XCFD Company

XCfd Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

XCfd Company was founded in 2013, positioning itself as a retail forex and CFDs broker. The firm aimed to provide innovative trading solutions and technology to its clients, catering to both novice and experienced traders.

Parent Company/Ownership Structure

While the specific parent company details are not widely publicized, XCfd operates as an independent broker. It has established itself as a reliable entity within the trading community, focusing on transparency and customer service.

Headquarters Location

The headquarters of XCfd is located in Auckland, New Zealand. This location is significant as New Zealand is known for its robust regulatory framework for financial services.

Global Business Scope

XCfd has expanded its reach beyond New Zealand, offering trading services to clients internationally. The broker claims to provide access to over 700 financial instruments, including forex, stocks, and commodities, through a single account.

Main Regulatory Bodies

XCfd is regulated by the Financial Service Providers (FSP) in New Zealand. However, as of December 31, 2016, it is important to note that the broker ceased its operations, which has raised questions about its regulatory compliance and ongoing oversight.

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2. Company History and Development

Key Milestones

• 2013: XCfd was established, offering a range of trading instruments and innovative technology.
• 2014-2016: The company gained recognition in the trading community, promoting its low spreads and zero commissions.
• 2016: XCfd announced the cessation of its services, which was a significant turning point in its operational history.

Business Expansion Journey

Initially, XCfd aimed for rapid expansion by providing a wide array of trading options and bonuses, such as a $30 welcome bonus and a 50% bonus on the first deposit. However, the growth trajectory was abruptly halted when the company stopped providing services.

Customer Base Growth

At its peak, XCfd attracted a diverse customer base, including both retail and institutional traders. Despite its initial popularity, the cessation of services led to a significant decline in its customer base.

Platform Development History

XCfd developed its proprietary trading platform, which was designed to be user-friendly and accessible across various devices, including PC, Mac, Linux, iOS, and Android. The platform offered features such as one-click trading and mobile trading capabilities.

Important Awards or Recognitions Received

During its operational years, XCfd received several accolades, including recognition for its trading technology and customer service. However, specific awards are less documented, particularly after the company ceased operations.

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3. Trading Services Offered

Forex Trading Options

XCfd offered a selection of over 25 currency pairs for forex trading, allowing clients to trade major, minor, and exotic pairs. This variety catered to different trading strategies and risk appetites.

Stock Trading Options

The broker provided access to various stock trading options, enabling clients to invest in shares from different markets. However, the exact number of stocks available was not specified.

CFD Trading Products

XCfd specialized in Contracts for Difference (CFDs), allowing traders to speculate on price movements without owning the underlying assets. The range included CFDs on indices, commodities, and cryptocurrencies.

Other Financial Instruments

In addition to forex and stocks, XCfd offered trading in commodities and cryptocurrencies. The inclusion of cryptocurrencies was particularly appealing to modern traders looking for diversification.

Special Services or Unique Advantages

XCfd promoted several unique advantages, including zero commissions and low spreads. The broker also offered bonuses and a demo account for traders to practice their strategies without financial risk.

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4. Regulatory and Legal Background

Detailed Regulatory Information

XCfd was regulated by the Financial Service Providers (FSP) in New Zealand. This regulatory body is responsible for overseeing financial service providers to ensure compliance with local laws and regulations.

Legal Entity Structure by Region

As an international broker, XCfd had a legal entity registered in New Zealand. However, the lack of transparency regarding its operations in other regions raised concerns among potential clients.

Client Fund Protection Measures

XCfd claimed to implement measures to protect client funds, including segregated accounts. However, the specifics of these protections were not extensively documented, particularly after the company ceased operations.

Countries/Regions Served

The broker served clients globally, with a focus on markets in New Zealand, Australia, and parts of Asia. However, the cessation of services limited its operational scope significantly.

Compliance History

XCfd's compliance history is marred by its abrupt cessation of services in 2016, leading to allegations of blocking profitable accounts and concerns about its legitimacy. This has impacted its reputation and trustworthiness in the trading community.

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5. Competitive Landscape

3-5 Main Competitors

• XTB: Known for its extensive range of trading instruments and robust educational resources.
• IC Markets: Offers low spreads and a wide variety of trading platforms.
• Admirals (Admiral Markets): Provides competitive fees and a strong focus on customer service.
• FXPro: Renowned for its advanced trading platforms and diverse product offerings.
• Capital.com: Focuses on excellent customer support and a user-friendly trading experience.

Positioning in the Industry

XCfd positioned itself as a competitive broker in the retail forex and CFD market, emphasizing low trading costs and a user-friendly platform. However, its reputation suffered significantly after the cessation of services.

Market Differentiation Factors

XCfd differentiated itself through its zero-commission policy and low spreads. Additionally, the broker's proprietary platform aimed to provide a seamless trading experience across various devices.

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Conclusion

In conclusion, XCfd Company emerged as a notable player in the retail forex and CFD brokerage landscape, offering a wide range of trading services and innovative technology. However, its abrupt cessation of operations raised significant concerns about its legitimacy and regulatory compliance. Potential clients should exercise caution and conduct thorough research before engaging with any broker, especially those with a troubled history like XCfd.

For more information on trading services and options available in the market, learn more.