Globalfxmarkets.io review – 5 things you should know about Global FX Markets

Beware! Globalfxmarkets.io 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.

Globalfxmarkets.io, or Global FX Markets presents itself as a well-established and award-winning forex broker. But even a cursory glance at this low-quality and content-deprived website makes us doubtful. Closer inspection confirms that this is not a legitimate financial services provider. Let’s take a detailed look at why you should under no circumstances trust Globalfxmarkets.io with your money.

Globalfxmarkets.io Regulation and safety of funds

The first thing to look for in a forex broker’s website is which legal entity runs it, where it is based and what regulatory oversight it is subject to. Licensed companies are also required to provide a comprehensive set of legal documentation.

According to Globalfxmarkets.io’s Terms and Conditions, behind the website is a company called Global FX Markets LLC, allegedly based in Chicago, United States. The document is too brief and lacking specific information, and therefore does not meet the standards for such legal documentation.

To operate as a forex broker in the United States, a company must be registered as a futures commission merchant and foreign exchange dealer with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). But there is no Global FX Markets among NFA’s members. This website misleadingly claims to be licensed to operate in the United States.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the 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.

Globalfxmarkets.io Trading software

After registering an account, it becomes apparent that Globalfxmarkets.io does not have any trading software. In the dashboard we see only a simple chart with current prices of Apple shares, which has no trading functionality. Globalfxmarkets.io does not have the technological capacity to offer the services it claims.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Globalfxmarkets.io Trading instruments

As demonstrated, Globalfxmarkets.io has neither the legal authorization nor the software necessary to facilitate trading in financial instruments.

Globalfxmarkets.io Spreads and cost of trading

Globalfxmarkets.io does not provide information on the terms of trade it claims to offer. Genuine forex brokers provide detailed information about the trading conditions. Legitimate companies also offer different account types to suit clients with different experience, capital and investment intentions.

Globalfxmarkets.io Maximum leverage

Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.

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.

Globalfxmarkets.io Deposit and withdrawal methods

Globalfxmarkets.io  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.

Globalfxmarkets.io Minimum deposit

Globalfxmarkets.io requires a minimum deposit of 500 USD. For a significantly lower amount you could open a trading account with a legitimate forex broker, including the leading brands in the industry.

Globalfxmarkets.io Withdrawal requirements

Since Globalfxmarkets.io does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.