GMT-Capital.com review – 5 things you should know about gmt-capital.com

GMT-Capital.com review – 5 things you should know about gmt-capital.com

Beware! GMT-Capital.com is an offshore broker! Your investment may be at risk.

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GMT-Capital.com is an anonymous entity that falsely claims to be a UK authorised Forex broker. What’s worse though, they are almost identical to another Forex broker that we have already reviewed. Find out which one in the full GMT-Capital.com review.

GMT-Capital.com REGULATION AND SAFETY OF FUNDS

GMT-Capital.com pretends to be a British entity by providing a UK address and contact number. Still, the facts say it’s a sham Forex creature that’s almost identical to Crary Finance, as there is a 99% match of the legal documents and the registration process. On top of that, there is a legit company bearing the same name, and we suspect it’s a clone firm scheme in operation. Beware! Our research in the FCA register showed that there is a company named GMT Capital, but it has nothing to do with this fishy website. You can find out more about the firm cloning later in the review.

Your funds are not safe if you make a deposit with GMT-Capital.com because it’s an unlicensed, unauthorised and unregulated Forex broker that’s revealing too many warning signs.

Avoid anonymous and offshore Forex brokers and go for the transparent and regulated ones that hold CySEC(Cyprus) or FCA(UK) license. We recommend them because Europe created the safest financial environment for the traders’ deposits, and it’s assured that the genuine Forex brokers will handle your funds with the utmost care. Most importantly, however, there are deposit insurance funds established throughout Europe, such as ICF(under CySEC) and FSCS(under FCA), which guarantee the protection of the clients’ funds. In Cyprus, you can claim up to 20 000 EUR per client, while in the UK the guarantees are of even up to 85 000 GBP per client.

GMT-Capital.com TRADING SOFTWARE

GMT-Capital.com offers a web-based platform, which we do not recommend to the traders. The software that the brokers develop by themselves isn’t trustworthy and might be prone to fraud and price manipulation. On top of that, it’s worse than useless, as it lacks most of the features one can find in Metatrader. Have a look at their platform on the bottom of this section.

Avoid GMT-Capital.com and start trading with a legit MetaTrader4 or MetaTrader5 brokers instead. Metatrader is the most popular retail Forex trading platform, and the traders highly acclaim it for its reliability. It also comes with features that one can hardly find anywhere else for free such as sophisticated trading tools. To name a few, the traders can benefit from the use of Expert Advisors, Algo Trading, Complex Indicators, Strategy Testing and the Metatrader marketplace.

The EUR/USD spread is 1.1 pips, and it’s actually in line with the rest of the industry. The spread is the price that the trader has to pay to open a position, and the lower spreads make the trading affordable, increasing the profit potential at the same time.

The maximum leverage level possible is 1:1000, which is an insane ratio that’s dangerous for the funds of the traders, and we do not recommend it. The leverage allows the traders to multiply the size of their positions, which improves the profit potential, but at the same time, the risks escalate. A small move in the wrong direction might utterly destroy the traders’ account. That’s what made the EU and UK force a leverage cap of 1:30 as a customer protection measure, denying the brokers to offer higher ratios to the traders.

GMT-Capital.com DEPOSIT/WITHDRAW METHODS AND FEES

The minimum initial deposit is $1000, which is 10 times higher than the industry standards. The regulated Forex brokers will ask for $100 on average, while some will be happy to let the traders begin with as little as 5 to 10 dollars.

The single funding method is Credit/Debit card. If you stay with the legit brokers, you’ll be able to deposit/withdraw by e-wallets and Cryptos such as Skrill, Neteller, FasaPay or Bitcoin, to name a few.

No minimum withdrawal requirements specified, which is actually in line with the industry standards. GMT-Capital.com claims to process the withdrawal requests within 3-5 days, which is longer compared to the legit brokers that usually deal with the matter in 48 hours.

An account becomes dormant after 6 months of inactivity and will be subject to a deduction of 10% per month, which is a scam clause whatsoever. In comparison, the legit brokers will not charge the traders accounts with more than 5 to 10 dollars per month when they become inactive.

There are no bonuses available at the moment, but the company reserves the right to launch bonus campaigns in the future. They bound with additional requirements though that freeze the traders’ account making it impossible to withdraw. A minimum trading volume of 30 times the bonus plus the deposit should be executed to become eligible for withdrawal, which is yet another typical scam clause! You should know that the bonuses are not free money, but a leverage tool that increases the risk even more. And it benefits the brokers, not the trader, giving them excuses to delay or refuse withdrawals.

Warning! GMT-Capital.com allows indebted account! And they do not comprehensively determine how they are going to handle the Non-deposited funds in case the traders’ account went below zero and they had to add funds to bring it back positive! The European brokers are forced by the law to provide with Negative Balance Protection, which means that your account won’t ever become indebted and you will not lose more than the sum deposited!

HOW DOES THE SCAM WORK

A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will simply 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 very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.

Firm cloning is a type of investment scam that’s becoming increasingly popular lately. FCA warns the traders and investors for at least a dozen fraudulent companies each month! The scammers abuse the names, registration numbers, address etc. of businesses and individuals, which are rightfully authorised to sell financial products and services. By doing this, the fraudsters are trying to gain the trust of the customers and trick them into believing that they are dealing with a genuine company. It is an effective way to take off the guard of the wary investor, who can quickly fall in the scammers’ set up.

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!

Rich Snippet Data
Review Date
Reviewed Broker
GMT-Capital.com
Broker Rating
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