trade on your behalf or you will probably wake up the next morning with an empty balance.

Research is key. It doesn’t matter if you have the right experience in cfds or not. You should do research about what to expect, and about the company behind the broker making sure that they are legit and regulated.

The more research you are doing, the less chance you are going to have to fall for a scam.

Scammed by a cfds broker?

You might have already been scammed by an unregulated cfds broker. People that fall for such frauds don’t always consider the fact that they can get assistance for this. They think that people will laugh at them.

But, this doesn’t mean that you should just ignore it, and try to go on with your life. This is not something you are going to forget over night and it may affect you in a lot of ways. The good news is that with the technology that we have today, it is a lot easier to get assistance after falling for this type of scams.

Is going to the police will get your money back?

If you already are a victim of a cfds trading fraud, you should report them immediately to your local police. It is important that they know about these scams and tries to find the sources. However, are you going to get your money back, by reporting it to the police?

No, the chance that you are going to get your money back from the police is almost 0. They might catch the individual behind the scam, but they will not be able to recover all the money.

Is it possible to get the right assistance that will refund your money back?

This is the good news. It is actually possible for cfds fraudsters victims to get their money back after they have been scammed. The secret is that you should just know where to find the right assistance for this type of scam.

Unfortunately, disputes involving authorized transactions are really hard to handle and require a lot of technical knowledge which means you will need the help of lawyers and experts in the field.

This is where mychargeback is coming in the picture. Our long time partner is an expert in complex transaction disputes and has already recovered millions of dollars for fraudulent CFD brokers victims. All you need to do is fill our form for a free consultation and they will build a customized chargeback case for you.

But what is a chargeback?

A chargeback is the reversal of a transaction made by credit/debit card or wire transfer.

Cfds trading scams are unfortunately still a reality so you should be aware of it. And if you have already fallen for one of these frauds, don’t worry, we are here to help you.

Fighting against CFD trading fraud

Menace of society

Corruption and corrupt practices such as online scammers, are unfortunately part of our society. Every one of us recognize them with different names such as fraud, scam, theft, robbery, usurp etc. And they go by with various other names. It is said that corruption is the menace of society which eats the foundation of a nation very slowly and one day the cradle falls to the ground.

Scam has become a usual thing

There was a time when it looked to us as a big news when we heard that a bank has been robbed or that somebody’s property has been snatched from him. However, from the beginning of this century, when mankind was able to develop powerful computers and successfully created world wide web where people can interact with each other irrespective of the distances, do online shopping, hold video conferencing while the participants can be from different parts of the world.

Internet and online trading

Another very benefitting use of the internet was its ability to allow traders to trade online but before the inception of internet they were only able to participate in the traditional trading markets. As a result they were making only a handful for themselves because the traditional trading markets were overwhelmed with the large and influential brokers who were working with the market for a very long time and don’t allow newcomers to excel in the field.

CFD – a lucrative business

Online trading has become a norm of today where traders from all walks of life and from all over the world are trading under the umbrella of global trading market from where they can do trading in foreign exchange, cfds, indices, commodities, stocks, metals, shares, etc. One of the most popular trading product amongst these is the CFD trading. This trading is an absolute gem amongst other trading products which allows a trader to inject a considerably low investment and in return can enjoy the leverage of high potential of profit earning.

CFD trading scam and how it works

Another amazing feature of trading in CFD (contracts for difference) was that when a trader hires a reputable brokerage house to do his online trading, he used to get approximately 15% welcome bonus which may vary depending upon the brokers to brokers. The point is that everything was running smoothly and efficiently and in a sound manner. With the internet, great benefits were provided to the online brokerage houses who were able to make their living and, simultaneously, the online traders were able to find a new way of taking part in the trading. These people were successfully and without any fear pursuing their trading careers until this menace made its way in.

How CFD trading can be turned into scamming

There is no doubt that CFD trading has been a legitimate business but what these ill-intended devils do is that in most of the cases they create false websites pretending to be an online broker. The websites look quite real and has all the ingredients which any normal website or, in particular, a trading website has. Then there are imaginary trade opportunities which seem real and provide lucrative profits. The victim is then enticed upon to open up trading account with an initial deposit which may range from minimum to maximum averaging 500 US$ to 500,000 US$ in many cases. In this way they set up their traps and once you have signed up with them, the fate of your funds is totally up to them. There is a chance that your initial deposit may be confiscated illegally or that you are made to invest in an opportunity in which you will ultimately lose all your money.

If you feel that you have been the victim of a fraudulent broker visit money-back.Com – this firm is experienced in helping victims of CFD trading fraud and can help you to get your money back!

