Beware! GlobalInvestFX 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.
Let’s see if GlobalInvestFX lives up to its name. It’s very common for suspicious brokers to name their companies in semi-hyperbolic fashions, while at the same time completely ignoring to follow up on the promises set by its title. We believe GlobalInvestFX to be such a firm, and this comes as our first impression. Have we made a mistake of judgement, or does GlobalInvestFX follow in the footsteps of hundreds of more like it before? Read the review for the answers.
To open a live account, one must complete a process that we associate with illicit brokers. After which, we were granted access to the expected client area. We must have encountered this client area template around 100 times, and all brokers that utilized it were unregulated.
The following trading platform was also familiar, and in the end turned out to be useless. What this mean is that we will not be including any spreads and trading assets, for they simply not apply to the broker. The only thing that we have included is the leverage which was capped at 1:100 with no real way of changing it.
The languages in which the website can be translated are English, Spanish, German, and Italian.
GLOBALINVESTFX REGULATION AND SAFETY OF FUNDS
We found some very vague regulation information. Aside from what we are about to discuss, there was nothing else in term of licensing details.
The Terms and Conditions reveal that the broker might be working under the laws of the Marshall Islands. This is in no way impressive, and rather useless. The Marshall Islands are known to harbor many illicit brokerages, because the country has non FX regulator. Thus, GlobalInvestFX is not licensed there.
What we can say for certain is that GlobalInvestFXis DOES NOT POSSESS A LICENSE from any financial oversee, and is therefore a risk to all investments and sensitive information!
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.
GLOBALINVESTFX TRADING SOFTWARE
The broker allows for only a web base trading software, that we have seen countless times.
Not only is this platform not legitimate. but it also may not be complete. The charts are not their own, but come from TradingView a third party provider, that has been used for similar purposes hundreds of times before. What has happened here is that GlobalInvestFX has taken the charts from the third party source and has assigned them as its own. Furthermore, the charts mirror the cost of trade values, meaning that all spreads and trading assets, in reality, do not belong to GlobalInvestFX.
One can interpret this as GlobalInvestFX not having an actual trading conditions, and it is how we are proceeding.
GLOBALINVESTFX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit amount is $50. Payment methods are Pradexx, PBS, and NeoBanq. These payment gateway do not give us to much comfort, for they seem to be slightly out of the grid.
Without depositing first, we cannot get a hold of any withdrawal info from the user area. Withdrawals are claimed to be processed in 5 days. The legal documents do not reveal any fees for withdrawing. We do not trust the information on the website, thins is why we usually take withdrawal info only from the legal documents and the user area.
There is a $36 fee for all dormant accounts. A dormant account here is categorized as one that has not seen any activity for more than 30 days.
It is expected from any unlicensed broker to offer a bonus with a turnover requirement attached to it. Users have to make $500 000 worth of trades for every $50 bonus they are granted, This amounts to a long time trading.
However, further own the Bonus Conditions, we found a totally different withdrawal condition. This one claimed even more ridiculous notions, that users must trade $20 000 for every $1 bonus!
Be warned that by registering users agree that the broker can change the the data of the website washout giving notice to users. We assume that this also includes the legal documents.
Users will be penalized with a closure of their account if they perform a cashback. Cashbacks are considered to be the only real way to get you money back if defrauded by a scammer.
GlobalInvestFX indemnifies itself from any liability. The broker will not be held responsible for any damages that it causes to its user. Furthermore, all third party sources found on the website are also absolved or responsibility.
Not the worst clauses, but, needless to say, still scammer. GlobalInvestFX is not worth your trust an money. This firm will lure you with fake promises, and will never return your deposited funds, as with hundreds of brokers before it, and hundreds after it.
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.