Why MaxCFD Doesn’t Suck In 50 Words
Bitcoin trading! That’s about the only reason why they don’t suck, but on the other hand what’s the use of allowing you to trade Bitcoin and other cryptocurrencies if they are not gonna pay your money back. But again, this is only speculation and I have no way of knowing for sure if they are scams or not.
Why MaxCFD Sucks In 50 Words
Let’s call a spade a spade: MaxCFD sucks because there’s a huge chance of being scammed by them. I cannot overlook the massive number of complaints and I have to say that most of them seem legitimate and true.
Is MaxCFD A Scam?
Let me make this simple: everywhere the MaxCFD name appears, people put the word “scam” next to it. The complaints are horrible and if I were to take each one of them as true, I would consider MaxCFD a clear scam and a black hole for your money. However, I don’t have any hard evidence of that, so I will refrain from calling this brokerage a scam.
The owning company (Chemmi Holdings) also owns and operates BinaryTilt, which is yet another shady brokerage, with tons of complaints. MaxCFD was launched sometime in 2017 so they can be considered very new but surprisingly their traffic numbers are pretty good at about 230K visits during December 2017. It must be noted that most of their traffic comes from referrals and the top referring sites are related to cryptocurrencies, so it looks like people are visiting MaxCFD to trade Bitcoin and other cryptos.
Should I Open An Account With MaxCFD?
MaxCFD is owned and operated by Chemmi Holdings Limited (Company number: 9870892) Business Address: 20-22 Wenlock Road, London, England, N1 7GU, United Kingdom. According to their home page, they claim to be regulated, however, we couldn’t find any trace of regulation. They can be reached by email at [email protected] or by phone at +442033185138.
This is a CFD brokerage launched in 2017, so you won’t find Binary Options trading on their platform. They are part of a new breed of brokers who are switching from Binary Options to Contracts For Difference (CFD) due to the increased pressure is shown by regulatory agencies towards the former. But actually, their CFDs are simply Binary Options under a different name. Even in their FAQ section, they explain CFDs as: “A CFD is a prediction of which direction the price of an underlying asset will take an expiry time. For example, if the price of gold is currently 1500, will it rise or fall by 5:00 PM?” They further say that you will receive a payout of 70% or more if your prediction comes true by even a single pip. All these are characteristics of a binary option, not a CFD.
According to Wikipedia, a CFD is “a contract between two parties, typically described as “buyer” and “seller”, stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller)”.
However, on MaxCFD’s actual trading platform you will find CFD trading so… they say they offer CFDs but explain them as Binary Options, and just when you expect to trade Binaries, they give you CFDs.
Confused yet? Yes? Good, then let’s talk about their education material: 404 Page Not Found! Ok, we’re done with that, let’s move on. Actually, no, let’s stay here a while: I did find some educational material in a corner of their website but you know what it said? You don’t need any financial experience to trade CFDs because it’s just a matter of predicting if the price will rise or drop by the expiry time. That’s horse manure! So yea, now let’s move on and talk about their Daily Market Review: Empty! Nice, nice. What else? Oh yes, their Account structure: nowhere to be found. I couldn’t even find the minimum deposit requirements. Ok, let’s contact support and ask them… oh, wait, they don’t have Live Chat and to send a message they need my – wait for it – full name, email address, and phone number. Ok… you’re not getting that, MaxCFD.
So I believe the answer to the title question is simple: NO! You should not open an account with MaxCFD unless you have too much money and don’t know what to do with it. But I am not a financial advisor, so I am not advising you what to do with your money.
Yes, everywhere you look, the name MaxCFD is followed by a huge string of complaints. The biggest and most common problem is that once people deposit, they can’t get their money back and are asked to deposit more. The accounts are traded into the ground then bonuses are added so the client cannot withdraw because the turnover is not reached. The words “crooks” and “scammers” are widely used by clients to describe MaxCFD. Be careful you don’t become one of the people screaming “MaxCFD is a Scam!”
MaxCFD Regulatory Warnings And Announcements
So far MaxCFD has been flying under the radar of authorities. However, their owning/operating company Chemmi Holdings Limited has had its share of encounters with the regulatory agencies: ASIC Warning, BCSC Warning, CONSOB Warning. These are mostly related to Chemmi’s other brand BinaryTilt, but you know what they say: the apple doesn’t fall far from the tree.
The bonus percentages are not shown on the website but on their Terms and Conditions document they stipulate that a turnover of 30 times for each $1 will be required before any withdrawal can be made. That means that clients won’t be able to get a single penny out (not even their initial deposits) before fulfilling the turnover requirements.
According to the little information found on their site, withdrawals can be made through major credit cards, wire transfers, and some e-wallets. The processing time is 7 – 10 business days and the minimum transaction is 100 USD.
Trading Bitcoin With MaxCFD
MaxCFD is a brokerage heavily geared towards Bitcoin and many other cryptocurrencies. They offer CFDs on a multitude of pairs, including but not limited to Bitcoin vs Ethereum, Bitcoin vs Litecoin, Bitcoin vs Euro, Dash, Ripple (XRP), Ethereum vs Gold, Ethereum vs Oil, ZCASH, Monero, and many more.
They even offer leverage of 2:1 and 3:1 (remember to use a Stop Loss because leverage is risky), so overall trading Bitcoin with MaxCFD is good on paper. In real life, things may be different though.
User Friendliness 12/20
The platform is relatively easy to use and all the information is displayed in an intuitive way, but the website seems unfinished and lacks basic information like account types, proper education, and risk warnings. The only available language is English and demo accounts are not available.
Range of Markets, Spreads And Leverage 15/20
MaxCFD offers over 100 assets, including currencies (fiat), commodities, stocks, and indices but the biggest buzz these days is around Bitcoin, so you’ll be glad to know that MaxCFD offers Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple, Zcash and many others, paired against each other and against normal currencies (fiat).
The leverage for fiat currencies goes up to 200:1 and for Bitcoin up to 3:1. The spreads are floating (meaning they change depending on market conditions) but overall they are medium-to-high.
Deposits And Withdrawals 12/20
The accepted methods are credit cards, wire transfers, and some e-wallets. The time it takes for a deposit to reach your trading account is not specified and neither is the minimum amount allowed. Withdrawals take up to 10 business days and the minimum is 100 USD. One withdrawal per month is free and the rest will incur a 25 USD fee.
Fees And Support 12/20
Unfortunately, if you want to make more than one withdrawal per month, you will have to pay an extra 25 USD fee, which is quite big considering that the bank may charge you another fee as well. Live Chat support is unavailable at MaxCFD and the other methods of contact require you to give them your full name, phone, and email.
Bitcoin trading is a great addition but unfortunately, this feature is overshadowed by the huge number of complaints regarding this brokerage.
MaxCFD Overall Ratings 61/100