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QDM FX Review - is it scam or safe?

QDM FX review - is qdmfx.net scam or safe forex broker?

RATING: 1.1 / 0 REVIEWS QDM FX
QDM FX is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


 QDM is a brokerage owned and operated by QDMFX Global, registered at Bedminster, New Jersey, US. A lot of the information on the website is unclear which raises our doubts about the broker. Read the whole review to found out why!

 

Disadvantages 

 

Regulation

 

It seems as though clarity of information is not one of QDM's aims. On the brokerage’s website we read that the company is registered in “American”, whatever that may mean, and has a “number”, whatever that may correspond to. After checking with the NFA registry for American brokerages, we could not find any connection with the number, nor the name. Here is a screenshot of exactly what the brokerage states on its website: 



Click to zoom.


Such irregularities impel us to have our second-thoughts about whether the brokerage may be trusted. It would seem it is neither regulated, nor licensed. Furthermore, American brokers must comply with extremely strict rules to be eligible for a NFA license, such as a starting capital of $20 mil. Such rules make it hard for most brokerages to register at the NFA, no wonder there are only a handful regulated brokers operating on American soil.  

The lack of regulation exposes potential traders to many risks. Due diligence requires us to state that there is no assurance for the safety of the clients funds, besides the supposed cordiality of the brokerage. Without regulation, we have no guarantee of the segregation of accounts i.e. the clients funds may well be mixed with those of the company and liable to all sort of illegal encroachments on part of the broker. Compliance with the highest regulatory standards also offers potential clients of the brokerage participation in a compensatory scheme by which, in the unlikely case of the broker’s bankruptcy, the losses of traders will be covered by up to 50 000 pound per person. We would suggest interested traders take a look at our list of recommended FCA-regulated brokerages that provide such important safety nests: 

 

>>List of FCA-regulated brokerages<<

 

Problem with demo account 

 

Access to the trading platform of the brokerage through a demo account is highly valued in the trading world, because it shows transparency and potential clients may get more familiar with the trading conditions of the brokerage. Because of this, we always count it as a big disadvantage when  such access from the website of the brokerage was not granted to us for one reason or another. QDM supposedly does offer potential traders to register for a demo account through the MT5 trading platform. After downloading the platform and setting it up we come across a malfunction that bars us from any further activity on the platform. Here is a screenshot to see for yourself: 


Click to zoom. 

 




Not enough information 

 

There is a bundle of crucial information missing on the brokerage’s website. For one, we could not discover the types of account the broker offers The lack of information should always be seen as huge negative, but having in mind the regulatory status of the brokerage, it is no surprising it is missing. Furthermore, without information on account types we cannot see the minimum deposit the brokerage requires from potential clients. QDM does not even let us know what sort of payment methods are available for traders who wish to deposit or withdraw funds with them. We would advise traders to always be as informed as possible before deciding to trust a brokerage with real money. 

 

A lack of trading options

 

Potential clients of QDM may trade CFDs on currency pairs, commodities, stocks and indices. However, at least from what we could see on the demo account, the brokerage doesn’t really satisfy when it comes to diversification of trade. There are certainly not a lot of financial markets for potential traders to participate in. One exciting product which is missing are the cryptos. Interested traders should be sure to check out our list of recommended Bitcoin forex brokers. 

 

>>List of Bitcoin forex brokers<< 


Advantages 



MT5


According to the information given on the website, potential clients of the brokerage may have access to the MT5 trading platform which is provided by the same company that is behind the MetaTader 4 platform. The MT5 does not substantially differ from its predecessor and traders may enjoy all of its unique feature that make it the most well-know trading platform at the moment. However, one difference, worth pointing out, is that the programming language of the MT5 has been simplified so as to be more accessible for traders new to the forex world. 

There is something that traders must have in mind. Without adequate access to the demo account we cannot be sure if the brokerage does in fact offer the MT5 platform. We have given a screenshot above and traders may judge for themselves. Furthermore, the uncertainty regarding the regulatory status of the brokerage, inclines us to advise interested traders check out our list of recommended and trustworthy MT5 forex brokers: 

 

>>List of MT5 forex brokers<<

Large leverage 

 

We always count a large leverage as an advantage with much caution. The problem arises due to the problematic nature of the leverage itself. On the one hand, it allows traders the possibility of significantly higher profits than would be if they traded with no leverage whatsoever, but in contrast to that – it also hides the risk of losing much more than the trader may be comfortable with.  Interested traders should check out our list of recommended forex brokers offering a leverage of up to 1:500. 

 

>>List of forex brokers with 1:500 leverage<<

 

Low spread 

 

From what we could see on the trading platform, there is a spread of 0.8 on EUR/USD which is a top offer in the forex trading world. However, due to the technical problems with the demo account, we cannot be sure if this figure truly corresponds to the actual spread on the live accounts. Here is a list of our recommended low-spread forex brokers and interested traders should be sure to give it a look. 

 

>>List of low-spread forex brokers<< 

 

Conclusion 

 

QDM is an unregulated brokerage who is a little too lenient with the information it provides for potential clients on its website. The most important section of the website – the security of the clients funds – is riddled with errors and awkward statements which are divorced from reality. This is highly disconcerting for us since the safety of the clients funds is paramount and perhaps the most decisive criteria by which a broker is judged. Having in mind all that was outlined above, we would recommend interested traders look for better and safer trading options. We have linked to such options throughout the review. 

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Traders` reviews for QDM FX

Spread

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Slippage

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Requotes

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Price feed

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Cons

 

 

Platform

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Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

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Summary

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