Beware! Cibfx is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
At first glance, Cibfx has all the potential and appeal of a first-class broker. The website is well structured, the style of the company fits with modern industry standards, there is a huge load of information and text, and we just had a feeling for it that we rarely get nowadays, seeing that the FX industry is stacked with illegal brokerages. Unfortunately for all, sooner or later, rough edges start to get increasingly noticeable, as the website is used over time. After a while, we figured out that Cibfx is not what it seems, and it’s in this review that we reveal it for what it is!
The registration process seemed familiar to us, and we have a pretty good idea why. The same registration template has been used by hundreds of scammer brokers… The user area was no improvement, as we were reminded by it of other shady brokerages that had used the same layout before.
The trading software that we opened gave us a EUR/USD cost of trade of around 0.6 pips, which is actually a superb value. The leverage is maxed out at a value of 1:300. The trading assets are forex currency pairs, ETFs, commodities, shares, cryptocurrencies, and indices.
Cibfx can be accessed in English, Spanish, and Portuguese.
CIBFX REGULATION AND SAFETY OF FUNDS
CIBfx Limited (CIBfx) does not seem to care that the location in which it is located does not have an official FX regulator. Saint Vincent and the Grenadines is one of the most notorious and best know location for shady and downright scammer forex brokers. Most of the brokerages there are unregulated, aside from those whose parent companies are located elsewhere.
What’s more interesting is that Cibfx seems to pride itself on this registration. There is nothing wrong with that, but that cannot change the fact that Cibfx is not regulated in Saint Vincent and the Grenadines.
There is also an alleged payment processing office- Capital Investment Brokers Limited- in London, but this information is hard to verify; anyone can claim to be holding a company branch in London and get away with it!
Unfortunately, Cibfx is NOT HOLDING A LICENSE and is, therefore, a risk to all investors.
Investing in unregulated brokers is synonymous with losing money. Never be too quick to deposit! Always check for a regulation prior to depositing. This should always be any trader’s priority! If the broker at hand has a regulation, preferably FCA or CySEC., then you are good to go. From there on it’s all a matter of taste and the offered trading grounds. These two agencies are in the top 5 list of the best regulators in the world. All brokers under their gaze abide by the strictest of rules and guidelines. Furthermore, both the FCA and CySEC have a compensation scheme covering all users of brokers that cannot pay their dues, due to insolvency or other similar reasons. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
CIBFX TRADING SOFTWARE
The MT4 is available on virtually any device, including mobile devices. However, it’s web-based version does not allow us to access a live account, and that is why we turned to the desktop rendition of the MT4.
We have said it before, and we will say it again. The MT4 is yet to be surpassed by another trading terminal. It just is too good and too functional to be left behind. Seeing it as part of a broker is always a direction forward!
CIBFX DEPOSIT/WITHDRAW METHODS AND FEES
We try to take as many payment details as we can from the user payment area because it is there where the true payment conditions are.
Payment methods are AstroPay, Credit card, Brazilian Bank Transfer, and Wire Transfer. We were able to proceed with just €1.
Withdrawal info has to be taken from the website, as the withdrawal section on the trader area has nothing helpful to reveal. The withdrawal section on the website gives away questionable trading details: card requests are processed within 24 hours and chared with a 2% fee; withdrawal via Neteller are processed in 24 hours and are commissioned with 2%; wire transfers take some 7 days to process and a re charged with a 4% fee. You choose to believe it or not. Personally we do not!
Note that withdrawals from unverified accounts is impossible prior to a thirty day period or dormancy. Moreover, users must complete a trade volume equal to that of up to 10% of the account credit. We know how confusing this sounds, but we are just paraphrasing a clause from the Terms and Conditions. Here it is, for your own interpretation:
Furthermore, all withdrawals from inactive accounts will be penalized by a 30% commission.
Cibfx is a potentially great broker. The only disappointing factor here is the lack of a regulation and the ambiguity surrounding the payment procedures. If it fixes these issues, then traders can give it a go. For now, it is our advice to leave it be.
How does the scam work?
The scam tactics that brokers use come under a common denominator. Most of them have a similar structure, with small touches that some brokerages choose to include. When users fall for these they will sooner or later realize it!
The very first step resolves around the fake internet ad, found mainly in social media websites. These high-promising advertisements promote a care-free lifestyle where money is made with easy trading on assets like forex or/and cryptocurrencies. Clicking on one of these will redirect users to a website (usually the broker’s website, but sometimes an intermediary site) where they will be asked to provide contact details. Sooner or later, traders will start receiving calls or emails with alleged opportunities on huge profits in exchange for a minimum deposit, an amount that depends on the broker, but also on the user herself (high income vs low income).
If the user deposits her first deposit, then she has fallen into the scam, and the broker is ready to initiate the second stage of the scam. Enter the account managers (sometimes called senior managers). These will push for more deposits, while slowly taking over your account. They will be very aggressive with their solicitations, trying anything and everything within their ability.
At this point, the user has not yet withdrawn! When she attempts to do so, she will be greeted by a very unpleasant reality: her deposit(s) and profits can never be returned. The broker usually enforces one of the following: either it will block the account, it will close down the website, it will stall withdrawal requests, or delete the account!
What to do if scammed?
The first thing you can do, and the most crucial, it to file for a chargeback with your credit or debit card company ASAP! MasterCard and VISA have extended their chargeback period to 540 day.
Deposits that were initially invested through a bank, and were lost as a result of the scammer brokers, should stimulate users to CHANGE their bank account details- both username and password! Furthermore, it wouldn’t hurt them to contact the bank and check with them.
It is crucial to know to never invest in suspicious brokers through a crypto wallet. A majority of these payments are untraceable, and you are risking to lose all your money with no hope of ever seeing it!
The scammer, or other related parties, have a last card to play. Deposit/Investment recovery agents are notorious fraudsters that promise to recover all your lost capital in exchange for a fee. Once the commission is paid, these will disappear with the money, which leaves you at an even bigger loss!
Rich Snippet Data