At first Cinda Securities seemed like a reliable broker. Their website is available in three languages, English, Traditional Chinese, and Simple Chinese. But are they worth your money? You’ll find out in my Cinda Securities review:
Is Cinda Securities Regulated?
Cinda Securities is a Hong Kong-based broker. They have a license from the Securities and Futures Commission (SFC) in Hong Kong.
I must point out that SFC requires its brokers to participate in their compensation scheme and have at least 5 million Hong Kong dollars as the initial capital.
So we can say that Cinda Securities is a regulated broker and not an unregulated broker. Still, if you’re interested in finding out what an unregulated broker is, you can check out the below section:
What is an Unregulated Broker?
Unregulated brokers are those forex (or crypto) brokers that don’t have a license from a regulatory authority to offer their services. You can say that an unregulated broker is like someone who claims to be a pilot with no aviation license.
Check out: Gerchikco
How can you spot a broker who is trying to deceive you?
A broker’s credentials, registration, and job history can be reviewed using BrokerCheck, a free online tool provided by FINRA. Disputes with clients, disciplinary actions, and specific financial and criminal matters on the broker’s record are all covered in the disclosure portion of BrokerCheck.
Trading is already a risky business. So when you add the risk of an illegal enterprise into the mix, the risk increases exponentially.
Is it Safe to Trade with an Unregulated Broker?
No, trading with an unregulated broker is the worst thing you can do for your finances and privacy.
Unregulated brokers don’t fall under the supervision of any watchdog, allowing them to do whatever they like. With such brokers, you face the risk of losing your hard-earned money as well as your personal data. Many of these unregulated brokers are scams posing as a service provider to dupe people.
There are various financial regulators in various regions such as the FCA in the UK and the CySEC in the EU. These regulators have strict criteria that brokers must meet to get a license from them.
Financial regulators ensure that brokers act in the interests of their clients. For example, an FCA-regulated broker must keep their operation funds separated from their users’ funds. It would ensure that the broker doesn’t use its clients’ funds for its functions and so, doesn’t steal from them.
Unregulated brokers don’t follow such roles which makes them more dangerous. You should avoid trading with an unregulated broker for the safety of your funds and data.
Should You Trust Cinda Securities?
Hong Kong is an offshore region, but seeing Cinda Securities holds a license, I can say that they are a little reliable. The SFC is a weak financial regulator and doesn’t have a lot of strict provisions like the reputed regulators FCA or CySEC.
So, even with a license, I don’t recommend trading with them. Moreover, their trading conditions aren’t fair. You’ll find that out in the following sections:
How is the Website of Cinda Securities?
Cinda Securities has kept a lot of its information ambiguous. For example, finding the trading conditions of this broker can be a huge pain. For a regulated broker Cinda Securities really disappointed me with the way they offer information to their clients.
A broker’s website can tell you a lot about its trustworthiness. Scammers and sketchy brokers keep their website very difficult to use and fill it with useless text.
They do this so you can’t access important information that would expose them such as their terms and conditions or their high minimum deposit requirement.
Reliable brokers wouldn’t keep their website inaccessible or hide any information. That’s because they usually have nothing to hide and want to keep things transparent with their clients to enhance trust.
So if you suspect that a broker is trying to hide important information from you, you should avoid them. There are many brokers in the market, you don’t have to stick with one that’s suspicious.
What are the Trading Conditions of Cinda Securities?
Cinda Securities Trading Platform
This broker offers the reputed MetaTrader 5 platform to its clients, which was quite impressive.
The MetaTrader 4 and MetaTrader 5 are the most popular trading platforms in the industry. Since MetaQuotes released MT4 in 2005, they have been dominating the market due to the extensive features their software offers.
MetaTrader 4 offers some of the best trading facilities to its users such as access to over 30 built-in technical indicators as well as 24 graphic objects. Apart from trading indicators, this platform offers you access to various trading bots, that simplify trading substantially. More than 80% of the industry uses these platforms, so you can understand just how amazing they really are.
Cinda Securities Leverage
The offered leverage of this broker is 1:400, which is very high and very dangerous. A high leverage ratio might seem attractive to many traders but remember that around 70% of a trader’s transactions result in a loss. So with such a high leverage, there’s a huge chance that you would lose all your deposited funds and might get in debt.
It’s not safe to trade with such a high leverage and it is an indication that the broker is not reliable. In the US, a broker can offer a maximum leverage of 1:50 so you can understand how risky this broker’s offered leverage is.
Cinda Securities Spreads
The offered spreads of this broker are another sign that you shouldn’t trade with them. This broker offers 2.2 pips spread to its clients.
The spreads of a broker will directly affect the profits you make as a trader. A spread is the limit on the minimum amount you can trade and it’s imposed on you by the broker. A larger spread reduces your chances of making a good profit so I don’t recommend trading with a broker that offers a high spread.
What are the Payment Methods of Cinda Securities?
Cinda Securities doesn’t give any information about the payment methods it offers to its clients. I couldn’t set up an account with this broker too due to some glitch.
We can assume that this broker doesn’t offer many payment options otherwise it would have mentioned them on its website.
What are the Fees of This Broker?
Cinda Securities has kept all of its fee-related information hidden from its users. This is another indication that it is an unreliable broker. Trustworthy brokers don’t hide their fee-related information from their clients because they don’t have anything to hide.
There’s a huge chance that Cinda Securities charges its clients unfairly so I don’t think it would be okay to trade with them.
Does This Broker Offer Bonuses?
It’s unclear whether Cinda Securities offers bonuses to its clients or not. So I can’t comment on that. They don’t clarify their position on this topic and as I mentioned before, SFC is not a strict regulator.
If a broker offers you bonuses or credits for joining their platform, you should get away from them right away. Reputed financial regulators such as the NFA and FCA don’t allow their brokers to offer bonuses to their clients. They have added such restrictions because bonuses let brokers add more complications to the withdrawal process.
And in most cases, the conditions for withdrawing a bonus are too sketchy and make it nearly impossible for the client to get their money back.
So, if you ever find a broker claiming to offer bonuses to its clients, you should stay away from them. There’s a good chance that they are a scam.
How is the Customer Support of Cinda Securities?
There aren’t many ways to contact the customer support of this broker. You can only contact them through the ‘Contact Us’ page of their site, which makes them quite shady.
After all, why would a broker make it difficult for its customers to contact them. Reputed brokers provide multiple methods of contacting their support. You don’t get a contact number or a live chat facility with this broker.
Cinda Securities Review – Are They Worth It?
Cinda Securities has a weak license and has kept a lot of its vital information hidden. The broker’s website has a lot of technical issues as well. Due to these reasons, I don’t think you should trade with them.
There are plenty of forex brokers far better than Cinda Securities. It wouldn’t be safe to trade with this broker.