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CGFX (CG-FX) Review - is it scam or safe?

CGFX Review - Is cg-fx.co.uk scam or good forex broker?

RATING: 2.2 / 1 REVIEWS ForexBrokerz CGFX (CG-FX)
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Trading Accounts & Conditions

Account type Minimum deposit Maximum leverage Minimum trade size Spread
Standard $500 1:400 0.01 lots Fixed, from 1.7 pips
VIP $20,000 1:200 0.10 lots Floating, from 0.5 pips



CGFX is a forex and CFD broker, operating out of New Zealand. While they are a regulated company, which allegedly offers decent trading conditions, a few details are slightly odd. Read the full review to get the bigger picture.


CGFX Advantages


Regulated in New Zealand
CGFX is registered in the Financial Services Providers Register (FSPR). This means they have to obey the regulations in New Zealand, which brings a lot of credibility to the brokerage. They also mention being overseen by the UK’s Financial Conduct Authority (FCA). However, our investigation revealed a slightly different situation, which we will cover in the negatives section.


>>Find more brokers in New Zealand<<


MT5 supported
This broker claims to offer Meta Trader4, the raining industry leader in terms of forex trading platforms. That being said, when downloading their platform, we actually got the default (not branded) version of MetaTrader5, the latest version of the same software. Here is a preview.



We have to clarify, the spreads shown in this screenshot aren’t the ones provided by this broker, as we aren’t connected to their server. Nonetheless, this is one of the best trading platforms available. All of the functionality of the previous iteration is kept (the charting package, expert advisors, mobile app and web-based version), with a few new additions, like the built-in economic calendar.


PayPal accepted
CGFX accepts payments via Bank Transfer, PayPal and China Union Pay. This list is rather diverse, but the lack of support for Credit Cards and other popular e-wallets (such as Skrill and Neteller) is strange.


>>Brokers accepting Neteller<<


PAMM/MAM accounts
CGFX offers a way for experienced traders to manage others’ funds. PAMM and MAM accounts are a mechanism, which copy the trades made by a “master account” in the accounts of investors, who only follow it. This has more or less been replaced by more modern “Social trading” platforms.


High leverage provided
CGFX offers ratios going as high as 1:400. We feel the need to mention, this should only be sued with caution. It is known, that overleveraging is one of the reasons some traders loose a majority their funds, when they start out.


Decent spreads
The spreads provided by CGFX are relatively nice. We decided to mention this in the bottom of the positives section, as they are ok, but not too impressive (at least for the standard account). The VIP account ton the other hand seem very competitive, but require a hefty investment.


CGFX Disadvantages


Some issues with the registration
While CGFX claims to also be regulated in the UK, the legal entity which they list as their representative is only listed as a payments provider. Technically, this means they are “registered with the FCA”, but this isn’t the specific financial markets oversight, which protects clients of brokerages. The way they state it on the website is misleading.


Additionally the main company, which operates this brokerage has changed its name in the past. While they are currently listed as “registered” with the New Zealand FSPR, this is also slightly worrying.


High deposit requirement

The $500 deposit requirement, for the standard account type will limit some traders from experiencing this broker. Luckily for them, there are a lot of companies, which accept smaller clients. The entry level is usually around $100, with some brokers even removing this barrier altogether – you can go as low as you want.


Small mistakes on the website
The regulatory claims are obviously much more important than this, but CGFX also isn’t very clear on a few less significant things. For instance, the leverage ratio isn’t matching in different sections on the website, they list MT4 on the website, while providing MT5, and a few other things.


Conclusion


CGFX is a forex broker, based and regulated in New Zealand. Their entire presentation is slightly misleading, especially given the “FCA registration” claims. The trading conditions seem relatively nice on paper, but we haven’t tested them. We have to mention the possibility of the company changing ownership at the time of writing, which will explain a lot of the inconsistencies on the website.


The reason why this broker claims to be overseen by the UK’s watchdog is simple – this is one of the most respected agencies in the world. Here we will only cover the rules, which apply to the security of your investment, but there are a lot more.


>>Find FCA regulated brokers here<<


First and foremost, every deposit you make with a broker (which is registered as a broker) with the Financial Conduct Authority are kept in the segregated bank accounts. This means, the company doesn’t have free access to the funds (and can’t steal them). In case the broker happens to go bankrupt, the Financial Services Compensation Scheme (FSCS) will protect you (limited to £50,000).


To recap this review:

Pros Cons
Regulated in New Zealand Some issues with the registration
MT5 supported High deposit requirement
PayPal accepted Small mistakes on the website
PAMM/MAM accounts     
High leverage provide  
Decent spreads  

 

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Traders` reviews for CGFX (CG-FX)

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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