This review reveals that GlobelFX is a scam broker that you should not use for your financial trading.
What is GlobelFX
Globel FX is a Forex broker. It will let you trade with fiat currencies, metals, energies and indicies via contracts for difference (CFDs).
The broker has three types of accounts available for traders:
- Classic with a minimum deposit of 100 USD
- Pro with a minimum deposit of 500 USD
- VIP with a minimum deposit of 1000 USD
The maximum leverage is 1:500 and spreads start at 3 pips on the lowest account and at 2 pips on the highest account.
GlobelFX also offers copy trading, which means that it will let you copy trades of other traders on your own account. Hoping that this will generate you profits.
Last but not least, with your deposit you can get a deposit bonus to increase your starting capital.
Now let’s have a detailed look at GlobelFX to see if it is legit.
GlobelFX is a scam
We researched Globel FX in detail and found one major problem that makes this broker fraudulent. Here is the explanation.
Lying about regulation
The short explanation is that GlobelFX falsely claims that it is “highly regulated” – therefore it is a scam. Now let’s go into details.
Most countries in the world require Forex brokers to be regulated. It means they have to get licenses and meet some requirements in order to be authorized to provide their services to the public.
Since regulation offers at least some basic level of protection to investors, we always recommend to trade with regulated companies only.
Globel FX obviously is aware of the importance of financial regulation, therefore it tries to gain credibility by stating on its official website that it is highly regulated. But it is not true.
GlobelFX claims to be based in Saint Vincent and the Grenadines and this country does not have Forex regulation. This is a fact that was recently confirmed by their Financial Services Authority.
In other words, no broker in the world can have a license from Saint Vincent and the Grenadines because the country and its financial regulator do not issue any.
This means that Globel FX is knowingly lying about its regulatory status which makes it an obvious scam that you have to stay away from.
Not even registered as a company
We know for sure that GlobelFX is not a licensed company because the Financial Services Authority say so.
What is even worse is that GlobelFX is not even a real company. Because when you make a search for a company of this name in Saint Vincent and the Grenadines, you will find nothing.
It means that a company with this name is not registered in the country, which makes GlobelFX even shadier.
In this review we have established that Globel Fx is not authorized to provide brokerage services to anybody. But it is doing so and by doing so it is breaking the laws.
It it is the case at least in the United Kingdom. UK’s Financial Conduct Authority issued a warning about GlobelFX stating that the broker is providing financial services in the UK without the necessary authorization.
There you have it, a broker that is lying about being regulated and breaking the laws by providing unauthorized financial services.
Because of that GlobelFX is not a company that you can trust with your money, you have to stay far away from it.
Globel FX review – Conclusion
Globel FX is a broker that is lying about being regulated. We have proved that it is an unlicensed and unauthorized broker that has been blacklisted by at least one financial regulator. Stay away from it.
For financial trading use regulated brokers only. You can start on a free demo with virtual money.
Do not invest real money until you are absolutely sure that you understand the risks and that you have a proper strategy.