Global FX Markets is a Forex broker that is not legitimate. The company has a number of red flags that suggest it is a scam, including:
- Unregulated: Global FX Markets is not regulated by any reputable financial authority. This means that there is no oversight of the company's activities, and investors have no recourse if they are scammed.
This is a major red flag, as regulation is one of the most important safeguards for investors. Regulated brokers are subject to strict rules and regulations that are designed to protect investors. These rules include requirements for transparency, reporting, and customer protection.
Unregulated brokers are not subject to these rules, and they are therefore more likely to engage in fraudulent or unethical practices.
- Unrealistic promises: Global FX Markets makes unrealistic promises of high returns with little risk. This is a common tactic used by scammers to lure in victims.
For example, the company's website claims that investors can earn up to 80% returns per month. This is an extremely high return, and it is unrealistic to expect to achieve it consistently.
- High-pressure sales tactics: Global FX Markets uses high-pressure sales tactics to pressure investors into making deposits. This is another common tactic used by scammers to take advantage of people who are not familiar with Forex trading.
For example, the company's representatives may contact potential investors by phone or email and offer them a free demo account. Once the investor has opened a demo account, the representative may then pressure them to make a deposit.
In some cases, the representative may even threaten the investor if they do not make a deposit.
Reports of Scamming
There are a number of reports of people who have been scammed by Global FX Markets.
One victim, who spoke to the BBC, said that she lost £20,000 after investing with the company. She said that she was promised high returns, but instead lost all of her money.
Another victim, who spoke to the Financial Times, said that he was contacted by a representative of Global FX Markets who offered him a free demo account. He said that he was able to make some profits on the demo account, and he was then convinced to make a deposit. However, he said that he was unable to withdraw any of his profits, and he eventually lost all of his money.
The Financial Conduct Authority (FCA), the UK's financial regulator, has warned investors about Global FX Markets. The FCA has said that the company is not authorized to operate in the UK, and that it is likely to be a scam.
How to Avoid Forex Scams
There are a number of things you can do to avoid Forex scams:
- Only trade with regulated brokers: Only trade with brokers that are regulated by a reputable financial authority. This will give you some protection if you are scammed.
The FCA, the SEC, ASIC, and FSA are all reputable financial authorities that regulate Forex brokers. You can find a list of regulated Forex brokers on the websites of these authorities.
- Be wary of unrealistic promises: Any broker that promises high returns with little risk is likely to be a scam.
It is important to remember that trading Forex carries a high risk of loss, even for experienced traders. If a broker promises you easy money, it is probably a scam.
- Do your research: Before you invest with any broker, do your research to make sure they are legitimate. Read reviews from other investors, and check to see if the broker is regulated.
You can find reviews of Forex brokers online. You can also check to see if the broker is regulated by searching the website of the relevant financial authority.
Global FX Markets is a Forex broker that should be avoided. The company is not regulated, and it has been accused of making unrealistic promises and using high-pressure sales tactics. There are a number of reports of people who have been scammed by Global FX Markets.
If you are considering trading with Global FX Markets, it is important to be aware of the risks. The company is not legitimate, and there is a high risk of being scammed.