PrimeCFDs is a new brokerage launched in early 2017, focused on Contracts For Difference (CFD’s). The owning and operating company is Orion Service EOOD, located at 39 Aleko Konstantinov st, Sofia, Bulgaria and regulated by the Vanuatu Financial Services Commission (VFSC) under license number 14793. However, the license certificate they show on the website mentions the name Arrow Capital Ltd, a company that I managed to find on a List of Licensees under Dealers in Securities on the VFSC website but I don’t understand what their connection with PrimeCFDs or Orion Service is. Need further clarification. According to recently acquired information, the license was awarded to Orion’s Oceania-based management firm, Arrow Capital Ltd. This company is listed in the List of Licensees under Dealers in Securities on the VFSC website, as mentioned before and was established in accordance with the VFSC requirements that regulated firms be based in Oceania.
According to recently acquired information, the license was awarded to Orion’s Oceania-based management firm, Arrow Capital Ltd. This company is listed in the List of Licensees under Dealers in Securities on the VFSC website, as mentioned before and was established per the VFSC requirements that regulated firms be based in Oceania.
Is PrimeCFDs A Scam?
The owning company Orion Service have managed to establish a reliable public image. Nevertheless, some issues should be clarified by them, starting with their licensing status: the owning company is located in Bulgaria, but they say they are regulated by the Vanuatu Financial Services Commission. Even more, the license they show on the website is for Arrow Capital Ltd, not for Orion Service EOOD. I don’t understand the relation between the two companies and the word that comes to mind is “confusing.”
UPDATE* Thumbs up for PrimeCFDs for clearing things up! Arrow Capital Ltd. is Orion’s Oceania-based management firm, which was established in accordance with the VFSC requirements that regulated firms be based in Oceania. Ok cool, now the word that comes to mind is no longer “confusing” but “transparency” and you know I love that.
Editor’s Note – Why PrimeCFDs Doesn’t Suck In 50 Words?
They try to bring a new way of trading to the mainstream public, and I like that because trading is more than just Binary Options. We should have diversity and PrimeCFDs is a brokerage that adds to the variety of trading, so I have to say that’s why they don’t suck. Time will tell if the diversity they bring is the good or bad kind. *Update: PrimeCFDs no longer offers Binary Options/Fixed Return Options, only CFDs, and Forex.
Why PrimeCFDs Sucks In 50 Words?
They offer 5 types of accounts, but they don’t specify the required investment for either of them. I’d say this is necessary information that’s needed when a client decides whether or not he/she wants to do business with a brokerage. I hate it when brokers do this! Also, on their Accounts page, they show the payout percentage – what’s up with that? I thought Forex and CFDs don’t have fixed percentages. Sure, you can use a Take Profit order, but you can adjust it however you want (more or less), so your trade doesn’t have a predetermined payout.
Should I Open A CFD Account With PrimeCFDs?
As mentioned before, this broker is new on the scene and we don’t have enough information about their reliability. As far as the platform is concerned, they offer the TraderSoft platform in two versions: one for Contracts For Difference (CFDs) and one for Fixed Return Options (FRO). The main layout is the same, but you will notice some differences between the two versions, which is normal because FRO and CFD are two different types of trading.
*Update: PrimeCFDs is not offering Fixed Return Options anymore, only Forex and CFDs.
The website is pretty welcoming and easy to navigate, with all the usual guides and tutorials but also a free e-book and Daily Market Briefings, which are updated daily, not once every new moon like we’ve seen with other brokers. However, for a brokerage named PrimeCFDs I would expect to see a bit more information about… CFDs (duh!). Right now, they look like a bit dull, without information about Contracts For Difference so I hope they change that soon, but for now, I will cut them some slack, considering they are so new on the scene. On second thought, why cut them any slack? If you are named PrimeCFDs then you should be prepared for CFD trading right from the start, not months after. Their FAQ doesn’t contain anything about CFDs, and their e-book doesn’t even mention CFDs, their whole Education section doesn’t have the slightest trace of CFDs. *Update: since dropping FROs entirely, they’ve focused more on CFDs but the information is still lackluster.
What’s even more disappointing is that you will have to open a Platinum account if you want to trade CFDs. Take that, dear client! Welcome to PrimeCFDs where we don’t focus on CFDs and you cannot trade CFDs unless you are a Platinum account holder. The only account above Platinum is Diamond so I can imagine that you will have to deposit quite a lot… and I said “imagine” because they don’t reveal how much you have to deposit unless you give them all your information by registering on the website and then talk to an Account Manager. What is this? Fort Knox? Jeez, just let me know how I can trade CFDs with PrimeCFDs…
*Update: Hey, they are probably reading my reviews because now they don’t force you to open a Platinum account if you want to trade CFDs. However, they are still showing payout percentages for each account. It should be noted that CFDs and Forex don’t have fixed percentage returns, so I don’t know why they are still showing. Probably a vestige of the times when PrimeCFDs was mainly a binary options broker.
