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GlobalArabFX Review - is it scam or safe?

GlobalArabFX Review - is globalarabfx.com scam or good forex broker?

RATING: 1 / 0 REVIEWS GlobalArabFX
GlobalArabFX is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit Max. leverage Spread
Standard  $500 1:400 N/A
Gold  $5 000 N/A N/A
Premium  $10 000 N/A N/A
VIP  $25 000 N/A N/A

 

GlobalArabFX presents itself as an international company for the trade of currencies, indices, stocks and commodities. The broker offers four account types, but the trading conditions remain largely unclear. What is worse, GlobalArabFX does not hold a legit forex broker license and its reputation is already questionable. In spite of this, we will start off with a few possible benefits of the broker, as we always strive to be objective.

 

 

GlobalArabFX Advantages

 

High leverage, decent spread

On GlobalArabFX’s platform we could see that the broker offers generous leverage levels to its clients, reaching 1:400. Although leverage is a controversial part of forex trading, some traders enjoy using higher ratios, despite the greater risk of loss it brings along. That is why we consider the availability of high leverage as an advantage.

 

We also noticed that the benchmark EUR/USD spread on the broker’s platform is floating around 1.2 pips. Such cost of trading is not high and is in line with the industry’s average. That being said, a lot of well-established and licensed brokers offer better spreads.

 

 

>> View the spreads of top brokers in real time <<

 

 

Good selection of CFDs

Another possible benefit of trading with this broker is the fact that its product portfolio is rather rich and diversified. It covers many forex pairs, and various CFDs – on indices, commodities, and some of the most popular cryptocurrencies, Bitcoin included.

 

 

>> Tightly regulated Bitcoin forex brokers <<

 

 

GlobalArabFX Disadvantages

 

Unclear corporate situation, no license

GlobalArabFX’ website features an address and phone number in the UK, but it is actually unclear which is the company operating the brand. Also, there is no mention of a license with the local Financial Conduct Authority (FCA). Instead, the broker says it is “registered with the Office of the Commissioner of Personal Data Protection of the Republic of Cyprus.”

 

 

We won’t comment on such a ridiculous claim. The important thing is that GlobalArabFX is not licensed and, if you read further, you will probably agree that it actually has all the trappings of a typical forex brokerage scam.

 

Blacklisted by the FCA as a clone

GlobalArabFX was blacklisted by the authorities in the UK as a potential scammer, which is another major red flag regarding this broker. More specifically, the FCA reported that GlobalArabFX is not licensed to offer financial services in the country and is illegally using the details of Global FX (UK) Ltd., a payment services provider duly authorized to operate in the UK. This is commonly referred to as “a clone firm” and has become a popular scam tactic.

 

 

No access to MT4 

GlobalArabFX uses Pegasus – a web-based trading platform that seems easy to use, but feels clunky and the overall layout does not seem very professional. Here is a snapshot:

 

 

GlobalArabFX’ web-based platform. Click on the image to zoom-in.

 

This platform cannot be compared to the industry leading MetaTrader 4 with its reliability, superior charting and support of automated strategies (Expert Advisors).

 

 

>> Choose a MT4 broker <<

 

 

Trading conditions not fully disclosed

As we mentioned in the beginning, GlobalArabFX has not presented any essential trading condition, other than the initial investment required, on its website. The lack of clarity and transparency regarding a forex broker’s key trading conditions such as spreads, leverage levels, etc., always leaves a bad impression. Our experience shows that when such essential trading information is not available on the website of an unregulated broker, it is most likely a scam.

 

High initial deposit

On top of all disturbing facts regarding GlobalArabFX, the broker requires an initial investment of $500 for its most basic account. While this may not sound like too much, other brokers, including licensed and reliable ones, require way lower initial deposits ($100 or even less).

 

 

Conclusion

 

GlobalArabFX has been exposed by the FCA as a clone, does not hold a legit forex broker license, and has not presented clearly the trading conditions. These are clear signs that clients of this broker are open to substantial risk. All in all, traders should direct themselves to better trading options to which we have linked throughout this review. 

 

As always, our best advice for investors looking for a reliable forex broker, is to select among those licensed by reputable financial agencies such as the Financial Conduct Authority (FCA) in the UK or the Cyprus Securities and Exchange Commission (CySEC).

 

>> Forex brokers regulated in the UK <<

 

 

And finally, here are the highlights of our review on GlobalArabFX:

 

Pros Cons
High leverage, decent spread No company name, no license
Good selection of CFDs Blacklisted as a clone by the FCA
  Trading conditions unclear
  No access to MT4
  High initial deposit

 

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Traders` reviews for GlobalArabFX

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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