Beware! GXmarkets 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.
GXmarkets is a unregulated, offshore forex and CFD broker offering a good selection of currency pairs with a leverage of up to 200:1 and the Sirix trading platform.
The forex pairs are about 50 with a number of exotic currencies like South African Rand, Turkish Lira, Singapore Dollar, Swedish Krona, Russian Ruble, Romanian Lei, Polish Zloty, Norwegian Krone, Mexican Peso, Israeli Shekel, Hungarian Forint, Hong Kong Dollar, Danish Krone and Czech Krona.
Other trading instruments include CFDs on gold, silver, natural gas, oil, indices and some agricultural commodities.
The benchmark EURUSD spread as tested with a demo account floated about 2.8 pips, which is twice higher than the levels traders would usually find attractive with a standard account.
Trading condition put aside however, we have some serious concerns about the legitimacy of the broker, so if you are thinking about opening an account with them be sure to read the following lines.
GXmarkets regulation & safety of funds
GXmarkets is owned by an offshore company – GXM CAPITAL MARKETING LTD, which is based on the Marshall Islands. Neither the company nor the broker has a legit license to offer financial services on regulated markets like the European Union, the US, Australia or Japan.
Have in mind that you can trust only brokers, regulated by official financial watchdogs such as the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC).
On one hand properly regulated brokers are obliged to file regular reports and allow external audits, while on the other they should all maintain a certain minimum operational capital, guarantee traders a negative balance protection, keep their money in a segregated form their own account, refrain form offering trading bonuses and with some regulators like FCA and CySEC even insure traders money.
For example with a FCA broker your insurance covers 50 000 GBP of your funds, while with a CySEC broker the insured amount is 20 000 EUR.
GXmarkets deposit/withdrawal methods and fees
GXmarkets accepts payments with various methods, including popular credit cards like MasterCard, VISA and American Express, e-wallets like Neteller, Skrill, iDeal, Sofort and JCB, and bank wire. On their website we were not able to find information about their minimum deposit requirement, but you should have in mind that most brokers ask for about 250 USD.
Also stay way form any trading bonuses that may be offered to you. All of them come with some additional withdraw conditions, like for example with GXmarkets you will have to trade 25 000 USD for every dollar you have received as a bonus, before you will be allowed to request a withdraw.
How does the scam work?
Scammers employ lots of resources in their clandestine operations. Those involve call centers scattered throughout South East Asia or Eastern Europe and also the so called robo scam websites like Crypto Revolt and Bitcoin Evolution, which are designed as traps for careless investors.
If you happen to visit such a website, most probably you will watch a video, telling you the story of how you can get rich overnight by just joining some innovative, high tech trading platform. And off course, you will be assured that everything is completely risk free and all you have to do is leave your e-mail and phone.
And if you do that you will be automatically transferred to the web page of a unregulated, offshore broke, where you will be invited to open a trading account with about 250 USD.
Besides, do not be surprised how successful your initial trades will be. Actually the money in your account will probably double in just a couple of days. That, however is just part of the scam – scammers will manipulate your trading results in order to convince you more easily to invest a larger sum.
And if they have not done it already, you will receive a phone call as well. It will be your senior account manager, who will basically explain you that if you want to make some real cash you will definitely have to invest more – at least 10 000 USD.
And most people do not realize they have been scammed until the very moment they try to withdraw some of their money. Than it suddenly turns out this is not possible, because of some minimum trade volume requirement, linked to the welcoming bonus they have received.
Certainly the excuse to cancel your withdraw request might be different, but the end result is always the same – you will not see your money again.
What to do if scammed?
The most important step you may take, if you have fallen victim of a scam is to file for a charge back with your credit card company. Besides, recently both VISA and MasterCard extended the period, in which you will be able to do that to 540 days.
Also, if by any means scammers have managed to get to your banking details like credit card number or online banking password, change you password immediately and block your credit card.
And one final note – do not trust the so called recovery agencies. They will not help you get your funds back, but will simply charge you some money in advance and basically that is the last time you will hear form them.