The market of trading is a hub for people losing money in various schemes. In just a matter of minutes, the traders could lose the money that they earned with so much effort. This may even lead them to face debt traps. Therefore, a good brokerage firm will always motivate you to learn trading before investing full-fledged with some random broker off the internet. CFReserve is yet another broker on the internet that claims to be one of the best in town. However, the reviews and the reports against this broker say something else.
CFReserve was mentioned by the Financial Conduct Authority or the FCA because of the reasons that we will discuss below. Owned by Richfield Limited, an entity operated and based in Ireland, the company would technically fall under the regulatory authority of Ireland. The regulatory authority of Ireland is the Central Bank that handles and approves all the trade brokers in that country. However, upon looking up on their website, we found out that CFReserve has not been mentioned anywhere. Therefore, it is clear that this company is not regulated. This is the biggest red flag of all times as a company that does not have a license is the main clue to the fact that the company might be a scam or fraud broker. For a company to trade freely in a country, it must have a license that is approved by the regulatory authority of that company. The failure of the same will legally bar the company from entering the market. The money that the customers invested in such companies are a huge risk as there is no surety of their authenticity.
The broker offers to trade in over 35 different currency pairs that include the exotic ones as well like the USDSEK, USDDKK, USDRUB, USDZA, etc. the payment is accepted in four different currencies that go by the names of AUD, GBP, USD, and EUR. The company also does not provide a demo account which puts the customers at further risk as they may not know the trade and randomly put their money in the schemes. This may also lead to them losing all their money.
The Final Verdict:
Another red flag that is waving in front of this company is that CFReserve does not provide Meta Trader 4 (MT4) or Meta Trader 5 (MT5) for their web-based platforms. This doesn’t allow the company’s website to be opened in these Meta Traders hence, proving to be risky for the customers. The minimum deposit needed to start an account is 250 dollars which is fairly a very large amount for any trading broker to ask. Since the company is not regulated, the customers using credit cards and debit cards to complete their transactions are at risk of being shown their CVV numbers to other website owners. This not only invites more trouble to these innocent customers but also puts them at a risk of the money in their bank being stolen without their notice.
CFReserve is a complete scam and, we do not recommend our readers to trade with this company.