So, to answer the title question: I am not so sure you should open an account. They’ve stopped offering Binary Options or Fixed return Options as they were calling them, so now they only have CFDs and Forex. Well, if you want to trade those instruments, why not go for one of the massive Forex brokers out there? I mean, PrimeCFDs is no match for the big guys in the Forex industry, so I think they’ve lost a step by dumping binary options. It’s their call, but I don’t believe that it’s the right one.
Trading Fixed Return Options (FRO) with PrimeCFDs
Fixed Return Options (FROs), also called Fixed Rate Options are a new name for the popular and well known Binary Options. The trader can receive payouts of up to 85% if he or she correctly predict whether the asset’s price (currency pair, stock, index, etc.) will be higher or lower at the time of the chosen expiry. Fixed Return Options (FROs) can be traded on the same TraderSoft platform as Contracts For Difference (CFDs), by simply switching between the two instruments using the buttons you’ll find in the top left part of the platform. There’s no need to log out and log in with another account/username so you have both CFDs and FROs at your fingertips, just choose your weapon.
Accounts start at 250 USD, you have a wide choice of assets and expiry times, ranging from 30 seconds to end of the month. Education is mostly focused towards Fixed Return Options so you will have no problem getting started, especially considering that FROs are mostly just a new name for Binary Options. What’s very important is that PrimeCFDs is a regulated brokerage, so trading Fixed Return Options with them is safer in the sense that you don’t have to fear being scammed.
Because the Brokerage was just launched, we couldn’t find any notable complaints on them. Of course, we will update this section if complaints start piling in.
*Update: Well, it didn’t take long for complaints to appear. It’s not a huge amount of negativity, but some people are complaining about being pestered with phone calls the second they’ve made their deposit and about difficulties to recover their money. Also, there’s word of pressure to deposit more money than the client wants, under the reasoning that a larger sum will secure better gains. Make sure you understand the TC of this company before investing!
Prime CFDs Withdrawal
The methods for withdrawal are Credit Cards (Visa, Master Card, Visa Electron, Maestro UK), wire transfers and some e-wallets, with Neteller being the preferred one. Withdrawals usually take 3 business days to process and up to 5 business days for the money to reach you. As with all brokers, identification documents are required due to Anti-Money Laundering laws.
Trading Bitcoin With PrimeCFDs
Deemed the asset class of the future, Bitcoin in special and cryptocurrencies, in general, are making their way onto the platforms of more and more brokers. PrimeCFDs has embraced this new trend by offering Contracts For Difference on quite a few crypto pairs. You can find Bitcoin, Litecoin, Ripple, and Ethereum. All of them can be traded against the US Dollar and against the Euro (ex: BTC/USD, BTC/EUR, LTC/USD, LTC/EUR).
PrimeCFDs offers only CFDs, so you won’t find any binary options on Bitcoin or other cryptocurrencies but the upside is that you can use leverage of up to 10:1 and you can close your trade whenever you feel like, without being limited by expiry times.
Prime CFDs Ratings
User Friendliness 16/20
The CFD platform is relatively easy to use if you are familiar with this type of trading but the website lacks the necessary information related to CFD trading. Also, it is only available in English and Arabic, so we’d like to see it translated into more languages.
Range Of Markets, Spreads And Leverage 14/20
PrimeCFDs gives you the opportunity to trade CFDs on a large number of Stocks, Indices and Commodities, but also Forex on more than 30 currency pairs. Spreads are very high (around 3-4 pips for Majors) and also floating, meaning they change according to market conditions. Leverage differs depending on the asset, but it goes up to 1:200 for currency pairs and 1:100 for commodities.
Deposits And Withdrawals 15/20
Deposits can be made through the usual methods (credit cards, wire transfers, and e-wallets) and withdrawals will be made through the same method used for the deposit. Minimum deposit is 250 EUR/USD/GBP according to their FAQ page, but on the same page, they say that minimum deposit is 100 EUR or USD. Again, the word “confusing” comes to mind.
CFD Fees and Support 15/20
Credit Card transactions are free of charge but you may have to pay a fee for wire transfers. However, this fee is not specified and may depend on your bank. Support on the website was unhelpful and didn’t provide me necessary information regarding how much to deposit into a Platinum Account, so I can trade CFDs. Also on a more recent visit, I asked if they are still offering FROs (binary options) and the support lady told me to look on the website. Wow, thanks for the help…
Their Blog is constantly updated with Daily Market Briefings, and I consider this the biggest extra, although, in a perfect world, we should view this as normal.
PrimeCFDs Overall Ratings (73) + Regulated VFSC (+3) = 76/100