FXGTrade is a forex and CFD broker owned and operated by Capital FXG LTD. This Marshall Island-based broker offers a wide range of online trading services and features, enabling global traders to access the financial markets. You can trade over 65 forex currency pairs, commodities, indices, CFDs, stocks, silver, gold, Bitcoin, and other cryptocurrencies on this platform. In addition, with a minimum deposit requirement of $5,000, it seems that FXGTrade caters to only the top traders in the business. The big question is, is FXGTrade a trusted broker or is it all just a scam? Let us explore in more detail.
Is FXGTrade a Regulated and Legit Forex Broker or a Scam?
The above is the leading question on the minds of anyone wanting to trade online, and the answer is no. FXGTrade is not a regulated broker, yet they offer financial services worldwide without the necessary license. In the U.K., the FCA (Financial Conduct Authority) has warned the general public on signing up with FXGTrade as the broker has been providing brokerage services in the country without their authorization.
The operations of FXGTrade are also highly suspicious as they currently do not have any authorization or registration of their address, which means that they might be operating their services from an entirely different location as stated on their site. The parent company is based in the Marshall Islands, which is a well-known offshore destination for financial brokers. This is because the region offers various tax benefits (such as no inheritance or income taxes and no capital gains tax), their process for registration is swift and does not cost much, and the capital requirement to receive a license is only $2,000. What makes FXGTrade even more suspicious is that the billing of the parent company is handled in Bulgaria by Nordic Pearl Ltd.
The bottom line is that FXGTrade is not a regulated broker so if you decide to partner with them, you need to remember that there is no governing body that is ensuring that they are offering transparent and secure services. Should anything go wrong, or you are not able to withdraw your capital or profits, you are on your own!
FXGTrade Account Types
FXG Trade services are really expensive compared to other brokers and they are designed to appeal to only a certain group of traders. Here are the various account types and the requirements on the FXGTrade platform:
Silver Account
- $5,000 minimum deposit
- Leverage: up to 1:300
- Minimum FX trade size: 0.01 lots
- Spreads: from 2.5 pips
- No commission
- Maximum trade size: 50 lots
- 5% stop out levels
- Account manager
- EAs
- News trading
Gold Account
- $10,000 minimum deposit
- Leverage: up to 1:300
- Minimum FX trade size: 0.01 lots
- Spreads: from 1.5 pips
- No commission
- Maximum trade size: 50 lots
- 5% stop out levels
- Account manager
- EAs
- News trading
Platinum Account
- $25,000 minimum deposit
- Leverage: up to 1:300
- Minimum FX trade size: 0.01 lots
- Spreads: from 0.5 pips
- No commission
- Maximum trade size: 50 lots
- 5% stop out levels
- Senior account manager
- EAs
- News trading
What Makes FXGTrade a Scam Broker?
Deposits and Withdrawals
It is evident that FXGTrade targets the wealthy and elite traders in the market. The minimum deposit amount for each of their three account types is high. The $5,000 needed to start using a silver account is excessive, and most new traders definitely cannot afford this. If you deposit such a huge amount of money on FXGTrade, chances are you will most likely not see the money again.
If you are new to the online trading world, we recommend that you stay away from this broker. To start trading with $5,000 is a lot of money when many other reputable platforms have a minimum deposit requirement of $100 or even less.
Interestingly, FXGTrade does offer a 100% bonus on deposit to its clients. While this may sound like a good offer, take the time to read the terms and conditions of the bonus. The bonus funds cannot be withdrawn, and you will need to trade using this money.
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Customer Support
The FXGTrade scam is unveiled further in how they handle their customer service. For new traders, the support team will sweet talk you into parting with your money by offering you excellent bonuses that you cannot find anywhere else. This is because regulated brokers are not allowed to lure clients by offering ‘free’ money. However, once you give them your money and request it back after earning more, the support team becomes aggressive and might go further to block you from their system. You then lose access to your account and all the money you deposited with them. This is the experience of numerous traders that trusted the platform with their money and their many reviews can be found online.
Regulation and License
You will easily recognize the FXGTrade scam by its lack of regulatory stance. As stated, FXGTrade is not a regulated broker, and as such, trading with them is a huge risk. The company also does not mention its regulatory status on their site.
According to the Financial Supervision Commission of Bulgaria (FSCB), FXGTrade is one of the companies operating illegally in the financial sector in the country. As an unregulated entity, if the broker exits the market, the government cannot help you trace them since they operate anonymously. The biggest issue with unregulated brokers is that they do not segregate funds, which means that traders end up depositing funds into the owner’s bank account instead of a proper account set up for the traders.
