CedarFX

CedarFX

4.5
Score: Very good

  • A wide array of asset classes
  • No commissions charged on the standard account
  • MetaTrader 4 provided for web, desktop and mobile

Ruben Wunderlich

Review from

Ruben Wunderlich
4.5
Score: Very good
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About CedarFX

CedarFX is a multi-asset broker offering a range of products to trade, including foreign exchange pairs, stocks, indices and more. Its official website is https://www.cedarfx.com/ and the full company name is Cedar LLC. It is based in St. Vincent and the Grenadines and is able to offer its services to customers from across the globe because no country’s citizens are banned from trading there. The business was set up in 2020 and now provides both ECN and STP trading, which means it does not have a dealing desk.

As this CedarFX review will show, one of the most distinctive aspects of CedarFX is that it is a self-described eco-friendly broker – and states that it is “dedicated to combating global warming, one trade at a time.” This manifests itself primarily in the provision of an Eco Account, which – if taken up – means the trader will pay an extra commission of $1 per lot. CedarFX then makes a matching donation. Once the contributions from both sides are accumulated, the funds are put towards a carbon offsetting programme involving the planting of trees. Further donations are made to other anti-climate change causes.

Products and Trade Offers

There’s a wide variety of asset classes available at CedarFX. The main appeal for many traders will be the broker’s array of foreign exchange pairs. It has 55 on offer in total. That is higher than some competitor brokers and is a significant ‘pro’ for the broker. Well-known major pairs involving the US dollar and currencies such as the Australian dollar and single European currency are available, and cross pairs such as the EUR/NZD or GBP/CAD can also be traded. You can also trade so-called “exotics”, currencies such as the Russian ruble and the Norwegian krone.

Other asset classes available include metals and commodities. There are 63 stock choices, and there are also several major global indices – such as the S&P 500 and FTSE 100 – from which to choose. One downside is that exchange-traded funds are not offered, and traders looking for those will need to go to another broker.

Binary options, which have mainly been discredited across the whole financial sector due to allegations of fraud, are not offered by CedarFX – which is reassuring.

This CedarFX review found that the broker provides its instruments in derivative format. This format is better known as ‘contracts for difference’, or CFDs – a trading mode with both advantages and disadvantages. On the one hand, it allows for faster sign-ups and means that an investment’s value can be higher by ‘borrowing’ from the broker in the form of leverage. However, it also means that no ownership rights of the ‘underlying’ instrument, such as the foreign currency in a forex transaction, are offered. The use of leverage can, of course, also increase the risk of making a large loss.

  • Large range of foreign exchange pairs available
  • Mixture of major, cross and exotic pairs
  • Discredited binary options not offered
  • Exchange-traded funds are not offered
  • Higher risk from trading using leverage
  • Not all global indices offered for trading

Commissions and Fee Charges

The standard account at CedarFX is the plainly-named 0% commission account – and as it suggests, there are no commissions involved in this account type. As mentioned above, CedarFX does charge commissions on Eco Account holders to fund the broker’s commitment to tree planting and other environmental initiatives. Eco Account status is not automatic, and customers will not be charged this fee unless they opt for that particular account.

CedarFX’s business model is based around spread charges, as is the case for almost every modern web broker. The spread is a technical term for the difference in value between the price at which an asset is bought and the price at which it is sold. As a brokerage provider, CedarFX charges customers a particular specified proportion of this range. What makes it more complicated for traders is the speed with which this changes and evolves. Spread fees don’t remain stagnant; they can change even by the minute.

At the time of writing this CedarFX review, spread fees on the EUR/USD currency pair, for example, were around 0.7. Some pairs, such as the AUD/USD pair, had much higher fees of 1.4. Spreads on pairs involving cryptocurrencies were even higher, with the BTC/USD pair charging spread fees of 88.60000.

