Beware! Gfxroyal 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.
Gfxroyal is an alleged broker, offering trading conditions that, for a reason we shall see, are completely irrelevant and non-existent. Furthermore, the broker’s sloppy website and presentation reveal it for what it really is. Read on to find out more.
GFXROYAL REGULATION AND SAFETY OF FUNDS
There is no mention of a regulator anywhere on the website. The T/Cs reveal that the company functions in compliance with, and is authorized by, the European Markets in Financial Instruments Directive (MiFID). However, MiFID is a legislative framework and not an actual licensing issuer. Thus Gfxroyal cannot be regulated by it if it does not hold an actual reglation from a renown superviser. Without any other information ocnerning a regulation, we can conclude that Gfxroyal is UNLICENSED, and therefore a risk to all investors.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
GFXROYAL TRADING SOFTWARE
The registration process lead us to a tradng software that was immediately compromised by us. It is in fact a completely fake trading software that “borrows” its charts from a third party chart provider. It is unknown whether the spreads are legit or not; we assume they are not. And furthermore, the platfrom is incredibly simple and does absolutely nothing to impress.
GFXROYAL DEPOSIT/WITHDRWAL METHODS AND FEES
According to the client dashboar, there are three methods by which one can deposit: Wire Transfer, Vload, and Cashier. The minimm deposit required is $250.
As for withdrawals, it seems that the same payment methods are used. As for any fees, we did not find any details about them.
We strongly advice traders to only deposit the minimum deposit, or better yet – not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.