Gold FX review – 5 things you should know about Goldfx.com

Gold FX review – 5 things you should know about Goldfx.com

Beware! Gold FX 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.

 

Gold FX is a Forex brokerage registered in Cambodia. It provides the MT4 trading platform. The spread on EUR/USD is 2.3 pips which is quite high and compares unfavorably to the industry average of a pip and a half. The required minimum deposit, however, is quite advantageous at $100 and the leverage extended to traders is up to 1:200.

Gold FX regulation & safety of funds

According to the website the brokerage is registered in Cambodia and is further “regulated there”. However, Gold FX gives neither the name of the regulatory body in the country, nor a reference number which really makes us question the validity of the information. Furthermore, the brokerage appears to be partnered with New Zealand broker GDMFX, however, the latter is also no longer under the regulatory oversight of the Financial Markets Authority. This posits much regulatory uncertainty for Forex trading in the country and potential clients of the brokerage are not guaranteed security and transparency as with brokers under the oversight of respectable European financial watchdogs. The lack of credible regulation leads us to conclude that traders will be exposed to much unwanted 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.

Gold FX trading software

Putting that aside, the brokerage states that it provides the MetaTrader4 which is something we highly appreciate since it is equipped with a diverse set of technical analysis tools and an advanced charting package which allows one-click trading and dealing straight from the chart. Such a multi-functional software is certainly an advantage for traders. Fortunately, there is a demo account available which we always view favorably since it’s the most transparent way of getting acquainted with the trading conditions of the broker. We, however, saw a spread of 4 pips which is quite excessive and not in any way favorable for a traders. But putting this aside – the brokerage does offer a form of social trading known as MAM accounts. This allows more experienced traders to display all their traders and have other people copy their dealings which is a very neat feature and definitely worth noting as an advantage. As was noted above – both the required minimum deposit and the extended leverage are advantageous in our view and typical for an unregulated brokerage which does not have to comply with leverage caps.

Gold FX deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw only via bank wire and cheque which is a bit old-fashioned but probably the preferred choice of traders in Cambodia. Furthermore, credit cards and e-wallets are missing as available payment methods.

Interestingly enough, we read nowhere anything regarding withdrawal fees, however, this does not mean that the brokerage might charge some unexpected fees. This is why we always advise traders to 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?

Unfortunately, the possibility of a scam looms over almost every trade in forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:

Through clicking an ad with promises for fast money, you will be redirected to a website such as  Bitcoin Evolution or Crypto Cash 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 motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.

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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

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
Gold FX
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

CDO Markets review – 5 things you should know about Cdomarkets.com

CDO Markets is an offshore Forex brokerage registered