Minimum Deposit: $500
Maximum Leverage: 1:400
My Score: 2
CMSTrader is a UK-based forex broker established in 2013. The company has offices in Bahrain, Australia, Singapore and Dominica, as well as in the UK. If you are reading this article, you are probably wondering about CMSTrader and doing research on Google about the broker. Many people give up on account opening when researching CMS Trader. So why? This CMSTrader review will tell you the reasons.
Is CMSTrader scam broker? What are the account types and trading conditions in CMSTrader? Which watchdogs regulate the broker? Let’s look at it together.
The issue is that the CMSTrader investors are most worried about the regulation and client protection. It is unclear whether the broker is licensed or unlicensed. Because it is not possible to find any information on the official website of the broker. I have asked the client support via live chat on officel webiste to inquire about the regulation issue. But they said they would not be able to provide any information in this regard. I do not know the reason. Why does not a company give information to someone who wants to be a customer?
Previously, CMSTrader has associated itself with different companies. For example, one of them is Pandorx Ventures Ltd. Pandorx Ventrues is a company registered in the UK but not regulated by FCA. The FCA issued a warning on this topic saying they did not authorize CMSTrader for forex.
The other two companies CMS has associated itself are IDT Financial Services Ltd. and Safe Side Trading Ltd. But when we do research we see that these companies are not regulated for forex trading. To summarize, CMSTrader is probably not a regulated broker by any watchdog. Also almost all of the comments on the forex forums are negative in this issue.
Account Types in CMSTrader
CMSTrader offers 3 different account types for investors: Mini, Silver, Gold accounts. For many brokers, account types are offered for the investor type, for example; ECN account, Nano account, fixed spread account. However, the types of accounts provided by CMSTrader are completely different according to the initial deposit. The minimum deposit is $ 500 in the Mini account type, but the it is $ 10,000 in the Silver account type. To use the Gold Account, you need to deposit at least $ 50,000. When funding in these amounts, you can open VIP accounts with brokers even regulated by reputable watchdogs like FCA or ASIC and even benefit from a large number of VIP services.
|Account Type||Minimum Deposit||Leverage||Minimum Trade Size|
|Silver||$10.000||1:200, 1:300, 1:400||0.10|
|Gold||$50.000||1:200, 1:300, 1:400||0.10|
In addition, the minimum trade size of Silver and Gold account type is 0.10 lot. This is also a major negativity.
As a different service, CMSTrader offers CMS Card, a kind of prepaid card. You need to fund at least $ 10,000 to use this card. The primary purpose of CMSTrader to offer this card is to facilitate withdrawal. However, you can also use it for shopping at any store and you will not be charged any interest or fee for your card.
The leverage offered in the Mini account type is 1: 200. However, you can choose a leverage of 1: 200, 1,300 or 1,400 for the Silver and Gold account type.
The spreads offered by CMSTrader is quite high compared to other forex brokers. For example; The spreads for EURSD are 3 pips and it is quite high. The spread offered by many brokers licensed by FCA or ASIC is between 1.0 and 1.5 pips.
CMSTrader offers the Islamic Account type for investors who have Islamic beliefs and do not want to earn or pay interest for religious reasons. To open an Islamic account, the broker may ask you to document your faith and have the right to refuse your application.
Payment methods offered by CMSTrader are very limited. You can only make deposits and withdrawals via credit / debit card, wire transfer or CMS Card. It is not possible to deposit or withdraw money with cryptocurrencies like Bitcoin or e-wallet systems like Neteller or Skrill. You can withdraw as much as your deposit amount by withdrawing your money with a credit card. For example; Let’s say you funded $ 1,500 and made a profit of $ 700. You can withdraw 1500 dollars by credit card. The remaining $700 must be withdrawn by wire transfer.