Gfxroyal – Is It Safe or A Scam?

| Publish date: 02/06/2020 (Last updated: March 24, 2020 08:07 AM)
Share

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Gfxroyal - DO NOT TRADE WITH THIS PROVIDER
2.3/10
$100
Minimum Deposit
X

updated 20202

Gfxroyal offers a range of 5 account types from which traders may choose:

  • Explorer: To be able to use this account, traders have to make a minimum deposit of $500. This account type offers a spread of 6.2 pips.
  • Basic: For a trader to be able to use the Basic account, they must first make a deposit of at least $2,500.
  • Silver: To use a Silver account, a trader must first put in a minimum of $10,000.
  • Gold: For a trader to use a Gold account, they are required to make an initial deposit of $25,000.
  • Platinum: For trading on a Platinum account, the broker requires you to make a first deposit of at least $100,000.

Despite searching through Gfxroyal’s website, we were unable to find any information on the leverage levels offered by this broker.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker
Plus500CY Ltdauthorized & regulated by CySEC

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://www.gfxroyal.com/

Founded: N/A

Regulations: Unregulated

Languages: English, Arabic, German, Spanish, French, Italian, Russian, Chinese

Deposit Methods: Wire Transfer, Vload, Cashier

Minimum Deposit: $500

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex & CFDs on Cryptocurrencies, Stocks, Indices, Commodities

Trading Accounts and Conditions

Gfxroyal offers a range of 5 account types from which traders may choose:

  • Explorer: To be able to use this account, traders have to make a minimum deposit of $500. This account type offers a spread of 6.2 pips.
  • Basic: For a trader to be able to use the Basic account, they must first make a deposit of at least $2,500.
  • Silver: To use a Silver account, a trader must first put in a minimum of $10,000.
  • Gold: For a trader to use a Gold account, they are required to make an initial deposit of $25,000.
  • Platinum: For trading on a Platinum account, the broker requires you to make a first deposit of at least $100,000.

Despite searching through Gfxroyal’s website, we were unable to find any information on the leverage levels offered by this broker.

Gfxroyal – Advantages

There is only one single advantage we could find for our readers about this broker:

  • Range of Trading Instruments on Offer

Gfxroyal has a surprisingly wide range of trading instruments on offer for its clients. Traders have a selection of forex pairs, as well as CFDs on a large number of cryptocurrencies, stocks, indices and commodities.

Gfxroyal – Disadvantages

Unfortunately for this broker, we uncovered a large number of inconsistencies on Gfxroyal’s website, leading us to have doubts about its authenticity and legitimacy:

  • Lack of Regulation

Gfxroyal website mentions two different companies as the owner of this broker – Capital Letter GmbH, whose address points to it being located in München in Germany, and Capital Letter Ltd., which seems to be registered in the Marshall Islands.

There is a registration number mentioned for Capital Letter Ltd. (REG. No. 100949) but none given for the company supposedly based in Germany.

Now, the Marshall Islands is a well-known destination for scammers since its financial regulator has a fairly simply and inexpensive registration process, but does not have regulatory oversight for brokers that offer Forex and CFD trading services. So, the registration number for the Marshall Islands doesn’t really hold any value at all for a Forex broker such as Gfxroyal.

On the other hand, the German financial regulator, the BaFin, has some very stringent regulations put in place for Forex brokers. So, we checked the regulator’s online registry to see if either of the companies was registered by the BaFin. We did not find any proof of registration.

This basically means that Gfxroyal is not a regulated company, and that means that you money would be at risk if you were to invest with this broker.

Plus500
$100
Minimum Deposit

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

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.

 

  • Links with Blacklisted Brokers

While we were looking for this broker’s proof of registration with the BaFin, we uncovered some even more serious problems.

We found out that Gfxroyal is linked with brokers who have become infamous in the online trading world. The broker’s parent company (one of them, at least), Capital Letter GmbH), owns and operates 2 brokers – both that have proved to be scammers.

The first broker, StsRoyal, has been blacklisted by the FMSA (Financial Services and Markets Authority) in Belgium, and the second, STSCrypto, has been flagged off by the CONSOB, the Italian financial watchdog.

  • Unclear Trading Conditions

Gfxroyal has not presented its trading conditions clearly. We know that this broker offers 5 different account types, has a minimum deposit condition of $500, its basic account has a spread of 6.2 pips, but that’s about all.

We do not have any clear information on the cost of trading, what the leverage levels this broker offers or even what the commission fees are.

Considering the fact that the trading conditions are critical to a trader being able to make informed trades, the lack of clarity on this point is another worrisome sign.

  • Unknown Web-Based Trading Platform

After we registered on Gfxroyal’s platform, we were able to see that it was a very basic web-based trading platform. Our impression of it was that was a poorly made copy of a trading software borrowed from a third party.

The platform was basic, and there were no added features to help traders make better trades.

  • Extremely High Spreads

When we logged into Gfxroyal’s so-called trading platform, we saw that the basic account’s spread was set at 6.2 pips. This kind of a spread is way above the industry norm; in fact, it is ridiculously high.

Such kind of a spread would provide the broker with huge commissions, but traders would not get any benefits at all from it.

  • High Minimum Deposit Requirement

Gfxroyal asks its customers to make a minimum deposit of $500, which is much too high. In fact, such a deposit is twice has high as the industry average, which ranges between $100 and $250.

  • No Demo Account Offered

Gfxroyal does not offers its customers a demo account through which they can assess the trading conditions. This is a tactic that is regularly used by scammers, and is done to give customers as little information about their operations as possible.

Conclusion 

After going through Gfxroyal’s website in detail, we have come to the conclusion that this broker is a scammer and that if you invest your hard-earned money with this entity, you stand an almost certain chance of losing all your money.

Thus, we would recommend that all traders avoid Gfxryoal completely and opt for appropriately regulated brokers that offer reliability as well as transparency in the dealings.

Gfxroyal

2.3

User Experience

2.8/10

Payment Options

2.2/10

Security

2.4/10

Support

2.0/10

Reputation

2.2/10

Pros

  • Range of Trading Instruments on Offer

Cons

  • Lack of Regulation
  • Links to Blacklisted Brokers
  • Unclear Trading Conditions
  • Unknown Web-Based Trading Platform
  • Extremely High Spreads

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

Plus500
$100
Minimum Deposit

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

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. 74% 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.

Share

Related Posts

Fx4Lux – Can You Trust This Broker?
Website URL: https://fx4lux.com/ Founded: 2019 Regulations: Not Regulated Languages:…
ForTradersFX – Should You Trust This Broker?
Website URL: https://fortradersfx.com/ Founded: 2019 Regulations: Not Regulated Languages:…
Hugos Trading – Is It a Scam?
Website URL: https://hugostrading.com/ Founded: 2020 Regulations: Not Regulation Languages:…

Leave a Comment