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Golden Grand Review - is it scam or safe?

Golden Grand Review - Is ggfsg.com scam or good forex broker?

RATING: 1.1 / 1 REVIEWS ForexBrokerz Golden Grand
Golden Grand is an offshore broker. Your money is not safe.

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Golden Grand is an unregulated, New Zealand based broker, offering few forex pairs and some CFDs on a MetaTrader4 platform.

 

Account type Min. deposit Max. leverage Spreads
Standard Account n/a 1:100 5 pips, fixed

 

Golden Grand Advantages:

 

MetaTrader4 available

 

Possibly the only positive aspect of the borker is the fact it is offering the MetaTrader4 platform. Most traders are well familiar with it. Besides its intuitive and user friendly interface, the platform offers more than 50 in-build indicators for market analyzes, excellent charting tools and the option for algorithmic trading with the help of the Expert Advisor bots, which you can modify by yourself with the propriety MQL4 scripting language. Here you can check our list of brokers also offering MetaTrader4:

 

>>Find other MT4 brokers here<<

 

Golden Grand Disadvantages:

 

Misleading information on the regulatory status of the broker

 

Golden Grand Global Holding Limited wants us to believe it is licensed by the Financial Markets Authority (FMA) in New Zealand, the National Futures Association (NFA) in the US and the Seychelles Financial Services Authority. 

 

Golden Grand Global Holding Limited was licensed as financial service provider with the FMA in New Zealand until August 2017, when the license was canceled.

 

 

On its website the broker says another company form the Golden Grand Global Holding Group – the  GOLDEN STONES BUSINESS LIMITED now has a license in New Zealand. That however is irrelevant for the current regulatory status of Golden Grand Global Holding Limited – the broker is not bound by the regulatory obligations of another company. 

 

In other words if you decide to invest with Golden Grand Global Holding Limited you will agree with their terms and conditions and your money will not be protected by the regulatory authorities in New Zealand.

 

About the claimed NFA license in the US, we have checked the registers there and discovered that the broker is listed as an EXEMPT COMMODITY POOL OPERATOR and a EXEMPT COMMODITY TRADING ADVISOR, which in no way means it is a licensed forex broker under US regulation.

 

 

Indeed Golden Grand Global Holding Limited's NFA registration is very different form the one that big players such as FOREX.com and OANDA have. Among others, the two major US regulated brokers have the following NFA statutes: FOREX FIRM APPROVED; RETAIL FOREIGN EXCHANGE DEALER REGISTERED; FOREX DEALER MEMBER APPROVED; NFA MEMBER APPROVED and FUTURES COMMISSION MERCHANT REGISTERED.

 

Besides NFA has very tough fiscal requirements for its members, including a minimum operational capital requirement in the amount of 20 mln. USD.

 

Finally we will not comment on the possible license by the Seychelles Financial Services Authority (FSA), which Golden Grand Global Holding Limited may hold, because it is irrelevant. Offshore regulators such as FSA in the Seychelles or the Vanuatu Financial Services Commission have basically no weight and offer no protection to potential investors.

 

On the other hand well respected financial authorities such as the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) do offer protection to investors. They also have a minimum operational capital requirement and oblige licensed brokers to keep all clients funds in a special segregated trust account.

 

Further more CySEC and FCA regulated brokers are obliged to participate in client compensation schemes, ensuring traders can receive part of their capital back in case the broker goes insolvent. The insured amount with FCA brokers is up to 50 000 GBP, while with CySEC brokers you can get up to 20 000 EUR. Here you can check our list of FCA regulated brokers:

 

>>Find FCA regulated Brokers here<<

 

Golden Grand manages clients accounts

 

In addition to the fact that  Golden Grand Global Holding Limited is an unregulated broker, on their website we came across another disturbing detail. The broker offers to directly manage its clients accounts and that by definition means conflict of interest, because the broker, as a Market Maker, has an incentive to lose your money for its own profit. That is the reason legit market maker brokers simply do not offer to manage customer accounts.

 

 

All of that said, the combination of no regulatory obligations and the prospect of the broker actually managing your account, makes Golden Grand Global Holding Limited a very unreliable choice for potential traders.

 

Few currency pairs and CFDs

 

Golden Grand offers just 8 currency pairs with the Chinese Yuan the only exotic currency in the list. Other than that we have CFDs on gold, silver, crude oil, the dollar index and the FA50 index.

 

 

High spreads

 

Although no commission was taken for the trade, when tested with a Demo account the EURUSD spread was fixed at 5 pips, which is several time higher than what investors usually expect to see with a standard account. Acceptable spreads start in the range of 1 – 1,5 pips. Here you can check our list of brokers, offering tighter spreads: 

 

>> Lowest spread forex brokers<<

 

Conservative leverage

 

The maximum leverage offered by Golden Grand is 1:100, which although enough to accommodate most trading styles is less than what brokers usually offer. Having in mind that higher leverage means higher risk, you may check our list of brokers, offering leverage of 1:500 and above:

 

>> Brokers offering at least 1:500 in leverage <<

 

Just one trading account

 

Golden Grand offers just one trading account with 0,1 lot minimum trading size - that at least was the option we were given on the Demo account. Some brokers on the other hand offer micro accounts, where the minimum trading size is 0,01 of a standard lot or just 1000 base currency units. Here you can check our list of brokers, offering micro accounts:

 

>>Micro Account Forex Brokers<<

 

No information about the minimum deposit requirement 

 

Golden Grand does not say on its website what is the minimum deposit requirement for opening an account. Here we should note that with some brokers like XM and FXTM you can open an account with just 5 USD.

 

No swap-free or Islamic accounts

 

While some brokers offer swap-free or Islamic accounts, where no interest for a position left overnight is payed, such service with Golden Grand is not available. The Islamic accounts are created mainly for Muslim traders, who are not allowed to take or pay interest under the Sharia law. Here you can check our list of brokers, offering swap-free accounts:

 

>>Islamic Forex Broker<<

 

No payment methods information available

 

With many brokers you can deposit or withdraw money via e-wallets, such as Skrill, Neteller and PayPal, major credit or a debit cards and bank wire. Golden Grand  however has no information about payment methods on its website. Here you can check our list of brokers offering Neteller as a payment method:

 

>>Neteller Forex Brokers<<

 

Conclusion:

 

Golden Grand is an unregulated broker with low credibility offering few financial instruments with spreads that hardly can be described as competitive. In addition the broker offers to manage your account, which automatically creates conflict of interest. All that said we do not recommend you to invest your money with them.

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Traders` reviews for Golden Grand

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