GlobalFxExpert review – 5 things you should know about globalfxexpert.com

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

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

GlobalFxExpert is trying to convince us that it would be a good idea to invest our money through this regulated forex broker. But before you put your money in you should always do a careful fact check. In the case of GlobalFxExpert, this check shows that this is not a legitimate financial services provider at all. In this review, we will show you why GlobalFxExpertis nothing more than yet another scam and point you towards more credible forex brokers.

GlobalFxExpert Regulation and safety of funds

Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.

GlobalFxExpert is completely anonymous – no company name is mentioned anywhere, including in the text of the Terms and Conditions.

The website lists a UK contact address:

But at the same time claims that this alleged broker is licensed in Cyprus and the Seychelles:

A check of the records of the relevant financial regulators leads us to warnings to investors that GlobalFxExpert  is not an authorised financial services provider:

Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.

Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.  In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

GlobalFxExpert Trading software

After registering an account, it becomes apparent that GlobalFxExpert does not have trading software and therefore cannot actually offer the services it claims. In the dashboard on the website, we only see simple charts with current asset prices that have no trading functionality.

If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

GlobalFxExpert Trading instruments

As we have seen, the GlobalFxExpert  has neither the legal authorization nor the technological capacity to facilitate trading in financial instruments.

GlobalFxExpert  advertises cryptocurrency and binary options trading, which is in fact prohibited to brokers actually operating in the UK.

GlobalFxExpert Spreads and cost of trading

When you visit the website of a legitimate broker you will find proposals for different types of trading accounts suitable for investors with different preferences, as well as detailed descriptions of trading parameters – minimum deposit, order execution method, tradable financial instruments, leverage, spread, swap, commissions, etc. Instead, we see investment plans promising guaranteed profits on the GlobalFxExpert website.

A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.

GlobalFxExpert Maximum leverage

High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

GlobalFxExpert Deposit and withdrawal methods

GlobalFxExpert only allows the deposit of funds with cryptocurrencies. This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.

While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.

GlobalFxExpert Minimum deposit

GlobalFxExpert requires a minimum investment of 100 USD. For as little as 10 USD you could open a Micro Trading Account with a truly licensed broker, including leading global brands.

GlobalFxExpert Withdrawal requirements

GlobalFxExpert does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.