Beware! NewCFDs is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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We are reviewing NewCFDs, yet another offshore FX creature offering services in jurisdictions where they shouldn’t. So, as usual, it was blacklisted, and it’s now a confirmed scam. Find out which regulator issued a warning against NewCFDs and why it’s utterly dangerous to trade with unregulated offshore brokers.
NewCFDs REGULATION AND SAFETY OF FUNDS
NewCFDs is a brand of PRO – S.M LTD, a company, allegedly incorporated in St. Vincent and the Grenadines. Well, the jurisdiction mentioned is bustling with scammers and dodgy entities, and that’s only because of the lack of transparency and regulations. SVG is a shady tax haven where the local regulator SVGFSA doesn’t even license Forex brokers. You should avoid dealing with anonymous offshore businesses because you won’t be able to recover funds if you, unfortunately, get scammed.
Worse, though, the French AMF detected NewCFDs and issued a warning against it, exposing it as a scam scheme. So, your funds will be in danger if you deposit with this fraudulent broker.
Avoid it and better consider the high-rated EU brokers and British brokers, which are adequately regulated and, most importantly, covered by deposit insurance funds. Namely, if you trade with a CySEC broker, you can claim up to 20 000 EUR in compensation, while the British protections are up to 85 000 GBP per person. The deposit funds guarantee an extra layer of protection, so it’s worth opening accounts with European companies if eligible to do it.
NewCFDs TRADING SOFTWARE
NewCFDs offers web trading software that can’t provide any advantages whatsoever over MetaTrader. The platform is overall primitive, with too few unreliable indicators, awful charting tools and absent advanced features like Algo trading, for example. Worse, though, the EUR/USD spread is massive- 5 pips fixed. That’s a scam! No self-respected brokers offer such gargantuan Buy/Sell difference at the beginning of the New York session. In contrast, the reputable companies offer spreads of 1 pip and below at the time, so it’s useless wasting your time with NewCFDs anyway. The broker is too costly! And an exposed scam!
Instead, you’d better check the high-rated MetaTrader4 brokers and MetaTrader5 brokers, which are delivering better platforms and much more competitive spreads. We recommend MT brokers because the platforms are packed with sophisticated features such as Expert Advisors, complex indicators, and excellent charting tools. MetaTrader also comes with an unrivalled bonus- a Marketplace where clients can browse through more than 10 000 apps and other trading solutions.
NewCFDs mentions nothing about leverage, and that’s strong evidence of a scam. Leverage is utterly risky, and clients should always be aware of the ratios deployed while trading. In fact, the most reliable brokers in the industry are leverage restricted, and that’s because of the regulations imposed. Namely, licensed EU, British and Australian brokers have to limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. High-leverage offshore brokers are poorly regulated or not at all, so you can quickly end up being defrauded. Beware!
NewCFDs DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $250, a demand slightly higher than the regulated brokers’ standards on average- $100 on average to let clients begin trading with real money. At the same time, though, various brokers have micro accounts for 5 to 10 dollars, so you have yet another reason to circumvent the fraudulent NewCFDs and find a better option instead.
The single funding method is Credit/Debit cards, so if you, unfortunately, deposited with NewCFDs, you can at least file for a chargeback and hope to get some or all of your money back. Nevertheless, we’d like to offer our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have trusted payment systems. The companies topping the lists are adequately regulated, and you won’t face scammers if you choose among the high-rated ones.
Information about withdrawals and fees is not available. It’s only mentioned that accounts that have been inactive for more than a year will be put dormant and be subject to inactivity charges. Still, the broker doesn’t specify anything further.
NewCFDs offers bonuses, but as it’s a scam, we strongly oppose that you should accept any bonuses whatsoever. Moreover, the broker fails to specify the bonus conditions, so the offers are simply a trick. Nevertheless, the incentives include First Deposit Bonus, Phone Verification Bonus, Free First Transaction Bonus and Account Verification Bonus. Well, as you can see, the second one mentioned shows that the broker indeed collects withdrawal fees!
Overall, NewCFDs is an exposed scam, and you should avoid it.
HOW DOES THE SCAM WORK
Today, the Internet is plagued by scammers and their tricky deals. It all starts when you click on an appealing fraudulent offer and provide your e-mail and contact numbers. Scammers, as seasoned manipulators, would ring you at once, insisting that you should start investing as soon as possible. During the phone call, you’d be presented with bonuses, promotions, risk-free offers, Bitcoin opportunities, and anything else you could possibly imagine. Scammers would claim to work with reputable firms, banks, governments, and so on, trying to make their business appear legit. Those thieves lie big time and would promise you anything to gain your confidence and get a deposit from you.
However, the first deposit is just the beginning. Day by day, scammers would carry on asking for funds. If you lost, they’d persuade you to put more money and recover the losses. If you are profitable, you’d be asked to put more money and increase the gains. The headaches start as soon as you ask to take your money back. The scammers would do whatever it takes to discourage you and would even urge you to deposit again if you want to withdraw. The scammers’ mantra is “give me your money”, they’d push you to transfer more money over and over again for no obvious reason. Urgency is a treacherous sign, so if someone forces you to invest ASAP, that’s a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is safe from scams. If you get defrauded, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because fraudulent fund recovery agencies are trying to double scam the victims. They ask for upfront payment, take the money but don’t do anything to help you!
Last but not least, share online your experience; it’s important to inform the public about scams. Be responsible!