Gfxcrypto – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Gfxcrypto - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2020
Gfxcrypto has provided no information on the types of accounts it offers or even what its trading conditions are. However, we were able to register for an account and find out that the spreads for the EURUSD forex pair started at a massive 60 pips and that the minimum deposit requirement is $250
Try these regulated brokers if you want to start trading cryptocurrencies
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.
Website URL: https://gfxcrypto.com
Founded: 2019
Regulations: Not Regulated
Languages: English, Chinese, Polish, Italian, French, Spanish, German
Deposit Methods: No Information
Minimum Deposit: $250
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Cryptocurrencies, CFDs, Foreign Currencies
Trading Accounts and Conditions
Gfxcrypto has provided no information on the types of accounts it offers or even what its trading conditions are. However, we were able to register for an account and find out that the spreads for the EURUSD forex pair started at a massive 60 pips and that the minimum deposit requirement is $250.
Gfxcrypto – Advantages
There is nothing positive that we have found about Gfxcrypto during our investigation.
Gfxcrypto – Disadvantages
Here are all the reasons why it would be very dangerous to trade with this broker:
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Unregulated and Blacklisted Broker
It is Terms and Conditions page, this broker claims that it is the trading name of GFX Finance, a company that is owned by Capital Letter GMBH, which is a German investment firm. The broker also claims to be based in both Germany and the UK and states that it is authorized to operate according to the regulations laid down by the MiFID (European Markets in Financial Instruments Directive).
We checked the online registers of the MiFID, the German BaFin (Federal Financial Supervisory Authority) as well as the UK’s FCA (Financial Conduct Authority). This broker is not registered with any of these regulators. This means that all Gfxcrypto’s claims of being regulated are lies.
Furthermore, during our investigation, we found out that the parent company, Capital Letter GMBH, is a forex brokerage that has been blacklisted by financial regulators in many countries. The regulators that have blacklisted this brokerage include the CONSOB (Commissione Nazionale per le Societa e la Borsa) in Italy, the FMA (Financial Market Authority) in Austria, the CNMV (Comision Nacional del Mercado de Valores) in Spain and the FSMA (Financial Services and Market Authority) in Belgium.
When a broker is blacklisted by so many well-established regulators, it is a clear signal to everyone that this broker and its associated entities are scammers and trusting them with your money would be a very bad idea.
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.
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.
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Poor Web Trading Platform with No Demo Account
If you contract with Gfxcrypto, all you will get is a poorly designed web-based trading platform to carry out your trades. Despite the fact that this broker states that it is a cryptocurrency broker, it has provided a range of trading instruments including CFDs and Forex.
The broker has not given any information on its website about its trading conditions, and the only way you can find out about these critical pieces of information is by registering for a live account. The broker does not offer any demo account – which is another warning sign that you cannot trust this entity!
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Absurdly High Spreads
When we registered for an account and accessed Gfxcrypto’s trading platform, we found out that that the spreads for the EURUSD pair were at 60 pips! This is beyond unreasonable since the market average is around 1 pip! Even if this broker was not operating illegally, we would still strongly recommend avoiding them due to the sheer cost of trading!
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No Information on Other Trading Conditions
Besides what we discovered about the spreads on our own, there is absolutely no information about the other trading conditions – not on the website and not even on the trading platform.
So, if you trade with Gfxcrypto, you will do so without being aware of what the leverages, commissions, fees and other roll-overs are. No legitimate broker hides such critical information.
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No Information on Deposit Methods
Once again, there is a complete lack of clarity on how clients may deposit money into their accounts with Gfxcrypto. The only way you will find out this information is when you have actually opened an account with the broker and are asked to make a deposit.
And since we had already registered for an account, we were able to get this information. It is not surprising that Gfxcrypto has taken steps to hide its deposit options. The only ways by which you can make a deposit is through two e-wallets: AnyMoney and Praxis Cashier.
Both these e-wallets are highly suspect. Praxis Cashier is an unregulated Cypriot payment processor, and as of May 8, 2020, it has been added to the Financial Intelligence Bureau’s blacklist. This is because this payment provider is linked with numerous scammers, clearly showing that it does not have a robust AML or KYC process.
The second payment provider, AnyMoney is virtually unknown. There is no information about this processor on the internet.
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Lack of Currency Options
Gfxcrypto claims to be Europe’s largest crypto-investment group. Yet, surprisingly, this broker does not offer any other currency option but the US Dollar. And considering that it serves customers in this region, it just doesn’t make sense that there are no other choices.
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Lack of Information on Policies
As with other critical information, this broker has no given details about its policies. We do not know much about the withdrawal policy and the terms that are mentioned are vague and generalized. There are no terms mentioned for account dormancy, other charges, commissions or fees. There do not seem to be any bonuses offered either.
All in all, this Gfxcrypto has given us nothing to work with.
Conclusion
Gfxcrypto is a scammer. Its parent company has already been blacklisted for scamming activities, and this broker has no information on key aspects on its website. Its spreads are among the highest we have ever seen and the payment providers it uses are both suspected of being scams.
We recommend that all traders look for another broker to trade with.
Gfxcrypto
Pros
- None
Cons
- Unregulated and Blacklisted Broker
- Poor Web Trading Platform with No Demo Account
- Absurdly High Spreads
- No Information on Other Trading Conditions
- No Information on Deposit Methods
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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 is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.