Beware! Fxglobalcfd 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.
Fxglobalcfd has built a friendly green-ish website that’s actually quite pleasant to look at, but it’s the only positive feature to mention. We observed that some of the information Fxglobalcfd gives to the public is fake, and this fact alone transforms them into a broker that’s now a suspected scam! In addition, the Terms and Conditions page is non-existent, which makes things even worse for them. There are other faulty pages and red flags recognised that we are going to share with you in the full Fxglobalcfd review.
Fxglobalcfd REGULATION AND SAFETY OF FUNDS
Fxglobalcfd is an anonymous broker that claims to offer risk-free, pleasant trading experience and that’s a solid scam sign whatsoever. They claim to be a company that’s headquartered in Birmingham, but we weren’t able to unearth such a company. From then on it was pointless to check the FCA register and we can conclude that Fxglobalcfd is an illegal entity that’s not authorized to sell financial products and services.
Your funds are not safe if you deposit with Fxglobalcfd, because it’s an unlicensed, unauthorised and unregulated Forex broker that’s allegedly run by a company that doesn’t exist.
When choosing a broker, you should always make sure it’s a legit company that’s duly regulated and authorised to offer financial products and services to the public. We recommend that you chose EU (mostly CySEC regulated) or British (FCA regulated) licensed Forex brokers because Europe succeeded to create the safest financial environment for the funds of the traders by implementing stringent financial rules and regulations that the brokers are bound to comply with. For you, as a trader, the most critical aspect is the protection of your deposits, and it’s guaranteed by the deposit insurance funds that were inaugurated throughout Europe.
The Investor Compensation Fund in Cyprus guarantees the clients deposits of up to 20 000 EUR per client, while the Financial Services Compensation Scheme in the UK allows you to claim even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar deposit 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.
Fxglobalcfd TRADING SOFTWARE
Warning! Fxglobalcfd does not allow the traders to sign up unless they have a Promotion Code at their disposal. That’s yet another significant scam sign showing that Fxglobalcfd is a fishy enterprise, notwithstanding the promise that they emphasise on customer satisfaction. We suspect they are deploying some non-conventional methods to attract customers, probably working hard in social media or expanding some MLM schemes that might as well be linked to other brokers and entities.
Fxglobalcfd claims to offer MT4 accounts to its clients, but we were unable to get access to any MetaTrader4 or MetaTrader5 distribution whatsoever! The link to their web-based platform was broken at the time, as well, which comes to show that Fxglobalcfd clearly doesn’t really care about their website. It could have been a temporary issue, but nonetheless a red flag to note. They don’t even specify the most critical trading conditions for the traders on their website!
It’s not surprising that Fxglobalcfd offer Metatrader because it’s the most popular trading platforms that feature such sophisticated trading tools as Expert Advisors, Algo Trading, Complex indicators and even its own marketplace. It’s a platform that highly renowned for its stability, and the retail FX traders widely use it.
No information about the spreads available and the maximum leverage levels possible. The spread and the leverage are the two main trading features that influence the risks and the overall result from trading. The spread is the difference between the Buy and Sell price and forms part or all of the trading costs for the clients. The small difference makes it possible for the trader to generate more significant profits, so you should choose a broker offering low spreads.
The leverage on the other side is a powerful financial tool that opens the markets for everybody. It allows the clients to trade on margin, thus amplifying the profit potential. But it comes with risks that increase proportionally, and some ratios such as 1:500 are really dangerous for the traders. If misused, the leverage utilised might lead to losses that are very difficult to recover. Last but not least, as customer protection measure EU, UK and Australia (coming into effect from the spring of 2021) forced a leverage cap of 1:30, while the USA agreed 1:50. You might quickly end up trading with scammers if you carry on looking for brokers that offer ratios as 1:100, 1:500 or above!
Fxglobalcfd DEPOSIT/WITHDRAW METHODS AND FEES
Warning! There is no T&Cs, Disclaimer or another form of document that arrange the conditions in the agreement between the broker and the traders! It’s probably the ultimate red flag that we saw! There is a link to such a document, but you can see where you are going to be redirected to once you click upon!
The minimum initial deposit is said to be 250 EUR in their Account Type section and $500 on their FAQ page, which is an information discrepancy that raises yet another red flag. Their requirements are in line with the offshore brokers but higher than the industry standards for regulated Forex brokers, who will usually ask for no more than $100. Some of them will be happy to let you start real trading with as little as 5 to 10 bucks, but the profit potential is meagre if you begin with such a tiny deposit.
There is no information about such critical aspects as the funding methods available, minimum withdrawal amount requirements, dormant account policy, fees that apply or bonuses if any.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will rely on the quantity; 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 really cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
The fraudsters are working in social media nowadays, and an increasing number of them are approaching people on Facebook, Instagram, Telegram, you name it. They will create pages showing lush lifestyle, cars, yachts, celebrities etc. and will insist that you will make even more money if you click on the like button. You will see pictures showing profits of tens of thousands of dollars, and if you have little or no FX experience, you might easily believe them. Then they will make you open an account and deposit money with sham Forex brokers, which in turn will cause financial losses that might be impossible to recover. Often the scammers will deploy Promo Codes and Invitations to make the service look exclusive and exceptional, reassuring the traders that it’s an opportunity that most of the people will never face in their lives.
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 essential 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!