Using of FCA as means to legitimize scam

As part of their nefarious designs, they also use FCA, namely the financial conduct authority based in UK, and entice the online community and traders that a certain website is fake and that FCA has started to take action against them. While it may be true that the website they are reporting are fake but one cannot ignore the fact that even the reporter too might be operating a fake website. The formula is so simple that the thief is pointing out to another thief and in return earns credibility for himself amongst the general public. This is in fact a dangerous tactic which can fool anyone no matter how smart he or she is.

What needs to be done?

With the enormous use of internet all over the world by adults and non-adults the news of somebody becoming a victim of fraud or scam has become a usual thing. It is not a big deal now. So far we are safe, we don’t bother what is going on with the other person. But this dilemma is so grave which has massive adverse effects and requires immediate attention and well-thought of solution. CFD is a legitimate business and due to these culprits, this legitimate business has become doubtful and has very negatively hurt online CFD business.

It is the dire need of the hour that if someone is being approached by persons who pretends to be authentic broker of CFD and offers such promises which do not seem practically possible, then you must start doubting his credibility. As a first step he should seek assistance from the family and friends to seek whether they could give any information about such broker. As a second step the person need to do a thorough enquiry online to find out his authenticity, which can easily be done while exploring certain websites which contain information regarding scammers and their ponzi schemes. One such website is money-back.Com which, apart from providing information regarding the scammers, is also a great source of getting refund of the stolen amount if a person has been scammed.

Be alert at all times

Today scammers are busier than ever before and are able to devise new ways and means to scam innocent people. While the internet use for conducting online trading, and in particular CFD trading, has increased manifold, similarly, the numbers of scam artists has grown simultaneously. It is therefore imperative that we should know with whom we are dealing with and not allow anyone to jeopardize this lucrative and profitable CFD trading business.

CFD scams – what are they and how to spot them

We talk endlessly about CFD (contracts for difference) scams and how to avoid them. We’ve done surveys on what people do when they spot fake investment ads online, written guides about how to avoid getting hoodwinked by commission-driven advisory brokers, explained that trading educators are best avoided, yet still investors are being lured into offshore CFD scams.

One of the major sources of these CFD scams is unregulated social media advertising. Even though facebook, twitter, google have banned advertising cfds for non-regulated brokers. Scam CFD adverts are still slipping through the net.

Is CFD trading a scam?

The problem is not with cfds, which are a legitimate investment and trading product. They work on the basis that you trade on leverage and your profit and loss is based on the difference between the opening and closing price you trade at. Cfds provide a mechanism for high risk investing on liquid assets such as forex, indices, stocks, commodities and interest rates.

They have been around for decades, but have gradually become more readily available. When I first started as a CFD broker at man financial (then a FTSE 100 company) I sat across the aisle from GNI headed by phil adler, (who pioneered online cfds through their platform GNI touch) cfds were only available to clients who had a net worth (excluding principal residence of at least £100,000, and had significant experience with high-risk investments.

In effect, back then, cfds were self-regulated. In that it took weeks to open an account, you had to fill in paper forms, post ID, provide financial statements and also have a minimum account balance of £10,000 before you would be allocated an account number.

There was also no social media so there were no instagram investment scams of posers with gucci trainers, lamborghini’s claiming to trade by the pool for two hours a day – the so-called traders’ lifestyle. The FCA even joined instagram to try and highlight how these scams work.

But now, pretty much anyone can open an account and trade cfds within a few minutes. AML checks are done when you want to withdraw funds (leading to loads of complaints about clients claiming brokers are refusing to send their money back). Which means that anyone can trade cfds. But just because everyone can trade cfds it doesn’t mean everyone should.

We maintain a comparison of UK regulated CFD brokers, client reviews and CEO interviews so you can make a more informed decision about which CFD trading platform to use.

Ever since ESMA (the european equivalent of the FCA) told all FCA regulated brokers that they to display the percentage of clients who lose money trading cfds with them on their websites and marketing material it’s become clearer than ever that high-risk investment products are not for everyone. But, then again, the quicker you try and make money, you have to accept that you can lose it just as quickly.

So the product is high-risk, yes, but it is a self-directed, execution-only product. The FCA rules say that you cannot advise clients what to invest in, even if it’s implied advice. Which means that clients make their own investment decisions. If they lose money they are the ones that have pulled the trigger.

What are CFD scams?

What happens with CFD scams is brokers in a boiler room, cold call clients and use high-pressure sales tactics to get them to trade more.

You can read more on specific types of scams here:

How do CFD scams work?

