CedarFX Review

Do you want to start trading forex?

If you do, you might find that it isn’t always easy to start. Not only do a lot of brokers require hefty minimum deposits, but plenty of them are very selective in terms of what countries they offer their services in. On top of that, high fees and commissions can easily eat into your profits if you’re not using a large account to trade.

CedarFX’s approach to things is the opposite of everything we’ve just mentioned. The brokerage offers zero-commission trading, low spreads, and global access. So, what’s the catch? 🤔

This is an unregulated, offshore brokerage. If that’s sounding any alarms in your head right now, it should – fraud is rampant when it comes to unlicensed, offshore brokerages. However, CedarFX is a legitimate brokerage – there’s no scam involved, but your investments still won’t be protected by government institutions.

This is a young business – we’re sure that acquiring a license is just a matter of time for CedarFX, but there’s no going around this one unpleasant fact. The second catch is that all assets that can be traded via this platform are traded via contracts for difference – CFDs.

CedarFX is an interesting blend of features. It’s accessible and globally available, but the lack of research might be a dealbreaker for some advanced traders. The broker offers a powerful platform, good charting tools, and very low spreads – but the investment selection and access to different markets will be a bit lacking for seasoned forex investors. 🌎

This is a pretty unique brokerage – there’s no way to neatly put it in one category or another. But there are a lot of things going for CedarFX – you’re just going to have to read our review to figure out if it would be a good choice for you.

CedarFX offers clients global access, plenty of tradable securities, and a very affordable way to trade. The signup process is quick and simple, the platform is intuitive and customizable – but the brokerage is lacking when it comes to educational resources and regulatory licenses.

Fast Facts

• Regulation: N/A
• Minimum Deposit: $10 to $50
• Demo Account: Yes
• Asset Coverage: 7 major currency pairs, 21 cross pairs, 27 exotic pairs, 35 cryptocurrencies
• Best For: Traders familiar with CFDs looking for a low-cost brokerage

Ratings

• Commissions & Fees: 9/10
• Investment Selection: 7/10
• Account Options & Features: 7/10
• Usability: 9/10
• Educational Resources: 5/10
• Customer Service: 9/10
• Overall: 8/10

Visit CedarFX on CedarFX’s website

What is CedarFX? 📗

CedarFX is a forex brokerage based in Saint Vincent and the Grenadines. In the short amount of time that it has been in business, it has managed to generate quite a lot of buzz by offering commission-free trading, as well as a way to automatically and seamlessly contribute to reforestation efforts.

This broker focuses primarily on trading via contracts for difference (CFDs) and has a pretty wide selection of cryptocurrencies that clients can trade. All of that sounds wonderful, and it is – but the brokerage also has a few drawbacks that we’ll be covering in-depth in this review.

Regulation Explained 📋

Regulation is the one glaring sore spot in CedarFX’s overall offering. The brokerage, like its parent company, Cedar LLC., was founded in 2020 in Saint Vincent and the Grenadines. Although the brokerage complies with all local laws, St Vincent is an offshore jurisdiction.

So, how much of a red flag does this fact represent? After all, this is an offshore brokerage that was opened quite recently. In fact, when you factor in how recently the business was opened, it doesn’t come as a huge shock that they haven’t managed to secure any proper licenses yet.

The brokerage hasn’t been involved in any scandals, and they tend to respond to criticisms posted online in a transparent fashion.

Be that as it may, keep in mind that investing with any unregulated brokerage carries a certain amount of additional risk. Your investments aren’t protected by law, and they cannot be insured: If the brokerage files for bankruptcy, your funds will not be protected, and you won’t have any legal recourse.

Account Opening Process 👤

Opening an account with CedarFX is quick, simple, and takes just a few minutes. Simply click on “Open Live Account” on the brokerage’s webpage, provide your name, surname, email address, and choose a password, and you’re good to go. CedarFX, unlike a lot of other brokerages, doesn’t require proof of identity in the form of an ID or other government-issued document.

Once that’s done, you can’t start trading right off the bat. You have to meet the minimum deposit requirements, which is $10 if you choose to deposit via Bitcoin. Keep in mind, however, that you can open a demo account before committing – something we highly recommend.

CedarFX is available to clients worldwide – the simple account opening process isn’t limited by your location. However, the brokerage does state that you should check whether or not opening an account is at odds with local and state laws in your jurisdiction.

Account Types 👥

CedarFX offers two account types – a basic account and an Eco account. The chief difference lies in commissions – while you won’t be charged any commissions with a basic account, an Eco account comes with a $1 transaction fee. 

However, that fee is given to charity – specifically, a charity that is focused on fighting climate change by planting new trees – Ecologi. Each $1 transaction fee that you’re charged will be matched by the brokerage and donated to the above-mentioned nonprofit. In fact, that $1 is enough to cover the cost of planting 5 trees.

