GFTrade Review – Is Gftrades.com Scam Or Good Forex Broker?
Trading Accounts & Conditions
| Account type | Minimum deposit | Maximum leverage | Spread |
| Micro | $300 | 1:400 | From 2.0 pips* |
| Standard | $2,000 | 1:400 | From 1.8 pips* |
| VIP | $5,000 | 1:400 | From 1.6 pips* |
*these are the conditions according to one of the sections on their website, while others claim 1.2 pips is the level for all account types.
GFTrade is a forex broker, which we have a lot of issues with. While their presentation generally isn’t that bad, a few key points aren’t that clear. Read on for all the details.
GFTrade Advantages
MetaTrader4 (maybe) offered
The trading platform you use is an important factor for your success, as it is the tool you use to view the price dynamics and act on them. With that in mind, both the charting and the execution speed provided by MetaTrader4 are very good. The platform also features automated trading, custom technical indicators, signal providers and much more. A mobile app, as well as a web-based version are also available, keeping its offer up to date.
All of that may be great, but we weren’t able to access the platform provided by this broker.
A lot of payment methods
The ways one can transfer funds to and from GFTrade are Bank Transfer, Credit Card, Neteller, Skrill, China UnoinPay. Few brokerages provide old and new systems, which are popular both in the East and West.
Barely competitive spreads
As we stated above, we weren’t able to test the platform at GFTrade, so you have to take this point with a grain of salt. The spreads provided on the broker’s website ate in-line with the current industry standards, while not being too impressive.
High leverage options
With a maximum ratio of 1:400 no trader will feel this broker doesn’t provide sufficient leverage. Keep in mind this can be a double-edged sword – your losses will increase just as much as your potential wins, whenever you increase the position size. Be sure to do some research on proper risk management strategies, which will guarantee your survival in the fierce trading jungle.
GFTrade Disadvantages
Offshore company
GFTrade is based in Saint Vincent and the Grenadines. The company claims to be registered with the local Financial Services Authority (FSA), but the agency doesn’t provide specific regulation for financial market intermediaries. While the focus is on funds, insurance companies and bankings, there are no forex trading rules in this jurisdiction, as reiterated by a recent statement from watchdog. This is big red flag for us, which is enough to grant the company this low score, but wait there’s more.
HTTPS not present
A lot of the sections on GFTrade’s website don’t follow the current internet security standards. When browsing their website, you will get a warning about the unsafe nature of a lot of pages. This simply because they aren’t updated to the newer (yet relatively old, for internet standards) Hyper Text Transfer Protocol Secure (HTTPS). In other words, the people running this website either aren’t that proficient with technology or a bit careless. Needless to say, both of these don’t inspire trust, especially when it comes to a company dealing with your investment. Here is a screenshot (click to zoom-in):
Notice the top left corner, where the page is listed as not secure
Platform not freely available
We wanted to test the trading conditions offered by GFTrade, but weren’t able to download the platform. This is a bit of a shame, further reiterated by the fact different target spreads are mentioned on different sections of the website.
Relatively high deposit requirements
With a $300 minimum deposit, even the micro traders at GFTrade will be relatively big. The current industry average is around $100, as offered by the FCA-regulated industry old timers at HYCM.
Conclusion
GFTrade is an offshore broker, which doesn’t inspire much credibility in a lot of ways. The regulatory claims are questionable, given the recent statement by the SVG authorities. On top of that half the website isn’t registered as secured by modern internet browsers.
Of course, there are trading intermediaries, which are much more reliable. Some of the best ones are based in the United Kingdom and are overseen by the UK’s Financial Conduct Authority or FCA. They offer a fair trading environment and follow a lot of rules. We would like to bring only two to your attention, the ones which ensure your funds with the company will be safe.
1) segregated bank accounts. These special banking terms mean the company isn’t allowed to mix trader’s balances with their own. In effect, this prevents the most obvious con available – a company creating a website with nothing behind it, except for a way to accept deposits.
2) participation in the Financial Services Compensation Scheme (FSCS) is mandatory. This system provides you with protection, if your FCA broker were to go bankrupt. The Scheme will eventually pay you back the funds you had wit them, up to £50,000.
To key points about GFTrade one more time:
| Pros | Cons |
| MetaTrader4 (may be) offered | Offshore company |
| A lot of payment methods | HTTPS not present |
| Barely competitive spreads | Platform not freely available |
| High leverage options | Relatively high deposit requirements |
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