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Globtrex Review - is it scam or safe?

Globtrex.com Review - is globtrex.com scam or good forex broker?

RATING: 3 / 0 REVIEWS Globtrex
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Trading Accounts

 
 

Account type Minimum deposit  Minimum trade size Maximum leverage Spreads
Micro $100 0.01 1:200 3 pips, fixed
Standard Undisclosed 0.01 1:200 N/A
VIP Undisclosed 0.1 1:200 N/A

 

Globtrex.com offers its clients three account types, all of which offer commission-free trading with leverage up to 1:200. Micro lots are available for trade and the spreads offered on demo accounts are fixed. Actually, much of the information about trading conditions on the different account types is unavailable at the broker’s website.

 

Besides, Globtrex.com offers a rich Educational section with ebooks, videos and glossary available to novice traders. The website is available in English, Polish, Czech, Slovenian, Croatian, and Hungarian language.

 

Globtrex.com does not manage funds for its clients as this may create a conflict of interest. That is why there are no PAMM and MAM accounts offered by the broker.

 

The Company. Security of Funds

 

Company

Country

Regulation

Coverdeal Holdings Ltd 

Cyprus

CySEC

 

Founded in 2014, Globtrex.com offers online trading in forex, CFDs on stocks, bonds, indices and commodities on two trading platforms, MetaTrader 4 and Sirix web. Actually, the broker’s asset offering is quite impressive.

 

Globtrex.com. is a domain operated by Coverdeal Holdings Limited which is regulated by the Cyprus Securities and Exchange Commission (CySEC) as a Cypriot Investment Firm (CIF). The company is based in Cyprus and has branches in Czech Republic and Poland.

 

Due to its competitive tax regime, well-developed financial sector and strict regulations, Cyprus has become a very popular hub among forex and binary options brokers. Brokerages licensed by CySEC must meet capital adequacy requirement of €730 000 and maintain it. Besides, they are obliged to report transactions, keep client funds in segregated accounts and meet a number of other requirements.

 

Besides, as Cyprus is part of the European Union, MiFID regulations apply, and all CySEC regulated are free to operate in all EU Member States. However, in its Client agreement Globtrex.com warns that the funds of some clients may be held in segregated accounts outside the EU and in the event of insolvency or any other analogous proceedings in relation to that bank, the money of such clients may be treated differently.

 

Furthermore, CySEC applies a compensation scheme as an additional guarantee to clients’ funds. All licensed brokers are members of the Investor Compensation Fund, which may cover a maximum of 20,000 EUR per person in the event of broker insolvency.

  

Trading Conditions

 

Minimum Initial Deposit

In order to open an account with Globtrex.com, traders have to invest a at least of $100, which is average. Yet, other Cyprus-based brokers require less. In order to open an account with FXTM, for example, one has to deposit just $5.

 

Spreads & Commissions

Globtrex.com offers commission free-trading, and although it claims to offer variable spreads, when we tried out its services via a demo account, we found that the spreads are fixed and very high, amounting to 3 pips for the EUR/USD pair.  

 

For purposes of comparison, easyMarkets provides spreads fixed at 1.0 pips on EUR/USD, and most fixed-spread brokers offer 2-pips spread for this pair.

 

Leverage

The maximum leverage level offered by Globtrex.com is 1:200 (for forex), which an average ratio. In fact, the default leverage level provided by the broker is in line with the latest guidelines by the CySEC, and traders who wish to use leverage higher than 1:50, must pass an appropriateness test. Many financial regulators have imposed caps on leverage in order to protect investors from the risks associated with it.

 

However, many Cyprus-based brokers still offer higher leverage levels - for example, easyMarkets  provides leverage up to 1:400.

 

Trading Platforms

 

Globtrex.com supports the most widely used forex trading platform MetaTrader4 (MT4), coming as desktop, mobile and tablet versions. It also offers Leverate’s Sirix web.

 

MT4 remains the preferred choice for most FX traders (and brokers) globally, as it provides a full array of trading tools and features: solid charting, more than 50 built-in technical indicators, wide range of Expert Advisors (EAs), the option to create your own indicators and EAs, and extensive back-testing options for them.

 

Leverate’s Sirix web platform is also very popular in the forex industry. It is user-friendly, requires no download, and has great social trading capacities. Investors are able to directly copy the deals of other traders in the “Social Stream” feed.

 

 

Globtrex.com’s Sirix web. Click on the image to zoom in.

 

Methods of Payment

 

Globtrex.com supports credit/debit cards, bank wire transfer, WebMoney, and a number of local payment options as methods of payment.

  

Conclusion

 

Globtrex.com is a Cypriot forex brokerage, which offers wide range of financial assets for trade on two trading platforms. Its main advantage is the strong CySEC regulation, however its spreads are too wide. To sum up the above, here are the Pros and Cons with regards to this broker:

 

Pros Cons
Well-regulated High fixed spreads
Choice of trading platforms, MT4 available  
Commission-free trading  
Extensive product portfolio  

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Traders` reviews for Globtrex

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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