GFC Mercado – Can You Trust This Broker?

| Publish date: 04/06/2020 (Last updated: April 06, 2020 01:49 AM)
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Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

GFC Mercado - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Deposit
X

updated 2020

GFC Mercado (the full form is Global Financial Contracts) has not given any details about the kinds of trading accounts it offers. There are also no trading conditions provided anywhere on its website. However, we were able to access the broker’s free demo account, and found out that the spread for the EUR/USD forex pair was 1.2 pips.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker
Europe's #1 CFD Trading Platform

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

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

Founded: N/A

Regulations: Unlicensed

Languages: English, Spanish

Deposit Methods: Unknown

Minimum Deposit: Unknown

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Forex pairs, Raw Materials, Stock Indices

Trading Accounts and Conditions

GFC Mercado (the full form is Global Financial Contracts) has not given any details about the kinds of trading accounts it offers. There are also no trading conditions provided anywhere on its website. However, we were able to access the broker’s free demo account, and found out that the spread for the EUR/USD forex pair was 1.2 pips.

GFC Mercado – Advantages

Here are the advantages you would have if you traded with GFC Mercado:

  • Use of MetaTrader 4 Platform

GFC Mercado offers its clients the use of the MetaTrader 4 platform, which we always consider a plus. The MT4 trading interface is the world’s most popular because it offers its users a plethora of features that enhance the entire trading experience.

With the MT4 platform, you are given a range of charting options, trading bots that allow for automated trading, as well as market indicators that help with analytics.

  • Demo Spreads are Good

When we tested GFC Mercado’s free demo account, we found that the spread on the currency pair EURUSD was at 1.2 pips, which is quite favorable for traders.

  • Selection of Assets

Another possible positive of trading with this broker is the selection of trading instruments they have on offer. The range of assets that GFC Mercado offers its clients is quite wide, where you can trade with Forex pairs, as well as an array of CFDs – indices, precious metals, stocks as well as commodities.

The only thing that this broker does not offer is cryptocurrency trading.

GFC Mercado – Disadvantages

Before investing in GFC Mercado, it is best to understand the various disadvantages of trading with the broker. Once you go through the list below, we hope you will change your mind about contracting with this broker – your funds are at risk. Read on to find out why.

  • Unregulated Broker

GFC Mercado claims to be owned and operated by a company called GFC Global Financial Contracts Limited, which is apparently based in the United Kingdom. However, this broker has not presented its license or registration number with the Financial Conduct Authority of the UK.

As you may know, any broker that is based out of the UK has to be regulated by the FCA. This broker is not registered or licensed with the UK financial watchdog. We checked the regulator’s online registry to see if GFC Mercado was listed as a licensed broker, but it was not.

This means that this broker is completely unregulated. And this also means that your funds are at risk if you trade with this broker, since they are not legally bound to fulfil their obligations to you as a customer.

Plus500
$100
Minimum Deposit

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

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.

 

  • No Trading Conditions Given on the Website

GFC Mercado has not given any information with regard to its trading conditions on its website. We do not know what kinds of accounts are available for trading, what the leverage ratios are or even what spreads are offered in the accounts.

Trading conditions are key pieces of information that are critical to being able to make informed trades, and to know what your trading costs are going to be. If this information is missing, then you don’t know how much each trade will cost you and whether trading with this broker will be profitable.

The only way we were able to find out about the spreads (which we mentioned in the advantages section) was by logging into the broker’s free demo account.

This can of non-transparent behavior is typically displayed by scammers who are out to get your money.

  • Payment Methods Unknown

The lack of clarity seems to extend to every aspect of GFC Mercado’s website. We do not even have a line of sight on the payment methods allowed by this broker. Even the most basic brokers offer information on the methods by which money can be deposited and withdrawn from a trader’s account.

The usual methods for withdrawal are bank wire, credit cards and debit cards. And nowadays, the online e-wallets are also becoming more popular, so you will find a large number of brokers offering options such as Neteller and Skrill as payment methods. There is also a growing number of brokers of will allow you to deposit and withdraw in cryptocurrencies.

The problem is that with GFC Mercado, none of this information is given. So, the trader doesn’t really know what options they have.

  • Bonus Promotions Offered

Bonus promotions are yet another trick used by scammers to get customers to invest in their platform, and then those traders never see their money again.

With GFC Mercado, if you have taken advantage of the bonus promotion offered by them, then there is a very unreasonable condition that you need to meet a minimum trading volume target to be able to withdraw your money. And if you don’t meet that target, well, the broker says that they will not process your withdrawal request.

The problem is that that target trading volume is so high that it is virtually impossible to meet it. Which means that you are in effect saying goodbye to your money.

Conclusion 

After going through GFC Mercado’s website and checking their regulation status with the FCA, we can confidently state that this broker is not one that any trader should trust.

There are too many legal issues with this broker, and its lack of transparency shows that it has ill intentions towards those who contract with them. We would recommend to all traders that they not do business with GFC Mercado.

GFC Mercado

2.5

User Experience

3.3/10

Payment Options

2.3/10

Security

2.5/10

Support

2.4/10

Reputation

2.2/10

Pros

  • Use of MetaTrader 4 Platform
  • Demo Spreads are Good
  • Selection of Assets

Cons

  • Unregulated Broker
  • No Trading Conditions Given on the Website
  • Payment Methods Unknown
  • Bonus Promotions Offered

Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:

Plus500
$100
Minimum Deposit

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

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.

eToro
$200
Minimum Deposit

eToro is a multi-asset platform which offers CFD and non CFD products. 66% 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.

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