Beware! FXGlobe International 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.
FXGlobe International is a Forex broker that’s in quite a delicate situation because it’s a licensed entity that works in partnership with another FCA and CySEC regulated company, but at the same time received an official warning by the Italian financial regulator CONSOB. It’s a case that’s quite complicated, but we assume that they’ve only exceeded their rights, which is a red flag whatsoever. Find out everything about this intricate Forex broker in the full FXGlobe International review.
FXGlobe International REGULATION AND SAFETY OF FUNDS
At first, especially after the CONSOB warning, we believed that FXGlobe International is a clone firm, but after diligent research, we found out that it’s not the case. It’s a Vanuatu licensed broker, that is actually partnering with FXGlobe, which is duly registered and regulated by FCA in Britain and CySEC in Cyprus. The International broker is easily accessible via fxglobe.com though, as the Partner button is just on the left of the Sign In button.
FXGlobe International is owned and operated by FS International Limited which was found to be a Vanuatu authorised company that holds a license. However, it doesn’t mean that they are allowed to offer Forex products and services to Europeans, and probably that’s the reason for the CONSOB warning. On the other hand, we have to say that FXGlobe should work closely with their partners to prevent such a mistake in the future. It affects the safety of the traders negatively but also reflects poorly on their name and reputation.
Vanuatu itself doesn’t regulate the Forex brokers as strictly as the Europeans. The only customer protection standard is the minimum capital requirement of $50 000, which is not enough to safeguard the traders’ funds in case something go wrong. We cannot guarantee that FXGlobe is going to cover FXGlobe International in turbulent times, so we don’t recommend this broker.
Your funds are relatively safe if you make a deposit with FXGlobe International. It’s a licensed broker but doesn’t offer full customer protection to its clients, so it’s better for you to avoid it, especially after the CONSOB warning issued!
Our strong advice for the readers is always to pick EU (mostly CySEC regulated) or UK (FCA regulated) Forex brokers, as Europe created the safest financial environment for the funds of the traders and not surprisingly hosts the leaders in the retail FX industry. Most importantly, money protection schemes were developed in Europe, such as ICF in Cyprus and FSCS in the UK, established to guarantee the deposits made by traders and investors. Under CySEC (Cyprus) supervision, you can claim up to 20 000 EUR in compensation per client, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. 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.
FXGlobe International TRADING SOFTWARE
FXGlobe International offers MetaTrader4 accounts to its clients; MetaTrader5 is not available for trading. We were unable to register and download their distribution, however, so we couldn’t test the real trading conditions of FXGlobe International. They claim to offer EUR/USD spread of 0.7 pips, which is in line with the rest of the industry. The spread is part of the trading costs for the clients, so the lower the spread, the better the conditions.
The leverage is said to be as high as 1:500, which is a level that is too risky for the traders, especially for those with little or no experience. The leverage is a great financial tool that boosts the potential for profits, but at the same time bears tremendous risks. A ratio of 1:500 might utterly destroy your account after 20 pips move in the wrong direction, and the losses accumulated will be tough to recover.
FXGlobe International DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $250, which is a bit higher than the industry standards, as most of the EU and UK regulated will ask for no more than $100 to start trading.
The funding methods are said to be Credit/Debit cards, Wire Transfers, Neteller, Trustly and others that might be available, but FXGlobe does not specify which the others are.
The minimum withdrawal amount is $70 and, but no fees specified. It will take up to 10 business days till the trader get his money, which is too long compared to the EU and UK Forex brokers.
An account becomes dormant after only 90 days of inactivity, which is an unfair condition whatsoever. FXGlobe International says that inactivity fees will apply, but fails to specify the size and the scope of these, which is a red flag itself!
No bonuses or other forms of trading incentives are available at the moment.
Warning! FXGlobe International allows indebted account and states that will act decisively in such a case!
HOW DOES THE SCAM WORK
The scam is a criminal activity, and the scammers are trying to defraud people by making them believe that they can make easy money. 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 the Commonwealth of Dominica, the 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, and 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!
It’s also important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!