Beware! Global Markets 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.
Global Markets is an offshore forex and CFD broker, based on the Seychelles, which offers four account types with a leverage of up to 200:1 and the Leverate’s Sirix trading platform.
The choice of trading instruments is not bad – nearly 50 forex pairs, many of which minor or exotic like USDNOK, USDSEK, USDRUB, USDTRY, USDMXN, USDZAR, USDSGD, USDRON, USDPLN, USDILS, USDHUF, USDHKD, USDDKK and USDCZK, as well as CFDs on various assets like silver, gold, aluminum, crude oil, cotton and cocoa, stocks and indices.
Spreads as advertised with their starting account were somewhat higher for our taste – 2,6 pips for the benchmark EURUSD pair is at least a pip higher than what most traders would have considered attractive. And yet spread are not our main issue with Global Markets, but their regulatory status – they just do not have a license.
Global Markets regulation & safety of funds
Global Markets is owned and operated by Cub Service LTD, which as we understand is incorporated offshore on the Seychelles and that is not very reassuring. On top of that the broker is not regulated as it should have been, if they want to service traders on regulated markets like the EU, the USA, Canada, Australia or Japan.
Bear in mind that proper regulation is the single most important factor that can guarantee the safety of your funds.
Unregulated brokers like Global Markets on the other hand are completely unaccountable for the way they handle your money – basically if you trade with a unregulated broker, you will have to rely solely on the integrity of the people, who run it, which unfortunately too often is not very high.
That is the reason we would suggest you to deal only with brokers holding legit licenses from well known and well respected regulators like the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investments Commission (ASIC).
Global Markets deposit/withdrawal methods and fees
Global Markets has a standard minimum deposit requirement of 250 USD and accepts payments with bank transfers, credit or debit cards like VISA and MasterCard and some e-wallets like PayPal.
Be aware however, that the broker might charge you with a very peculiar monthly inactivity fee – 5% or 25 USD, which ever is higher, in case your trading activity “is at a low level according to the Company’s determined standards”. That, we should note is highly unusual and no legit broker will ever charge you in such a way.
Also be aware of any trading bonuses that Global Markets might offer you, because you will have to meet a steep minimum trade volume requirement – 1 standard lot or 100 000 USD for every 5 USD of bonus you have accepted. Bear in mind that too often scammers use trading bonuses as an excuse to cancel your withdraw requests.
And besides, Global Markets says they reserve the right to change their bonus policy on their sole discretion, meaning that they can increase the minimum trade volume requirement, linked to the bonus, whenever they want.
How does the scam work?
A robo scam website is all about a video ad, where you will be told of “once of a life time investment opportunities”, where with a small deposit you will make big money – of course “risk free” and with “guaranteed returns”. And if you do leave your e-mail and phone, instantly you will be transferred to the web page of an offshore, scam broker, where you will have to deposit your first 250 USD.
And trading with the scammers might seem like a lot of fun in the beginning. Your trades will be amazingly successful and pretty soon the money in your account will seem to have doubled.
That however is just part of the scam – many fraudsters manipulate their trading platforms so that it would look like you are making a lot of money. And the idea here is that you deposit a larger sum. And that is exactly what your “senior account manager” will tell you on the phone – if you want to make some real money you will have to invest at least 10 000 USD.
Believe it or not, but by that time most people do invest that kind of money, without ever realizing they have been scammed until the very moment they request to withdraw some of their funds. Than all of a sudden it turns out they do not have the right to withdraw, because they have not met some minimum trade volume requirement, most probably linked to their welcoming bonus, they have so gladly accepted. The pretext might certainly be different, but the end result will always be the same – your money will be lost.
What to do if scammed?
The slim chance to recover your deposit is to file for a charge back with your credit card company. That is the only hope you have if you have been scammed. Fortunately, both VISA and MasterCard will allow you to do that within 540 days – that is according their new anti scam policy adopted in the fall of 2018.
And if for any reason scammers have managed to get to your banking details like credit card numbers or an online banking password, immediately change the password and block your credit card. And if you have been tricked to install a program like TeamViewer be sure to delete it as well.
One final note. Do not trust the so called recovery agencies – they will not help you in anyway, but will simply collect some fees in advance, basically scamming you a second time.