What is the safest way to detect fraud? Scamming activities have, unfortunately, become a standard occurrence in the trading world. From refraining you from your profits to even dodging your calls and endless tries to engage in contact, there are brokers that won’t stop until you are drained from all your resources.
CFreserve is a good example of one of those trading companies. For starters, the easiest way to notice that something fishy is going on with a company should be obvious by checking the regulation info about it. The licensing and regulatory information is the crucial thing that makes a company stand out and gain the trust of the clients. If the company is regulated by some reputable entity, such as FCA or CySEC, you can rest assured that your funds will be secured while trading as well as during the tough times for the company. For example, many trading companies provide their clients with bankruptcy protection. If the company ceases to exist, your funds will still be returned to you in their full amount.
That’s why it is important to dive deeper into the regulatory information about CFreserve. When you check out their website, you will find that the company is regulated by an unknown Richfield Limited company that is based in Ireland. This is quite suspicious, considering that Ireland also falls under the jurisdiction of the European Union, which is known for having strict regulatory frames when it comes to Forex and CFD trading. So, in order for this story to be legit, CFreserve should also list a regulatory body which will hold it accountable in case of infringement, and not just some random company name.
Platform and Execution SCORE: 36%
Another red flag regarding CFreserve is the fact that it does not provide the MT4 or MT5 trading platforms. Rather, the offshore brokerages such as this one uses the native-based web platform, which does not fall under any regulation. In other words, you are rolling the dice when it comes to using it, and there is a big chance you will lose.
In addition, the MT4 platform offers you not only safety but also the opportunity to track your performance and manage your account while using top-notch trading tools. Also, the MT4 platform comes with no strings attached and provides the ultimate trading experience, which is why it is concerning that CFreserve does not use it at all.
We should also mention the design of the platform, although it may seem irrelevant at this point. The design is quite appealing, and the platform is easy to use. You can simply scroll between the assets and check their performance while deciding on your trading strategy. Still, the design is the only good thing about the platform, which says a lot about the brand.
When it comes to leverage, it amounts to 1:10. Why so low, you might ask? Well, let’s just say that the industry standard in Europe is 1:30 and 1:50 in North America. When we put it like that, it is safe to say that CFreserve tries to go under the radar of the industry and avoid regulatory frames.
Withdrawal Speed SCORE: 41%
To further disguise the disadvantages, CFreserve lists a wide variety of trading assets, currencies and payment methods that you can use to make deposits and withdrawals. Overall, there are 35 currency pairs listed, as well as some of the most popular cryptocurrencies which you cannot easily find on many other platforms, including Ethereum, Litecoin, Ripple and Dash.
Still, the fact that you will probably learn too late, only after you’ve already deposited, is that there are many additional commissions and fees which you will stumble upon, which are not listed at all. For example, there is an inactivity fee which is not unusual, but it is a huge string that requires you to dedicate yourself to this broker alone.
When it comes to the payment options, there are only 3 available. They include bank wire transfers, credit cards and other third-party methods. These are not specified, so we can assume that they include some types of e-wallets, considering that they offer crypto trading services. Also, the bank wire transfer option will be charged with a $25 fee, while other options don’t have any fees or commissions attached to them.
Another thing that stands out about this section is the difference between the speed for processing deposits and withdrawals. Namely, the deposits are set to take just a few minutes, which is encouraging. However, if you wish to make a withdrawal, that’s a whole different story. While bank wire transfers take about 2 business days, the other forms of payment could take up to 4 or 5 business days. This is quite dodgy when you think about the difference between giving your money and wanting to get it back.
Support and Assistance SCORE: 53%
The options of contacting the customer support team of CFreserve are standard. You can choose a telephone number, writing an email or filling in the brief form on the “Contact Us” section of the page. However, the most used option is the live chat, which usually takes the least amount of time to get an answer.
However, with CFreserve, you will mostly get delays and standard answer in the means of: “There are no agents available right now”. This is unacceptable, especially if you are going to list that your customer support team can be contacted 24/7!
Education and Tools SCORE: 37%
There seems to be quite a lot to learn at CFreserve trading platform. From educational books to tutorials and analysis, this section of the website seems to be very well equipped. Still, we can’t expect to learn a lot from a broker that does not offer basic information about it. CFreserve mostly tries to spin the same statement in different forms on the website, saying that your funds are safe from fraud. However, where is the proof for it? We will assume that the only useful educational thing about this company is learning not to trust it after getting burned by it.