Beware! GFX 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.
GFX has incorporated an interesting look and approach, which is very distinguishable from the typical forex broker. It puts the main navigation bar men on the left side of the website, a move very atypical of forex brokers. It achieves to completely change the feel of GFX, but in also is able to maintain that broker feel. It’s too bad then that this company has something very suspicious going on, because we would have liked to see more legit brokerage firms adapting to this same or similar template. Read the review to see what we found out about GFX, and if you should be dealing with it.
The opening of an account was an impressive process that required of us a lot of personal data. In order to keep anonymity, we did not register. GFX’s sign up process is a good direction that the broker has taken. But will it be enough to redeem it from what we found on the way?
We headed towards opening a demo account. This produced an iterating and visual client dashboard, that was, nevertheless, quite short on features, probably because this was a demo account, but we cannot be 100% sure.
We opened a demo MT4, but the provided log in credentials did not work for us. So we have to take trading info from the website.
The leverage according to the website is maxed out at 1:500. The Terms of Business claims the leverage to be 1:100. However, the account opening gave us a 1:500 cap. The website gives us the following available to trade with assets forex pairs, commodities, shares, commodities, and indices. According to the site, the spread for the standard account start from 2.5 pips. This is highly unprofitable for users, and lucrative for the broker.
In the main legal document the broker explicitly reveals that it has the right to change both leverage and spread values at its own discretion.
The user can access the website in English and Vietnamese.
GFX REGULATION AND SAFETY OF FUNDS
The broker is registered in Saint Vincent and the Grenadines. This country is very well known among shady firm, because it has no forex regulatory scheme. It does not make a difference if a firm is registered there; this process is simple. What truly matters, is that GFX is not regulated in the Caribbean island nation.
Seeing as there is no further regulatory info, not that there was any in the first place, we have to label GFX as an UNLICENSED broker, one that poses a risk to all investments.
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.
So, GFX shares a user’s personal info with third party, and will not be held accountable for what these undisclosed third parties do with the information.
GFX TRADING SOFTWARE
The MT4 is used with this broker, however a client can only access it as a stand alone desktop trader and on Android and Apple devices.
This terminal is the worlds best and most popular forex trading software, and that is saying something. You don’t reach this level without possessing some exceptional qualities. There is so much to do with the MT4, that it will take you a long time to master, but it will never frustrate you. It’s very well adjusted to any trader.
There are commission applied to spreads. Here is proof as taken from the Risk Disclosure:
According to the Accounts Comparison page in the website, only Platinum account holders are issued a commission of $7 per lot. However, it remains unclear whether this fee is applied per side or is round turn.
GFX DEPOSIT/WITHDRAW METHODS AND FEES
The Terms of Business legal document claims that deposit and withdrawals are done via wire transfer, credit/debit cards, pre-paid debit card, local transfer, and “third party vendors” as the document claims. As per the same document, withdrawals are claimed to process for up to 48 hours.
The user dashboard offers several bank transfer options, paytrust, and fasapay. Apparently, deposit nor withdrawals are charged a fee by the broker, if we are trust the website. However, the legal docs, as you shall see, say differently. These types of discrepancies are typical for unregulated brokerages.
The minimum deposit accordion to the site is $1000, which is way to high for a minimum account funding requirement.
The broker does not work with refunds, i.e it will not give its users refunds.
There are fees that have not been made clear that will be issued by the broker at some point, including deposit and withdrawal fee, as well and return check commissions. What’s more worrying is that GFX can change the structure of these fees without notice.
Here are some more fees, these ones apparently applied overnight. These charges may affect the user’s equity amount.
If an account is unfunded for more than 60 days, the broker will close said account down.
The broker has the right to close an account without giving the customer a reason.
Furthermore, GFX may cancel/decline a client’s complaint after a 24 hour period.
There are further, similar, provisions, in which GFX gives itself the right to further cancel other customer claims:
Here is one of many indemnification clauses that GFX has scattered throughout its many legal documents. Provisions sch as this one will be used against a user’s claims holding that the company defrauded them.
All these clauses reveal the extent of GFX’s unwillingness to cooperate with users. Let these serve as a reminder of GFX’s unlicensed status. However GFX has outgrown many of its predecessors by having a very polished and well adjusted scammer scheme; clearly a significant amount of work was put into creating this site. Too bad this labour was not steered towards providing a legit forex broker experience.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.