In some cases to generate more commission on each trade for them. These were the sorts of scams being run in films like wolf of wall street and boiler room.

In the worst cases, CFD scammers try and get clients to deliberately lose money. Scam CFD brokers earn money from deliberately encouraging their clients to deposit and lose funds by not hedging client positions. This means that the trades are imaginary and they are acting more like a bookie rather than a broker.

How do scammers use the FCA to promote a CFD scam?

It’s now so easy to set up a brokerage that appears to be legitimate and use social media to entice clients that the FCA has started to take action. In the past, off shore CFD brokers could register for regulation in cyprus and be passported into the UK’s FCA register. Meaning that when potential clients check to see if the firms are legitimate or not they appear on the FCA register.

So checking to see if a firm is FCA regulated is not enough to determine if it is a scam or not. Using the FCA is one of the biggest tools in a scammer’s handbook. If a firm appears to have been vetted by the FCA, investors are more likely to be scammed.

The FCA is now taking action to try and stop cypriot and offshore firms passporting into the UK.

How to identify a CFD scam?

As with all scams, common sense should prevail, but scammers are clever and are experts in either subtle or direct manipulation.

Keep these golden rules in mind if considering trading cfds

If it sounds too good to be true it is.

Never trust lifestyle ads – CFD brokers are not allowed to adverts it as a lifestyle product. These are most likely from affiliate trying to get you to buy into their trading course or refer you to an offshore unregulated broker.

Cold calls are a warning sign. If you get a call from a pushy salesman, hang up and report them instantly. It’s an immediate red flag. Legitimate brokers do call new clients to welcome them to the service so not all calls from CFD brokers are a scam, but there is a clear difference between a welcome call and someone phoning you up on a crackly line to suggest you can “make a second income from forex trading”.

No risk warning. If you see online ads that don’t contain a risk warning avoid them and report them. We have covered in the past that the requirement for risk warnings leads to risk warning fatigue, meaning that people start ignoring legitimate adverts and being more inclined to be seduced by ads without a risk warning.

No FCA regulation. Even though we just said that FCA is no guarantee something isn’t a scam – just look at london capital & finance and their £230m mini-bond scam. But it’s a good place to start your online due diligence.

Never bow to pressure. No legitimate CFD broker will ever pressurise you to open an account. The days of churn and burn clients are over. Decent CFD brokers want to form long term relationships with experienced clients.

What to do if you’ve been involved in a CFD scam?

You may have noticed that a lot of review sites and comments on social media say that someone has helped them get their money back from a CFD scam. Be careful with these as well. Many offer gmail email addresses, invitations to connect directly through social media direct messaging or for callbacks.

If you come across a CFD scam report it to the FCA.

Richard founded the good money guide (previously good broker guide) in 2015 and has been a broker for 20 years most recently at investors intelligence and previously a multi-asset derivatives broker at MF global (man financial). Richard started his career working as a private client stockbroker at walker crips and phillip securities (now king and shaxson) after interning on the NYMEX oil trading floor in new york and london IPE in 2001 & 2000.

The importance of anti-fraud measures in cfds trading

arotrade tablet trading cfds Analyzing stock market graph on a touch screen device.

Some of you may still be wondering why so many fraud allegations are brought against online trading firms, especially in the fields of forex and cfds. Let’s start off by saying that fraud cases in this sector are even more common than you imagine. In fact, the majority of non-regulated forex and cfds firms commit fraud, sometimes on a daily basis.

Funds withdrawal fraud is a major problem

The main problem in online trading comes in the form of funds withdrawal fraud. When an online trading firm is not supervised by a regulatory body, there is effectively no one monitoring its internal management of clients’ funds. In other words, the firm can more or less do what it wants with its clients’ money. This eventually leads to numerous complaints, loss of online reputation, negative brand reviews, etc. But unfortunately, many people suffer tremendous financial loss before the truth comes out. So, the question you should all be asking yourselves is this: how do I safeguard my funds and avoid becoming a victim of forex or cfds trading fraud?

How to protect your funds when trading forex & cfds online

The way to secure online trading may be somewhat complicated, but it is possible and certainly worth the effort. First and foremost, you should always try to protect yourself from such instances by choosing an IFSC regulated broker rather than a non-regulated one. Affiliate reviews about cfds providers are also considered a fantastic tool for both new and existing traders looking to start or continue their online trading experience. The reviews will provide a lot of the information you need about your potential or existing forex and cfds brokerage, whether it is regulated or not. While this info is valuable and useful it is certainly not enough.

