Beware! GlobalbFXm 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.
GlobalbFXm is a unregulated forex and CFD broker, offering several account types with a leverage of up to 300:1 and a choice between MetaTrader4 and a web based trading platform.
The trading instruments include over 40 forex pairs, with a list of exotic currencies like Swedish Krona, Norwegian Krone, Danish Krone, Singapore Dollar, South African Rand, Turkish Lira, Hungarian Forint, Chinese Yuan, Russian Ruble and Mexican Peso.
Also offered are CFDs on stocks, indices, gold, silver, platinum, nickel, copper, oil and natural gas, as well as a selection of crypto coins, namely Bitcoin, Litecoin, Ethereum, Namecoin, Peercoin, Dash, Emercoin, Milibitcoin, Bitcoin Cash and USD Tether.
As tested with a demo account the benchmark EURUSD spread floated about 1.9 pips, which is higher than what traders would usually expect with a standard account.
Our biggest concern with the broker, however, is its regulatory status, which we will discuss in the following paragraphs.
GlobalbFXm regulation & safety of funds
GlobalbFXm is owned and operated by Euro Wealth OU, an Estonian company that says to be regulated by the Private Investor Protection for Securities and Exchange (PIPSEC). We should note, however that PIPSEC is nothing more than an anonymous website, which has no legitimacy whatsoever. That leaves us with no choice but to review GlobalbFXm as a unregulated broker with very limited credibility.
Legit licenses are issued only by well respected financial institution such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).
Brokers, regulated by FCA, CySEC or ASIC are required to follow a very strict set rules, designed to ensure the safety of the invested funds. Among those rule is the requirement to guarantee negative balance protection, to keep all invested capital in a segregated, protected form creditors, trust account, to file regular reports, to allow external audits, to maintain a certain minimum capital adequacy ratio and in some cases even to insure traders funds.
If you trade with a FCA broker, for example, and if by any chance your broker is unable to pay, you will be compensated by up to 50 000 GBP. Similarly, with a CySEC broker your funds are insured up to 20 000 EUR.
GlobalbFXm deposit/withdrawal methods and fees
GlobalbFXm accepts payments with credit cards like Visa, MasterCard or Diners Club, WebMoney and even Bitcoin and Ethereum.
You should be careful with the bonuses however. If you accept a trading bonus by GlobalbFXm, your right to withdraw will be linked to a certain minimum trade volume requirement, equal to 10 000 USD for each bonus dollar you have received. Have in mind that such a requirement might prove challenging even for professional traders.
The minimum deposit requirement is 1000 USD, which is also significantly higher than with most other brokers.
How does the scam work?
Scammers surely use different scenarios to get to your money and yet here is one pretty common scam that we have traced in the past months.
Usually you will get hooked by a video add on one of the so called robo scam websites like Crypto Revolt and Bitcoin Evolution. The video will promise you fast, easy and risk free returns with a minimum investment – all you have to do is fill the simple registration form, leaving your e-mail and phone. And if you do that, you will be instantly transferred to the web page of a scam broker, where you will be asked to deposit something like 250 USD.
And take a note that your first trades will be surprisingly successful. That, however, will be a result of a manipulation – you will not be making actual deals and scammers will simply adjust your trading results so that you will be more easily tricked to invest more. And surely, you will receive a phone call as well. It will be form “your senior account manager”, who will professionally explain you, that if you want to make some real cash, you should definitely invest more – let say 10 000 USD for a start.
And besides, you will not know that you have been scammed until the moment you decide to withdraw some of your funds. Than, it will suddenly turn out this is not possible, because of some minimum trade volume requirement you have agreed with, without noticing, when you accepted some king of a trading bonus. Of course, the pretext might be different, but the result will be the same – you will not get any money back.
What to do if scammed?
Unfortunately, if you are a victim of a scam there are just a few steps you may take and the first one is to file for a charge back with your credit card company. The good news here is that if you have payed with a MasterCard, you will have 540 days to reverse the payment. And besides VISA plans to adopt the same policy in December.
If, for any reason you have given away your banking password or credit card number, be sure to immediately cancel your credit card and change the password for your online banking service.
Finally, if you are a victim of a scam and you have lost money, do not accept the services of the so called recovery agencies. They will just take an upfront payment, without retrieving you a single penny.