CXM Direct review – 5 things you should know about cxmdirect.com!

C

Beware! CXM Direct is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

IG USForex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

CXM Direct is an offshore broker – that enough should be enough to deter you from investing with it, but if you need more reasons, you can certainly find them in the following review:

CXM Direct regulation and safety of funds

CXM Direct is completely unregulated and your funds are not safe with it – here is what the broker has to say about its governmental oversight:

So, CXM Direct would have you believe it is operating from the island nation of St. Vincent – one notorious for its complete lack of regulation, and it is doing so with a license from the UK’s FCA. Only the first part of that statement is true – the company is running from the offshore location – but it is not licensed by the FCA in any capacity. Here are the details for the Alchemy Prime Limited, pulled straight from the FCA register:

CXM Direct’s website does not show up in the list of FCA approved domains – therefore, the company is simply trying to fabricate a connection between it and the licensed entity when in reality one is not present.

A lot of offshore brokers lie about their regulation – that is because getting a license from the FCA is rather hard – one needs to have over 730 000 euro to their name to secure one, as well as comply with all sorts of policies – for example keeping client accounts segregated and reporting back on a daily basis to prevent scams from taking place. So, a license from the FCA is a guarantee that the broker is not running a scam – a guarantee that CXM Direct cannot give you whatsoever.

CXM Direct trading software

CXM Direct provides access to industry-leading trading platform Metatrader 4 – the platform has earned that distinction with its comprehensive UI and powerful automated trading features – here is the distribution that CXM Direct provides:

The spreads on the platform are okay – a bit over the generally accepted 1 pip for major FX pairs like EURUSD. The leverage CXM Direct offers, however, is not okay – 1:1000 is to much for retail traders, as a majority of the regulatory bodies out there have ruled. Still, offshore brokers like CXM Direct offer these huge amounts without any regard for their clients’ safety of funds – watch out for leverage amounts that seem too good to be true!

CXM Direct deposit and withdrawal methods and fees:

CXM Direct only accepts deposits via Bitcoin. The minimum deposit is stated to be $50, but once we made an account, it turned out that it is actually $100 – not that it matters when most of its competition can open an account for about $10, but still.

Both of these are quite the shady details – Bitcoin is not eligible for a chargeback at all and CXM Direct lying about its minimum deposit is not a good look.

As for withdrawals, CXM Direct never specifies what kind of fees it charges on them – but considering how shady the broker is already, we fully expect them to be quite difficult and expensive.

How does the scam work?

Unfortunately, the only conclusion that we can come with CXM Direct is that it is a scam company – here is how the scheme the broker is following works:

First off, the future victim stumbles upon an ad – these ads are quite creative and offer lucrative investment opportunities from insider trading, AI trading bots and what have you. Of course, the scammers cannot provide any such thing – they are simply trying to get your attention. And once they have it, you are taken to a website like CXM Direct’s – there you are prompted to make an account, leaving a phone number in the process.

This number will be used by the scammers to keep calling you until you deposit – these people are masterful manipulators, so they are most certainly not to be underestimated! Once you put your money with them, the calls will not stop – the scammers will keep demanding more and more money, until you realize you are being conned and either stop depositing or demand a withdrawal. At this point, the scammers will simply cut you off and disappear.

What to do when scammed?

So, you have been scammed – well, there are some steps you should take to ensure that you do not suffer further losses:

First off, you need to restore your compromised privacy – that can be achieved by deleting all desktop-sharing software (Team Viewer for example) that the scammers had you install on your PC. Then, you need to issue new credit cards, IDs, or whatever documents you gave access to the scammers to. This is a crucial step, so make sure not to skip it – otherwise your personal information will be used for malicious purposes by all sorts of criminals all over the internet!

Once you have secured your privacy, you should look for a refund – the best way to do this is by contacting your bank and explaining what happened to you. What you should look out for, however, are recovery agencies that demand an upfront payment to restore your lost funds – this is simply another scam.

Finally, do not hesitate to speak up about your experiences with the scam – there is nothing to be ashamed of for falling for it, and by sharing your knowledge you might save someone else from being scammed in the future!

Rich Snippet Data

Reviewer

TheForexReview

Review Date

2021-05-25

Reviewed Broker

CXM Direct

Broker Rating

Add comment

By

Recent Posts

Recent Comments