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GFXRoyal Review - is it scam or safe?

GFXRoyal Review - is gfxroyal.com scam or good forex broker?

RATING: 1 / 1 REVIEWS ForexBrokerz GFXRoyal
GFXRoyal is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit Max. leverage  Spread
Explorer  $500 N/A  6.2 pips
Basic  $2 500 N/A  N/A 
Silver  $10 000 N/A  N/A 
Gold  $25 000 N/A  N/A 
Platinum  $100 000 N/A  N/A 

 

GFXRoyal presents itself as a forex broker based in Germany. Unfortunately, they aren’t regulated in this country, nor in another EU Member State, which is the main problem. Apart from this, the broker isn’t transparent about its offer, but our investigation on the matter revealed that it isn’t attractive anyway.

 

Here are our impressions of this broker, after we made a thorough research on the company and tested its platform. Make sure you read it prior to investing with GFXRoyal.

 

 

GFXRoyal Advantages

 

Comprehensive selection of assets

For all its faults, GFXRoyal at least offers wide range of financial products for trade. Clients of this broker are offered numerous currency pairs, and various CFDs – on indices, commodities, stocks, and many cryptocurrencies.

 

Yet, we would advise our readers to direct themselves to more reliable trading partners. For your convenience, we have drawn up a list of licensed forex brokers that offer trading in Bitcoin and other altcoins in the form of CFDs.

 


>> Regulated forex brokers offering Bitcoin CFDs <<

 

 

GFXRoyal Disadvantages

 

No legit license

GFXRoyal has listed two company names on their homepage: Capital Letter GmbH, based in München, Germany, and Capital Letter LTD, registered offshore, on the Marshall Islands. Yet, it’s website mentions nothing about regulation, and all forex brokers operating in the European Union have to be licensed by Germany’s BaFin, UK’s FCA, Cyprus’ CySEC or another financial regulator of a EU Member State. This, however, isn’t the case with GFXRoyal, and this is our biggest concern regarding this broker.

 

As a rule, unregulated, offshore brokers are not to be trusted, as they are completely unaccountable for the funds invested with them. This means that potential clients of GFXRoyal are open to all kinds of risks, as their interests and money are not protected the way they should.

 

Related to other shady brokers, blacklisted in the EU

As a matter of fact, the company operating GFXRoyal - Capital Letter GmbH (Capital Letter LTD) – has become quite notorious in the online trading world. Forexbrokerz.com has reviewed another two brands associated with the firm, and they are both blacklisted by some EU financial regulator. More specifically, Belgium’s Financial Services and Markets Authority (FSMA) has issued an official warning against  StsRoyal, and STSCrypto was flagged by the Italian financial regulator CONSOB.

 

We should note that most regulators issue warnings against unregulated brokers after receiving complaints and alerts from investors. In other words, most brokerages present in the warning lists of one or several governmental agencies are involved in some sort of investment scams.

 

Trading conditions not fully disclosed

Overall, GFXRoyal has done a rather poor job at presenting its services and trading conditions. The cost of trading is not specified, nor other important details such as the leverage levels provided, commission fees, etc. This is always a worrisome sign, especially on the part of an offshore broker.

 

Unproven web platform, excessively high spreads

Furthermore, GFXRoyal has not indicated any reference spreads, nor has disclosed other essential trading specifics such as the leverage ratios provided, commission fees, etc. This always leaves a bad impression, as it shows lack of commitment and transparency. Nonetheless, the ones we saw on the broker’s platform in are excessively high -  floating around 6.2 pips on EUR/USD.

 

 

Click on the image to zoom in.

 

Most brokers offer spreads within the range of 1.0 – 1.5 pips for this pair. For further information and comparison, check out the below link:

 

 

>> Compare the spreads of the top-tier forex brokers <<

 

 

Initial deposit of $500 required

Last but not least, GFXRoyal asks for a minimum deposit of at least 500 USD and this is unacceptably high. We strongly advice traders to only invest the minimum deposit with any broker, and try to withdraw before investing more. Yet, considering all negatives of this broker, it would be best if you don’t deposit at all.

 

 

Conclusion

 

It seems that GFXRoyal is one of the many scammers on the forex market. The broker does not hold a valid license, and is anything but transparent about its operation and trading conditions. What is worse, it is owned by a company that was flagged by the several EU financial regulators.

 

As always, we recommend that you only deal with well-established and licensed forex brokers. That being said, one of the most trustworthy authorities in Europe are the UK’s Financial Conduct Authority and the Cyprus Securities and Exchange Commission (CySEC).

 

 

>> Trade with a broker regulated in Cyprus <<

 

 

To sum up the above:

 

Pros Cons
Comprehensive selection of assets No financial regulation
  Company blacklisted by several financial regulators in the EU
  Trading conditions not fully disclosed
  Unproven web platform, excessively high spreads
  Initial deposit of $500 required

 

Latest news about GFXRoyal
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Traders` reviews for GFXRoyal

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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