Furthermore, FXGTrade does not offer insurance and has not set up any compensation amount that can be used to pay off clients in case they exit the market. All these cons and more are some of the downsides of using this broker, making the FXGTrade scam more evident. The attractive benefits they advertise are simply there to lure you in. You should be mindful of your money and only partner with regulated brokers that offer secure and effective services.
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Investor Testimonials
A simple search online will make the FXGTrade scam clearer and more evident. Most of the investors who signed up with them were not satisfied with the services they received. Also, the various reviews of FXGTrade on TrustPilot is proof that this broker is a scam. Several traders complained of losing their hard-earned money after depositing and trading with the broker. When it is time to withdraw one’s funds, the process is almost impossible. Before you sign up with FXGTrade, take the time to read some online reviews and testimonials. This will give you a clear indication of what the broker really has to offer.
Pros and Cons of FXGTrade
FXGTrade Pros
Leverage 1:300
This is an unusually high leverage amount, but good enough to facilitate various trading styles. However, traders and financial markets investors need to keep in mind that overleveraging can cost them a lot, especially when trades end unsuccessfully. Remember that, unregulated brokers are able to offer higher leverage than their regulated counterparts.
MetaTrader 4 Available
FXGTrade offers the extremely popular MT4 platform which is a big plus as it is a leading trading platform in the trading space. The MetaTrader 4 has proven itself, over the years, to be the most stable and effective trading platform that boosts trading accuracy. It is available as desktop, mobile, and web-based versions, making it easy for users to monitor their trades wherever they are. The desktop app makes it easy to customize the platform using the MQL Marketplace. The platform also offers a wide choice of indicators, charting tools, EAs and much more.
Cryptocurrency CFDs
Cryptocurrencies are the talk of the financial world as they continue to revolutionize the way we see money. In addition, they have quickly become a lucrative asset to trade. FXGTrade offering contracts for differences (CFDs) for cryptocurrencies and this includes CFD trading on Bitcoin, Ethereum, Dash, Monero, Ripple and more. This enables a trader to diversify their trading portfolio with ease.
Payments
For deposits, FXGTrade accepts numerous payment options such as credit/debit cards, bank transfer, Sofort, OkPay, Yandex, Mony, iDeal, and a few other e-wallets. The absence of popular e-wallets like Skrill and Neteller is disappointing, but they do offer a variety of payment options.
FXGTrade Cons
Unregulated Company
FXGTrade is not regulated and they do not claim to be affiliated with any regulatory agency. The company is apparently based in the Marshall Islands, but its operations are handled by another company in Bulgaria. While Bulgaria has a solid regulatory standard since it is a part of the EU, FXGTrade remains an unregulated broker.
High Minimum Deposit Requirement
FXGTrade has a high minimum deposit requirement which makes them not suitable for new traders. For the Silver account, there is a $5,000 deposit requirement before you can start trading with them. This is a lot of money, and a large percentage of forex traders cannot afford it. The fact is, there are more reliable and regulated brokers that allow traders to start using their platforms with as little as $100.
Wide Spreads
The spreads offered by this broker for the silver account type are not close to the industry averages. For the gold and platinum FXGTrade accounts, the spreads are okay, but users have to deposit a huge starting capital before they can enjoy such services. Interestingly, the 4.4 pips available on the demo account are not available when users switch to the real trading accounts so remember to take this into account
Limited Assets
FXGTrade offers numerous assets as CFDs to trade, yet it does not have a wide choice. If you enjoy trading specific assets, take the time to check if FXGTrade offers these before you sign up. Also, if you enjoy trading cryptocurrencies, remember that this broker only offers a limited number of digital currency CFDs.
100% Bonus on Deposit
While this should fall into the pros section of FXGTrade, this is perhaps the sweetest proposal that gets traders to open up their wallets and to give this broker their money. The 100% bonus on deposit deal has very strict and complicated terms and conditions. You need to know that you will not be walking away with a 100% deposit in cash and in many cases, traders have complained that they are not able to withdraw their capital or their profits from the FXGTrade platform.
Final Thoughts
The various services offered by FXGTrade and the many negative online reviews and testimonials clearly show that FXGTrade is a scam broker. The fact that FXGTrade is not regulated and not affiliated with any regulatory agency in the world further raises a red flag to investors. Based on this review and everything revealed, we recommend that you do not partner with FXGTrade when you step into the online trading arena.