Beware! General Investment Partners 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.
General Investment Partners are a forex broker company trading in stocks, crypto, ETFs, IPO and bonds. At first glance the website of this broker looks very impressive but we are going to check some key features and advise you whether it is safe to trade via this broker or not.
General Investment Partners Regulation and safety of funds
The Financial Conduct Authority (FCA) has issued a warning regarding this broker (screenshot below) saying that this broker has no authorisation to provide financial services or products in UK. Clearly these are scammers that you should avoid at all cost if you do not want to risk losing your money.
For forex brokers in UK it is not enough to be registered, they also need to be regulated by FCA which means they have the authorisation to offer forex trade services to its clients. Only by being licensed, forex brokers can guarantee the safety of clients’ funds. This is not the case here. To be licensed in UK, forex brokers must have an initial capital of 730,000 EUR and contribute to a compensation scheme from which clients will be compensated in case the broker declares bankruptcy. The compensation is 85,000 GBP per person. Also, forex brokers in UK must report their transactions on a daily basis to avoid shady deals.
As you can see, many precautions are put in place in UK to make sure that the forex brokers will adhere to strictly observing the regulations set by FCA to protect their clients. We strongly advise you when checking the registration of a forex broker in UK, to make sure that they are also regulated. Only this way you will have a peace of mind that your funds will be safe.
We can also recommend, when selecting a forex broker, to look into the companies in EU regulated by CySEC as they also offer excellent conditions to forex traders who can benefit from a compensation scheme of up to 20,000 EUR in case of bankruptcy.
General Investment Partners Trading software
We realised that there is something wrong with this broker when we decided to open the trading platform. Even after registering and opening a trading account, there were no links provided to the trading platform, nor was it possible to download it from the website. So, we couldn’t find out what spread and leverage the platform uses. Spreads and leverages are important in forex trade as they can define how much you are going to win if your transaction is successful or how much you are going to lose if it is not. Some non regulated forex brokers tend to offer high leverage in order to tempt traders into engaging in risky transactions and we are always on the lookout for that so we can warn our readers. The fact that this information is missing from this website is very disappointing and it raises a red flag indicating that you shouldn’t choose this broker to trade with.
As we are on the issue of trading platforms, we want to draw your attention to two excellent trading platforms – MetaTrader 4 and MetaTrader 5. These are the leading platforms in the forex trade world and their well-deserved reputation makes them choice number one among 80% of the forex brokers. Both platforms offer excellent trading tools and instruments – an auto trading option, code base with customs scripts, an app market, VPS, trading signals that come with a subscription fee, a financial calendar and others. We are also very impressed with the numerous charting options and designs offered by these platforms that help traders observe the price fluctuation and use the indicators to predict the future direction of exchange rates and make a profit.
So, our advice here is – select a regulated broker that offers MT4 or MT5 to trade with.
General Investment Partners Deposit/Withdrawal methods and fees
As we explored the website of General Investment Partners, we came to the conclusion that although at first glance it looks very impressive, there is a lot of crucial information missing from it. For example, we couldn’t find what account types are offered by this broker. Only after registering and opening a live account, we were able to find this investment plan (screenshot below) which is with a minimum initial deposit of 1,000 GBP. This amount is very high for a minimum deposit and is again proof that this broker is not reliable. No licensed broker would ask for such a high initial deposit!
In our opinion, payment methods for deposit and withdrawal should be readily visible on any broker’s website and should also be part of the Terms and Conditions document. However, for General Investment Partners, the Terms and Conditions document does not contain such information and there is no section on deposit and withdrawal on the website. The only information we could find was after opening an account and it said that the minimum amount via bank transfer is 10 GBP without fixed charge. If you compare the minimum deposit in the investment plan (1,000 GBP) and the minimum amount deposit via bank transfer (10 GBP), you see that there is big discrepancy that cannot be explained.
Again, from the live account that we opened, we find out that the minimum withdrawal amount is 100 GBP via bank transfer with processing time of 48 hours and no charge.
The limitation of choice in payment methods and the discrepancy in the provided information regarding payment methods is another red flag that should ward off potential traders from engaging with this broker.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or the social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.