Beware! GalaxyTrade 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.
GalaxyTrade is a scam. We claim so as the broker found its place on the warning list of a European regulator, which means that you should avoid this fishy business no matter what. Otherwise, it’s an anonymous offshore entity falsely claiming to offer MetaTrader and industry-leading spreads. In this review, we are going to discuss critical details about GalaxyTrade, so you’d better read till the end before you’ve put your money at risk.
GalaxyTrade REGULATION AND SAFETY OF FUNDS
GalaxyTrade is a brand of Plethora Group Ltd, a company allegedly registered in the Commonwealth of Dominica– a non-transparent tax haven where the local financial regulator doesn’t even license Forex brokers. In fact, the jurisdiction mentioned is so shady that the companies registered there are virtually anonymous as there is no ownership information shared whatsoever. We can’t even verify that Plethora Group Ltd is actually a legal entity in existence, so GalaxyTrade is a broker posing significant threats for traders’ funds.
Worse, though, we found that the Romanian regulator ASF has blacklisted GalaxyTrade, so the broker reviewed is an exposed scam, and your funds will be in danger if you deposit.
Avoid it and see the high-rated EU brokers and British brokers on both lists instead. The European FX companies are regulated and covered by deposit insurance funds protecting traders’ money if things go wrong. For example, when trading with a CySEC broker, you can claim up to 20 000 EUR in case of bankruptcy, while the British guarantees are up to 85 000 GBP per person. The deposit insurance funds grant extra protection, so it’s a no brainer if you are eligible to open accounts with Europeans.
GalaxyTrade TRADING SOFTWARE
GalaxyTrade’s trading software provokes us to raise red flags. First of all, the broker pretends to offer MetaTrader4, but after we downloaded the platform, it turned out to be a dysfunctional MetaTrader5. A hilarious story indeed. Most probably, GalaxyTrade’s MT license has expired, or the broker simply takes advantage of the platform’s spotless reputation by fraudulently claiming to deliver it. Whatever the case, though, that’s solid evidence of a scam.
In fact, the only software accessible is a basic Webtrader, which is nowhere near MetaTrader in terms of functionality. The deficient platform is a good reason alone to avoid the otherwise fraudulent GalaxyTrade.
Speaking of software, we’d like to offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists. The MTs are market leaders packed with advanced features such as Expert advisors, many indicators, and excellent charting tools. The terminals also include a marketplace with more than 10 000 apps and third-party developed solutions, which is an unrivalled advantage. Interestingly, MT5 surpassed MT4 for the first time in terms of brokers delivering the platform, but its volumes are still weaker.
The EUR/USD spread is 3 pips, which isn’t a competitive Buy/Sell difference anymore as most of the regulated brokers are offering 1 pip or less. However, in this very case, the spread makes us raise another red flag because GalaxyTrade misleads the public with its fraudulent claims to deliver industry-leading spreads. Beware!
As to leverage, it’s 1:200, and traders cannot adjust it to their own preferences. That’s yet another red flag, as GalaxyTrade knowingly puts traders into an overly dangerous environment where they can lose all funds deposited. 1:200 is too risky, and it can cause a quick total loss if not properly used.
In fact, a few years ago, more than 90% of the clients were losing money because of leverage misuse, and that drove many financial authorities to start restricting its usage. Namely, due to regulations, licensed EU, British and Australian brokers have to limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Swiss brokers are trustworthy but not leverage restricted, so experienced, and risk-tolerant traders eligible to open an account in Switzerland can safely go for it.
GalaxyTrade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $250, which is a bearable requirement, but many legit companies are now accepting clients for $100 or less, so GalaxyTrade can be labelled as demanding.
As to funding, the single method accepted is Credit/Debit cards, but the transaction should go through some overly suspicious website- xpayz.net, which indeed poses security threats. The funding process is fishy, which is yet another red flag to note. Nevertheless, bank card direct funding is considered the safest option as it allows disputing transactions and eventually getting a refund.
Anyway, as we are reviewing a scam, see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are competently regulated, and you won’t face scammers, so you can safely open accounts.
As for withdrawals and fees, there are no minimum requirements, but the conditions would dramatically change if clients accept incentives. In such a case, they need to trade the bonus plus the deposit 25 times to become eligible for withdrawal. That’s unjust and perhaps even more so, as the broker doesn’t specify what 25 stands for. Suppose it’s about lots that should mean that clients need to trade 2500 lots for a $100 bonus, which equals 250 million USD in turnover. Well, hardly anyone can make such a volume out of $100, so GalaxyTrade has the perfect excuse to reject withdrawals. The obscure bonus clause is a red flag itself!
Overall, GalaxyTrade is a blacklisted offshore broker, so you should stay away.
HOW DOES THE SCAM WORK
The scam usually starts with the deceitful ad, the cold call or the fraudulent social media profile, and once you get enticed, you’ll be constantly manipulated by the con artists. In most cases, the scammers will claim to manage your account and will show you winning trades at the beginning to make you believe it’s worth dealing with them. By doing so, they aim to gain your confidence and trust, which helps them in the following stages.
From there on, scammers won’t let you withdraw profits but will constantly urge you to invest, again and again, asking for much greater sums. Make no mistake about it; those criminals will try to squeeze as much as possible from you, so they’ll advise you to put all of your savings in the scheme.
You’ll probably understand what’s going on as soon as you try to get your money back. At this point, scammers will try to persuade you not to do so and will even shamelessly say that you can’t withdraw unless you deposit once more. If you are persistent and refuse to follow their instructions, they will simply cut the communication and close your account. Then, whenever fraud becomes publicly exposed, scammers will abandon the website and create new ones, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scams. If you get scammed, the first thing you need to do is to consider the secondary risks. Deactivate your credit card and contact your bank and ask for advice.
Then, report what happened to you, file a complaint, contact the authorities, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly to recover funds because fraudulent chargeback agencies and individuals are stalking, trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
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