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CFDGalaxy Review - is it scam or safe?

CFD Galaxy Review - Is cfdgalaxy.com scam or good forex broker?

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

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Trading Accounts & Conditions

 

Account type Minimum deposit Maximum leverage Spread
Mini $200* 1:500 From 0.7 pips
Standard $500 Unspecified From 0.7 pips
Active Trader $5,000 Unspecified From 0.7 pips
VIP $10,000 Unspecified From 0.7 pips

 *or $250 according to another section of the website. The minimum for a bank transfer is $500.

 

CFDGalaxy is a forex and CFD broker, which does a rather poor job at presenting its offer. We have some issues, reaching beyond the unclear and alomst meaningless account types described above. A portion of this review goes into hypothetical discussions, as we weren’t able to register an account with the company. Read on to see what we mean.

 

CFDGalaxy Advantages

 

Tight spreads (allegedly)

CFDGalaxy states, the EUR/USD spread they offer can be as low as 0.7 pips. If this is true, the offer is one of the most competitive on the market. However, we can’t verify this claim.

 

>>Verified real-time spreads<<

 

MetaTrader4 (supposedly) available

This platform doesn’t need introduction. MT4 is a solid trading system, which provides great customisation and is easy to get started with. The analytical potential is almost endless, with the great charts provided. Furthermore, the mobile app is one of the best ones ever developed. Sadly we can’t show you the platform provided by CFDGalaxy, due to the issue which we already mentioned.

 

>>A list of MT4 brokers<<

 

Very high leverage

With a 1:500 level, CFDGalaxy is among the brokers offering the highest leverage on the market. While this isn’t that much of an advantage, when compared to other factors, the risk-takers among you will like such a feature. Newbies, on the other hand, must educate themselves about the risks involved with all margin trading. 

 

Various payment methods

There are quite a few ways to make a deposit to CFDGalaxy, namely Bank Transfer, Credit Card, Neteller, Skrill, Western Union and Bitcoin. This is one of the best lien-ups we have seen, while some of the regional systems, like Yandex for Russia or UnionPay for China aren’t present.

 

Broad range of markets

CFDGalaxy offers a … galaxy of CFDs. After that “clever” pun, we have to be a bit more specific and list the asset classes. They are: Forex pairs, Indices, Commodities, Metals, Bonds, a few Stocks and (as the company advertises it) “The New Gold” - cryptocurrencies. 

 

CFDGalaxy Disadvantages

 

Offshore company, no regulation

CFDGalaxy is owned and operated by IB Systems Limited, a company registered in Saint Vincent and the Grenadines. We got to this information after reading the Terms and Conditions, as it isn’t provided in an easily visible place. It probably wouldn’t surprise you to hear this broker isn’t authorised to offer its services by any financial regulator. The combination of offshore company + lack of regulation is one which we have seen often, and so powerful, it trumps all the positive things we found about CFDGalaxy. 

 

Testing the service isn’t available

We wanted to test the attractive spreads advertised by this broker. When creating an account we were greeted by this message:

 

 

After several hours of waiting, we didn’t receive an e-mail with our demo login details. We can only hope this is a temporary technical issues and the company doesn’t have to manually approve every demo account.

 

Somewhat high minimum deposit

The minimum initial investment at CFDGalaxy is $250. Furthermore, if depositing with a bank transfer it goes to $500. This may not sound like a big deal to some of you, but a lot of newcomers should prefer starting out with an even smaller sum. Other forex brokers accept smaller clients.

 

Conclusion

 

CFDGalaxy is an unregulated offshore broker. We weren’t able to test their otherwise impressive claims for tight spreads, due to an issue on their end. This may have been bad luck, or indicative of a non-functioning company.

 

Even if we give them the benefit of the doubt and try to register again and see a solid trading environment, we would probably not give them a much higher score. This is simply due to the significance of the regulatory factor, which is unlikely to change. When trading with an unregulated company, you are taking serious couunterpary risk (i.e. risk they may not pay you back).

 

In order to tackle this issue, a lot of countries have agencies who monitor the finacnaial services sector. One of them is the UK’s Financial Services Authority (FCA), which we often like to reference, when explaining the importance of regulation. Here are only a few of the rules which they enforce on companies, which are registered with them:

 

>>Check our list of FCA-regulated brokers<<

 

First and foremost, clients deposits are held in segregated accounts. This is a special banking mechanism, which guarantees the broker doesn’t have complete access to the funds. In essence, this prevents them from transfering your money to another account. Additionally, participation in the Financial Services Compensation Scheme (FSCS) is mandatory. This is basically an insurance scheme, which covers traders’ accounts against their broker going bankrupt (up to £50,000 per person).

 

Pros Cons
Tight spreads (allegedly) Offshore company, no regulation
MetaTrader4 (supposedly) available Testing the service isn’t available
Very high leverage Somewhat high minimum deposit
Various payment methods  
Broad range of markets  

 

 

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Traders` reviews for CFDGalaxy

Spread

Pros

Cons

 

 

Slippage

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Requotes

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Price feed

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Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

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