RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
GTM is an offshore Forex brokerage registered in the UK. It provides the MT4 trading platform and the leverage extended to traders is quite generous at 1:400. The required minimum deposit is below the industry average at $100 and the spread is at 1.5 pips on EUR/USD.
GTM regulation and safety
On the brokers website we read that the broker brand is owned and operated by a UK-based company with the name Global Transaction Market Limited under the regulatory oversight of the Financial Conduct Authority, however, we also read that it is regulated by the Financial authority in Saint Vincent and the Grenadines.
However, we did run a search of the company on the online registry of the FCA and surprisingly such a company is present and authorized. Here is a screenshot:
Regulatory oversight by the Financial Conduct Authority in our view is a major advantage since 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 which is good news for any trader.
Interestingly enough, even though the brokerage is licensed by the FCA, it still states it provides leverage of up to 1:400. This occurs through the SVG-registration of the company which allows it to bypass the leverage cap imposed on UK traders, but only for traders outside the country. We remind readers that the government of Saint Vincent and the Grenadines has multiple times stated it does not regulate Forex trading.
GTM trading software
Putting all this aside – the brokerage also does provide the MetaTrader 4 trading platform which we always consider an advantage since it is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. It is also the preferred choice for more than 80 percent of the traders in Forex. We further were able to get a look at through a demo account. We must take notice of the availability of a test-drive since it is not so common among unregulated brokerages.
We could see a spread of 1.5 pips which is just about the industry average and on the brink of what we would consider favorable. We do, however, see quite an impressive selection of trading products ranging from CFDs on stocks to currency pairs and crypto pairs as well. This is always advantageous for traders and we highlight it as a definite plus for the brokerage.
GTM deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via plenty of payment methods. They include the standard Visa and MasterCard, as well as e-wallets such as Skrill.
There weren’t any other noteworthy provisions, but we do remind readers that 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.