Beware! GoldmanCFD is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
GoldmanCFD is a unregulated, offshore forex and CFD broker offering several account types on the MetTrader4 platform.
Trading instruments include CFDs on stocks, indices and commodities, gold, silver, platinum and oil, as well as over 50 forex pairs with a variety of exotic currencies like Brazilian Real, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, Swedish Krona, Danish Krone, Norwegian Krone, Turkish Lira, Mexican peso, Czech Krona, Hungarian Forint, Romanian Lei, Polish Zloty, South African Rand, Russian Rubble and Israeli Shekel.
However, spreads as tested with a demo account were twice higher than what traders would usually expect with a standard account – 3 pips for the benchmark EURUSD spread.
But what is more, we have some quite serious concerns about the legitimacy of the broker as a whole, which we will discuss in the following paragraphs.
GoldmanCFD regulation & safety of funds
GoldmanCFD says to be owned and operated by GOLDMANCFD LTD, which is supposed to be based on the Marshall Islands. In their Terms and Conditions, however we came across an address in Bulgaria.
In any case the company does not have a legit license to provide financial services, neither form the Bulgarian regulatory authorities, nor form any other official authority, so basically GoldmanCFD operations on regulated markets like the EU, the US, Australia or Japan are completely illegal.
The simple reason you can not trust a unregulated, offshore broker is that the safety of your funds depends solely on the integrity of the people, who run the broker.
Brokers, regulated by reputable financial authorities such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC) can be trusted as they are obliged to follow strict fiscal and ethical rules, among which to file regular reports, to allow external audits, to maintain at all times a certain minimum operational capital, to keep all clients funds in a segregated, from their own account and to provide a negative balance protection, which means that a trader can not loose more money than what was invested.
Finally, take a note that with most regulators in Europe a good portion of the money in your trading account will be insured.
So for example if you trade with a FCA broker you will not have to worry about the first 50 000 GBP in your account, even if your broker files for bankruptcy. Similarly, with a CySEC broker the insured amount reaches 20 000 EUR.
GoldmanCFD deposit/withdrawal methods and fees
GoldmanCFD accepts a real constellation of e-wallets – ABAGood, eKonto, ePay, ePS, Euteller, GiroPay, HalCash. iDeal, Bancontact Mister Cash, MultiBanco, Neosurf, Przelewy24, SOFORT, SporoPay, TeleIngreso, TicketSurf, TrustPay and Poli, as well as bank wire transfers and credit cards like VISA and MasterCard.
It is significant, however, that they do not accept Skrill, which recently announced that they will offer their services in the European Union only to brokers that can show them legit licenses. As we already noted GoldmanCFD does not have a license.
Also, you should beware of any trading bonuses offered by the broker, as they are subject to special withdraw conditions – your withdraw request would be declined unless you have reached a certain minimum trade volume.
And finally we find the minimum deposit requirement to open a trading account with GoldmanCFD unacceptably high – 500 USD, while with most brokers you can start trading with about 250 USD or so.
How does the scam work?
Everyone has heard about people getting scammed, but no body believes this may happen to him or her. And yet fraudsters come with ingenious ways to get to your money, usually promising fast and easy returns with a tiny investment, of course completely risk free – at least that is what you will be promised if you watch a video add on one of those robo – scam websites like Crypto Revolt and Bitcoin Evolution. And all you will be asked to do is fill a simple registration form, leaving your e-mail and phone.
Than you will be instantly transferred to the website of a unregulated, offshore broker where you will be invited to deposit about 250 USD, and if you do that, the people running the robo scam website will get their commission for hooking you up.
Now that you have opened your brand new account with your offshore broker, you will be surprised how successful your initial trades will be. Certainly, you will be bombarded with trading signals and at a certain point, when your initial deposit has almost double a “senior account manager” will call you and will suggest that if you want to make some real cash you will simply have to invest more – like 10 000 USD.
Besides, take note that actually your trades would not be real – scammers will manipulate your account so that you will be more easily convinced to deposit more. And if you do that probably you will not realize that you have been scammed until the very moment you decide to withdraw some of your funds.
Than it will suddenly turn out you are not allowed to withdraw. Scammers will tell you, you have not met some minimum trade volume requirement possibly linked to a trading bonus you have so carelessly accepted. Of course it could be something else, but the bottom line will be the same – you will not see a single penny back.
What to do if scammed?
In the event you have been scammed, unfortunately there are just a few useful steps you may take.
The first is to file for a charge back with your credit card provider. The good news here is that both VISA and MasterCard have extended the period in which you will be allowed to do that to 540 days. That was done in late 2017 in an effort to combat online scams.
And if by any chance you have given away your credit card number or online banking password, be sure to immediately block your card and change the password for your online banking service.
Finally, do not put your trust with the so called recovery agencies. Those people will simply take some money in advance and will leave you even deeper in to the red.