CedarFX Review – Is CedarFX Safe? Fees & Minimum Deposit Explained

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CedarFX has a unique, environmentally-friendly proposition for its users. The broker claims to plant 10 trees for every lot traded. While this is certainly a very attractive feature, is this enough for you to choose the platform for your online trading needs?

In this CedarFX review, we provide you with a comprehensive overview of this broker – covering aspects such as supported markets, fees, minimum deposits, trading platforms, and overall user experience.

Recommended Broker – eToro

1
$50
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

What is CedarFX?

Established as recently as 2020, CedarFX is a relatively new addition to the online trading arena. However, it has gained attention by being the first eco-friendly broker that contributes towards an environmental cause. In fact, according to the CedarFX website, this company has already helped plant over 125,000 trees by donating the money it made from commissions.

This broker offers two types of accounts – 0% commission, and eco. However, our CedarFX review noticed that eco accounts come with extra fees. And as such, the platform allows you to choose a model based on your needs – on whether you want to reduce commissions or help save the planet. Or alternatively, you can create separate profiles to take advantage of both these options.

CedarFX review

CedarFX gives you access to over 180 different assets, spread across stocks, forex, indices, cryptocurrencies, and commodities. All markets are offered via contracts-for-differences (CFDs). However, this broker does not have a proprietary trading platform. Instead, it integrates with MetaTrader4 – providing you with tons of tools, indicators, and customization options.

All that aside, CedarFX does not fit the bill for those who are looking for a regulated online broker. This platform is not licensed in any jurisdiction by any financial authority. Moreover, if you are a beginner, it might take you a while to get used to trading on MT4. With this in mind, let us sum up the pros and cons of this provider.

CedarFX Pros and Cons

Don’t have enough time to read our entire CedarFX review? Learn what the advantages and disadvantages are if you decide to use this platform for your trading needs.

Pros

  • Eco-friendly trading
  • Commission-free accounts
  • Integration with MT4

Cons

  • Just over 180 markets supported
  • No support for direct investments – CFDs only
  • No passive investment tools
  • Not regulated

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

CedarFX Supported Markets

CedarFX gives you direct access to over 180 tradable CFDs across various global financial markets. The broker supports multiple asset classes – including forex, cryptocurrencies, stocks, indices, and commodities all through a single platform.

Forex

CedarFX started out as a forex brokerage, as you might have gathered from the name. And as such, the platform supports 55 currency pairs. Some of these supported pairs cover major markets such as AUD/USD, EUR/USD, GBP/USD, and USD/JPY. You can also speculate on the value of USD using futures via this provider.

CedarFX markets

But you can also find forex crosses including AUD/CAD, CHF/JPY, EUR/NZD, NZD/CAD, and even exotic pairs such as EUR/HKD, GBP/DKK, USD/HKD, and USD/SEK. Furthermore, you can also access leverage up to 1:500 on these markets.

Stocks and Indices

Our CedarFX review found that this broker gives you access to 64 stocks and 11 indices via CFDs. You can not only find companies listed on the NYSE and NASDAQ, but also those on international markets such as France and Germany.

In addition to stocks, the platform also lists some of the most prominent indices like the S&P 500, NAS100, US30, UK100, and more. You can access leverage of up to 1:20 for stocks and 1:200 for indices.

Cryptocurrencies

It is also possible for you to trade cryptocurrencies via CedarFX. The platform supports 35 trading pairs in total, which includes several crypto-to-crypto markets such as LTC/BTC, NEO/BTC, and ZEC/BTC. It is also possible to swap digital assets against other fiat currencies such as IOTA/USD, SOL/USD, and ETF/USD.

CedarFX Crypto markets

However, you will find that your options are limited when it comes to digital assets. You can either trade cryptocurrencies against US dollars or Bitcoin and not any other currencies. There is also no support for stablecoins. Nevertheless, you can take advantage of leverage of up to 1:100 when trading these CFD instruments.

Commodities

Commodity trading is often considered a way to hedge against market volatility. However, on CedarFX, you have access only to a few of these markets. You can trade oil with a leverage of up to 1:200, and metals such as gold, silver, and platinum with up to 1:500.

CedarFX Account Types

As we covered in the introduction of this CedarFX review, this broker offers two options when it comes to account types. Now, the good thing is, you can create as many as you want with the same email address.

It is also possible to use different base currencies and leverage settings on each, and transfer funds from one to another.

These are the two account types you have on CedarFX:

  • 0% commission account
  • Eco account with 1 USD commission per lot traded

The main difference between these two is the commission rate. Secondly, if you open an eco account, all commissions generated by CedarFX will be used to support environmental causes. For this purpose, the broker has partnered with Ecologi, a UK-based enterprise that raises money to fund eco-friendly projects.

CedarFX eco account

Other than this, all other aspects such as supported financial instruments, trading conditions, and spreads remain identical for both account types. You can also access the same leverage limits on the two. We will discuss this in more detail in the later sections of this CedarFX review.

