Beware! Golden Day Profit 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.
Golden Day Profit is a unregulated forex and CFD broker, based in Hong Kong, that falsely claims to be authorized to offer forex in the USA.
We will discuss their regulatory status in detail latter in our review, but first let us take a look at their offer.
When we tested a demo account on their MetaTrader4 platform we counted just 11 currency pairs and a few CFDs – on gold, silver, oil and bitocin. That was all.
And besides we were horrified to see spreads starting at 2,8 pips with a trading commission of 30 USD per standard lot. A commission of 30 USD per standard lot basically adds another 3 pips to the spread, so the actual EURUSD spread with the Golden Day Profit demo account was as high as 5,8 pips – four times higher than the spread that traders usually expect with a standard account.
Otherwise Golden Day Profit offers leverage as high as 500:1, but you should have in mind that higher leverage comes on the price of higher risk so our advise is to use it with caution.
Golden Day Profit regulation & safety of funds
Golden Day Profit is owned and operated by Golden Day Profit Kamyip Co., Ltd. , with a contact address in Hong Kong. The broker says to have a US license and even provides us with a link to the website of the National Futures Association (NFA). After searching their name in the NFA registers, it turned out Golden Day Profit Kamyip Co., Ltd. is registered as an EXEMPT COMMODITY POOL OPERATOR, which by no means gives them the right to say they are authorized to offer forex in the USA.
Forex regulation in the United States is a very serious matter and only a handful of brokers like Forex.com and OANDA have such a license. That is because the minimum operational capital requirement for all US forex brokers is as high as 20 000 000 USD.
Just for reference, if you search let say OANDA in the NFA register, you will see that OANDA is a FOREX DEALER MEMBER APPROVED; FOREX FIRM APPROVED; RETAIL FOREIGN EXCHANGE DEALER REGISTERED; NFA MEMBER APPROVED and a FUTURES COMMISSION MERCHANT REGISTERED.
So to recapitulate, Golden Day Profit is trying to mislead their customer that they are regulated in the USA, while they are not.
And besides, being located in Hong Kong, Golden Day Profit should at least have the authorization of the local Hong Kong Securities and Futures Commission (SFC), where forex brokers must maintain a minimum paid-up share capital and liquid capital of at least 5 million Hong Kong Dollars (about 640 000 USD). Unfortunately Golden Day Profit is not licensed by the SFC either.
Trading with unregulated brokers is extremely risky, because quite often such entities are involved in scam. So our best advise is to trade only with brokers, approved by official 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) and of course NFA in the USA.
Golden Day Profit deposit/withdrawal methods and fees
Unfortunately Golden Day Profit does not mention what is their minimum deposit requirement and what payment methods do they accept. Keep in mind that most broker usually ask for a minimum deposit of about 250 USD, while payment methods might include major credit or debit cards like VISA and MasterCard, bank wire and e-wallets like Neteller and Skrill.
How does the scam work?
Scammers use more and more sophisticated techniques to hunt for new victims. For example, you may come across one of the so called robo scam websites like Crypto Revolt and Bitcoin Evolution, where you may be tempted by an offer of fast and easy returns with a minimum investment risk. And you will be invited to fill a simple registration form with your e-mail and phone.
Immediately after you register, you will be transferred to the web page of a unregulated broker, where you will be proposed to invest about 250 USD and start trading right away. Take a note that at first your trades will be surprisingly profitable and soon the money in your account will more than double. That however will not be for real. Scammers will simply manipulate your account in order to make sure you will get hooked and invest a larger amount.
And more or less at the same time you will be contacted by your senior account manager”, who will professionally explain to you, that if you really want to make some real profit you will simply have to invest more – like 10 000 USD.
And you may never know that you have been scammed until the very moment you decide to withdraw some of your funds. It will suddenly turn out you can not. The pretext – usually some minimum trade volume requirement you have agreed with without noticing, when you accepted your trading bonus. Whatever the excuse, the bottom line is that you will not be allowed to withdraw a single penny.
What to do if scammed?
The best chance you have to get your deposit back in the unfortunate event you have been scammed, is to file for a charge back with your credit card company. The good news here is that both VISA and MasterCard adopted a new anti scam policy, according which you will be able to file for a charge back within 540 days.
Also, scammers might try to get to your banking details. If that had happened, immediately change your online banking password and block you credit card.
One final note. Do not accept the services of the so called recovery agencies, because you will simply be scammed a second time. They will just ask you for some payment in advance and basically that will be the end of the story.