Secure platforms

Anti-fraud measures are now considered standard features on online trading platforms. They are embedded into a wide variety of systems that are used by most regulated brokers in order to help prevent fraud from occurring. Besides using information encryption protocols, like ssls, some reputable brokers, such as arotrade, use advanced deposit and withdrawal security filters for the purpose of protecting their clients’ funds. These filters are activated from the very first moment they make their initial deposit. What this means is that your transactions are 100% safe and secure at any given time.

Trustworthy brokers

Regardless of all the technology and the safety measures you might be using, what makes the big difference at the end of the day is the reliability of your broker. Even after you make sure your platform and payment channels are secure, your funds are not fraud-proof. Finding an honest, transparent and trustworthy broker, who takes long term reliability seriously is challenging yet vital to the security of your funds. Arotrade’s regulation alone ensures that the broker is fair and reliable, but the many positive reviews about its method of operation provide that extra layer of security every trader needs.

Finally, lookout for blacklists

If you’ve paid close attention to everything that has been covered so far, you are most probably already aware of all the different requirements you should consider when you set out to choose the right broker for your personal trading purposes. However, there is one last warning sign you should look out for before you make your final decision: blacklists. If a broker you are planning to conduct business with appears in such a list, you should avoid him at any cost. As simple as that. Instead, try to select one that has a clean record. Doing so will prevent you from having to deal with different types of forex and cfds fraud.

Four ways you can fall for a CFD trading fraud

CFD trading fraud

One of the best ways of making money on the internet and from the comfort of your home is through trading. Online trading is becoming more and more popular with the passage of time. However, this popularity has brought with it some disadvantages as well. As good as many online brokers are, there are some evil entities that are always looking to make a fool out of you and take your money in the name of CFD trading. CFD trading is the most popular way to trade on the internet because it lets you trade many different types of assets without owning them and take advantage of huge leverages on your trades.

If you feel that you have been scammed by a CFD broker trading scheme then you are welcome to visit our investment and trading scams page, for more information or visit our contact page to get help.

If you have signed up with the wrong online CFD broker, there are four main ways you can be scammed. Let’s talk about them one by one.

1. Commissions on top of spreads

One of the first and worst ways you will lose money to online CFD trading scams is in the form of spreads on top of commissions. So, you have to understand the two concepts here so you can know what really is happening in the digital world of trading. When you talk about spreads, these are the differences that you see in the buy and selling prices of the assets when you buy them from the broker. If you buy an asset A from the broker for $1, you will not be able to sell it back for the same price. When you sell it back, the broker might pay you something like $0.9. That’s the difference that helps brokers make money from your trades.

However, when a broker has commissions on top of spreads, you can be sure that you will pay more money on every trade than you should. The broker should only take money from you in the form of a spread. It can make as much money as it wants by making the spreads loose or tight. But when there are commissions, all the profit you make on your trades is lost in the form of spreads and commissions. You find out later that you can never make money with the broker because you are paying an unnecessarily huge price for your trades.

2. Unnecessary regulations on withdrawals

When you sign up with a broker, you have to open an account. While depositing funds in your account, you might not have to provide a lot of information about yourself. However, the wrong brokers will make you provide them with a lot of information when it comes to withdrawing your funds. It seems as though all the policies of the world apply on you because you thought of withdrawing funds from your account. In reality, since the money in your account belongs to you, it should not be an exercise to pull the funds from your account. They are either funds that you have deposited or those that you have earned as profits on your trades.

In either case, you should not have any trouble in withdrawing money from your account. That’s not going to happen when you sign up with a fake broker or scammer. They always have many different policies that make it nearly impossible for a trader to withdraw money from the account.

3. Requotes

That’s something you want to avoid at any cost when you sign up with an online broker. In fact, you will notice that the best online brokers tell you that there are no requotes on their trading platform when you sign up with them. This shows that requotes are not a good thing and you should stay away from them when you are with an online broker. What happens in a trade is that you can’t enter a trade because the broker you have signed up with does not want you to. You have entered a price that the broker does not like and that’s why you are not allowed to enter that trade.

In this manner, fake brokers and scammers can stop you from entering a lot of benefitting and profitable trades. As soon as they realize that you are going to earn some profits on your trades, they throw a requote at you.

4. Cash deposits

If you are familiar with the online trading world, you should know that cash deposits are not a thing anymore. In fact, the latest regulations do not allow online brokers to accept money from their traders in the form of cash. When you sign up with a broker, you have to make sure that you send the money in your trading account through a method that you can keep a record of. When you send cash, you don’t have any record to prove that you had made the payment to the broker. Even if you have some proof to show that you have sent the money to the broker, the broker can easily claim that it never received that money.

What should you do?

