Beware! GCI Brokers 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.
Warning! GCI Brokers is an offshore broker, and your funds would not be protected if you choose to trade with them. Apart from that, we found some red flags that undoubtedly prove that this entity isn’t trustworthy and should be avoided. Find out everything you need to know about this shady offshore broker in the full GCI Brokers review.
GCI Brokers REGULATION AND SAFETY OF FUNDS
GCI Brokers is allegedly registered in St. Vincent and the Grenadines, which effectively means that it’s working without supervision and solely on their own discretion. SVG is a notorious offshore zone, a tax haven which is one of the favourite destinations for shady Forex brokers and dodgy companies. The Caribbean island, however, explicitly stated in a publication on their website that the brokers based there would remain unregulated in the foreseeable future.
Your funds are not safe if you make a deposit with GCI Brokers, it’s an unlicensed, unauthorised and unregulated offshore Forex broker, which shows many warning signs and should be avoided!
The unregulated offshore brokers might cease to exist at any moment, and the traders would lose their money because there isn’t a government authority to guarantee the safety of their funds. The European financial regulators are among the strictest, imposing many stringent rules and regulations for the Forex brokers, such as the minimum capital requirement of €730 000, account segregation of the clients’ funds and daily reports, to name a few.
Above all, there are Deposit insurance funds inaugurated, such as ICF in Cyprus and FSCS in the UK, which protect the deposits made by the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in the UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
GCI Brokers TRADING SOFTWARE
GCI Brokers Metatrader5 and VertexFX trading platforms. Metatrader4 is not available for trading. VertexFX is a fishy platform, and we do not recommend it to our readers. You should stick to Metatrader, as it has proven to be the best Forex trading platform in the market, but do not trade with this broker!
The EUR/USD spread is as low as 0.1, which is quite favourable a difference, but you shouldn’t trade with GCI Brokers because your funds would be vulnerable! The leverage is as high as 1:300, but shockingly you cannot modify it to your own preference, which is a major red flag!
GCI Brokers DEPOSIT/WITHDRAW METHODS AND FEES
Warning! GCI Brokers wants copies from your ID/Passport to sign-up! An ultimate red flag and a definite scam sign. You should never do that!
The minimum deposit is $1000, which is very high compared to the rest of the industry.
The funding methods are Credit/Debit card and PayPal.
The minimum withdrawal amount is not specified; also, there are no withdrawal fees determined. However, there are some scam clauses related to withdrawals in their T&Cs. Have a look!
No dormant account policy and no fees for inactivity specified.
No bonuses or other form of trading incentive offered.
HOW DOES THE SCAM WORK
The scam is a criminal activity; the scammers are trying to defraud people by making them believe that the traders can make easy money if they join and start investing. In most of the cases, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. There is no or very light FX regulation in the offshore jurisdictions such as Vanuatu, Marshall Islands or St. Vincent and the Grenadines, making them some of the most popular destinations for shady and illegitimate enterprises. Regulation means customer protection and safety, financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it is essential to protect others, as well. Be responsible!