Beware! Global FX 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.
Global FX is one of the many forex brokers on the Internet. How do you find out if the broker you intend to trade with is reliable? We can help you by looking at some key features on the company’s website.
Global FX Regulation and safety of funds
Our first step is to check if the broker is legit. From the legal documents on the company website, we find out that the company Global FX International Limited Partnership claims to be registered in Ontario, Canada. All Canadian forex brokers must be registered with the Investment Industry Regulatory Organisation of Canada (IIROC) which is the official body that regulates forex brokers. However, from the image below you realise that Global FX does not exist on the register. We also checked the register for of the Financial Services Commission of Ontario (FSCO) to make sure that we haven’t missed anything. Unfortunately, the name of this broker did not appear to be there, either. This is sufficient proof that this broker is not licensed and as such trading with it will put your hard-earned funds at risk.
For your information, Canadian forex brokers are strictly regulated by IIROC which sets high standards for protecting clients’ funds. For example, all licensed forex brokers must participate in the Canadian Investor Protection Fund which provides reimbursement of up to $1 million per traders which may have suffered financial losses due to their broker’s insolvency.
However, you must be aware that Canada is one of the jurisdictions for forex trade where there is no cap on leverage in contrast to the forex brokers in the EU and the UK where the leverage is capped at 1:30 and the US, with a cap on leverage which cannot exceed 1:50. Having restrictions on leverage is one of the ways to protect traders from suffering great financial loss.
Global FX Trading software
Global FX is a forex broker trading in forex, stocks, indices, metals and commodities. From the information on its website, we found out that the trading software offered to the clients consists of MetaTrader 5 and cTrader platforms and Copydeal which is a social trading service where traders can copy other traders for a fee.
We chose not to open a trading account due to the fact that we did not want to provide personal and financial information to this shady broker. We can tell you, however, from the information available on its website that the spread is sky-high which is not beneficial to traders. With a spread of 21.8 pips (please compare to the industry average of 1.5 pips), traders won’t have a chance of making a sustainable profit as the cost of transactions will be too high. In addition to that, this broker charges a fee of $10 per 1 lot for opening and closing positions.
Again, from the information available on the website, we find out that the leverage is 1:30. Such leverage is conformity with the cap on leverage imposed in the EU and UK, as we mentioned before. Although it is not too high, what you should remember is that this broker is not legit, so no matter how good the leverage is, you should still avoid trading with it.
We want to say a few words about the MetaTrader 5 platform which is considered one of the best in forex trade along with its ‘older’ brother MetaTrader 4. MT5 comes equipped with many tools and instruments which facilitate trading, such as auto trading option, code base with customs scripts, VPS, an app market, a financial calendar, trading signals, etc. When in 2016 a hedging option was added to its features, it became even more popular with forex brokers.
However, as we always say, a trading platform is as good as its broker is reliable, and as we found out, this is not the case with Global FX.
Global FX Deposit/Withdrawal methods and fees
From the information available on the Global FX website, we can see that it has two trading accounts – a live and a demo account. We have no information about what the minimum initial deposit is. The payment methods for making a deposit can be done via credit card and Tether which does not give any variety to choose from. The currencies are in Russian Rubles, US Dollars and Euro. There is no fee on deposit and it is done instantly.
The withdrawal methods are the same as the deposit ones. However, there are fees which for withdrawal done via credit card involve 3% of the withdrawal amount plus $7. For withdrawals using Tether, the fee is 1% and they take up to 7 business days. Please be aware that fees in percentage may result in the client parting with a substantial amount of money.
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.