Beware! GlobalTrading24 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.
GlobalTrading24 claims to be “a renowned brand” with a “presence on the capital market is nothing if not exceptional”. However, these words mean nothing when the broker is run by an unlicensed offshore company, offers dubious conditions, and limited payment options – those that do not allow chargebacks. GlobalTrading24 offers a great trading platform but the greatness of their conditions is questionable – at any rate, most licensed brokers can offer far better ones.
GlobalTrading24 REGULATION AND SAFETY OF FUNDS
GlobalTrading24 did not explicitly state where it is based and mentioned nothing about being licensed. The only way to reach the broker is by leaving a message on their website or by email. However, when we checked the license information on GlobalTrading24 MetaTrader 4, we learn that the company behind it is registered in the Marshall Islands.
The Marshall Islands is a country that does not even have a financial regulator, let alone one that deals with licensing forex brokers. Many scammers have taken an advantage of that fact and decided to set up companies there – which is easy to do if you have access to the Internet. You can set up a company in the Marshall Islands remotely and would not even have to visit the country. Moreover, offshore companies are not subject to transaction reporting requirements – this makes offshore locations a popular destination for activities such as tax evasion, money laundering, and fraud.
Brokers licensed in the UK, the EU, and Australia are much more reliable because they have to meet countless requirements before obtaining a license and have to answer to some of the strictest financial authorities in the world. Transaction reporting is mandatory, and so is keeping client money in segregated bank accounts – this not only promotes transparency and speeds up withdrawals significantly but also keeps your money safe in cases of unforeseen events such as broker insolvency. Negative balance protection is mandatory – which means you could never lose more money than you have in your account. Some sort of minimum capital requirements exists in all mentioned jurisdictions – €730 000 in the UK, and the EU, and A$1 million in Australia. This money serves as proof of the broker’s financial stability and long-term approach.
Trading with a legitimate, licensed broker means you will be getting access to many protections that would not be available if you choose to trade with scammers.
GlobalTrading24 TRADING SOFTWARE
GlobalTrading24 impressed us by offering the leading trading platform MetaTrader 4.
We do recommend that you try this intuitive, highly efficient software – but with one of these reliable brokers. MT4 is one of the best trading platforms out there and has maintained its immense popularity in the world of trading for over 15 years. It is easy to see why so many traders adore the platform – it is not hard to use but offers access to an array of impressive tools. You would be able to trade automatically with the help of Expert Advisors, purchase VPSs, create your own trading bots and indicators, purchase additional trading apps on the MT market, access a Strategy Tester, and far, far more. This is the ultimate platform for trading forex – try it out today.
GlobalTrading24 TRADING CONDITIONS
We were able to open an account with GlobalTrading24 for any amount of money we wanted – which probably sounds tempting and affordable but do not forget that this is not a reliable broker. There are much better options if you are looking for a cheap trading account with great conditions – check out these licensed brokers who ask for minimum deposits of as little as $5.
The spreads we got on GlobalTrading24’s MT4 terminal were far from impressive – 3 pips on EURUSD. Even if the broker does not charge a commission – and we are not so sure about that – such a spread will quickly eat away all of your potential profits. 3 pips mean the broker will be charging you $10 for every 100 000 currency units traded – which is not very little. Most brokers keep their spreads far tighter – XM and OctaFX, for example, are two reliable brokers who can offer numbers under 1 pip.
The maximum leverage GlobalTrading24 provides access to is 1:200. And while unlike brokers licensed in stricter jurisdictions such as the UK, the EU, and Australia where leverage restrictions exist, offshore brokers are free to offer whatever leverage they want to clients, we still advise you to be careful when trading with high leverage. Leverage enables you to, in principle, borrow money from the broker and make bigger offers – and it can indeed result in bigger profits. But it could also result in much bigger losses which is why you should always trade with leverage you are sure you can handle and take calculated risks.
GlobalTrading24 DEPOSIT/WITHDRAWAL METHODS AND FEES
GlobalTrading24 offers clients the opportunity to deposit either via wire transfer or in Bitcoin – which is not exactly great if you have already deposited with this broker and realized you have been scammed. Cryptocurrency payments are irreversible by default – all such transactions go into a ledger that can never be changed and is not in any way controlled by a central financial authority. This makes crypto transactions quite secure in the sense that nobody could go around messing with the payments you have already made – because they will be messing with the whole ledger. However, it also eliminates your chance of ever getting a chargeback – unless, of course, the scammers miraculously decide to send you your money back.
The situation is different when it comes to wire transfers – in practice, they could be reversed but that is very hard to do and most probably would not happen. If you have used any of the payment methods GlobalTrading24 accepts, do not count on retrieving your money, It is better not to deposit with this broker altogether.
GlobalTrading24 also offers some sort of bonus – although the broker did not care to elaborate on the subject. We only get to learn that the Bonus Policy will only be provided to us “in separate correspondence”. That policy could also be altered at any time which is quite convenient for the broker.
Such scammers often use bonuses as means of adding certain clauses to their Terms and Conditions – those clauses usually prevent clients from withdrawing their money before reaching a certain absurdly high turnover. The broker will probably keep changing the terms and ask you to reach a higher and higher turnover – so you would never be able to withdraw not only the bonus but possibly all of your deposits and profits.
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.