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CF Merchants Review - is it scam or safe?

CF Merchants Review - Is cfmerchants.com scam or good forex broker?

RATING: 1 / 1 REVIEWS ForexBrokerz CF Merchants
CF Merchants is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


CF Merchants is a forex and CFD broker, offering five account types, including a swap-free Islamic account on the MetaTrader4 platform. In case you are considering opening an account with the be sure to read this review first: 

 

Account type Min. deposit Max. leverage Spreads
Standard Account $1 1:500 1,8 pips
Prime account $10 000 1:500 1,4 pips
VIP Account $50 000 1:500 1 pip
Corporate Account $100 000 1:500 0,6 pips

 

CF Merchants Advantages:

 

Large array of forex pairs as well as some crypto CFDs

 

CF Merchants offers its clients 50 forex pairs, including exotic currencies like Czech Krona, Polish Zloti, Mexican Peso, Norwegian Krone, Swedish Krone, Danish Krona, Turkish Lira, Hong Kong Dollar, Singapore Dollar, South African Rand, Chinese Yuan and Russian Ruble. The broker also offers CFDs on gold, silver, platinum, palladium, oil, indices and even some crypto currencies - Bitcoin Ethereum, Ripple and Litecoin. Still here you may check our list of brokers, also offering Bitcoin CFD:

 

>>Bitcoin Forex Brokers<<

 

Various payment methods

 

With CF Merchants you can deposit or withdrawal capital with major credit or debit cards like Visa and MasterCard, e-wallets like Perfect Money, Skrill and Neteller, as well as bank wire. We do not see another popular e-wallet – PayPal, so here you may check our list of brokers where you can pay with PayPal:

 

>>PayPal Forex Brokers<<

 

Generous leverage

 

Leverage of up to 1:500 is more or less in the upper range of what traders usually get and CF Merchants allows it with all account types. Still having in mind that higher leverage means higher risk, you may check our list of brokers also offering leverage of up to 1:500 and above:

 

>>Forex Brokers Offering 500:1 Leverage<<

 

Just 1 USD to open a starting account 

 

To open a Standard Account with CF Merchants You have to invest just 1 USD and that is great. However, for the Prime, the VIP and the Corporate accounts, where the spreads are much better, you will have to invest considerably more – 10 000 USD for a Prime Account, 50 000 USD for a VIP Account and 100 000 USD for a Corporate Account. Have in mind that with well recognized brokers like XM and FXTM you can open an account with just 5 USD.

 

Islamic Account offered

 

CF Merchants offers a swap-free or Islamic Account, designed especially to attract Muslim traders, who under the Sharia Law, are forbidden to take or receive interest. With swap-free accounts you do not pay interest on positions left open over night. Here, you can check our list of brokers also offering swap-free, Islamic accounts:

 

>>Islamic Forex Brokers<<

 

MetaTrader4 available

 

MetaTrader4 is a classic trading platform. Charts are easy to use and indicators can be personalized and even compiled with a specially designed editor. So are the trading algorithms – Expert Advisors, with which you can run automated trading strategies. All that makes MetaTrader4 a perfect choice for experienced and beginner traders alike. Here you can check our list of brokers, also offering the MetaTrader4:

 

>>Find other MT4 brokers here<<

 

CF Merchants Disadvantages:

 

Lack of proper legislation

 

CF Merchants Ltd. says it is registered and regulated in St Vincent and the Grenadines. 

 

The Financial Services Authority (FSA) of St Vincent and the Grenadines, however, recently warned in a statement, published on its website, that it “does not issue any licenses for forex trading or brokerage or binary options trading nor does it regulate, monitor, supervise or license international companies, which engage in such activities“. 

 

In addition the FSA warns that there are financial institutions that falsely claim they are registered or licensed by the institution and that “their purpose for doing this is more than likely for illicit reasons“.

 

For that reason we will treat CF Merchant as an unregulated, offshore broker.

 

Have in mind that trading with properly licensed brokers is crucial for the safety of any investment. Brokers, supervised by well established regulators, such as the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) have to abide by strict financial and ethical rules, among which to maintain good fiscal discipline to keep all clients funds in a segregated, protected from creditors account.

 

In addition FCA and CySEC regulated brokers have to participate in traders compensation schemes. The FCA backed Financial Services Compensation Scheme for instance insures up to 50 000 GBP of traders' capital, while a similar CySEC mechanism guarantees up to 20 000 EUR in case a broker goes insolvent. Here you can check our list of FCA regulated brokers:

 

>>FCA Regulated Forex Brokers<<

 

Uncompetitive spreads with the Standard Account

 

Spreads with the Standard Account -  the only easily accessible one, as the minimum deposits for the premium accounts are way too high -  start at 1,8 pips and that is above the upper range of what traders usually expect to see. Have in mind that with a standard account spreads are considered acceptable between 1 and 1,5 pips. 

 

With the Prime account the spreads are advertised to start at 1,4 pips, with the VIP Account at 1 pips, while with the Corporate Account, they should be as low as 0,6 pips, but to get them, as we already mentioned, you will have to invest 100 000 USD.

 

When we tested a Demo account the EURUSD spread matched the advertised for the Standard Account – 1,8 pips. Here you can check our list of brokers offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

Withdrawal fee

 

Have in mind that for withdrawal of less than 100 USD, 20 USD per transaction will be charged as a processing fee. Also, with CF Merchants you can not withdraw less than 25 USD.

 

Conclusion:

 

CF Merchants is an offshore, unregulated broker and that significantly lowers its credibility. On the other hand, as the minimum deposit requirement for a Standard account is just 1 USD there should not be significant risk in investing small amounts just for the fun of trading. We should note that they are offering a good variety of forex pairs, including exotic ones, as well as CFDs on some popular crypto currencies. Also, the leverage is good and you have the MetaTrader4 platform. Still the spreads with the Standard Account are not that good and this is a setback. 

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Traders` reviews for CF Merchants

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