CedarFX Account Verification

It is fairly common for online brokers these days to ensure that all of their users complete a KYC process and confirm their identity before they can start using the platform. And following suit, CedarFX also claims that it complies with anti-money laundering guidelines.

However, our CedarFX review team found that you do not have to provide proof of identity when registering on the platform. Instead, you only have to verify your email and phone number. You can then deposit funds into your account and get started with the broker.

This in itself should act as a major red flag, as a lack of KYC compliance, does ask questions about the legitimacy of the broker.

CedarFX Trading Platform

As mentioned earlier in this CedarFX review, the broker operates on the MetaTrader4 platform. Meaning, you get direct access to one of the most intuitive and advanced trading interfaces available in the market.

If you are completely unfamiliar with MetaTrader4, the platform comes with an excellent user interface and several functionalities that appeal to professional traders. It has superior charting capabilities, and technical indicators, including several built-in tools and graphs.

CedarFX MT4

It is also possible for you to perform advanced strategies using a variety of trading orders on this platform. Although MT4 comes with demo accounts and other beginner-friendly tools such as educational resources, in reality, it can take a while for newbies to get used to the features on offer.

And as such, you might want to invest some time in the demo account facility to familiarize yourself with the different tools. Alternatively, you can avoid this hassle by choosing a broker like eToro – which offers a beginner-friendly interface for trading, while still giving you access to different order types, charting tools, and leverage.

CedarFX Demo Account

Our CedarFX review team found that this broker gives traders an opportunity to practice their strategies and get familiar with the MT4 platform using a free demo account. You can open and close positions, try out the different order types, and engage in trading in real-market conditions using paper money.

However, these demo accounts are a bit different from what you typically come across in the market:

  • Unlike many other brokers out there, CedarFX demo accounts are free to use for as long as you wish.
  • Moreover, you can choose your preferred base currency – from the choices of USD, GBP, EUR, and Bitcoin.
  • You are also the one to decide what your beginning balance should be, and what leverage you can access.

If you want to take advantage of this option, you can sign up for a demo account on the MT4 trading platform, via the downloaded software, WebTrader, or through the mobile app. You only need to choose CedarFX-Demo Server when you register. Not to mention, this demo is separate from that of your actual CedarFX account.

CedarFX Payments

CedarFX integrates multiple deposit and withdrawal methods, including fiat and cryptocurrency transactions to give you fast access to your funds. You can make transfers to and from your account using the following methods:

  • Fiat currency deposit via bank wire transfer or credit card
  • Direct deposits of Bitcoin
  • Buy and send Bitcoin through a third-party service

That said, our CedarFX review team noticed the broker has partnered with Bitcoin via Instacoins to facilitate debit/credit card transactions. This means that you have to sign up for an account on this third-party platform to use this service.

This can be an inconvenience, especially considering that services like eToro seamlessly integrate Visa and Mastercard into its supported mode of payments.

CedarFX Minimum Deposit and Withdrawal

The minimum deposit for fiat currencies on CedarFX is set at 50 USD. If you choose to fund your account with Bitcoin, your transaction needs to be worth at least 10 USD. Without this, the platform cannot cover the blockchain network fees and hence cannot process the transfer.

CedarFX payments

CedarFX also has a minimum withdrawal limit, which is set at 10 USD. However, there is no maximum amount that you can withdraw from your account. Withdrawals requests are processed within 24 hours when using this broker.

CedarFX Fees

As we have already mentioned in this CedarFX review, competitive fees are one of the most attractive features of this platform. However, commissions are not the only charge you need to consider when choosing a broker.

CedarFX Deposit Fees

CedarFX does not charge you a fee to make fiat currency deposits on the platform. However, if you want to fund your account using Bitcoin, this comes with a fee of 0.0005BTC. This isn’t charged by the broker though, but instead by the blockchain network, irrelevant of the size of your transaction.

CedarFX Commission and Spread

It is common for brokers to charge you a fee for executing orders. On CedarFX, zero-commission is the norm, unless you go for an eco account. In this case, you will be charged 1 USD for every lot you trade. However, this goes towards supporting the environment.

CedarFX Fees

Regardless of which account type you choose, you have to pay the spread on all assets listed on the platform. This is calculated as the difference between the buy and sell prices of your chosen CFD instrument. As imaginable, this depends on the live market rates and you can check this via the CedarFX website.

CedarFX Mobile

Our CedarFX review team found that this broker does not offer a proprietary mobile app. Instead, you have to use the mobile version of MetaTrader4 to access your account via your smartphone. That said, this means that you get access to fewer tools and analytical options when compared to the desktop and web versions.

CedarFX Mobile MT4

Regardless, you can still use several technical indicators, different order types, and study the interactive charts. It is also possible for you to open and close trades on the go, and keep an eye on your positions whenever needed.

Is CedarFX Safe?

Security is one of the key aspects to examine when choosing an online broker. And there is nothing better than regulatory licenses that indicate whether a platform is reliable and whether it has your best interests at heart.