What Others Say

This CedarFX broker review will now turn to assessments from others. The website Trustpilot, which people use to reveal their experience of providers, finds that CedarFX has a relatively good rating. Several reviewers commented that CedarFX’s approach to eco-trading was particularly positive, with one reviewer describing it as a “stand out feature”. Another said that “the idea of connecting environmental protection to forex is novel”.

Aside from the eco-friendliness, other aspects of CedarFX’s offer were highlighted by those leaving reviews. One praised the variety of pairs and asset classes on offer, while another said that the spread fees were ideal for the practice of scalping, a term that refers to making a high number of low-value trades to accumulate many small profits.

Customer Service

Traders sometimes need to speak to a member of staff at their broker. Whether there’s an outage with the technology or a problem with making a deposit, communication channels must remain open. This CedarFX broker review found several customer service options for traders to get in touch. Casual enquiries can be routed through the enquiry form that appears on the broker’s homepage. Traders need to enter their name, email address and a subject, and support staff will then get in touch once they have had a chance to study the enquiry.

If they wish, traders can instead opt for other customer service methods such as the live chat function. According to the broker’s website, it is available 24 hours a day, seven days a week.

An important aspect of broker service provision for many traders is the deposit and withdrawal process. In terms of depositing money, CedarFX permits a variety of methods to be used. These include many major credit and debit cards. Card deposits are processed through a third-party payment service, although this is relatively common in the trading industry. To deposit funds, you’ll need to set up an account and then navigate to the ‘Deposit’ section. Card payments at CedarFX are converted into Bitcoin for trading purposes. Bitcoin can also be used to make direct deposits: this is far from a standard feature when it comes to forex trading, and could make all the difference if you’re a crypto trader.

Minimum deposit levels are in place at this broker. Deposits made using Bitcoin will need to be of a value of $10. If paying by credit or debit card, you will need to deposit at least $50. There is no maximum deposit and no minimum or maximum monthly volume that you need to trade with.

When it comes to taking money out of an account at CedarFX, all withdrawals need to be made in Bitcoin. The broker states that it will assess withdrawal requests within 24 hours, a relatively fast turnaround. Withdrawn Bitcoin will be moved to a Bitcoin wallet specified by the trader. There may, however, be a delay in actually receiving the Bitcoin due to potential problems with the wider blockchain. A minimum withdrawal amount of $10 is in place. Provided accounts still have sufficient funds in them following the withdrawal request it will be possible to carry on trading once the request is live.

As previously confirmed, the CedarFX broker review found that you won’t be charged fees on either deposits or withdrawals – regardless of the type of currency you used to make the deposit.

Platform Features and Tools

CedarFX provides a variety of platform trading tools from which to select. The industry-standard platform, MetaTrader 4, is offered. It can be accessed via the WebTrader or in-browser service, as well as via desktop and mobile. MetaTrader 4 has an extensive range of helpful options, including three execution modes, 23 analytical objects and much more.

Unfortunately, CedarFX does not provide traders with the most sophisticated version of the MetaTrader platform, MetaTrader 5: traders looking for that level of service may find that they need to go elsewhere.

There are some advanced features that CedarFX does not offer traders, and it’s wise for you to think about whether they are essential. For example, the broker doesn’t provide email or text message alerts, nor does it have some of the more sophisticated ordering formats that the big-name brokers might. They include ‘one-cancels-the-other orders’, or OCO ordering, which allows traders to set rules dictating that if one planned order goes live, then another goes down.

Mobile Trading

Mobile trading is on offer at CedarFX, and you can make the most of the MetaTrader-powered online platform to help ensure you stay on top of trading requirements no matter where you are. Features included in the MetaTrader 4 mobile package include the same order type functions and execution modes as the desktop or WebTrader versions. There’s also an option to access and assess your trading history.

