CMS Trader Review

WHO IS CMS TRADER?      

According to research in South Africa CMS TRADER is a VFSC regulated forex broker and subsidiary of Safe Side Trading Limited, which is a renowned financial trading account headquartered in London, United Kingdom.

Customers can trade various instruments such as forex, commodities, and CFDs, among others, with CMS TRADER, a relative newcomer to the Forex scene. CMS TRADER was founded in 2013.

CMS TRADER offers social trading, which is a great way for beginners to make money with forex trading, since it allows inexperienced traders to take advantage of professional traders’ experience. The social trading service offered by the broker is free and available for all clients.

Since opening its doors in 2013, CMS TRADER has won several international awards including one for having best customer service in 2013.

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SAFE OR SCAM

One of the best benchmarks to measure the safety of a broker like CMS TRADER, is to establish which regulating authorities are watchdogs over its actions.

CMS TRADER is a non-licensed offshore broker and the Financial Conduct Authority – the most respected Financial Authority in the UK – says CMS TRADER has been providing financial services or products in the country without their permission.

CMS TRADER is however still operational in the forex marketplace because of cleverly being authorised under the name of CMS Ventures Limited which is supposed to be a New Zealand Registered Financial Service Provider (FSP).

PRO AND CONS

LEVERAGE

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

CMS TRADER offers a maximum leverage ratio of 1:200 and 1:400 for the different accounts.

ACCOUNTS   

A forex account at CMS TRADER is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

CMS TRADER offers a number of trading accounts apart from a free demo account for first time traders.

Mini Account:

This account allows users to access more than 120 currency pairs, including EUR, GBP, USD, JPY, among others. The minimum deposit is $500. It has no commissions on deposits or withdrawals and leverage is set at 1:200 with 0.10 as the least trading volume.

Silver Account:

The Minimum deposit required is $10 000 with video tutorials and a personalized account manager activated for access. The leverage amount is set between 1:200, 1:300 and 1:400. All features available on the mini account are also accessible.

Gold Account:

This is the highest account at CMS TRADER at a minimum deposit of $50 000. Users have access to all features available on the mini and silver account plus a few extra features like a choice of fixed or variable spreads.

Islamic Forex Account:

This account is offered to all clients of Islamic religious belief and want to trade online in compliance with Sharia law. There is no interest on positions which are left open overnight but account holders will still enjoy all of the benefits of all the other accounts.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex:

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities:

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices:

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals:

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy:

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

CMS TRADER offers the following:

Currencies: (35+)

Cryptocurrencies: (1) Bitcoin

CFD: (175+) Gold, Silver, Other Precious Metals, Stocks, Stock Indexes, Oil, Other Commodities.

FEES

Cost depends on different factors, like spread and margins, and CMS TRADER clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

CMS TRADER offers spreads based on the type of account held by the trader. Major currency pairs start at 3 pips and max out at 5 pips. Spot Gold and Spot Silver spreads start at 80 pips and max out at 13 pips.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of CMS TRADER, they offer a few deposit and withdrawal options to funds account or withdraw money. Credit cards, debit cards and wire transfer are the three most utilized methods.

The minimum amount that users can deposit to their accounts is set at $500 while the minimum withdrawal amount is set at $250. First time withdrawals must be verified by submitting billing address details. CMS TRADER also offers clients an option to withdraw funds with a prepaid debit card.

TRADING PLATFORMS

The forex trading platform provided by CMS TRADER to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

CMS TRADER provides the Sirix Web Trader, Sirix Mobile Trader and Sirix Station.

Sirix Web Trader: This platform can easily be accessed by anyone regardless of the type of account used. It requires no download and traders can buy or sell in real time with less of a hassle.

Sirix Mobile Trader: This is a trade-on-the-go platform which users can use anywhere at any time. This platform needs to be downloaded and installed on mobile devices.

Sirix Station: This is the only trading platform at CMS TRADER that is available on Silver and Gold accounts. Advanced features include specialised charting tools, real time trading and market events. The platform has to be downloaded and installed on a PC.

CMS TRADER also offers the MetaTrader 4 platform.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with CMS TRADER for the first time, you will be required to go through a basic “know your customer” process, which will allow CMS TRADER to ascertain that your submitted details and ensure the safety of your funds and account details.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

CMS TRADER provides a 24/7 chat service or customers can contact them via phone, email, mail or fax. The preferred language is English, but messages may be transmitted in Arabic and French too.

The website is available in English, French, Arabic, Russian and Italian.

EDUCATION       

Before starting to trade, potential clients of CMS TRADER should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

CMS TRADER offers a wide educational line-up.  At their Education Centre account holders can find informative video lessons in several languages, from the basics of Forex trading to lessons on fundamental and technical analysis, psychology of trading and advanced trading strategies. Traders can test their skills at the end of each course and monitor their results.

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With CMS TRADER they have access to a number of tools and resources that promote effective and swift trading. The platform offers live charting tools, educational materials, analysis, video tutorials and CMS webinars.

An e-book, The Building Blocks for Succeeding with Forex Trading, was created by and for traders to equip themselves with the skills for earning big returns.

CMS TRADER sends out daily market reports as well as ongoing signal information, advice and guidance on financial markets from professional Forex traders. A daily market analysis as well as fundamental analysis and commentary can be viewed on the site while an economic calendar keeps traders informed of upcoming and ongoing events.

AWARDS

Being an awarded company instils extra confidence by traders.  CMS TRADER can show several awards accumulated during its years in business, including the following:

Best Signals Provider 2016 – PIPSOFX.com

Best Broker in 2016 – STREETFX

Best Broker in The Middle East in 2016 – DailyForex.com

Best Broker in 2016 – TejaraForex.com

Official Signals Provider in 2016 – FXEMPIRE.

CONCLUSION  

This broker is not licensed, offers high spreads and has engaged in fraudulent practices. It offers several financial tools and widgets with its trading platform.

CMS TRADER keeps clients informed of what is going on in the world with a user-friendly website. Some of the important information can however only be accessed after an account has been opened.

DISCLAIMER

CMS TRADER warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with CMS TRADER, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

CMS TRADER warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence CMS TRADER cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

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Frequently Asked Questions

Is CMS Trader a scam or fake?

Our Review of CMS Trader reveals that this broker is unfortunately not regulated by any legitimate oversight authority.

Which platforms are supported by CMS FOREX?

CMS Trader provides these trading platforms:

• MetaTrader 4,
• MT4 Mobile and
• VT Trader.

Does CMS Trader charge commission?

More information on commissions can be obtained from the customer support service.

What is the minimum deposit for CMS Trader?

$ 200

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.