Review of CXM Direct – Is this broker a scam?
When reviewing CXM Direct, we focused on all different factors that traders should consider before signing up with a Forex broker. Our detailed review included information about the regulatory status of the broker, trading conditions, as well as the offerings the broker has.
Throughout our review, we were able to find several problems associated with this online broker. Apart from that, we also came across several Forex traders who have reported that they had lost their money with CXM Direct due to shady reasons.
But, several comments made by ex-clients of the company are not the only problems associated with CXM Direct. During our review, we found that the broker’s website offers traders very inconsistent information, which can be a sign of a scam.
So, follow our detailed review of the CXM Direct Forex broker and find out more about the challenges that we came across during our review.
CXM Direct Review – Inconsistency of Information
When we started our review of CXM Direct, naturally, the first thing that we checked was the website of the broker. At first, the website does not look too bad. The design is okay, and one would not necessarily think that they are dealing with a scam broker.
But, after spending some time on the website, going through all the different types of information provided on the website, we were able to detect some of the inconsistencies in the information that the broker provided on its official website.
This is a huge red flag when it comes to Forex brokers and the level of safety they offer. We believe that only this should be enough for traders to get suspicious about the legitimacy of the broker.
For example, on the main page of the Forex broker, you can clearly see it saying to offer a leverage up to 1:2000 for Forex trading. Then, on some of the pages, the broker claims the maximum leverage is 1:1000. This is only one example, there were many other things the broker said differently.
Among them is the regulatory status of the broker. The broker claims on its About Us page that it is regulated by one of the best-known regulatory agencies around the world – the Financial Conduct Authority of the United Kingdom. At the same time, the Forex broker lists the UK among the restricted countries.
This is a very common thing done by scammers. They claim to be under the guidance of safe, secure, and reputable organizations, while it is not true.
Little Attention to Details
The fact that the team behind the broker is not focused on delivering accurate information to its clients raises a lot of questions. In most cases, legit Forex brokers have a special team that takes care of their website and ensures that traders can find legit and true information about the services provided to them.
But, as we found during our review of CXM Direct, this is not the case for this Forex broker. There even were some grammatical errors on the website of the broker, which is very unprofessional.
No Educational Material
Today, some of the leading Forex trading regulators around the world require Forex brokers to offer their clients some type of educational material to help them get started in the market. Such information is not provided by this Forex broker, which is another sign of a CXM Direct scam.
The broker simply does not care about the security of their clients. There is no educational material on the website, which gives traders no opportunity for further learning and development.
Fund Safety – CXM Direct Regulations
When it comes to the Forex trading market, one of the most important things that traders are focused on is the safety and security of their funds. This is for a good reason. The Forex trading market is already a very risky activity, which is associated with numerous chances to lose your funds if you are not being careful.
Due to the fast pace of development of the Forex trading market, the majority of the jurisdictions around the world have created regulatory agencies, the main job of which is to come up with laws and restrictions on the Forex trading market to make it safer, and more secure.
CXM Direct claims that it is regulated by not one, but several regulatory agencies. One of the most shocking ones is the Financial Conduct Authority of the UK, as we have already noted above. But, we believe that the information about this broker being regulated by the FCA is simply a lie.
The reason for this is that when you go to the About Us page of the Forex broker and scroll down a bit, you can see that the broker lists the UK among the countries where its services can’t be used.
FCA is the regulatory body of the UK, so it does not make any sense to believe that a broker would be registered and regulated in the United Kingdom without having the right to offer traders from this country trading services.
The broker also claims to be regulated by less-known regulatory agencies, which simply do not guarantee the safety and security of traders’ funds. One of them is from Mauritius, the company also claims that it is registered in St Vincent and the Grenadines.
These regulatory frameworks simply are not good enough for ensuring the safety and security of the Forex traders, and we believe that the broker only owns these licenses just to lie to beginner traders who simply do not know much about the market details.
Many traders might feel like the broker is regulated and they can believe that it is a trusted brokerage. However, as our review of CXM Direct indicates, this broker should not be trusted by Forex traders, as it is not a safe and secure services provider.
