Gigachains.com Review – 5 things you should know about Gigachains

Gigachains.com Review – 5 things you should know about Gigachains

Rating: 1

Beware! Gigachains.com is an offshore broker! Your investment may be at risk.

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Even though we spend some time looking at Gigachains.com’s website, this is still a broker we know almost nothing about. One thing we do know is that they are not a reliable company to invest your money with – as you will see in the following review, this is a scam you should steer clear of.

Gigachains.com REGULATION AND SAFETY OF FUNDS

Gigachains.com is anonymous even by scam broker standards – not only have they not provided an address, and license information, but they have not offered clients the chance to contact them via phone or email. This broker is completely unreachable – if you try to open an account with them, they will probably be the ones doing the calling and emailing. It is no wonder we were not provided with any sort of company information or legal documentation – although we were specifically asked to agree to Terms and Conditions we have never read. Gigachains.com’s website is only available in German which leads us to the conclusion that this is a scam targeting German-speaking clients but we cannot say anything more.

It is not a good idea to deposit money with such a dubious enterprise – that is more than obvious. You would have no idea where this money is going or what it is used for. Our advice is to turn to a licensed UK or EU broker – such brokers answer to strict authorities, are expected to conduct business in a fair and transparent manner, and are all but anonymous. There are countless requirements to be met and procedures to be followed. Brokers must maintain a minimum operational capital of €730 000 – that number could be bigger if the broker has a big number of clients. This money serves as insurance for the broker’s financial stability. UK and EU brokers are obligated to provide funds for compensation schemes – if one of these brokers becomes insolvent, each of their clients could receive compensation up to £85 000 in the UK, and €20 000 in the EU. Licensed companies have to report to regulators on a regular basis to ensure transparency and provide negative balance protection – this means that you could never lose more money than you have in your account.

If you choose to work with scammers, you can forget about all of these important safety nets.

Gigachains.com TRADING SOFTWARE

Gigachains.com is supposed to offer some sort of powerful web-based trading platform – but we could not test it out. As soon as we tried to open an account, we ran into problems.

Logging in to a client area or a trading platform turned out to be impossible – at least for the time being.

We would suggest that you check out brokers who offer robust trading platforms like MetaTrader 4 or MetaTrader 5 instead. This software has been extremely popular for the past 15 years ago – since MT4 was first introduced-  and that popularity is understandable. Both platforms are intuitive and user-friendly but also highly functional. You will be getting access to a huge number of technical indicators, timeframes, and chart types, but also to additional features such as Expert Advisors (trading bots) that track markets and trade automatically, VPSs, a Strategy Tester, the chance to create your own indicators and trading bots or to set signals for prices going up or down, a market for add-ons, etc. Definitely a much better offering than what scam brokers like Gigachains.com could ever have in store for you.

Gigachains.com TRADING CONDITIONS

Gigachains.com supposedly offers clients to trade forex, cryptocurrencies, and CFDs and presented us with a laconic account type description.

As you can see, not a lot can be learned from the descriptions – the only essential detail here is that the broker offers leverage of between 1:15 and 1:50 depending on the account type. This proves for a fact that Gigachains.com could not be a UK, EU, or Australia-based broker – since companies in these jurisdictions are not allowed to offer leverage of more than 1:30 to retail clients. Those are the rates for forex majors – the least volatile asset. If you would like to trade commodities or indices, you would have to settle for even less – 1:10 and 1:5 respectively. The maximum leverage such brokers are allowed to offer on cryptocurrencies – since this broker claims to specialize in cryptocurrency trading – is 1:2. If you would like to get access to higher rates, you would have to qualify as a professional client and meet two of the following three additional requirements – you must have at least $500 000 as net capital, to have worked in a relevant position in the financial field, or to have made a certain number of big offers in the past year. Otherwise, you would have to stick to lower, safer leverage. These are actually quite liberal rates – brokers in Japan cannot offer leverage higher than 1:25 while those in Turkey cannot exceed 1:10. These restrictions exist because although trading with higher leverage could lead to much bigger profits, it could also potentially lead to much bigger losses – always be careful with your leverage settings, especially as a novice trader.

There is no point trading with scammers when so many legitimate brokers offer affordable trading accounts.

Gigachains.com DEPOSIT/WITHDRAWAL METHODS AND FEES

The broker has not mentioned absolutely anything about possible payment methods – however, transferring money to a broker like this one is an extremely bad idea. There is no doubt about the fact that you will lose this money as soon as you deposit it. If you are able to open an account with Gigachains.com at some point in the future and are allowed to deposit, refrain from doing so – especially if the broker urges you to deposit via wire transfer or in crypto. Both of these payment methods do not allow reversal of transaction – which means you would not be able to get a chargeback – but crypto transactions are also anonymous so you would not even know to whom you are transferring money.

HOW DOES THE SCAM WORK?

Scam brokers are becoming more and more of a constant feature in the world of financial frauds – which means that more and more people are losing their hard-earned money by depositing it with such unreliable companies. We advise readers to always turn to licensed enterprises and thoroughly check registers. Let’s take a look at how such scams usually work and how you can protect yourself from them.

You stumble upon a broker who seems to offer fast, effortless, sometimes guaranteed profits – and decide that there is no harm in opening an account with it to see what it has to offer. After all, you have heard stories of people earning a decent income by trading – why not be one of them. You would not have to deposit, not immediately. But the moment you provide the broker with your phone or email, they would not leave you alone before you do so. You will be promised all sorts of great things – after all, these are people who scam people for a living and who are well-accustomed to convincing. The initial deposit might not be big – but you would be asked for more and more money with time. In some cases, you might even see that money grow – but that is nothing more than a trick that usually involves some sort of platform manipulation.

A time will come though when you will want to withdraw money – and you would not be allowed to do so. The broker will claim that you have not fulfilled a clause in the Terms and Conditions, that there are additional taxes, and that you are obligated to wait a certain time before withdrawing. At this point, you will understand that you are being scammed – but the broker will disappear as soon as they discover they can no longer milk you.

WHAT TO DO WHEN SCAMMED?

The first thing you should do is change all your banking passwords, and uninstall any remote access software (if you have installed any). After all, you would not want the scammers to have any sort of access to your bank account so they could drain it.

Do not trust any so-called “recovery agencies” who ask you to pay a fee so they could track down the broker and retrieve your money – this is a whole other type of scam targeting desperate people. What you should do instead is inform the actual financial authorities, and look into chargeback options – both Visa and MasterCard, for example, battle scams by allowing chargebacks within 540 days of the transaction.

One final thing – it is important to share your story with as many people as possible. The more people know about this sort of scam, the fewer people will fall victim to it. Unfortunately, such stories rarely get a happy ending – which is why prevention is key.

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