Fx-globalinvest review – 5 things you should know about fx-globalinvest.com

Fx-globalinvest review – 5 things you should know about fx-globalinvest.com

Beware! Fx-globalinvest is an offshore broker! Your investment may be at risk.


IG USForex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.


Fx-globalinvest is brokerage that advertises trading in Forex, futures, commodities, indices and stocks. It offers 3 types of accounts depending mostly on the minimum deposit required – Mini ($500), Classic ($5,000) and Premium ($20,000).

The website opens with a video animation, followed by catchy phrases about the broker and the tools and pricing it offers below the fold. The sign up process is in 2 steps; the first one asked for First and Last name and “selection” of currency with only one option in the dropdown – EUR, and on the second one we had to supply Full address, Phone number and Email address.

After the successful registration we were taken to the client area and received an email confirmation, which included our account number and password – something not associated with best practices as emails can be intercepted and such sensitive information stolen.

Overall, the first impression of the website is not that bad, but this is quickly shattered when we clicked on the Terms and Conditions link in the footer – it opened a webpage with broken design that looks like a sitemap and has no legal text whatsoever:

Fx-globalinvest regulation & safety of funds

Fx-globalinvest is registered in the UK and lists a Birmingham address on its Privacy Policy page. Companies licensed to provide forex trading services in the UK must be licensed by the Financial Conduct Authority (FCA). So we decided to check the latter’s register for such entity, but to no surprise, our search returned no results.

Thus, we must conclude that Fx-globalinvest is not a regulated forex broker and any statements regarding Segregated Accounts and the security of funds it provides should be taken with great reservations. Segregated Client Accounts, along with Negative Balance Protection, Compensation Schemes, and Minimum Capital Requirements are some of the measures the FCA and the Cyprus Securities and Exchange Commission (CySEC) in the EU require from their licensees in order to guarantee the safety of investors’ funds and best financial practices.

In the case of unregulated and unlicensed brokerages, such as Fx-globalinvest, however, there is no organization or authority that guarantees these rules are being applied.

Fx-globalinvest Trading Software

Fx-globalinvest advertises the MetaTrader4 (MT4) trading platform as a Desktop and Mobile (iOS and Android) applications. MT4 is an established trading software preferred by more than 80% of users around the world. It offers a user-friendly interface, a wealth of technical analysis tools, and advanced charting, as well as copy- and auto-trading options. The proprietary MQL4 programming language allows further customizations of technical indicators and trading strategies.

There was no link to download the software anywhere on the site or in the client area. This is another warning sign since no respectable company would advertise something it does not provide.

Fx-globalinvest offers also a Webtrader platform which we accessed using the credentials supplied in the confirmation email. The immediate impression this software gives is one of poor design and lack of functionality. It does not provide any information about what company stands behind it or who developed it. Last but not least, in the top right corner there is a green Deposit button that is not working.

Fx-globalinvest Trading Conditions

The EURUSD spread we see on the platform is extremely large – 5 pips. Such spread does not make any profits for the traders, but guarantees huge returns for the broker. On top of that Fx-globalinvest promotes a much lower spread of 3 pips for the same currency pair on its website.

In addition to this excessive spread, the brokerage charges a commission – a flat-rate $6.95 on every Internet equity trade. Such trading conditions are quite disadvantageous to traders, and we would not advise our readers to use this broker.

The leverage of 1:200 is not very high – some offshore brokers offers rates of up to 1:1000. Still, we should note that most regulatory authorities impose leverage caps for non-professional traders (1:50 in the USA and 1:30 in the EU and the UK), since leverage trading entails significant risks – it can make you profits, but it can also incur great losses.

Fx-globalinvest Deposit/Withdrawal Methods And Fees

Fx-globalinvest’s FAQ section states that there is “no minimum to open a new account; however, a $2,000 deposit is required to be considered for margin and options privileges.” This contradicts what we saw in the Account types where for the beginners’ (Mini) account the minimum deposit was $500.

Further on, the Account Funding webpage claims there are 3 available methods in the client area: 1) Credit Card – a minimum of $250 and a maximum of $5,000; 2) Bank Draft – no minimum or maximum specified and not clear what is the difference from the third option; 3) Wire Transfer – a minimum of $10,000 required. Respectable brokers rarely have a minimum deposit requirement, and if they do, it is usually no more than $50. A $10,000 minimum deposit for Wire Transfer seems excessive and we believe is a sign of a scam operation.

What’s more, in the client area Deposit section we only see different payment processors in the Available Payment Options and credit card logos of VISA, MasterCard and Maestro – there is no Wire Transfer or Bank Draft options. Other popular payment methods, such as PayPal and preferred by traders e-wallets, eg. Skrill and Neteller are not supported.

Such inconsistencies are a sure sign of shady practices. Another alarming statement is “All electronic deposits are subject to review and may be restricted for 60 days.” The way we understand this is that the broker can hold your funds for up to 2 months, which is quite uncommon and most probably illegal.

Withdrawals are made to the original funding method and may take up to 5 business days to process, according to the broker. The latter also states that traders “won’t be charged any platform, inactivity, or market data fees,” only the “flat-rate $6.95 commissions on every Internet equity trade.” In the absence of any legal agreement posted on their website, one should question any such claims.

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.

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