Beware! Goldflame.com 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.
Goldflame is an intrusive broker. There are way too many account managers, analysts, experts and other individuals offering ready-made trading forecasts and strategies. Too much meddling into the trader’s affairs indicates it may realistically be a scam scheme. Legit brokers are not allowed to give financial advice to its clients. But it’s even worse because Goldflame acts as a market maker and the losses accumulated by traders is an income for the broker. So they have the incentive to create fraudulent strategies and provide false signals leading to bad trades.
We were right in our assessment for we found that European regulators already blacklisted Goldflame. Further on, it’s an anonymous offshore entity, which itself is an argument enough to avoid this broker, regardless of the warnings issued. Find out why you should stay away from this broker in the full Goldflame.com review.
GoldFlame.com REGULATION AND SAFETY OF FUNDS
Goldflame is an offshore broker allegedly run by a company incorporated in the Marshall Islands. At the same time, we found them claiming to operate in accordance with the laws of St. Vincent and the Grenadines. Both jurisdictions are infamous for the lack of competent regulation, and the Marshall Islands don’t even have financial regulators overseeing the financial markets. This entity regulatory status makes them an illegal broker which shouldn’t sell financial products and services on regulated markets. But they obviously breached the EU laws because the Polish financial authority KFN published a notice against them, confirming it’s a scam enterprise. Your funds are in danger if you deposit with Goldflame because it’s an unlicensed and unregulated fraudulent broker aiming to steal as much as possible from the traders.
Avoid Goldflame and see the European brokers and British brokers we recommend. Europe is stable with regulators supervising the FX markets, putting the customer protection on top of the priority list. There are many strict rules brokers have to comply with to get a license. But most importantly, the EU and UK designed money protection schemes which guarantee clients’ funds. If you trade with Cyprus regulated brokers you can claim up to 20 000 EUR in compensation, while in the UK the protections are of even up to 85 000 GBP per client. Each EU member state has to operate similar deposit insurance fund, seen as the last resort for traders in case brokers go bankrupt.
GoldFlame.com TRADING SOFTWARE
Goldflame offers MetaTrader4 platform with all of its distributions- Windows, iOS, Android, Web plus a browser-based platform they build themselves. However, the MT4 accounts are available only for clients who deposited more than $4000, and it’s still not guaranteed. You can use MT4 by default only with the Gold account- a $60 000 or more deposit. The web platform they call xCritical is visually pleasing but lacks most of the features traders can find in MT4. Worse though, web-based platforms brokers create are unreliable and considered prone to fraud and price manipulation. The doubtful Goldflame platform is a weighty reason to stay away from this broker.
The EUR/USD spread is 2 pips, which we no longer consider a competitive Buy/Sell difference. Most of the legit European brokers offer 1 pip and below, while some can provide with as little as 0.1 pip with the micro account. The spread forms part of the trading costs so lower difference benefit the traders and improve profit potential.
Goldflame provides maximum leverage level of 1:200; a ratio considered too risky for the retail traders. The leverage is a hazardous tool, so EU, UK and Australia (from 2021) forced a leverage cap on the market- 1:30 as a customer protection measure. Canada and the US agreed on 1:50. Brokers offering higher ratios are not recommended due to the absence of adequate regulation, the risks aside. The Swiss brokers, are not leverage restricted, but Switzerland keeps scam away with its capital adequacy requirements- more than 22 mln USD to get an FX license.
See the regulated MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular retail Forex trading platform globally, which traders prefer for its reliability and ease of use. It features sophisticated trading tools rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, reliable Strategy testers and even a marketplace with more than 10 000 trading apps available by the time.
GoldFlame.com DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Goldflame is $250, which is more than twice higher than the regulated brokers’ standards- $100. The funding methods are Credit/Debit cards, Wire Transfers, Skrill, Neteller, OrangePay and Cryptocurrencies. Be cautious when sending your money to the broker. By far the best funding method is Credit/Debit cards for it’s possible to chargeback within 540 days from the deposit date. On the other hand, Wires and Bitcoin payments are final and non-refundable, so it’s better to avoid account funding via these methods.
The minimum withdrawal amount is $50, which isn’t actually fair. Most of the regulated brokers do not restrict traders as to the amounts they can withdraw. Worse though, clients have to execute a minimum of 5 traders to evade 5% fee of the withdrawal amount, and that’s a typical scam clause. Other expenses also apply, but Goldflame fails to specify these in size and scope. The withdrawal request processing time is also unknown.
After 90 days of inactivity/3 months, an account becomes dormant and will be subject to a 5% deduction per month, and that’s yet another scam clause we have to note. On the other hand, legit EU and UK brokers charge the dormant accounts with 5 to 10 dollars per month at most, so it’s easy to make up your mind.
There are deposit bonuses Goldflame offers, but these are coming hand in hand with additional provisions worsening trading conditions. An example is the introduced minimum period for manual transaction execution- traders should keep the positions opened for at least 3 minutes. We are not going into further detail because we do not recommend accepting trading incentives. The bonuses are not free money, but a leverage tool further increasing the risks.
Overall, Goldflame.com is an exposed scam, so avoid this broker.
HOW DOES THE SCAM WORK
One can see hundreds and thousands of promising ads on the Internet and social media. Unfortunately, many of these are fraudulent schemes targeting to rip the people off their hard-earned money.
If you click and provide scammers with your e-mail and contact number they’d ring you immediately and will promise you anything to make you deposit money with them as quickly as possible. Most of the scammers are experienced manipulators, and before you know it, they will ask for your bank card numbers to make the deposit instead of you and save you the hassle. The urgency is a warning sign; they are always in a hurry to persuade you to start investing with them.
But the first deposit is only the beginning. Gradually they would ask for more money from you no matter the results. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d convince you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and even ask you to pay them if you want to withdraw. The scammers’ mantra is “give me your money”, they’d insist every single day you should deposit more and more, for no obvious reason. Legit companies do not bother you on the phone to deposit with them, so if someone urges you to start investing, it’s most probably a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to fraud. In case you got scammed, you need first 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, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!