As of October 2021, CedarFX’s partnership with Ecologi has led to over 125,000 trees being planted, as well as a reduction of C02 emissions totaling 112 tons – not bad for a brokerage that had only been in business for just a year and change at that point.

6 Advantages of CedarFX 📈

When it comes to pros for this brokerage CedarFX has a lot to offer from deposit methods to investment selection and more.

Deposit Methods 💵

CedarFX allows you to deposit money via Bitcoin, bank transfer, or credit card. But not all of these options are made equal – with the option to deposit in Bitcoin being quite a bit more appealing than the rest.

Let us explain – deposits completed via Bitcoin can be as small as $10, and the clearing process usually takes just a couple of minutes. Contrast that with bank transfers and credit card deposits, where the minimum is $50, and there is no guarantee of speedy clearing, and it’s clear what the preferred method of most clients is.

Combined with the fact that withdrawals can only be made in Bitcoin, it’s clear that the funding and withdrawal processes are geared toward investors who already have a crypto wallet. Keep in mind, however, that each deposit will incur a 0.0005 BTC fee

Fees 💸

Perhaps the most impressive thing about this brokerage is how affordable it is. CedarFX charges almost no fees – that’s right, no account maintenance fees, no inactivity fees, nothing of the sort. You won’t even be charged withdrawal fees. However, each deposit made in BTC comes with a 0.0005 BTC fee.

CedarFX makes money via spreads – and although the brokerage’s spreads are variable, they’re quite low.  The brokerage provides users with consistently low spreads, with the average spread of the EUR/USD pair being a mere 0.6 pips. That’s well below the average for a forex brokerage – although spreads for stock CFDs are a bit higher, usually ranging between 2 and 3 pips for each trade.

Investment Selection 💰

CedarFX gives clients access to over 170 tradable instruments spread across various different asset classes, including forex trading, stocks, commodities, indices and cryptocurrency. 

Keep in mind, however, that everything that is traded on CedarFX is traded via CFDs – so you should be familiar with CFD trading if you plan on using this brokerage. As far as forex trading goes, the brokerage offers access to 7 major currency pairs, 21 crosses, and 27 exotic pairs. Although this isn’t the widest investment selection out there, it is quite good for such a young brokerage. 

When it comes to crypto, CedarFX offers clients access to 35 cryptocurrencies which can be traded in pairs either against the U.S. dollar or against bitcoin. When trading cryptocurrency, traders have access to leverage of 100:1.

Clients can also trade commodities including natural gas and Brent Crude, precious metals such as gold and silver, as well as indices such as the S&P 500, NASDAQ 100, FTSE 100, and others.  When trading currencies and precious metals, you have access to leverage of 1:500. When trading indices or commodities, you have access to leverage of 1:200.

However, the brokerage has a relatively modest selection of stocks. You can trade 64 stocks via CFDs, and all of them are U.S. large-cap stocks – put simply, there’s not a lot of variety on the menu. On top of that, when trading stocks, you only get access to leverage of 1:20.

Trading Platform 💻

CedarFX offers clients access to the venerable MT4, the most popular trading platform still in use today. This platform has a variety of strengths – it is highly customizable, supports powerful charting tools, and has an intuitive design.

Finding your way around MetaTrader4 isn’t too difficult – the platform is quite user-friendly, and there are plenty of tutorials available online to help you find your feet if you aren’t already familiar with it. MetaTrader4 is available in over 30 languages, including English, Chinese, French, Russian, and Spanish.

But don’t be fooled – although MT4 is well-suited to beginners, it can also meet the requirements of seasoned veterans. The platform supports up to 30 technical indicators and has amassed a sizable amount of free and premium add-ons that bolster the platform’s functionality.

The default platform, sans add-ons, supports 24 graphic objects, one-click trading, and 4 execution models, as well as real-time quotes and automated trading via Expert Advisors.

On top of that, MT4 offers customizability that is more than skin-deep – if you’re familiar with programming, you can use the proprietary MQL4 language to make your own custom indicators and add-ons. The platform also supports advanced order types, push notifications on the mobile version, and it also has a free news section.

Customer Service ☎

CedarFX offers 24/7 customer service – an impressive feat, once you take into account that plenty of established brokerages still don’t offer around-the-clock support. You can contact the broker’s CS team via phone, e-mail, and live chat.

We contacted CedarFX via live chat on their website, and we got a response from a very helpful customer support agent within a minute. On the other hand, emails are usually responded to within 24 hours, and as far as phone calls go, you can schedule one ahead of time by filling a simple form on the broker’s customer service webpage.