In that respect, CedarFX is not a broker you will want to consider, not least because:

  • This broker is not regulated by any financial authority, nor is it registered with any governing bodies.
  • In other words, when you use this platform, you are essentially entrusting your funds with a provider that is not serious about investor protection.
  • Moreover, the only security feature integrated into CedarFX is 2FA. Apart from this, the platform does not specify any other measures that are in place to protect your funds.

If you would prefer using a regulated broker instead – which you should, there are many options in the market. At the forefront of this is eToro -which holds multiple licenses in different jurisdictions across the world, including the US and the UK. Since client funds are stored in segregated accounts, this offers you added protection and security.

CedarFX Customer Support

Our CedarFX review found that you can receive customer support on this platform around the clock using the live chat option. The response times are swift, and the representatives sound professional, eager to answer your queries.

CedarFX Customer Support

It is also possible to send an email if you prefer that option, or request a callback by sending details of your question. However, we found that the broker does not offer any how-to guides or any other educational resources that might appeal to beginners.

eToro vs CedarFX – Comparison

With hundreds of providers active in the online trading space, it can be a challenge to find a broker that can cater to your specific needs. For instance, while our CedarFX review found that this platform supports multiple asset classes, it does not offer much in terms of security.

As such, you need to make sure that you are choosing a platform that provides you with a well-rounded service at reasonable costs, without compromising the aspect of safety.

In light of this, we have put together a comparison of CedarFX and eToro – another leading online broker with over 20 million clients.

Safety and Regulation

Upon researching dozens of online brokers, our team found that eToro is one of the best platforms when it comes to security. This provider is regulated by several financial authorities, including the SEC (US) and the FCA (UK). It also holds licenses from ASIC(Australia) and CySEC (Cyprus).

There is no question that CedarFX offers you no such regulatory protection. And as such, it isn’t clear how this platform keeps your funds secure. When comparing both these metrics, it is obvious that eToro is the better alternative.

Investing vs Trading

Another factor that you need to consider is that CedarFX is a CFD trading platform. Meaning, you cannot invest in stocks or cryptocurrencies directly via this broker. So, if you are planning to make capital gains by building a diversified portfolio of long-term investments, CedarFX is not the right broker for you.

etoro review uk

On the other hand, eToro facilitates not only CFD trading, but also allows you to invest in assets from just 25 USD. This includes stocks, ETFs, index funds, commodities, and more. It also comes with an in-house wallet where you can store cryptocurrencies for the long-term term. This indicates that the platform is suitable for both traders and investors.

User-Friendliness

eToro is one of the best brokers that you can use if you are just starting out in the online trading or investing arena. The platform is surprisingly simple to use and supports small stakes. Meaning, you do not have to risk large amounts to gain exposure to your chosen market.

Furthermore, the trading platform of eToro caters to advanced traders. It comes with a number of charts and different order types for you to control your positions. In comparison, CedarFX presents you with the only option to trade via MT4, which involves a steep learning curve.

Supported Countries and Markets

Both CedarFX and eToro give you access to a variety of asset classes – including stocks, indices, commodities, and more. One additional market you can find on eToro is that of ETFs, allowing you to diversify easily.

eToro supported markets

Moreover, eToro also supports thousands of markets, whereas CedarFX limits itself to just over 180 assets. This can be an issue for those traders who are looking to access multiple securities via a single brokerage platform.

Fees

Fees can often be the final determining factor when it comes to picking a broker. In that regard, both CedarFX and eToro are along the same lines. eToro also allows you to invest in stocks and ETFs at 0% commission and all other markets can be traded on a spread-only basis.

Deposits are free on eToro, as long as you are funding in USD. If you are using another fiat currency, you only have to pay a small exchange rate of 0.5%. Moreover, this broker also offers support for multiple payment methods, like debit/credit cards, PayPal, Neteller, and Skrill.

Passive Investment Tools

Another reason why our research team prefers eToro is that it has a number of passive investment tools that appeal to beginners. For instance, through its Copy Trading feature, you can invest in an experienced trader and choose to have their positions executed in your own account. The only difference is that these will be carried out in proportion to the amount you have invested.

etoro copy trading

Secondly, you can also earn passively through the CopyPortfolio tool, where you can gain access to a professionally managed portfolio. On the contrary, CedarFX provides you with no such options. You need to trade actively on this platform, and as a beginner, it might take you a while to learn about the markets.

CedarFX Review – Conclusion

CedarFX differentiates itself with its commitment to the environment by building tress from commissions collected, thus setting itself apart from other brokers in the market. However, aside from this one singular aspect, there is nothing else that makes this broker a highly preferred option for your trading needs.

It also remains a fact that this platform isn’t regulated by any financial authority. On the other hand, brokers like eToro offer you a well-balanced package by facilitating zero-commission trades of stocks and ETFs. It also gives you access to cryptocurrencies and forex on a spread-only basis. And most importantly, this platform is heavily regulated – subsequently ensuring that you have a safe environment to engage in trading and investing.

eToro – Best Online Broker for 2021

1
$50
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.