In terms of analysis, the mobile trading option includes almost ten timeframes to apply to price charts, so that you can view price fluctuations according to your bespoke perspective. These can be as regular as one minute and as wide as a whole month. There are also 24 analytical objects available to use on mobile and a large selection of the most commonly used technical indicators. It’s also possible to access finance sector news using the MetaTrader 4 mobile functionality to make informed trading decisions as quickly as possible, even if you’re away from your desk or terminal.

Robo Trading

It appears that CedarFX does not provide a robo-trading service of its own to its customers. However, those who want to engage in automated trading can set this up on the broker’s trading platform. According to its frequently asked questions page, CedarFX permits the use of “robots, auto traders and Expert Advisors” when trading.

Research and Learning Section

One of the main ways CedarFX lets itself down is when it comes to providing educational resources. Many of its competitors, especially the more well-established brokers, choose to invest resources in creating detailed content repositories full of informative videos, articles, tutorials and more – and make these freely available for traders to use as they see fit.

CedarFX appears to have restricted its educational content provision to the frequently asked questions section referenced below. It also seems to have failed to create basic research tools for traders to use, such as economic calendars that point to potentially relevant economic events that could impact the value of a trader’s open position. That is unusual, although economic calendars can easily be sourced elsewhere by the trader.

It’s worth remembering, however, that CedarFX is a relatively new broker. It was launched just last year, and as a result, it may well be that a more detailed education and research section is on the way. And the broker has also developed a comprehensive page containing frequently asked questions with detailed answers to each. These cover various important topics such as the account creation process, the withdrawal process and more.

Some educational material exists in this section, including basic guidance on the use of MetaTrader 4. It answers questions such as “How can I see a different chart in MT4?” and “Where can I view my trading history?”, for example. It does not, however, appear to have produced tutorial videos or annotated slideshows to this effect.

Regulatory Details

CedarFX is based in St. Vincent and the Grenadines. Its official name, Cedar LLC, ought to be noted by potential traders. Its official address is First Floor, First St Vincent Bank Building, James
Street, Kingstown, St. Vincent and the Grenadines.

Still a relatively new broker, CedarFX is currently researching which regulatory body to consider for regulation, as it does not want to eliminate any countries or citizens of the world. However, the liquidity providers it works with are regulated, meaning that your funds will be secure and available for withdrawal at any time.

The website displays a risk warning at the bottom of its pages, explaining the nature of derivatives and their relation to risk. It is not shown in a particularly prominent or large font, which means traders will need to ensure they take responsibility for finding and reading it in detail. Another page has a more extended risk disclosure available, and there are pages covering the broker’s privacy and anti-money laundering policy.

It’s good to see that this broker does ensure that client funds are not kept in the same account as the company’s own operational cash resources. This is an important consideration for a trader because it offers an extra layer of protection if the broker goes out of business while holding a deposit intended for trading.

OUR SUMMARY

Our Summary

4.5
Score: Very good
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Overall, CedarFX appears to be a robust broker with a range of positive features. The broker provides a generous array of asset classes, which means you can construct your own portfolio. The standard account on offer at CedarFX does not levy any commissions on account holders, although the spread fees are variable. One of the common ways brokers often seek to make additional revenue, with charges on deposits and withdrawals, is not present. There appears to be a robust customer service platform in place. Traders can benefit from the MetaTrader 4 system used across the industry – although the latest version, MetaTrader 5, is not available.

This broker is obviously not afraid to break with tradition. CedarFX’s commitment to tree planting and using funds for eco-friendly causes makes it an ideal choice for clients who share those values. It also indicates that the broker is willing to be innovative when catering to customer requirements.

There are some downsides to using this broker. Although it is in the process of researching regulatory bodies for consideration, it does not at present operate within a recognised regulatory framework. This is a major red flag for traders looking for a well-run broker that they are confident they can trust. However, the broker’s commitment to segregated client funds does indicate its acknowledgement of the need to put oversight and regulatory adherence in place. Still, traders are advised to do some thorough research into the broker before committing.

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