10CFDS: Scam or Legit? Find Out!
Online investing has grown in popularity as more consumers search for new ways to make extra money. Those who are fortunate enough to sign up with a legitimate broker may see a return on their investment. However, scam brokers have flourished in the online investment world. Is 10CFDs a scam broker or legit? This review will help you find the answer.
10CFDS was founded in 2005 and is registered in Belize. Belize regulations are second-tier at best and are known for being lax. This means that its clients do not receive the same oversight and protection as those who work with a tier-one regulator.
The first thing to look for in a broker is whether or not it is licensed and what kind of license it has. 10CFDS’ license is mediocre, which doesn’t mean that it is necessarily a scam, but any negative information should be examined with caution.
Trader Defender performed a thorough analysis of 10CFDS and the following is the result of our findings. Trader Defender experts have vast experience in the financial industry and investigating investment fraud. We produce intelligence reports with thorough data on brokers and can provide insight into which investment opportunities are reliable and which are not.
|Regulation||CySEC (recently revoked), IFSC|
|Product Types||Forex, stocks, CFDs, Indices, Commodities|
|Products Offered||More than 200 products to Trade|
10CFDS was founded in 2005 and its license is from Belize, which is a lax regulator. The broker’s website highlights its broad leverage of 1:200 as well its wide selection of trading products, its MT4 trading terminal. It should also be noted that there was a spread of 3 pips on the EUR/USD which is not so good for traders.
10CFDS is registered with Belize’s regulatory authority under the name Speed Solutions Ltd. which in turn claims to hold a license from the International Financial Services Commission (IFSC). This license requires a minimum capital of only $500,000 and does not have tight rules for acceptance and compliance. However, it is marginally better than no license at all. It should be noted that even though Speed Solutions is the parent company, all payments are processed in Estonia.
The information about a company’s background is not just extraneous trivia. It is important to keep track of a company’s structure, history, associated companies, names, locations, and other data. This is how Trader Defender tracks brokers it reviews and investigates. As a general rule, the more complicated a broker’s story is with various names and locations, the dodgier it is likely to be, although this isn’t always the case.
Start the Process Today
Reasons to Be Concerned about 10CFDS
When we were investigating 10CFDS, we noticed that it offered MetaTrader 4 trading terminal which is offered by many forex brokers. However, we were unable to download it. It should also be noted that the leverage of 1:200 is extremely risky and many of the people we have dealt with have lost all of their money trading with that kind of leverage. Additionally, the EUR/USD spread of 3 pips is double the average.
One way to spot a broker scam is to look at fees and withdrawal policies and there were enough details here that caused us significant concern. 10CFDS offers a selection of withdrawal methods, including Visa, Mastercard, wire transfer, Neteller, Skrill and Paysafercard. So far so good until we say the terms and conditions.
At least 10CFDS tells its clients about its fees and delays withdrawing money–some scam brokers simply slap on fees unexpectedly or won’t release funds. Although these terms and conditions are in writing, that doesn’t mean they are reasonable and are not signs of a scam.
The terms stated a profit clearance fee between 1.5 and 5 per trade and a monthly maintenance fee of $20. Legitimate brokers do not have arbitrary fees like this. The goal of profit clearance is as the name suggests–clearing off profits from the client.
The requirements for withdrawal are suspiciously complicated. 10CFDS will only allow a client who has taken advantage of a bonus to withdraw money if there is a minimum trading volume. This minimum is often 40 to 50 times above the bonus amount. This means that the client will never be able to withdraw their funds or at least very infrequently.
If bonuses and minimum trading volumes do not prevent clients from withdrawing money, 10CFDS has a suspiciously long withdrawal period of five business days whereas legit brokers allow clients to withdraw money in 24 hours. This allows the brokers a grace period during which they can conveniently claim the withdrawal can’t be completed because the trading volume sank below the minimum during the ensuing days.
Our Verdict: Stay Away From 10CFDS
After investigating 10CFDS thoroughly, trying to download its trading platform, examining its terms and conditions and reading customer reviews, we have concluded that clients should not trade with 10CFDS.
10CFDS has a license from the regulatory authority in Belize which has very lax requirements and does not provide very much oversight and protection to consumers. The fact that its platform could not be downloaded was not a good sign. The spreads and leverage were also a red flag.
However, what determined that 10CFDS was a scam was reading its terms and conditions which left us with the conclusion that it was virtually impossible to meet the requirements that allow withdrawing money. Also, the wait of nearly a week to withdraw money and extra transaction and maintenance fees make it clear that 10CFDS is a scam broker that mainly wants to drain its clients’ accounts. Feedback from angry clients confirmed out conclusions.
What to Do If You Have Been Scammed by a Broker
As you can see, it isn’t always immediately obvious if a broker is a scam. At Trader Defender, we have the expertise to help people who have lost money in a scam. Our professionals create full investigative reports into fraudulent activity and arm you with the information you need. Talk to Trader Defender professionals today and we will track down your scam brokers and help you pursue your case.