You should use online companies that can help you figure out the best online brokers before you sign up with them. For example, you have money-back that provides you with this amazing service. Before you sign up with a broker, you can sign up with this company to get help with your exploration of the best broker. The company will provide you with all the help you need to verify legitimate brokers and sift the illegitimate ones. In fact, you can get help from money-back even when you have already been scammed. The company will help you recover the money you have lost in the hands of a scam through its team of lawyers and experts.

Final thoughts

Be very careful when you sign up with online brokers. You can’t really do much when you have already been scammed unless you contact a company like money-back. If you think you can recover the money yourself, you are making a huge mistake. Online scammers are quite sophisticated with their scams. They never leave any chance for you to get the money back. The only option for you to get the money back is to hire the best experts who know this trade.

If you feel that you have been scammed by a CFD broker trading scheme then you are welcome to visit our investment and trading scams page, for more information or visit our contact page to get help.

Is CFD trading legal? – avoid scams

Is CFD trading even serious? – this question is the subject of our guide. Cfds enjoy high popularity in germany, but there are also fraud attempts by criminal online brokers. Are cfds a fraud? How do you escape a fraud by cfds? – these questions we answer in the following texts.

What are cfds? – contract for difference explained

Cfds (short for contract for difference) are also called contracts for difference. With these contracts, you can make a profit or loss on the difference or the price increase or decrease of an asset. They are over-the-counter contracts that are offered by many online brokers. There are separate markets for them, which are provided by market makers.

With contracts for the difference, you can very easily speculate on rising or falling prices. As an investor, you only own this contract, but not the underlying asset (for example a share). Therefore cfds are also considered to be derivatives. For trading, leverage of up to 1:30 (EU regulation) is also offered.

The following markets are offered by cfds:

Currencies (forex)

Raw materials

Metals

Bonds

Etfs

Crypto currencies

Advantages and disadvantage of cfds

Contracts for difference are particularly popular with private traders because they are an easy-to-understand financial product. For example, you can use cfds to make short sales (speculation on falling prices). It is also possible to trade cfds with very little initial capital and take advantage of the benefits of leverage

In the following table I have summarized the advantages and disadvantages of cfds:

Advantages:	disadvantages:
trading with small capital is possible	traders underestimate the risk
short trades are easy to do	there are bad CFD brokers
trading with leverage
professional trading platforms are available
negative balance protection

Scams from CFD providers:

From over 10 years of trading experience, our team and I have found out a lot of information and examples of CFD fraud. Users and traders also reported about it in our facebook group or youtube comments. Dubious CFD brokers are mostly located outside the EU or have no address at all. It is tried to enrich itself at the customer’s money.

Known cases of scams are manipulation of prices, not payout of funds, or demand hidden fees. Furthermore, dubious providers often use trained account managers who entice the customer to deposit. After that, the customer is persuaded to make unwise investment decisions or the account manager trades the customer’s account himself (prohibited by law).

Known fraud attempts from dubious providers:

Price manipulation (stop loss hunting)

Demand for hidden fees

Pushy and dubious account managers

No payouts of winnings or even client funds

Prevents order execution

In general, you should learn about cfds before you start trading because many traders simply blame the broker for losses even though they themselves have traded wrong. On this page, we try to inform you transparently and show you how you can avoid fraud.

How to avoid fraud in CFD trading

The focus in avoiding fraud is on choosing a good CFD provider. Contracts for difference are an officially approved financial product, which was developed in 1980 by the british bank UBS in london. CFD brokers from europe must be regulated by a financial regulator to offer this service.

We clearly recommend brokers that have one or more financial regulations here on this site. A fraud can be excluded with regulated brokers. Before registering, check the provider’s website carefully.

1. Regulation of the provider is absolutely necessary

Trade only with regulated CFD brokers. Dubious CFD brokers get an official financial regulation, as this would be immediately withdrawn after a few complaints. On the website of the broker, the regulation can be checked very easily, because it must be presented in the footer (bottom of the website). But often the provider is also directly with the various licenses and you can find more information about the regulation on the menu.

A regulation and license radiates trustworthiness at the same time and can only be obtained through strict regulations. Well, known regulations in europe are for example:

FCA (united kingdom)

Cysec (cyprus)

Bafin (germany)

Often large CFD providers have several licenses and branches worldwide. These branches are then regulated accordingly in the countries. In summary, a regulation should definitely be given. Fraud can be excluded. The regulation of the broker can be checked on the websites of the authorities

2. Check the company behind the provider

Unfortunately, there are also providers who feign regulation. These incidents are rather rare, but they do exist. An address of the company should be visible on the website. Besides regulation, this is the second important point you should pay attention to. Where is the company located and is it even real? Check the address of the broker.