Availability Around the World
When we reviewed CXM Direct, we wanted to find out traders of which location were able to trade with this broker. But, even though we read almost all the information the broker had provided on their website, we were unable to understand who could use the services of the broker and who not.
At one point, the broker claims that it offers services to countries like the US, the UK, and the EU member countries as well. On the other hand, the broker claims that it is not regulated in the US and lists UK and US among the restricted countries.
Whatever the case is, we are confident that the broker is not available for traders from the US, UK or the EU, because if this was to happen, the broker would need to be licensed by the regulatory agencies of the US or the UK.
What Does CXM Direct Offer?
Now that we covered some of the first impressions that we had about this FX broker when reviewing it, it is now time to get into more details and discover what are the general offerings of the Forex broker.
As the broker indicates on their website, they offer traders numerous trading assets. This includes everything from Forex, to stocks, indices, cryptocurrencies, and many others. The broker says that it offers all of these trading assets through MT4, which is an amazing and very well-known trading platform.
With just one view, the offerings of the Forex broker sound amazing. The broker even claims that there are no fees and commissions charged by them, which should be making the services of the broker very attractive, but there is a catch.
Spreads from Zero and No Commissions
When you are a beginner in the Forex trading market, low commissions might sound amazing to you. As we found during our review of CXM Direct, the broker’s website tells its clients that the spreads are very tight, almost none.
This is a very shady thing to say. For the majority of the Forex brokers in the market, spreads are one of the few actual ways of income. Charging spreads is necessary for Forex brokers to ensure they are able to offer traders high-quality services. When a broker claims to be charging no spreads, it means that either they are lying, or they are offering really bad services.
No matter what is the case, it is not a good thing for Forex traders. There were some traders who we found online on different types of forums who claimed that the broker was charging some fees that they did not even hear before they started trading. This means that the broker is charging hidden fees from their traders’ accounts, which is another sign of a CXM Direct scam.
Also, it should be noted that whether the deposits and withdrawals charge fees to traders depend on the payment solutions and issuers and not the broker itself.
Leverage & Other Offerings
The Forex broker claims to be offering very high leverage of 1:2000, which is creating a lot of concerns. When we reviewed CXM Direct, we found that the broker claimed that it was regulated by the FCA of the UK. The regulatory body has very strict regulations about the Forex trading market, including the leverage, which would not allow the Forex broker to offer such high leverage.
Offering traders leverage as high as 1:2000 opens them up to a lot of risks. While some traders might like using leverage, this is too much and can end up casting traders their positions.
Then there are the account types offered by the Forex broker. The broker claims that there are several different types of accounts offered to their clients, all of them created according to the individual needs of the Forex traders.
However, this could not possibly be farther from the truth. The available account types of the broker are very similar to one another and the only actual difference between them is the minimum deposit. Almost all of them offer traders access to all available trading assets.
This shows that the offering of the broker is simply a facade, created to simply attract more traders, without actually offering anything special or good.
Bonuses & Promotions
There are some traders who believe that bonuses and promotions can be amazing for them to further increase the profits they make in the Forex trading market. However, over the past few years, it has become a very popular practice for regulatory agencies to restrict brokers from offering bonuses and promotions.
The reasons behind this are the fact that bonuses and promotions are very frequently used by scammer Forex brokers to attract more traders to their platform to steal their money.
The Customer Support Team
While reviewing CXM Direct and its services, we decided to check every single aspect of this broker. One of them is of course the customer support team that it offers. We contacted the customer support team from different channels that they offer, and we were shocked at how useless the customer support was.
Even the live chat, which is supposed to be a fast and convenient way to receive the help you might need at any moment. However, it took the customer support team very long to respond to our questions and the information was very broad and vague, without actual answers to our questions.
Is CXM Direct a Legit Broker?
After our detailed review of the CXM Direct Forex broker, we were able to find that this Forex broker is not legit and should not be trusted by Forex traders. There are numerous problems associated with this Forex broker, which makes it difficult to trust.
Among the main issues associated with CXM Direct are the concerns around its regulatory status, inconsistency of the information provided by the broker, and many others. Because of this and other reasons discussed throughout this guide, we believe that CXM Direct should not be trusted.