Beware! GlobalFXCFD 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.
There is a certain smoothness to the aesthetic of GlobalFXCFD that, while pleasing, is not so uncommon. By this we of course mean that we have reviewed many other brokers with a similar website look and structure. Behind this interface lies a very risky broker, one that will offer false chances of profit. Many novice users, onto whom these types of brokers are usually presented, won’t know the difference between GlobalFXCFD and a non-risky brokerage. That is why we have come up with the following review.
As always, we commence with a registration, because it is through the user area of a shady broker that one gets to know it best. The account creator sub-page was a common form used by illegal brokers. In it, the last thing required of users is a promocode, something that we cannot provide because we do not have it. The presence of such a requirement means that users must be contacted by a representative of the broker prior to creating an account in order to get this promocode. This is all a part of a very popular investment schemes that we have described in the final review section.
Without being able to create an account, we are left with what the broker claims to be offering, which can be completely out of synch with what GlobalFXCFD is really providing as trading and payment services.
The alleged spread is fixed at 3 pips for the EUR/USD currency pair, a value not favorable to users at all, while the leverage is capped at 1:200. Now, GlobalFXCFD allegedly offers three account types with no real difference between them that would affect the trading conditions. This shows that GlobalFXCFD not only has not taken this thing seriously, but also that is lacks knowledge on FX brokers.
The supposed tradeable assets are forex currency pairs, futures, commodities, indices, and stocks.
The website of the broker is available in English, German, Spanish, and Italian.
GLOBALFXCFD REGULATION AND SAFETY OF FUNDS
There isn’t a whole lot of regulatory information to work with. We learn from the terms and conditions that the legal bond between user and broker is governed by the laws of the Marshall Islands. The Caribbean country does not have an FX regulator, but its legal system is unrestrained, which is the main reason why the country is flooded with unlicensed brokers.
Furthermore, in the footer we find that the website is not intended for usage in any jurisdiction where its usage would be in direct violation to the local law. This basically means that GlobalFXCFD makes its users believe that it is their responsibility to be regulated, and not GlobalFXCFD, which is as ridiculous a concept as it is false.
The contact page on the website claims the broker to be located in London, but make no mistake: GlobalFXCFD is definitely not licensed by the FCA. There is no proof if it!
Thus GlobalFXCFD is nothing more than an UNREGULATED broker, and a risk to all investments!
We always say that investing in unregulated brokers is a sure way to lose money. The first and foremost thing to do when picking a broker to invest in is to look for a license. Preferably look for FCA or CySEC regulated brokers, or other European watchdogs, or US ones. All legit regulators have long lists of rules and prerequisites that all brokers must abide by. Not doing so, will lead to penalties or foreclosure! Furthermore, many regulators have in-store financial compensation schemes for all users under licensed brokerages. For example, CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
GLOBALFXCFD TRADING SOFTWARE
There is supposed to be a web trader available to all registered users, but as support we only have a couple of paragraphs. The only link to the web trader does nothing but refresh the page.
There might be some very sloppy trading software at the other end of the registration page, although don’t get your hopes up!
GLOBALFXCFD DEPOSIT/WITHDRAW METHODS AND FEES
We have no choice but to take all payment information from the website of the company, a source that is not completely reliable.
From the site we learn that the minimum deposit is $500, while the payment methods are alleged to be as follows: credit cards and wire transfers. According to the Account Funding sub page, the minimum deposit is $250, while the minimum investment for banks is said to be $10 000! Which source to trust? Neither, for the broker is unregulated!
According to the terms and conditions, withdrawals are charged something, but we as observers and users are not given any further details into these charges. Withdrawal requests are said to be usually processed within 5 days.
There is an active monthly fee of $36 applied to users that have not traded for 30 days in a row.
The presence of a bonus scheme is an indication that you are dealing with an illegitimate broker, or a shady one at best. Not to mention that every $50 of bonus granted at GlobalFXCFD has to be traded with for at least $500 000 in order to be eligible for withdrawal.
However, further down in the bonus conditions, we encountered another clause revealing the bonus turnover requirement , which was quite different from the aforementioned one. This one stated that for each dollar of the bonus the user must trade $20 000. Overall, this is confusing and a sign that users should not embark on using the bonus scheme, and while you’re at it do not use the broker either.
The company warns users that in case they file for a chargeback, or “takeaway”, their accounts will be put on hold and their trading positions closed! Let us remind you that chargebacks are one of the few ways through which users can get their money back from an online scam!
GlobalFXCFD is a risk to all investments, and probably a scam! Do not invest here!
How does the scam work?
Online ads are the gateway to most investment scams. Ads that seem extravagant with quite impossible promises are most certainly the entry point into a scam. Gibing into one of these ads is the first step to being scammed.
The second step is to deposit. Once users click on the ad, they will be redirected to a scammer broker site or an intermediary website. What follows is a registration, where users will be asked to provide a phone number or a phone number.
Next, the scammer will directly contact those that have fallen for it. The first calls are made by the first level of fraudsters, the rookies. Their one and only goal is to compel users to deposit for the first time. Once a deposit is made, the user is hooked onto the scam.
The second wave of scammers, the core of the fraud, sometimes called “account managers”, will try to keep you invested in the shame for as long as possible. They might even pay some profits, just to keep you invested. The user will deposit an additional 2-3 times, which is actually the perfect scenario for these criminals. At some point, the user will realize he or she is in the middle of a scam
There are no more steps to the scam. The user has deposited as much as he or she did, and the fraudster have disappeared. The money is gone, and users cannot withdraw.
What to do if scammed?
If money was lost through a credit or debit card, the good news is that most credit card companies have an easy way of recovering money. Furthermore, MasterCard and VISA have a chargeback period of 540 days.
Wire transfer frauds, that is broker/investment scams, are harder to recuperate, but not impossible. The crucial thing to do is to change your bank account username and password! Aside from that, we advise users to contact their banks, because most banking institutions might have a plan on how to deal with money lost to investment scams!
Never invest in unregulated brokers through any sort of cryptocurrency wallet, no matter how good the returns sound! Crypto deposits are untraceable!
The last scam that users might stumble upon is in fact most of the time one that has nothing to do with the investment scam, although a potential relationship between the two is not excluded. We are talking about the so-called recovery agents or agencies. These will claim to be able to recover lost funds in return for a fee. After users pay this charge, they can kiss their money goodbye!
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