3. Avoid rip-offs through excessive fees

High CFD trading fees are not directly a scam but can end up in an unbearable rip-off. Especially inexperienced beginners fall for dubious providers. In addition to trying to steal the customers’ capital, a fraudulent broker often demands too high trading fees. Inexperienced traders can often estimate the fees badly.

Before you register, check what trading fees there are and how high they are. Most traders charge a commission or a spread. These are fees that are charged per trade. Under CFD trading fees you can also read more about this. In the table below you will find an overview of the average spreads of a good provider

Asset:	spread (variable):
EUR/USD	1 pip (0,001 points)
S&P500	0,3 points
OIL	0,2 points
GOLD	1 point

Beware of spammers and cold

Dubious providers also often work with spam and cold-call calls. I get these annoying calls even weekly because my phone number is in the imprint of several websites. You should not underestimate these calls. If you get involved in a conversation, the caller will not leave you alone and will try to contact you again.

The calls often start with an opening question or with the sentence “I have seen you are registered with us”. Do not answer such foreign callers and block the number. Dubious CFD brokers sometimes buy databases with numbers of prospective traders. These are then called off. Never listen to the instructions of such cold-call calls and hang up immediately!

Why cfds are a serious financial product:

On the internet, you can read again and again that cfds are a dubious financial product and that traders can only lose money with them. This is partly due to rip-offs or dubious online brokers. Some coaches even make cfds bad to sell their own coachings for other financial products. Please check the facts for yourself. In the following text I would like to give you an insight into how cfds work.

One reads again and again about the fact that the CFD broker trades against his own clients. This does not happen with serious and large providers. On the homepages, it is clearly communicated how a CFD broker earns his money. Trade against the customer is forbidden and is excluded. Moreover, it would be a much too high risk for the broker.

The broker usually forwards a trader’s orders to a liquidity provider (market maker), which sets the prices and rates. These are usually large banks or institutions with the appropriate licenses. Larger CFD brokers also act as liquidity providers and cooperate with other providers. The broker then shares the trading fees with the liquidity provider.

A CFD broker earns his money by charging an additional spread (the difference between the buy and sell price), a trading commission, or a swap (overnight financing fee). Before opening a trading position, the fees are usually displayed.

Contracts for difference are leveraged derivatives. You need a security deposit (margin) for a position, which is multiplied by the leverage. Our recommended CFD broker plus500 will communicate all fees transparently with you. Plus500 makes money by adding a spread to the real market. In the oil example, there is a spread of 0.02 points.

So when you open or close the position, there is a “fee” of 0.02 points. The spread only means that the order will be executed at “worse” prices and the broker will earn his fee by the difference to the normal market price. There may also be a financing fee for the position overnight. Cfds are leveraged derivatives and this leverage must be financed.

Often a CFD broker borrows capital from other banks and lends it to his traders at higher interest rates. He makes a profit on an interest margin. In summary, cfds are a serious and regulated financial product. The broker hedges the positions through liquidity providers in the background.

Regulated and serious CFD brokers do not trade against the trader

The orders are passed on to liquidity providers with the appropriate licenses

The broker earns his money through trading fees

Conclusion: cfds are not fraud with a reputable provider

On this page I have informed you about the financial product cfds and the fraud attempts of dubious online brokers. Contracts for difference are considered a very safe financial product for the private trader as long as he trades with a regulated provider. Therefore, before you register, please check the company you want to register with.

For investments and capital-intensive transactions, the following always applies: do not trust any third-party account managers but only yourself. You have to protect your capital from fraud yourself and this guide from finanzanalyst.De will help you do this. In summary, the CFD trade is to be classified as serious. It is trading with leverage on falling or rising prices with the help of a contract for difference.

Is CFD trading serious?

Yes, CFD trading is reputable with a regulated provider. Make sure to check the company data and license before registration. Regulated CFD brokers operate to the highest security standards.

How does CFD trading work?

Cfds (contracts for difference) are leveraged derivatives. You can speculate and invest on rising or falling prices. The broker provides you with the trading platform and market data. You can test the trade yourself with a demo account or a small minimum deposit. The trade works via the order mask in the trading platform. There you can buy and sell assets with any position size.

Does a CFD broker trade against the client?

No, speculation against the customer would be much too risky. A CFD broker forwards orders to liquidity providers and earns his money through trading commissions. The higher the trading volume of the trader, the more money the broker earns.

