Beware! Gloffix 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 interface of Gloffix looks professional enough to lure any potential trader. However, is it safe to do so? We find the answer for you.
Gloffix Regulation and safety of funds
We find that the address of this broker is in the UK. We check the register of the Financial Conduct Authority (CFA), the official body that regulates forex brokers in the UK to see if the name of this company is in it. We are disappointed to see that the name of Gloffix is missing from the FCA register (image below). This is proof that this broker is non-legit, non-regulated and unreliable to trade with.
The FCA in the UK set strict regulations for the forex brokers and in order to get their license, they must meet rigid requirements which include deposing 730,000 EUR in the form of initial capital, keeping clients’ funds segregated with tier-1 bank establishments, provide protection against negative balance, report daily their transactions to provide transparency and avoid shady deals. In additions to that, the licensed brokers must deduct funds towards the local Financial Services Compensation Commission from which, in case of bankruptcy, clients will be repaid up to 85,000 GBP per person. As you can see these conditions provide protection against scammers and guarantee the safety of clients’ funds.
Another jurisdiction that is very beneficial for forex trade is the EU where the conditions for forex brokers getting a license are similar to those in the UK. The difference is that the brokers regulated by CySec in the EU must participate in the local Investor Compensation Fund from which their clients can be reimbursed by up to 20,000 EUR per person if the broker becomes insolvent.
Gloffix Trading software
Gloffix is a forex broker trading in forex, indices, CFDs, commodities and cryptocurrencies. The trading software consists of MetaTrader 4 and Sirix trading platforms. Both platforms have their advantages. The main advantage of Sirix consists of the fact that it offers social trading where less experienced traders can follow and copy the transactions of more experienced ones. However, this does not always guarantee that they will make a win, especially if the “reputed” trader they mirror is not so good.
The other platform, MetaTrader 4 has a lot more advantages than Sirix and is very popular with forex brokers although its ‘old’ age of 15 years. This platform offers an excellent package of trading tools and instruments that include an auto trading option, VPS, an app market, trading signals which clients can obtain for a subscription fee, code base with customs scripts, etc. One of the best features of this platform that makes it so popular, however, is the charting options that contain various charts, time frames, colours, etc., even the option of customised templates. Worth mentioning is also the fact that this platform is equipped with an array of technical analysis indicators, such as Fibonacci retracement, Bollinger Bands, moving averages, etc., that help traders predict the future direction of exchange rates and make a profit.
In the image below, you can see what the MetaTrader 4 platform looks like. On the left-hand side, you see the menu with the trading instrument which shows the forex currency pairs with their bid/ask price and beneath is the navigator for the accounts, indicators, expert advisors, scripts, etc. In the middle of the screen, you can see displayed the chart of one of the major forex currency pairs, EUR/USD. However, the number of charts may vary according to the trader’s needs. The chart below shows the fluctuation in the price of the same currency pair in a given time frame. From the bid/ask price we calculate that the spread is 1.7 pips which is close to the industry average and is not too high which means that the cost of transactions won’t be too high and traders will be able to make a sustainable profit. However, after looking at the account types (last image below), we noticed that the leverage is very high and varies between 1:100 and 1:400, except for the Black account where it is tailored which means it can go even higher! The risk when using high leverage is that it increases clients’ funds’ risk exposure and they may suffer a significant financial loss. In the UK, the leverage is capped and licensed brokers cannot offer leverage exceeding 1:30. The fact that this broker does not follow the regulations regarding leverage is another proof that it is non-reliable and that your money will be at risk.
Gloffix Deposit/Withdrawal methods and fees
Gloffix offers 5 different account types to its clients (image below) – Classic, Silver, Gold, VIP and Black. The minimum initial deposit for the Classic account is 250 EUR/USD. The highest initials deposit is 200,000 EUR/USD for the Black account.
Trading accounts that stay inactive for 60 days will be charged a $10 monthly fee. However, dormant accounts exceeding 12 months of inactivity will be charged a quarterly fee of $250.
In the 66 pages of the Terms and Conditions document, we could not find any substantial information regarding withdrawals, i.e., what the minimum withdrawal amount is or if there are any withdrawal fees involved.
Similarly to other shady brokers, Gloffix also offers bonuses of various types. The common point between the various bonuses is that they are funds belonging to the broker, not the trader and they are subject to difficult to fulfil conditions. In this case, should you accept a bonus, you are required to trade a volume equal to the bonus amount multiplied by 10 before you are eligible to withdraw the bonus amount. In addition to that, there is a time frame which is 30 days after which the bonus expires. Such conditions will challenge even a very experienced trader. Our advice is if you do not want your funds and withdrawal options to be messed up, do not accept bonuses and in general, stay away from any brokers offering bonuses or other incentives. Please keep in mind that licensed brokers do not offer bonuses and this is how you can differentiate them from the fraudulent ones.
How does scam work?
Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.