Beware! Global FX Crypto is an offshore broker! Your investment may be at risk.
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Even if your first impression of Global FX Crypto is that it looks like any other forex broker on the Internet, we warn you that joining this broke will not be safe for your hard-earned money. Read on to find out why.
Global FX Crypto Regulation and safety of funds
On thing that may mislead you and give you a false impression that the company is legit, is the statement on its interface that Global FX Crypto is regulated by the Financial Market Relations Regulation Center (FMRRC). First of all, such organisation does not exist and secondly, Swedish brokers are regulated by the Swedish Financial Supervisory Authority (FSA). We checked its register to find out whether the company is in it. Our search proved that Global FX Crypto is not. This is sufficient proof that this broker is non-legit and non-regulated and any trade with it will be hazardous to your precious funds.
As member of the EU, Sweden falls under ESMA guidelines and Swedish brokers must abide by them, same as any other EU forex brokers. First of all, they must have an initial capital of no less than 730,000 EUR which among other things, serves to keep scammers away. In addition to that, Swedish brokers must keep their clients’ funds segregated from their own with tier-1 bank establishments, provide negative balance protection, keep low leverage, report transactions on a regular basis for the sake of transparency, allow external audits, etc. Same as their EU counterparts, Swedish brokers are required to participate in a local investor compensation fund which can dispense up to 20,000 EUR per client if the broker goes bankrupt.
Global FX Crypto Trading software
Global FX Crypto trades in forex, indices, commodities and stocks. Although, it promises to its potential clients a global trading platform, this broker does not deliver on its promise. We registered a trading account but did not get access to any platforms from the dashboard. Any attempt to download a trading platform using the links on the company’s interface did not bear any fruit either as those links were broken.
What we found on the dashboard, was a chart displaying the fluctuation in price of a chosen trading product in a given timeframe developed by a third-party, TradingView. As you may have guessed, it was not possible to execute any transactions.
You may ask, if it’s impossible to execute transactions, how do traders make a profit? Take a look at the Package List which is one of the features on the dashboard (image below). You will see that clients have the option to subscribe to different plans and depending on the amount of the deposit make a possible return. For Plan 4, for example, if the client deposits $1,000, the possible return is $13,000! Sounds too good to be true, really! And quite attractive but unrealistic at the same time! Because, nothing comes from nothing and this is just a dream. And a good way to get scammed, we must add.
To us, it looks like a high-yield investment program where scammers promise unsustainably high return of investment by paying previous investors with the money invested by new investors. We don’t need to tell you that no matter how attractive this may look, you will end up losing your precious funds.
If you are looking for a legit broker with good quality trading software, we suggest finding one that offers either the MetaTrader 4 or MetaTrader 5 trading platforms. These platforms are on the top of the list of trading platforms in forex trade, thanks to the excellent package of trading tools and instruments they offer. Among them, we can mention the auto trading option, VPS, the app market, the financial calendar, code base with customs scripts, trading signals that can be obtained for a subscription fee, etc. Another strong feature of MT4 and MT5 that makes them choice number one for 80% of the brokers, is the charting options with a variety of charts, time frames, colours and even the option of creating customised templates. Worth mentioning is also the array of technical analysis indicators, such as Bollinger Bands, Fibonacci retracement, moving averages, etc., that help traders predict the future direction of exchange rates and make a profit.
Global FX Crypto Deposit/Withdrawal methods and fees
There are 4 trading accounts offered by Global FX Crypto to its clients – Silver, Gold, Diamond and Platinum. The minimum initial account for the Silver account is $500 which seems rather high compared to what legit brokers ask for, i.e., as little as $1-5. The other accounts start at $5,000, $ 10,000 and $50,000 respectively.
If you look at the footer of the company’s interface, you will be left with the impression that there is a huge number of payment options – credit card, BTC, PerfectMoney, FasaPay, WebMoney, QIWI, ePayments, Yandex, Vload and SantraPay. However, it is different picture when you go to the dashboard and press on the deposit button. The only option for making a deposit there is via Bitcoin wallet. You need to be careful when choosing your payment methods as some of them, such paying in BTC, does not allow for filing for a chargeback.
We noticed on Global FX Crypto interface, that this broker offers some sorts of promotions. We searched the entire website to find more about these promotions but there was no information available. We want to caution you that promotions, bonuses and other incentives normally come with some conditions attached to them and it is good to be well informed what these conditions are. Also, you need to know that legit brokers in the EU are banned from offering bonuses, promotions and other incentives and this is how you can differentiate the legit brokers from the dodgy ones.
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.