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 the minimum required investment for the lowest account is huge: 2,500 EURO. This is way above the industry standard, which is around $250 Also, on their Accounts page, they show payout percentages – what’s up with that? I thought Forex and CFDs don’t have fixed percentages.
Is PrimeCFDs A Scam?
TIt is unclear who owns this brokerage and some issues should be clarified by them, starting with their licensing status: in the past, they claimed that Orion Service was licensed by Vanuatu Financial Services Commission, but now the regulation claim doesn’t exist anymore. Also, I don’t understand why they show 2 owning companies depending on the region from where I access the website (I am not traveling the world while writing this review; instead I am using a VPN to change my IP).
The relation between the two companies should be cleared up and for the time being, the word that comes to mind is “confusing.” I don’t like to deal with unregulated brokers that confuse me, especially if I don’t know who owns the website.
Should I Open A CFD Account With PrimeCFDs?
PrimeCFDs is a brokerage launched in early 2017, focused on Contracts For Difference (CFD’s). The owning and operating company is TLC Consulting LTD, located at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960. Depending on the region from where you access the site, you will see another owning company: Orion Service EOOD, located at 39 Aleko Konstantinov st, Sofia, Bulgaria. Neither company is regulated. They can be contacted by email: support(at)primecfds.com.
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 web platform (no download necessary), which offers a good mix of simplicity and functionality and seems to be the go-to platform of the new breed of CFD, FX, and Crypto brokers.
*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. Right now, they look a bit dull, without much information about Contracts For Difference so I hope they add more soon. At launch, this brokerage was offering Binary Options under the name of Fixed Return Options (FRO) but in the meantime, they’ve switched entirely to FX, CFD, and Crypto. Since dropping FROs they’ve focused more on CFDs but the information is still lackluster.
The account structure is terrible, to say the least: if you want an account with PrimeCFDs you will have to invest at least 2,500 EUR and that’s for the cheapest account (Silver). For the highest account (Rhodium) you will have to come up with 100,000 EUR! If you are planning to give that much money to an unregulated brokerage, you are either out of your mind or you have too much money.
Even if they’ve ditched FROs, they are still talking about payout percentages on their Accounts page. 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 the end of the month. Education is mostly focused on 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 recovering their money. Also, there’s the 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!
PrimeCFDs Regulatory Warnings And Announcements
24.07.2017: The Manitoba Securities Commission (MSC) has warned that PrimeCFDs (previously known as WM Option) has defrauded a rural Manitoba couple of more than $180,000. The MSC also informs that WM Option and PrimeCFDs were both registered to the same parent company in Bucharest, Romania. Source: MSC warning.
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 the 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. Bitcoin and several other cryptocurrencies are available. 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, 1:100 for commodities, and 1:10 for cryptocurrencies.
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. The minimum deposit is 2,500 EUR, which is huge and way above the industry average.
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 the necessary information. 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. Also, when I asked about regulation, she told me they don’t accept clients from my country and closed the chat immediately. 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: 73/100