GoldFx Trading – Should You Sign Up?
In today’s economy, it is becoming increasingly difficult for people to survive on one income. With rising inflation and other costs, people always end up in some form of debt. Of course, this means that you will not get close to achieving your financial goals any time soon. Should you just forget about it? Of course, you could get a part-time job, but that would only increase your burden. This makes you wish for a job that allows you flexibility and the chance to earn simultaneously. This is where forex trading can be immensely helpful. Why? Firstly, the forex market is open 24/7 for trading so you can just trade at your convenience. Secondly, thanks to the internet, you can now trade from anywhere.
The only actual requirement you have to fulfill is to find a broker so you can start trading. You cannot proceed without a broker because they provide you with the trading platform and tools, as well as the assets you wish to trade. GoldFx Trading is one broker you will find when you start looking. Before you sign up with any broker, you would obviously want to check them out. At first glance, you will come to notice that the broker claims to be based in the United Kingdom and is a forex and CFD broker.
The broker provides you with some basic details of the three account types it offers, which are Basic, Professional and Extended respectively. You are informed about the minimum deposit and the maximum leverage available as well. Most of the scam brokers out there do not give out this information or are vague and so this might be regarded as a point in their favor. Moreover, GoldFx Trading has also incorporated the MetaTrader 4 trading platform, which is used by more than 80% of the global forex brokers.
The MT4 trading terminal is top favorite of forex traders all over the world and is highly appreciated because of its great functionality and ease of use. With this particular trading platform, you can enjoy flexible customization options, top-notch charting and its automated trading robots called Expert Advisors (EAs), which are quite renowned. However, you shouldn’t allow these offerings to confuse you. Why? This is due to the fact that GoldFx Trading has some serious disadvantages that might make you reconsider your decision to sign up with it. What are they? Let’s take a look:
- It makes false claims of regulation
The broker is allegedly owned and operated by a company known as GFT. There is an address mentioned in the website of London, UK and the phone number that’s provided actually has an Italian country code. However, in reality, the offices of the company are based in St. Vincent and the Grenadines, which is notorious for their almost absent regulations and requirements. Furthermore, GoldFx Trading claims that it is regulated and authorized by the Financial Conduct Authority (FCA) and a registration number is also provided, which belongs to a company called GFT Global Markets UK Limited.
First things first, this company did provide forex and spread betting services, but it was shut down in 2016 and doesn’t have FCA licensing any longer. Secondly, it is believed that GoldFx Trading, the broker, doesn’t really have anything to do with this UK firm, but is simply using the name and registration as it was registered with the FCA. This is a common scam tactic, which is referred to as the ‘clone firm’. The terms and conditions that are outlined on the GoldFx Trading also cause some confusion because they state that the broker falls under the Australian jurisdiction. Yet, it is not authorized or licensed in Australia.
- It is related to a shady firm
Another red flag about GoldFx Trading is that the MT4 platform the broker offers to its clients is actually provided by a third party, which is more specifically known as FAH Investment Ltd. This is also an offshore firm, which is operating the brokerage brand called Time4X. More importantly, this company is blacklisted by both the Estonian Finantsinspektsioon and the Italian regulator CONSOB.
- It doesn’t disclose trading conditions
You will not find any essential information mentioned on the website of GoldFx Trading. The only information that’s actually mentioned is the initial deposit requirement for the account types, which is actually quite high. This can be considered as a sign of trouble because it shows lack of transparency and commitment on the part of the broker.
- It offers variable demo spreads
Another point to be noted by GoldFx Trading is that the spreads float rather frantically in a very broad range when you test the MT4 platform. For instance, the spread for the EUR/USD pair varied between the range of 0.2 and 1.8 pips in a couple of seconds. This is certainly not normal in the middle of a trading session, particularly when there is no major news that might cause an uproar in the market.
- It doesn’t offer CFDs on cryptocurrencies and stocks
When you start using the broker’s MT4 trading platform, you will soon realize that it does not offer you trading in popular instruments. For instance, you will not find CFDs available for stocks or cryptocurrencies, which can be a major downside when you are looking to diversify your trading portfolio.
In simple terms, GoldFx Trading is a forex brokerage that does offer you the popular MT4 trading platform to lure you in, but is not subjected to any regulatory oversight. The matters are only made worse when the broker claims that it is regulated by the FCA in the UK, even though it is not. In addition to that, it sort of confirms the fact that GoldFx Trading is using the name and registration number of a different company that’s not related to it at all. It has all the hallmarks of a scam, particularly when you consider the high initial deposit requirements through which you will only put your money at risk.