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Launched in 2017, MaxCFD is an unlicensed broker, owned and operated by Chemmi Holdings Ltd, a company headquartered in London. The web-based trading platform at MaxCFD is straightforward, making it easy for clients to trade CFDs across a wide range of financial assets, in what is traditionally perceived to be a complicated trading environment. Whilst seasoned traders may find that MaxCFD doesn’t provide sufficient expert trading tools, those looking for fast and easy trade executions may find the ‘no-frills approach at MaxCFD refreshingly innovative.
What are CFDs?
A quick clarification of CFDs may be useful at this stage in our review. Global financial markets comprise of multiple underlying financial assets such as foreign exchange currency pairs, indices, stocks and commodities. Traders use Contracts for Difference (CFDs) to predict whether an underlying asset will rise or fall in price. CFD traders never physically own the underlying assets, but only predict the direction of the price. By making a correct prediction, the trader gets the full payout stated in the contract. If the trader made an incorrect prediction, the investment in the contract is lost. Because the amount of risk or reward is clear from the start of the trade, CFD trading is often seen as a predictable way of trading and perhaps a safer way than other trading methods.
MaxCFD Trading Account
There is only one type of trading account at MaxCFD. It operates in USD or EUR currency and only in English. To start trading, clients need to make a minimum deposit of $€250. The ‘one touch option’ in the MaxCFD trading account, limits the amount that traders can invest on a single trading position to $500.
The interesting thing about trading at MaxCFD is the ‘special perk’ where traders get a 10% return of the investment if an option expires ‘out-of-the-money’. That’s to say that you get 10% of your investment automatically returned to your account, instead of losing the entire amount if the time runs out on your trading position. We have never come across such a ‘perk’ before at online brokers and consider it a nice touch for motivating clients.
MaxCFD Spreads and Leverage
Spreads are typically quite wide, with USD/GBP at 4 pips when we viewed the trading platform. Whilst MaxCFD provides asset rates on the trading platform based on live feeds, they don’t usually reflect the exact market prices. The rates can vary by several pips to show the price that MaxCFD is prepared to sell the options for. We checked the spreads for major currency pairs and found them at four pips which is a wide spread compared to some online brokers. Notably, the maximum leverage available to traders is 300:1, commencing from 20:1 in the trading software.
Significantly, traders are given access to a diverse selection of education content including Traders TV, Signals, Economic Calendar and the Asset Index showing prices and expiry times. Additional information is accessible from the dashboard of the website. This includes a daily market review, articles on trading CFDs, FAQS about trading with MaxCFD and Banking.
Trading Platforms and Trading Tools
The platform available at MaxCFD is a state-of-the-art ‘SpotOption’ CDF trading platform with a pleasing, uncluttered appearance. Traders don’t need to download software but simply search for MaxCFD in the browser of their desktop or mobile device. It doesn’t matter whether you have Android, Windows or iOS operating systems, as the web browser works with anything, as long as you have an internet connection.
We were especially impressed by the simplicity of the set-up and the ease with which we could start trading. The platform is clearly laid out with ‘Hot Assets’ listed in the left-hand column. Forex is at the top, followed by CFD for Currencies, Commodities, Indices, Stocks, Pairs, Cryptocurrency and Etf (bundles of securities).
A bright green dashboard displays the product type and asset type followed by leverage levels. Notably, the level of leverage, is selected by the trader according to the amount of risk he is prepared to take. Other brokerages usually limit leverage according to the type of trading account opened by the client and the size of the initial deposit. Continuing across the dashboard, Asset contract and contract size are displayed next to the leverage level. These are followed by the ‘Stop-Loss’ box, where traders can adjust the level with the +/- tabs. Also, the ‘Take Profit’ box that can be adjusted to affect the potential profit made from a trade. Beneath the dashboard are three types of tool options; charts, indicators and trend line. Like the rest of the trading platform, the tools offered are simple; basic line and candle charts, four types of indicator and the Fibonacci replacement trend line.
Whilst advanced traders may see them as limited tools, those seeking a trading environment with as little confusion as possible, usually find the available tools satisfactory.
To open a trading position, clients go to the green section on the right-hand side of the screen where several important categories of information are displayed, along with a big green BUY button. The information includes the payout, potential profit, stop loss, pips value and take profit. The SELL section is in red and displays similar information categories as the buy section. But with values relevant to selling an underlying asset. By referring to the extensive education material on the website, traders could quickly prepare themselves to trade with confidence on this one click trading platform.
Promotional Program at MaxCFD
MaxCFD runs a reward program for new and existing customers. There is no reference to it on the interface, but it is described in the company’s terms and conditions. We saw that traders may receive bonuses and one-time credits rewarding them for loyalty. Moreover, traders may be informed by phone or email about unique promotional campaigns. We like to point out to our readers that bonuses anywhere, usually come with terms and conditions that should be considered carefully before being accepted.
Customer support is available through email, a form, or two UK telephone numbers. Live chat is not offered, which is inconvenient as most online brokers provide instant live support from the interface and many traders have come to expect it.
A broad range of payment methods is supported by MaxCFD for depositing and withdrawing funds in EUR and USD (accounts can only be set up in these two currencies). Payment methods include popular credit and debit cards, bank wire transfer and around 20 digital methods. To find out about the full range of digital payment methods, MaxCFD requests that clients contact an account manager.
Fees are not charged for withdrawing to credit cards. However, withdrawals by wire transfer are charged a fee of $25. Processing of withdrawal requests takes up to 2 days and customers can expect to see funds in their accounts in 5 to 7 days. Notably, clients wanting immediate payment can pay $€50 for the rapid service.
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