Do you have an interest in trading? If yes, you are definitely not the only one because there are hundreds of people who want to do the same. After all, every day you hear about people earning substantial amounts of money through the trading market and you want to do the same. Trading has become immensely popular because it can offer people flexibility and also gives them the potential to earn massive amounts of money. Who doesn’t want that? There are hundreds of thousands of financial instruments that can be traded in the market and they have their own profit potential.
But, how do you trade them? This is where you need a broker because they provide you with the platform and everything you need for trading whatever financial instrument interests you. The problem is that there are tons of brokers operating in the market and you will soon get confused. Every broker will seem similar and it will become difficult to figure out which broker is the best fit for you. Plus, there is another risk that you have to contend with; there are scam brokers in the market and you need to stay safe from them or else you will suffer from massive losses.
Among the different brokers you will come across, FXGM is also one of them. Forex Global Markets or FXGM is a broker that’s owned and operated by Depaho Ltd., a company that has its headquarters in Cyprus. It should also be noted that the company owns another trading brand called GTCM. When you research about this broker, you will come across some reviews that claim FXGM is a scam. This is undoubtedly worrisome and it is natural for people to want to call FXGM bluff. Is it really a scam or is it a legitimate broker?
First and foremost, it should be noted that the broker is overseen by the local watchdog known as The Cyprus Securities and Exchange Commission (CySEC). When you call FXGM bluff, you realize that this regulation gives them credibility, particularly when you compare it with multiple off-shore brokerages. Cyprus has attracted a great number of forex brokers and CySEC, the local regulatory agency has imposed a lot of rules and regulations on companies who choose to register with it. From a trader’s perspective, the most important principle is none other than segregated accounts.
To put it simply, client funds are kept in separate accounts and cannot be accessed by the broker. This means that the company cannot steal your funds. In addition, as FXGM is regulated by CySEC, it automatically becomes a participant of the Investor Compensation Fund (ICF), which is a collective compensation scheme. This guarantees that in case the broker goes bankrupt, traders will still receive their funds. This scheme offers traders a maximum coverage of about EUR 20,000 for every account.
Yet, people still talk about calling FXGM bluff because the company was fined by CySEC in late 2015. The charges didn’t turn out to be that severe, except for one that was about misleading clients. This put a great stain on the reputation of the company and this prompted people to consider it a scam. Another way you can call FXGM bluff is by checking out the broker’s trading conditions.
First, you need to give some thought to their minimum initial deposit. FXGM has set it at $200, which is deemed a bit high by today’s standards as most brokers don’t demand more than $100. There are also brokers who have removed this requirement completely. This is a factor that you should consider when you are doing a comparison amongst forex brokers. The next condition you need to take into account is the average spreads and commissions charged by FXGM. Traders think about calling FXGM bluff after they learn the spreads being charged by them.
The average spread for the EUR/USD pair is at 3 pips, which is more than double of the industry standard and what you pay with other brokers. Even though they may not be that big of a factor if you don’t enter trades frequently, they still do add significantly over time. Leverage is also an important condition and the maximum offered by FXGM is 1:200 for experienced brokers while it is 1:100 for inexperienced ones. This may still not satisfy some traders because brokers are also known to offer leverage as high as 1:500.
If you still think FXGM is not being honest and you need to call out FXGM bluff, you can check their trading platforms. You will definitely be pleased to know that the broker offers two trading platforms to their clients; one is PROfit and the other is MetaTrader 4. The trading platforms achieve the same purpose, although the latter is a lot more popular and offers traders a lot more functionality.
The MT4 has become industry standard as it has excellent charting potential, the ability of trading numerous instruments and the MQL coding environment. PROfit comes off as a bit slow and clunky. The quotes screen is something that scalpers would like where all quotes on different currency pairs can be seen, along with one-click buy and sell buttons.
There are five different account options that are offered by FXGM, which are Discovery, Silver, Gold, Premium and VIP. While they do offer several features in these account options and traders have a variety to choose from, the problem are that most of them have similar trading conditions. Since the conditions do not vary much, there is not much incentive for traders in choosing accounts. Furthermore, most of the benefits that are being offered by FXGM come in the form of a personal account manager, educational content and other perks, these don’t really give any advantage to experienced traders.
Final Thoughts
You may want to call out FXGM bluff, but you will soon realize that the CySEC regulated broker is not a scam. It has had problems and this has led to negative reviews and investigations, but it is a legitimate brokerage. If you feel that you have been scammed by the broker nonetheless then you are welcome to visit our Investment and Trading Scams page, for more information or visit our contact page to get help.
