GMT Investments – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
GMT Investments - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$100
Minimum Depositupdated 2022
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
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://gmtinvestments.com
Founded: 2022
Regulations: Unlicensed
Languages: English
Deposit Methods: Credit Cards, Debit Cards, Wire Transfer
Minimum Deposit: $10,000
Free Demo Account: No
Number of Assets: Unknown
Types of Assets: Forex, Cryptocurrencies, CFDs on Indices and Commodities, Spot Metals, Energies
Trading Accounts and Conditions
GMT Investments offers their clients the following account types for trading:
- Bronze: The minimum deposit is $10,000.
- Silver: The minimum deposit is $25,000.
- Gold: The minimum deposit is $50,000.
- Premium: The minimum deposit is $100,000.
- Platinum: The minimum deposit is $250,000.
There is no mention of trading conditions anywhere on this broker’s website. And since we could not access a trading software, we could not verify these details for ourselves.
GMT Investments – Advantages
We could not find anything positive to say about GMT Investments. Read on to find out why.
GMT Investments – Disadvantages
Here are all the red flags we uncovered which clearly indicated to us that GMT Investments is not a broker to be trusted:
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Licensing Issues
The first – and biggest – red flag is the fact that GMT Investments is not a licensed broker.
This broker claims to be regulated by various authorities around the world, but does not specify which authorities these are. And then, when you read through their Terms and Conditions, the broker mentions that they are governed by the laws of Hungary. Their regulation status gets even more muddy as the contact address on GMT Investments’ website puts this broker in Estonian jurisdiction.
It is easy to check whether a broker is regulated by a particular authority or not nowadays. All that is required is to check that regulators online register. A company that is regulated by them will be listed in their register.
We checked the Hungarian Financial Supervisory Authority’s (HFSA’s) website and found that this broker was not listed with them. We also checked the Estonian Financial Supervision and Resolution Authority, the Finantsinpektsioon, online register – and came up with nothing.
Based on our investigation, we can say for certain that this broker has simply taken the easier route of lying about their licensing and regulation status. This is a broker that is operating illegally and is therefore most clearly a scammer.
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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No Trading Software
Nowhere on GMT Investments’ website do they mention the type of trading software they offer. The broker only claims that their trading software is available for download on the Apple App store and the Google Play Store, but they don’t mention what their app is!
Since we were unable to register for an account, we could not confirm whether this broker actually has a trading software at all, but by the looks of it, they do not. We say this because the most important component of the service provided by a broker is their trading software. Which is why all legitimate brokers go out of their way to advertise the kind of software they are offering their customers. Here, we do not even know the name of the so-called trading platform they have.
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No Trading Conditions
Despite having a full page on trading account types, the broker has not bothered to provide any information on the trading conditions they offer. Thus, we do not know what the spreads, leverages, commissions, lots sizes, etc. are. Considering that this broker in all probability does not even have a trading platform, it is not surprising that they did not even bother with the fiction of trading conditions.
It is wise to remember that a legitimate broker will ensure that their trading conditions or terms of service are clearly and specifically detailed so that traders know whether it will be profitable to trade with them or not.
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Extremely High Deposit Requirement
GMT Investments asks you to make a minimum deposit of $10,000 before you can open an account with them. This is an extremely high amount. The industry average ranges from just $100 to $250, and there are many highly rated brokers who will invite you to open an account with them for less than $10.
We would also like to point out a discrepancy in GMT Investments’ minimum deposit amount requirement. On their Account Types page, the broker claims that their minimum deposit is $10,000. However, when you go through their website, it turns out that the minimum deposit amount is mentioned as $250. These kinds of discrepancies are clearly signs of a scam. Legitimate brokers ensure that all their details of their terms of service are accurate.
Thus, even if this broker had been regulated and legitimate, we would still advise against dealing with this due to the high minimum deposit requirement.
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Unfriendly Withdrawal Policies
When you check GMT Investments’ terms of withdrawal, you will find that they are not very customer-friendly conditions. Any withdrawals made using a credit card or a debit card will be charged a 5% fee. If you decide to opt for bank transfers, then you will have to wait 3 days for your request to be processed.
These fees are not only high, there is also no way that we can verify that these terms of withdrawal are actually the real terms.
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Offering Personal Mentors – Conflict of Interest
While many legitimate brokers offer links and content that can educate traders, they do not offer personal mentors. This is because of a legal issue called Conflict of Interest. A broker makes money when a trader loses money while trading. Therefore, if a broker is coaching a trading, we could say that there would be a conflict of interest since it would be in the broker’s best interests to ensure that a trader keeps losing money.
This is yet another indication of this broker’s scam.
Conclusion
GMT Investments is a scammer and it would be best to avoid them.
GMT Investments
Pros
- None
Cons
- Licensing Issues
- No Trading Software
- Extremely High Deposit Requirement
- Unfriendly Withdrawal Policies
- Offering Personal Mentors – Conflict of Interest
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.
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