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Cardinal Markets Review - is it scam or safe?

Cardinal Markets Review - Is cardinalmarkets.com scam or good forex broker?

RATING: 3 / 1 REVIEWS ForexBrokerz Cardinal Markets
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Trading Accounts & Conditions

 

Account type Minimum deposit Maximum leverage Spread
Beginner $250 1:200 Fixed from 3.0 pips*
Advanced $1,000 1:200 Fixed from 3.0 pips*
Professional $5,000 1:200 Fixed from 3.0 pips*
VIP $10,000 1:200 Fixed from 3.0 pips*

 *this is what we saw in the platform, conditions may improve for the better account types, but this isn’t specified.

 

Cardinal Markets is a company which provides a hybrid service between binary options and forex/CFD trading. This relatively new way of approaching the markets has been implemented by multiple companies, willing to move away from options. 

 

Cardinal Markets Advantages

 

CySEC regulated 

The company behind Cardinal Markets is called Spot Capital Markets Ltd, and is affiliated with a lot of different brands. More importantly, they are regulated by the Cyprus Securities and Exchange Commission (CySEC), which means they have to follow a lot of strict rules. The legal environment in which a broker operates is by far the biggest factor you should take into account when comparing different ones.

 

A lot of markets covered 

There are multiple asset classes available at Cardinal Markets. They range from the more traditional forex pairs and indices, to a few specific stocks and even the newest trading instrument – cryptocurrencies. That being said, we have to mention, during our review a lot of markets were closed, so we can’t be certain of the actual offering. The cryptocurrencies available were Bitcoin, Bitcoin Csh, Ethereum and Litecoin, but some of the other categories felt surprisingly empty.

 

Up to 1:200 in leverage

We know this is a controversial issue and regulators in many jurisdictions have (or will) lower the maximum offered to retail clients. The reason for this caution comes from the fact one can lose a substantial portion of his investment, very quickly, if he doesn’t understand position sizing. With that in mind, the level offered by Cardinal Markets is great for experienced traders, but the way trading is actually done leads us to the first disadvantage we found about them.

 

Cardinal Markets Disadvantages

 

Hybrid trading model 

As we mentioned in the beginning of the review, this is a “hybrid” broker – a company which has been offering binary options and is switching to spot trading. Everything, from the beginning of a trade (literally the way in which you place an order) is a bit different from a traditional platform. 

 


How you trade at Cardinal Markets


One can chose his leverage ratio and amount he is willing to risk before entering the market. However, he does not predetermine his effective stop-loss level on the chart, as most traders do. This way of learning risk management is unusual in our opinion. It feels a bit like learning to drive while only looking at your dashboard, and not ahead of the car. This metaphor may be a bit too far, but the more experienced traders will probably see the point.  

 

>>Trading veterans will prefer MT4<<

 

High fixed spreads

The previous negative we managed to find may be a bit subjective, but the costs of trading aren’t. The spread one gets at Cardinal Markets isn’t very competitive to the offers provided by other brokers – when looking at the platform we found a 3 pip fixed level von EUR/USD. Obviously, this isn’t as big of a factor as the regulatory environment, but one can easily find a credible trading partner, offering better conditions.

 

>>Compare some of the tightest spreads here<<

 

$250 minimum initial deposit 

Such a requirement is by no means outrageous, but will surely prevent some traders form opening an account with Cardinal Markets. The reason why companies have such requirements is simple – creating an account for somebody who is going to trade $10 and $10,000, requires the same paperwork, while one of the clients will obviously bring more business. Those of you who are willing to start out with a smaller amount can find reputable brokers with smaller, or even no requirements, like the FCA-regulated IG.

 

Only classic deposit methods 

Cardinal Markets allows customers to deposit funds via Bank Transfer and Credit Card. Both of these options are very popular and probably the most frequently used. Still, some companies offer a more online options, like Skrill, Neteller and occasionally even Bitcoin. 

 

Conclusion

 

Cardinal Markets is CySEC regulated forex and CFD broker owned by Spot Capital Markets Ltd. This particular brand provides a “hybrid” trading environment – spot trading, done in a fashion similar to binary options. As we described in the review, seasoned traders may not appreciate this, but on the other hand, a newcomer may find it to be an easier way to control risk.

 

While the spreads at Cardinal Markets may not be the tightest we have seen, the company is still highly regulated, meaning your investment with them will be safe. The Cyprus Securities and Exchange Commission is one of the most active European financial watchdogs, which frequently issues warnings, fines companies for misconduct and alerts against scammers.

 

>>Find more CySEC brokers here <<

 

When it comes to the security of your funds, with a company, registered with CySEC, two particular principles stand above everything else. One of them is the segregation of client accounts – the broker will not have unlimited access to your capital. These special banking terms prevent the most basic form of fraud. On top of that, you have the local compensation scheme – this insures your trading funds against your broker declaring insolvency. In Cyprus, the maximum, a person can claim as compensation is €20,000.

 

Pros Cons
CySEC regulated Hybrid trading model
A lot of markets covered High fixed spreads
Up to 1:200 in leverage $250 minimum initial deposit
  Only classic deposit methods

 

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Traders` reviews for Cardinal Markets

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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