Read my other articles about CFD trading:

CFD trader review: find out what you need to know

CFD trader is one of the newer automatic trading software options on the market. Its goal is to help others trade bitcoin using contracts for differences. This is a little different than traditional trading on an exchange. We’re going to talk about how it works and whether or not you should consider using it. Is CFD trader a scam? You are going to find out with this review.

Do we think CFD trader is legit?

As the oldest crypto on the market, it stands to reason that most people trade bitcoin than other cryptos, such as ethereum. Still, only die-hard fans invested in it up until 2017. At that point, its value soared, making it something that everyone wanted to trade.

Celebrities from all over the world claim that it helped them get rich, so it’s only natural that average people choose to invest in it. We always wonder about claims to fame and fortune through cryptocurrency, but we didn’t find anything to worry about with CFD trader. In fact, it doesn’t mention a single celebrity on its website. We conclude from this that the auto-trader isn’t focused on advertising tactics and lets its algorithm speak for itself.

Regardless of who has or hasn’t invested, bitcoin is still very popular and is valued at over $20,000. Since 2019 and the big boom, crypto traders became wealthy.

Of course, CFD trader is here to help average people trade bitcoin without knowing the system. You should always do your research to learn about CFD trading and how everything works. However, this auto-trader takes some of the risks out of performing trades. Just tell it the criteria you want to use, and it does the rest.

A word of caution here: CFD trading can be riskier than traditional exchange trades. Still, we do not believe that this software is a scam because of how it works and what it does. CFD trader uses an algorithm within its software. This lets it search through a lot of data to find out how bitcoin did that day in the past. With such information, it tells you how the market is likely to flow. When it finds deals that fit in with the trading parameters you set up, it trades them for you automatically.

We’ve found that it has high win rates, which are all based on your situation, trading parameters, and the market’s conditions. Therefore, you’ve got a good chance to win your trade, but there aren’t any guarantees.

This software is designed to give you a bigger edge within the market, but no one can predict 100 percent of the time what the market is going to do. Remember, bitcoin values can change instantly, making it very volatile.

We believe that CFD trader is legitimate as an automatic trading software. It’s similar to many other auto-traders we’ve reviewed. Take a look at the bitcoin era review to see the similarities between the two trading bots.

Regardless of the auto-trader you choose to use, we recommend caution be used. Make sure you are familiar with the software before adding money. It’s always best to invest the lowest amount at first; you can still double your earnings and choose to add more capital later.

The importance of anti-fraud measures in cfds trading

Funds withdrawal fraud is a major problem

How to protect your funds when trading forex & cfds online

Secure platforms

Trustworthy brokers

Finally, lookout for blacklists

Trading 212 review

Trading212 is one of the most famous brokers in the world in 2021. It is known for offering CFD services (contract for difference) on the most commonly traded assets like forex, commodities, indexes and stock market shares. Although, we consider trading 212 to be a good broker, if you are not yet using their services, we think that it might be a good idea for you to take a closer look at plus500 which does not charge comissions – click this link to go there . The reason we think that it is worth knowing plus500 is that it is one of the leading cfds provider at the moment. If you would like to learn more about plus500, we invite you to visit their official website by clicking the button below (76.4% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you can afford to take the high risk of losing your money).

In this review of trading212 we will do a complete analysis of the elements that we consider investors should keep in mind. Before using an online broker’s services, traders should collect the most possible information about it, and we will be looking at some of this information starting with safety. After we have done that, we will take a closer look at the fees charged by trading212 . We will also see what the alternatives to this broker are. To end this article, we will make a summary of our opinions concerning this online broker.

Regulation and safety: is trading 212 a scam?

The first thing you need to know is that trading212 is the trademark of two companies named avus capital uk ltd. And avus capital ltd. Being the property of another company is not something unique to trading212, this is something which occurs with almost all online brokers. The great majority are property of other companies which are the ones registered with the supervisory and regulatory bodies. Now that we have established this information, we can take a closer look at how this broker is regulated. This regulation and oversight is what will tell us if trading212 is to be trusted or not.

The parent companies of trading212 are authorized and overseen by the FCA, which is one of the most well-known and reliable regulatory bodies in the world. No wonder, since it is the main regulatory body of the united kingdom. While it is not impossible for a regulator to be fooled by a scam, the regulators at the FCA are among the best in the world. Also, being a broker from bulgaria, it is registered with the bulgarian commission.

To all this we can add the fact that it complies with european regulations, because it has, among other things, insured accounts to augment the safety of its investors’ funds. With this insurance, the funds deposited by traders are not in the hands of the directors of the company. In the past, there have been cases of brokers who would use the money of their clients to offset their payments, but with this type of regulation, safety is greatly increased.

