Beware! GlobChains 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.
We wouldn’t blame users for having a hard time deciphering GlobChains. It’s a tricky broker to pin down, but if you have some sort of FX experience you will start seeing the irregularities soon enough. For example, the website design and structure is very common and very little new legit brokers today rely on such an interface. Most legal brokers try to come up with their own unique spin, while the old and worn out designs are overused by scammer brokers. We have, of course, a range of other shady elements that we will discuss in the review to follow.
Creating an account was easy and very fast. Just about anyone can enter, thus any passer can deposit and get scammed! We learn that in order to open a trading account the user has to invest. We won’t be doing that, and neither should our readers.
Without a trading account, we cannot access a trading software, not that we found a link to one in the first place. Anyway, all of the following trading information is taken from the website. Be wary when considering it as it may not be true!
The available trading assets are forex currency pairs, commodities, indices, shares, and cryptocurrencies. The closet information to a spread value is an alleged average spread of 0.7 pips. The leverage is capped at 1:200. Again, we cannot guarantee to our readers that these trading conditions are accurate.
The website allows its interface to be translated in over 30 languages. This translation happens thanks to Google translate, and not from the broker’s own merit.
GLOBCHAINS REGULATION AND SAFETY OF FUNDS
The terms and conditions claim that users must be aware of the Estonian governing laws, as the broker operates within their framework. The Estonian card has been played more times that we can count, and is a sign that the broker in NOT RGULATED.
The reason for this is because the broker is not licensed in Estonia. GlobChains is not mention by the Estonian FX regulator, nor does the firm actually mentions that it is regulated by the overseer.
Other than that, we have a contact address id Austria, but this is unfounded.
So, what we have here is another UNLICNESED broker, that is a risk to all, and probably a scam!
Never rely on unlicensed brokers. They are scams and will steal form you! Put you money where the real FX trading happens, with any FCA or CySEC regulated broker, or any other brokerage licensed by a legit overseer. All watchdogs demand a safe and integral conduct and do not tolerate unlawful behavior. Moreover, the FCA and CySEC offer compensation schemes applied to users whose broker cannot pay them back. CySEC offers a €20 000 refund amount per person, while the FCA guarantees up to £85 000.
GLOBCHAINS TRADING SOFTWARE
The broker puts its cards on some sort of a web trader, but we were never given first seats to the show, not even tickets. Without creating a trading account we have no proof of a web trader. The way we seen it, either GlobChains has a web trader or doesn’t.
GLOBCHAINS DEPOSIT/WITHDRAW METHODS AND FEES
According to the user area, a client can invest by means of nothing! The deposit section gave us an error message, meaning that we must, again, rely on the shady website for crucial details. The minimum deposit according to the website is $250. The payment emthdos discussed in the webstie and the legal docs are credit cards, debit cards, bank transfers, and some undisclosed e-payment gateways.
Withdrawals are subject to process and handling fees. There is a $50 charge for bank transfers, a $35 levy for all credit and debit card withdrawals, and a $25 fee for alternative method withdrawals. Withdrawals are said to be processed within 5 days.
What we have next is perhaps one of the biggest indicators that GlobChains is a scam. We present to our readers the non-deposited funds clause, stating that users cannot withdraw their profit!
Then why bother to trade if you are prohibited from profiting?!
A fait question. GlobChains is unregulated, with shabby trading condition, even shadier payment details. It’s probably a scam! But most of all, its’s a risk to all users and their investments!
How does the scam work?
The scam really works when the reps of the broker contact the user, either through a phone call or an email address. They will start asking for deposits all the while promising super profit gains. Those that deposit might even get a taste of false gains, whose true purpose is to compel the client to deposit more. These scammers know very well how to manipulate users. Their catalogue of psychological trickery is vast, and their patience is unbreakable.
An initial deposit leads to a second one, a third one and so forth.
As for the methods of these fraudsters getting a hold of your phone numbers or email addresses, they are many, and most of them follow simple steps. It takes a false ad to convince a user to give her contact details. These false ads are very promising, but ultimately misleading and very manipulative. You might have already seen them: luxurious cars and villas, care-free lifestyles, expensive items, and beautiful vistas. All are stock images to start you imagination and propel you to give away your contact address, and in the perfect scenario, to invest.
Once the client wishes to withdrawal, either because she feels suspicious, or because she wishes to take out some cash from her profit, the broker will apply a number of very cheap techniques to make withdrawals impossible. For one, the scammer will close down the accoutn, shut the entire website, or just not return phone calls and emails.
What to do if scammed?
If a user has lost funds by means of a credit or debit cars, then the firs thing to do if file for a chargeback. MasterCard and VISA have a chargeback period of 540 days.
Bank account swindles are harder to get bank but not impossible. First of all, change you bank account user name and password, and then call the bank to find a plan of action together.
Never invest with cryptocurrencies sin an unregulated broker. All such deposits are lost, and cannot be recuperated.
Also, don’t trust the self-proclaimed recovery agents. These are also scammers, and will ask you for a fee, and return they promise to recover all your lost funds. Obviously, once this commission is paid you will never hear from them again!