Beware! Gtstox 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.
Warning! Gtstox is a shady offshore broker, and your money will not be kept safe if you chose to trade with them. The regulatory status aside, it’s a broker that’s going to rip you off if you halt your trading for a month. Find out what makes this broker a wrong choice in the full Gtstox review.
Gtstox REGULATION AND SAFETY OF FUNDS
Gtstox is an offshore broker that originates in the Commonwealth of Dominica, which is a jurisdiction that’s notoriously famous for the lack of adequate financial regulation. What’s more, the local financial regulator (FSU) does not even issue Forex broker licenses and doesn’t control the FX companies operating there in no way. The brokers operating there are enabled to conduct activities which might inflict losses that are almost impossible to recover. But the biggest problem is that the offshore brokers might vanish at any given moment and no government body or agency stands for the traders in such a case. In fact, it’s considered illegal if a Forex broker without the proper authorisation sells investment products and services on regulated markets.
Your funds are not safe if you deposit with Gtstox because it’s an unlicensed and unregulated Forex broker, which cannot ensure the safety of your funds! Choose brokers that are legit and adequately regulated instead, because such entities make the difference for the traders and investors. In the EU and UK, for example, the brokers have to comply with many strict rules and regulations, which are put in place for the benefit of the traders. Most importantly, however, there are money protection schemes in operation which guarantee the deposits of the clients. In EU (mostly CySEC regulated brokers) you can claim up to 20 000 EUR in compensation, while in the UK (FCA regulated brokers) you are guaranteed even of up to 85 000 GBP per client.
Gtstox TRADING SOFTWARE
Gtstox offers some web-based trading platform, which we can only describe as rudimentary and lacking most of the features coming with Metatrader. Worse though, the platforms brokers develop by themselves are unstable and unreliable in most of the cases, and generally, this software is considered prone to fraud and price manipulation. We do not recommend trading with Gtstox because of the platform provided alone. You can have a look at their unsophisticated piece of software at the bottom of this section.
The EUR/USD spread is 3 pips, which is 3 times higher than the industry standards- 1 pip and below. The spread is the price that the trader has to pay to open a position on the market, so the lower difference between Buy and Sell quotes increase the profit potential. Gtstox doesn’t offer competitive spread, and that’s yet another argument for staying away from this offshore broker.
The maximum leverage possible is said to be 1:200, but the account opened came with a default level that’s unknown for the traders and impossible to adjust. It’s a gargantuan red flag we have to raise because the hidden leverage levels might be lethal for the account balance. The leverage is a financial tool which makes retail trading possible because it allows the traders to enter the market by providing only a fraction of the sum that they intend to invest. But the risk increases proportionally, and levels such as 1:100 and higher might be utterly dangerous for the traders. As a customer protection measure the financial authorities in EU, UK and Australia (from the spring of 2021) capped the maximum allowed leverage to 1:30. Canada and the US agreed on 1:50, so it’s not recommended to trade with brokers offering higher levels because you might as well quickly end up involved in scam schemes.
The best choice for the traders is the regulated MetaTrader4 and MetaTrader5 brokers because MT is the most popular retail Forex trading platform in the world. Traders and investors highly acclaim it because of its stability, reliability and ease of use. Metatrader also features sophisticated trading tools that are rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, Strategy testers and even a marketplace.
Gtstox DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with Gtstox is 250 EUR/GBP for bank cards and 500 EUR/GBP for Wire Transfers, which are also the only possible funding methods.
The minimum withdrawal amount is 500 EUR/GBP for Wire Transfers, and that turned out to be the only withdrawal method available. It’s a scam clause whatsoever because most of the regulated brokers will not restrict the traders and will let them pull out as much as they want. There are no fees to incur, but Gtstox claims that they will put the utmost efforts to process the withdrawal request within 5-10 days. Wow, we appreciate this! Plain talk aside, the regulated brokers usually process the requests within 48 hours on average.
The dormant account policy is appaling! An account becomes dormant after only 31 days of inactivity and might be subject to a 100% inactivity fee, which is a scam clause that certainly tops the list of unfair conditions! It effectively means that if you don’t execute a trade for 31 days, you might say goodbye to the money you’ve deposited with Gtstox. Beware!
No bonuses available at the moment, but the company reserves the right to launch bonus campaigns in the future that bound with additional trading conditions. However, Gtstox fails to specify these requirements. The traders should know that the bonuses are not free money, but a leverage tool that increases the risk even more. EU and UK banned the trading incentives as a customer protection measure because those benefit only the brokers and worsen the trading conditions for the clients.
Stay away from Gtstox because it’s an offshore broker that’s not safe to trade with.
HOW DOES THE SCAM WORK
The scam is a crime. The scammers are usually hiding behind offshore companies and brokers while trying to remain anonymous and difficult to trace. There is no or very light FX regulation in 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 dodgy enterprises and scam Forex brokers. Regulation means customer protection and safety, and financial authorities such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities and harm the traders under their supervision. That’s why you should always trade with regulated brokers!
The promises of the scammers are big, but they never deliver what they pledged. The legal documents of the scam brokers are filled to the brim with unfair clauses and requirements that practically eat up the traders’ balance- unbearable fees, unjust trading volume requirements, monthly administrative fees and so on, the list is endless. They will delay the withdrawal requests as much as possible so that the account gets hit by the costs. Eventually, the balance in the account will shrink so much that the scammers will not have to send any money back to the traders and it looks perfectly fine according to the Terms and Conditions that apply.
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!