GoldenCFD Review – 5 things you should know about Goldencfd.com

GoldenCFD Review – 5 things you should know about Goldencfd.com

Beware! GoldenCFD is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

FXTM

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

GoldenCFD is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides the MT4 trading platform, and offers a wide range of trading options. The spread on EUR/USD is floating at about 1.8 pips which is a bit above the industry average. Further trading conditions remain uncertain.

GoldenCFD regulation & safety of funds

On the brokers website we read that the broker brand is owned and by a SVG-based company with the name Pro Star. Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage.

We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that the brokerage is not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.

Upon further researching the brokerage we realized that the company – Pro Star – is also behind another unregulated brokerage which we have previously reviewed with the brand name Traderia. Traderia was blacklisted by the Italian authorities which further puts at doubt the legitimacy of GoldenCFD and upon comparing the websites of the two offshoots of the SVG company we also realized they are practically identical. This, again, isn’t something uncommon with unregulated brokerages but highly inclines us to suspect that GoldenCFD is no better than Traderia.

However, putting all this aside – the brokerage does provide the MetaTrader4 trading platform which we always consider an advantage. Through a demo account we got a look at it. Aside from the spread, however, which is a bit above the industry average, we are unable to discern further trading conditions. The extended leverage to clients is not disclosed and there is discrepancies in the information regarding the required minimum deposit. See for yourself:

In the terms of the brokerage we read that the minimum deposit is the standard $250 for credit cards and e-payments which is nothing out of the ordinary and double that for deposit via wire transfer. However, in the section of the website pertaining to trading account we read that the actual minimum deposit required is $1000. Here is a screenshot:

We remind readers that anything more than $250 is considered excessive and not worth the risk, especially with an unregulated brokerage from SVG. Furthermore, such mistakes in the information presented are only further red flags regarding the legitimacy of the brokerage.  As a matter of fact, having in the mind the lack of regulation we are inclined to suspect that potential clients of the brokerage may be open to substantial risk.

Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

GoldenCFD deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via credit cards and wire transfer, as well as Skrill.

Going through the terms and conditions of the brokerage we did  find quite a few troubling provisions. Here is a screenshot:

The brokerage openly states that it charges withdrawal fees which go as follows: $30 for wire transfers, 3.5 percent for credit cards and debit cards. Such fees certainly aren’t excessive but are always worth noting as pertinent information for traders. We do not find any dormant account fees but there is minimum withdrawal amount of $100 for wire transfer which is again common with unregulated brokerages.

Last but no least – the bonus conditions. Here is a screenshot:

There is a requirement of a “withdrawal threshold” of an unspecified amount in order to withdraw from an account that has taken advantage of the bonus promotion. We urge readers to take notice that almost always a bonus promotion, especially with unregulated brokerages, is tied with extreme trading requirement conditions which make it almost impossible to withdraw your money.

Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.

After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.

Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.

It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

What to do when scammed?

As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.

You may contact your bank or credit card provider and file a chargeback. 

If, however, you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should switch it asap!

Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!

Rich Snippet Data
Review Date
Reviewed Broker
GoldenCFD
Broker Rating
1.21star1stargraygraygray

Top Forex Brokers

Broker Country Rating Min. Deposit Website
US 5/5 $50 Click for a special offerWebsite
UK, Cyprus, Belize 4.95/5 $5 Click for a special offerWebsite
Australia 4.90/5 $100 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

Btcoinpro review – 5 things you should know about Btcoinpro.com

Btcoinpro is a CFD brokerage which emphasizes on