On the whole, customer support is responsive, helpful, and all questions are resolved relatively quickly. However, CedarFX’s customer service does have one rather large issue – it is only available in English. This means that clients who are not fluent in the language will have a bit of a hard time with finding the answers to their queries – but seeing as how this is a new broker, we expect that the issue will be remedied soon enough.

Where CedarFX Could Improve 👨‍🔧

For every Yin there is a Yang, let’s take a look at what CedarFX can work on.

Regulation 🛡

CedarFX’s offerings are quite intriguing – zero-commission trades, global access to the forex market, and a possibility to contribute to the fight against climate change. The only eyesore in the entire story is the broker’s lack of regulatory licenses. 

Although they conduct business legitimately, the fact remains that a vast majority of investors prefer brokers that are licensed. Without a license, it’s difficult to imagine that the broker will be able to grow its business and expand its client base.

Simply put, there are no pros to being unlicensed. If you’ve read our reviews before, you might have noticed that we generally do not review unlicensed brokers. We’ve made an exception in this case – CedarFX is legitimate, has a fantastic pricing structure, and offers easy access to the forex market. We’re hopeful that getting a license is just a matter of time.

Education 📚

One of the most lackluster areas when it comes to CedarFX is education. Apart from a modest FAQ section, the brokerage doesn’t really offer much in the way of education – as in, it doesn’t offer anything.

No courses, webinars, quizzes, tutorials, or educational articles. If you want to improve your skills, you’re going to have to do it on your own.

The only saving grace in this regard is that the brokerage does offer access to a demo account. There is no limit on how many demo accounts you can open, but they will automatically be closed after two weeks without activity.

This allows you to get acquainted with MT4 as a trading platform – and seeing as how it’s the most popular trading platform on planet Earth, the fact that the brokerage doesn’t offer any platform tutorials is a bit less important. However, this is one area where CedarFX could stand to improve.

We strongly recommend trying out the brokerage with a demo account before committing. Forex trading is risky and volatile, particularly when you use brokerages that don’t offer clients insurance and fund protection.

Research 🔍

Another area where the brokerage drops the ball somewhat is research. Although we don’t particularly hold it against them seeing as how they’ve only been in business since 2020, the fact remains that CedarFX offers clients close to nothing in the way of research.

No market analysis or commentary is provided, and the brokerage also lacks trading ideas, an economic calendar, and a news feed. On top of that, it also lacks a copy trading feature – something that brokers like eToro use to bolster their research offering in a roundabout way.

Lack of Proprietary Mobile App 📱

The importance of a good, responsive mobile app in today’s day and age cannot be overstated. Particularly when it comes to forex trading, which can require rapid reactions in order to lock in profits or exit positions on time.

Unfortunately, CedarFX doesn’t have a proprietary mobile app – and there’s no information on whether or not one is in the works. That isn’t to say that the brokerage doesn’t have mobile access – you can use the MT4 app, which is perfectly fine. In fact, MT4’s mobile app is great – but the one-size-fits-all method just doesn’t work too well with mobile apps.

A mobile app that is tailor-made to supplement the strengths of CedarFX’s offerings would go a long way in improving the broker’s already impressive accessibility. You can do a lot with MT4’s app – but it is stretched too thin, and a lot of the customizability of the app just ends up being wasted.

Withdrawal Methods 💳

In stark contrast with the relatively decent array of methods by which you can fund your account, CedarFX is a bit inflexible when it comes to withdrawals. 

The only way to withdraw your money is through Bitcoin – and while that is certainly an appealing feature, not everyone has a crypto wallet. If you don’t already have a wallet, CedarFX recommends Coinbase – but this factor goes a long way in diminishing how approachable the broker is in other areas.

All withdrawals are reviewed and executed within 24 hours. The minimum amount of money that you can withdraw is $10, and there is no maximum amount.

Conclusion 🎬

The appeal of CedarFX is obvious – zero-commission trades, global access, low spreads, and an easy way to contribute to a worthwhile cause. The platform is familiar, easy to use, and offers powerful tools – perfect for beginners and seasoned veterans alike.

However, there are still a couple of rough edges. Lack of regulation stands out as the single biggest drawback of this brokerage, but withdrawal methods, education, and research could also stand to be a bit more developed.

However, it’s important to always keep in mind that breaking into the brokerage business is no small feat. As a small, relatively young brokerage, CedarFX has already accomplished a lot – and we’re eager to see how their platform and business will continue to develop in the years to come. If they keep expanding and upgrading their services.

CedarFX and the Competition

See how CedarFX compares to the leading Forex brokers by reading one of the reviews below.

• eToro Review
• Interactive Brokers Review
• IG Group Review
• Plus500 Review
• OctaFX Review
• Pepperstone Review

About the author

Tim Fries

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Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.