Beware! Goldstarway 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.
Although otherwise bland and uninspiring, the website of Goldstarway offers just this one picture that is sure to motivate its potential clients to trade with this broker (screenshot below). It’s like saying “Trade with Goldstarway and you’ll have all your money on a tray!” However, our role is not to promote this broker but rather to look at some key features on its website in order to estimate whether it is safe or not to trade with it.
Goldstarway Regulation and safety of funds
Our first red flag is raised when we found some discrepancies regarding the registration and the address of Goldstarway. On the company’s website, we found the address to be in Wyoming, USA. US forex brokers are regulated by the National Futures Association (NFA) or the Commodity Futures Trading Commission (CFTC). However, in neither register could we find the name of this broker which means that it is non-legit and possibly a scammer. Furthermore, we found in the footer of the website that this broker does not offer its services if you are residing in some countries, including the United States of America. We do not know how to explain this statement, except with the fact that there is something fishy with this company.
In any case, you are strongly advised not to trade with it.
Forex brokers in the US are heavily regulated and they must meet many requirements in order to be licensed. They must provide an initial capital of $20 million which is the highest in forex trade. Being well-capitalised means that they will be able to provide some sort of guarantee for traders’ safety of funds in case of unfavourable events. Also, it serves as a wall against scammers as they won’t invest such a huge amount of money just to look legit. In addition to that, US forex brokers have a cap on leverage which cannot exceed 1:50 to prevent overenthusiastic traders from risking their money. Also, there are some reporting requirements that have to be met, such as recordkeeping and reporting transactions on a daily basis. They are also required to provide their clients with access to certain data regarding transaction execution. All these measures provide transparency in their dealing and prevent going into shady deals.
However, this is not the case with Goldstarway and if it is not clear whether this broker is licensed, the best plan of action is to avoid it.
There are some other well-established jurisdictions that also offer excellent conditions to forex traders, such as the EU and the UK where brokers must have an initial capital of 730,000 EUR and contribute to a compensation fund from which, in case of bankruptcy, traders will be compensated up to 20,000 EUR per person for CySec regulated brokers an 85,000 GBP per person for FCA regulated brokers.
So, please, use the links, do thorough research and select a licensed broker that will not scam you!
Goldstarway Trading software
Goldstarway is a forex broker trading in forex, indices, metals, commodities, shares and CFDs. The trading software that Goldstarway offers to its clients consists of the platforms – ACT trader and MetaTrader 4. We did not open a live account as the prerequisite for it was to deposit fund, so here is the inactivated demo account of the platform which we include for purely illustrative purposes to give you an idea what the platform looks like. On the left-hand side is the menu of the forex currency pairs with their bid/ask price and beneath is the navigator for the accounts, indicators, expert advisors and scripts. In the top horizontal bar are the keys for the charting options and the auto trading. In the centre of the screen are the charts showing different currency pairs and the fluctuation in their price in a given time frame.
MetaTrader 4 is considered one of the best trading platforms in the forex trade despite its old age. The platform was launched 15 years ago but is still very popular among the majority of forex brokers thanks to its excellent package of trading tools and instruments among which we want to mention the VPS, auto trading option, trading signals, a code base for customs scrips, an app market, a financial calendar, etc. The charting package that this platform offers is second to none! Traders can choose the number of charts displayed, the time frames, colours and even create their own templates. There is also a big array of technical analysis indicators, such as Fibonacci retracement, Bollinger Bands, moving averages and others that help predict the future direction of the exchange rates and make a profit.
Of course, a trading platform is as good as its broker is reliable, so your first port of call is to find a licensed broker and then look for a suitable platform.
Goldstarway Deposit/Withdrawal methods and fees
Apparently, Goldstarway likes big money shakers, that is why its minimum initial deposit for opening a trading account is 1,000 EUR/USD but the broker recommends a minimum of 5,000 EUR/USD deposit. On the other hand, licensed brokers would ask for as little as $1-5, so draw your own conclusion.
This broker also offers bonuses and the bigger the deposit, the bigger the bonus is. For example, if the deposit is up to 4,000 EUR, the broker will provide 40% bonus, for over 4,000 EUR, the bonus is 50%, for over 10,000 EUR, the bonus is 60% and for over 20,000 EUR deposit, the bonus is 70%. It looks so tempting, doesn’t it? Don’t be fooled though. There is no such thing as a free gift, especially in the world of forex trade. These bonuses belong to the broker and the trader cannot withdraw funds unless he/she traders a minimum of 6 standard lots per year. We hope you can do the maths and find out that this would involve a lot of trading!
Also, please keep in mind that licensed brokers never offer bonuses or free gifts!
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 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 a 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 a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a 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.