Beware! GTLOT 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.
The guys behind this entity chose a name that doesn’t suggest that you are dealing with a Forex broker. The name aside, it’s yet another unidentified FX creature that refuses to disclose all the details for itself, which instantly raise a major red flag. The legal documents provided might easily fit into two pages A4 and doesn’t reveal anything about the trading conditions or the rules in regards to essential features such as deposits, withdrawals, bonuses or the dormant accounts, to name a few. Find out everything you need to know about this disguised Forex broker in the full GTLOT review.
GTLOT REGULATION AND SAFETY OF FUNDS
GTLOT is said to be run by a company named Major Technologies LTD, which is registered in St. Vincent and the Grenadines. The company develops online trading platform solutions, but fairly speaking, they failed to provide GTLOT with suitable software because the one we tested was an utter mess!
GTLOT is headquartered in SVG, as well, which is an offshore jurisdiction known for the lack of strict financial regulations. The local financial authority doesn’t even control the Forex brokers working in the island, which puts the clients in an unstable environment. The traders will most probably lose all of their money if the offshore broker ceases to exist tomorrow.
Your funds are not safe if you make a deposit with GTLOT, because it’s an unlicensed, unauthorised and unregulated Forex broker that cannot guarantee the protection of the clients’ funds and it’s most probably a scam. You will see what makes us being suspicious about them later in the review.
Our advice is to pick EU(mostly CySEC regulated), or UK(FCA regulated) brokers because Europe created the safest financial environment for the traders’ funds and not surprisingly accomodate 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, which is laid out to guarantee the deposits made by traders and investors. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR per client in compensation, 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 considered to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
GTLOT TRADING SOFTWARE
MetaTrader4 or MetaTrader5 accounts are not available for the traders. GTLOT relies on a web-based platform that is miles behind Metatrader. It doesn’t include even the major FX pairs such as EUR/USD, GBP/USD or USD/JPY, but only Crypto pairs.
Warning! GTLOT offers only trading instruments that are prone to fraud and price manipulation. You can also open either BTC or USDT account, and USDT is not the US dollar, but a Cryptocurrency, too! The standard EUR, USD or GBP accounts are not available, which is a warning sign pointing that GTLOT should be avoided!
The BTC/USDT spread is more than 90 USDT, which is a price that’s quite high compared to the rest of the industry, where you can find a rate as low as $10. The spread is the price that the trader has to pay to execute a trade, which means that the lower the ratios the bigger the potential profits.
The default leverage level is 1:3, but the customers cannot make any adjustments to it! The small ratios are standard for Crypto pairs and there is even a leverage cap of 1:2 imposed in the EU and UK. The leverage is a powerful financial tool that might potentially amplify the profits, but at the same time escalates the risk. If misused the leverage might cause lightning-quick losses instead of gains.
GTLOT DEPOSIT/WITHDRAW METHODS AND FEES
GTLOT doesn’t specify a minimum initial deposit required! The funding methods include Credit/Debit cards and Cryptocurrencies. As we already stated, their legal documents don’t reveal any information of significance for the traders!
The minimum withdrawal amount is said to be $20, which is actually in line with the rest of the industry, even though, the most of the EU and UK regulated brokers will allow the traders to pull out as much as they want, without imposing any restrictions. No withdrawal fees applicable and no withdrawal request processing time known, as well.
No dormant account policy was found, which is yet another red flag itself. It’s a set of clauses that specify how the brokers deal with the accounts that have become inactive. Most of the brokers will let a year pass before making the account dormant and will charge small administration fee per month or per year.
No information about bonuses or other trading incentives, as well. We have to make it clear: the bonuses are not free money, but a leverage tool that further increases the risk for the traders.
HOW DOES THE SCAM WORK
A group of scammers operates many different scam brokers and scam websites. Sometimes they will simply rely on the number; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it seems a profitable strategy, as they carry on doing it. The scammers will constantly re-brand and create new scam projects, but remember that all of these will inevitably share similar characteristics.
Most of these fraudulent enterprises are registered offshore- in St. Vincent and the Grenadines, Commonwealth of Dominica or the Marshall Islands, because these jurisdictions do not regulate the Forex broker operating there. As a result, they work solely on their discretion, which allows them to carry out illicit and criminal schemes without suffering the consequences of their actions.
Cryptocurrency funding went extremely popular among scammers because this form of digital money is absolutely uncontrolled. It’s a powerful scam sign if an alleged Forex broker is accepting only Crypto deposits because it’s almost impossible to make a refund and get your money back! They also love the Cryptocurrency pairs because these derivatives are prone to fraud and price manipulation. Not to mention that the spreads of the Crypto pairs are enormous, which is bad for the traders, but great for the brokers because they pocket the difference between Buy and Sell. The UK agreed to completely obliterate the digital coins derivatives trading because these instruments are considered inappropriate for the retail traders. The ban will come in effect in the spring of 2021.
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 very 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!