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GMG Markets Review - is it scam or safe?

GMG Markets Review - Is gmgmarkets.com scam or good forex broker?

RATING: 3.5 / 0 REVIEWS
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Trading Accounts

  

Account type  Minimum deposit  Maximum leverage Spread
Standard $200 1:400 From 1.1 pips
Pro $10,000 1:50 From 0.1 pips + $10 commission per lot*

*This equals the same effective spread as the other accounts. Commissions may decrease with larger trading volumes.

 GMG Markets (or Global Markets Group) is a STP forex broker, which provides two account types. One of them is clearly aimed at less experienced traders, while the other is suitable for industry veterans. Here are the strong and weak sides of this broker:

 

GMG Markets Advantages

 

FCA regulation – This broker is overseen by the UK’s Financial Conduct Authority, one of the top rated financial watchdogs. This is the institution at which some of the best brokers, like HYCM, XM and FxPro are also registered.

 

>>Find other FCA regulated brokers here<<

 

STP business model – This broker only acts as an intermediary and does not take the other side of clients’ trades. This removes the potential for conflict of interest.

 

Relatively tight spreads – The spreads at GMG Markets start form slightly over a pip. This level is very competitive in the current environment. 

 

MT4 trading platform – This broker offers the popular MetaTrader4 (MT4) platform. We generally like this platform, as it provides great charting, with lots of custom tools being available.

 

High leverage –  The 1:400 leverage offered by GMG Markets can be considered suitable for most traders. In fact, we would advice you to use it with caution, as such a level can lead to losses.  

 

A lot of payment methods – This broker accepts payments by Bank Transfer, Credit Card and a few other online solutions, such as Neteller, Skrill, Bpay, Netbank and China UnionPay.

 

GMG Markets Disadvantages

 

Relatively high minimum deposit – In order to open a new account with GMG Markets, one must deposit at least $200, which some people will find high. Other brokers have much lower requirements, like IG, another FCA-regulated broker which accepts clients, regardless of the deposit amount.

 

Issues on some charts – The historical charts provided by GMG Markets have some flaws. While everything seems fine on the lower timeframes, once you get to the monthly, you can easily see “double bars” and non-existent spikes. 

 

Here are a couple of screenshots to illustrate the issue:

 

Doble bars on the AUD/NZD monthly chart (click to zoom-in)

 

USD/JPY fake spike (click to zoom-in)

Conclusion

 

GMG Markets is a UK-based and more importantly FCA-regulated forex broker. This gives the company a lot of credibility, in a world full of financial predators, aiming to take your hard earned money. 

 

For those of you who are unfamiliar with the financial services industry, we must reiterate the importance of the regulatory factor. If you trade with an unregulated company, you run the risk of loosing your entire investment – such a brokerage is very likely to running a dishonest business. 

 

The Financial Conduct Authority (FCA), on the other hand, is one of the most respected watchdogs in the world. They apply multiple strict rules on the brokers, who are under their gaze. There are too many technical details, which will most likely bore you, but two rules are of utmost importance.

 

>>Want to see more FCA regulated brokers?<<

 

The FCA requires brokers to segregate client accounts from the company’s. In other words, once you deposit money with such a company, they are kept in a dedicate account, which can’t be freely accessed by the company.

 

In addition to that, all brokerages must participate in the Financial Services Compensation Scheme (FSCS). This is a system, which will guarantee your funds if your financial intermediary declares bankruptcy. Coverage is limited to £50,000.

 

Being regulated by the FCA gives a lot of credibility to this broker. Here is a recap of all the pors and cons:

 

Pros Cons
FCA Regulation High Minimum Deposit
STP business model Issues on some charts
Tight spreads  
MT4 available  
High Leverage
 
A lot of payment methods  

 

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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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Traders` reviews for GMG Markets

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