To close this section on safety, we should say that it is impossible to say for sure if a broker is totally safe, but we can say for certain that trading212 has fulfilled all the safety requirements which can be expected of it in 2021.

As you undoubtedly know, trading has a cost. No broker allows investing for free, since on top of their need to cover operational costs, their intention is also to make a profit. Since trading costs money, if you would like to save yours, you should seek out an online broker which allows you to trade as cheaply as possible.

Luckily, in this day and age, very few brokers charge commissions for investing and trading212 is not one of these. Previously, when you wanted to buy shares you would be charged a commission; when you were paid your dividends, you would be charged again, and when you sold your shares you would pay yet another commission. With products such as cfds this practice has changed, and now you can trade with commodities such as oil or currencies on the forex market without paying these types of commissions. However, trading212 has a slight downside, to trade cfds on stock shares you do still need to pay a small commission. You also have to pay fees which the broker receives in the form of spreads.

You will also have to pay a small commission when depositing money into your trading212 account. This commission is between 0.7% and 3.5% depending on your chosen payment method.

With so many online brokers in existence in 2021, and with the help of technology, which not only reduces operational costs, but also allows companies to have clients from all around the world, the need to pay in order to invest seems to us like something from a bygone age. For this reason, although the commissions and fees charged by trading212 are not high, they are higher than those of their competitors. We would like to reiterate that plus500 does not charge any commissions for depositing funds or for trading, and their spreads are low. That having been said, if you would like to read more about their conditions, click here (76,4% of retail CFD accounts lose money).

Trading platform

Surprisingly, trading212’s trading platform is not metatrader 4, but rather a proprietary one. This is not to say that a proprietary platform is a bad thing, it may even be a positive thing if the platform is of good quality, but it is clear that the majority of CFD providers use the metatrader 4 platform.

The platform allows investing from literally anywhere in the world, since it can be accessed from a computer, but also from any smartphone with an ios or android operating system. Moreover, it offers trading signals and has advanced graphics which allow the user to perform technical analysis. It is even possible to place a trade from the graphics themselves – it resembles ninja trader in this respect. You are also able to perform several operations on the same trading pair, investing at both high and low points. This type of operation is known as scalping. It goes without saying that leverage is allowed, the level allowed does however vary with the asset being traded.

Recently, they have released traderbird, which is a social network created in order for investors to participate in, and to copy the trades of other investors. It is also possible to do the opposite, meaning that if you are making many successful trades, people may start copying you. And now that it has been integrated with the broker’s platform, it may be an interesting feature for those people interested in social trading.

We can summarize this point by saying that the trading212 platform is very easy to use. It offers all the services which a broker is required to and with a good degree of quality. The trading tools available are those that are necessary and the platform provides all the graphical trading signals investors might require.

Before concluding section on the trading platform, we are required to mention its famous demo accounts. Trading212 is known for offering 10 000 euros to its clients to try investing with. Obviously this is a simulator, and all the money is virtual.

Opinions

On the internet, it is possible to find all types of opinions. From people who had horrible experiences – with some people even saying that trading212 is a scam – to people who have been delighted with the platform’s performance, praising all its aspects. In our opinion it is neither as bad or as good as is being claimed.

Our opinion of the platform is good. What’s more, we feel that the regulation to which this broker is subject is adequate. We also have a good opinion of something which we have not yet talked much about. The demo account offered by trading212 is of good quality and you can use it for as long as you like.

Among the things that we have a bad opinion of, are the costs for investors. We don’t think it is a good idea to charge traders for investing funds, and we have found comments to this effect on various forum pages and reviews. Another point about which there have been many negative comments is the welcome bonus, or rather lack thereof. Trading212 has no welcome bonus and to receive one you will need to seek out an alternative online broker.

Review summary

Surely reading this entire review has taken you some minutes to do. When doing an in-depth analysis, there are many aspects to take into account. For this reason, you may still be a little confused, and we would like to offer you a list of all the most salient positive and negative aspects of trading212, to hopefully clarify things a little bit. At the end of this review is a link for the broker we spoke about earlier, one which we feel is worth getting to know.

Strengths

Famous for its demo account

Maximum reliability

Sophisticated trading platform

Great selection of trading tools

Social trading through traderbird

Weaknesses

It has come time to end this review, and although we have given our opinion of trading212 all throughout this article, we think that it would be a good idea to summarize it again in a few words. Although trading212 is a very good broker for investing in the forex market, trading cfds, stock shares and commodities, plus500 is one of the leading platforms (76,4% of retail CFD accounts lose money).

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