FXglobalfinance – Are They Trustworthy?

Website URL: https://www.fxglobalfinance.com/

Founded: 2018

Regulations: Unregulated

Languages: English, Italian, German

Deposit Methods: Credit/debit cards, Bitcoin, and Wire transfer

Minimum Deposit: $2,500

Free Demo Account: None

Number of Assets: N/A

Types of Assets: Cryptocurrencies, Commodities, Forex, Indices, and Stocks

Trading Accounts and Conditions 

FXglobalfinance offers four types of accounts for newbie and pro traders. Depending on the level you want, you can choose from the following trading accounts.

• Silver – The minimum deposit is $2,500 with a 10% margin loan.
• Gold – The minimum deposit is $10,000 with a 35% margin loan.
• Platinum – The minimum deposit is $50,000. The margin loan is not stipulated but it claims to offer risk free trades and higher leverages.
• Diamond – The minimum deposit is $100,000. Margin loan is not stated, but it has risk free trades and higher leverages.

FXglobalfinance   – Advantages

With it being banned by Italy’s authorized regulator, CONSOB, we see no advantages for you if you trade with this broker. Any business conducted with this firm is risky and there’s a big chance you’ll lose all your invested money.

FXglobalfinance   – Disadvantages 

After carefully investigating this broker, we have found so many red flags confirming it to be a scam. The reasons why we say so are below.

• Unregulated and unlicensed

A legit broker always provides information about its legitimacy such as stipulating its office address, where it got its license, and the company that’s standing behind it. But, FXglobalfinance failed to provide all of these important information. There is, however, a regulation number that was indicated at the footer of its website that says “Regulation Number: 1724 regulazia consob”.

With this regulation number, the company is implying that it is licensed by CONSOB, the authorized regulator in Italy. But, when we verified this information, we found out that CONSOB issued a warning against FXglobalfinance last June 15, 2020. Moreover, it ordered the broker to shut down its website due to its illegal financial services.

This declaration is enough proof to conclude that this entity is a scam broker. Hence, you should stay away from it.

The leading brokers in the forex market are usually found in the UK and the EU. Furthermore, the most respectable regulators which are the FCA and CySEC also come from these territories. If you want to ensure the safety of your funds when trading assets, it is best to choose brokers who are regulated by these two regulators. They impose very strict rules to brokers before releasing their licenses.

Moreover, regulated brokers are always transparent in providing details about their license in order to gain the confidence and trust of their investors.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Poorly built and non-functional web-based trading platform 

On its website, it claims that it provides several trading platforms to its customers. However, when we checked, we couldn’t find several options. There is only one trading platform that’s available which is a poorly designed web-based software. One can easily say that it’s the work of an unreliable and scam broker.

Respectable brokers never give false information such as stating it has several trading platforms because this can ruin their reputation. Moreover, when it comes to trading platforms, 80% of traders trust MetaTrader 4 and MetaTrader 5. Hence, most of the legit brokers provide these trading platforms to their customers.

MT4 and MT5 have advanced and sophisticated features and tools which traders can utilize to maximize their trading experience. Some of these tools include advanced analysis and charting tools. Both platforms also work in mobile devices (Android and iOS) and desktops.

• Unclear trading conditions

This broker hasn’t provided its trading conditions clearly. There’s no information about its leverages and spreads. The closest information it provided is that it offers “higher leverages” for platinum and diamond account holders.

The standard spreads and leverages offered by most regulated brokers are 1 to 5 pips and 1:30, respectively. These numbers are imposed by the regulatory authorities in the UK, EU, US, and even Australia. Anything more than the prescribed numbers are considered illegal. Hence, if you see a broker offering high leverages and spreads, be suspicious already because most of the time, it is a scam.

• Unverified deposit and withdrawal methods, plus high fees

The broker claims to support a wide range of secure payment methods in different currencies such as credit/debit cards, bitcoin, and wire transfer. However, it hasn’t discussed the processing time. It claims, though, that it’ll only take a short time. But short is very subjective especially if it comes from a scam broker.

The minimum amount you can withdraw is $100 with a fixed withdrawal fee of $25. Moreover, it imposes an activity fee which is unknown after six months of dormancy. Without disclosing this amount, you’re at risk of getting charged unfairly.

Hence, we warn you to stay away from this anonymous and unregulated broker.

• Very high staring capital

The starting capital imposed by this broker is $2,500 which is too high compared to the industry standards. Some brokers even accept a starting capital of $5, so considering this amount; we can conclude that they are only after those who are risk takers and willing to lose huge sums of money.

The next available accounts that you can open are priced at $10,000, $50,000, and $100,000, respectively. Unless you just want to burn your cash, don’t entrust your funds with a broker that isn’t regulated.

Conclusion 

FXglobalfinance, as confirmed by the Italian regulator CONSOB, is a scam broker. It is unlicensed and has an unknown history. Therefore, your money is not safe with them. To better protect your funds, choose brokers that are regulated by the world’s most respected regulators – the FCA and CySEC. They have the strictest rules in screening off scammers. Hence, all brokers that have received licenses from them are legit and reputable.

FXglobalfinance

2.4

User Experience

3.0/10

Payment Options

2.1/10

Security

2.5/10

Support

2.2/10

Reputation

2.3/10

Pros

• None

Cons

• Unregulated and unlicensed
• Poorly built and non-functional web-based trading platform
• Unclear trading conditions
• Unverified deposit and withdrawal methods, plus high fees
• Very high staring capital