FXGM is a broker that provides Forex trading services and CFDs on different type of assets. There are reviews about scams and problems associated with this broker online, so we will conduct a review to analyze it better and consider alternative brokers. Among the alternative options, there are people who see Plus500 as an interesting alternative as you do not have to pay any commissions to start operating. In addition, the online reviews and security are far better, generally speaking. Either way, this is a review about FXGM, so we will study it closer below. One of the first things we will analyze is whether it is legit (76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money).
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Regulation: is FXGM safe or a scam?
Many investors spend a lot of time examining the commissions and offers provided by brokers, and although it is great start, the first thing one should do is to discover whether the broker we are interested in is reliable or not. It is worthless attempting to save on commissions if your desired broker is a scam. And how can we discover that? The main tool for traders is regulation. Although not 100% secure, it does tell us the level of seriousness of the broker.
FXGM is Cyprus broker based. Although some investors might get scared by this fact, they shouldn’t because it is a country within the European Union. As one can expect, it is regulated by the CySEC Cypriot entity. If anything, one should take into account that the broker is owned by a company. Depaho Ltd. is the company owner of FXGM, which is also registered with the FCA. Therefore, we believe it is a serious entity, even though it could be more reliable.
So does this mean that it is reliable? No. In fact, we have seen reviews in more than one forum accusing them of fraud. Even though those are very serious claims, we do not share them. However, the truth is that they use very aggressive commercial techniques by calling customers so that they can register and try to convince them to perform operations. Personally, we do not like these types of policies, so we prefer alternatives such as those offered by Plus500. They do not have agents calling customers. In order to promote their services, they use more attractive techniques such as not charging commissions in order to trade. There are of course, other possible low quality options such as Trading212, 24Option or Markets.com to trade Forex.
To summarize this section on safety, in our opinion, FXGM is safe, since it meets the requirements that we usually look for, but nevertheless, we do not find them particularly reliable due to their employed aggressive sales techniques. However, we will not claim that they are a scam.
First of all and before speaking directly about the feeds, we must explain that FXGM offers different types of accounts for their clients. Therefore, the conditions for each are different, so we cannot fully draw an exact list of the commissions. In addition, many CFD brokers do not have commissions to trade, but rather use a different system which involves spreads. In doing so, the spread of each asset is different, and may vary depending on time. So, let’s take a closer look at spreads, broadly speaking. Of course, keep in mind that the risks are high.
Perhaps the best way to compare spreads is in Forex, given that many people conduct trading using currency via Forex. The image below shows the average spreads to be trade with the euro against other currencies.
Generally speaking, Forex is the cheapest of all brokers since there are certain currency pairs with a great deal of money and therefore, brokers have less costs. Therefore, if you want to trade with CFDs on stocks or other assets or underlying assets such as commodities, stock indexes or cryptocurrencies such as Litecoin, Ethereum, Ripple, Bitcoin Gold or Bitcoin Cash, the conditions are different.
It looks like FXGM does not have a quality simulator in place when writing this article so you have to look for alternative offers such as the limitless free demo account offered by Plus500, which can be obtained by clicking on the lower button (76.4% of retail CFD accounts lose money).
If there is something we value a lot are the reviews from investors who have used the services of a broker. Thus, we scan social networks such as Facebook and Twitter and browse through investment forums to read the comments from investors. If we observe that all of them are negative, the signal cannot be clearer, we are dealing with a low quality broker or whose characteristics are not favorable for traders. If the number of positive opinions turns out to be higher than the number of negative comments (it is impossible not to find at least one bad comment online about any broker), we take it as a good sign.
However, the truth is that we haven’t seen many positive reviews for FXGM in English, although we believe there are some. For example, we saw a comment from an investor who mentioned that it look him a while to receive his money after requesting a withdrawal, but was able to resolve it through his manager. We have also seen some good comments about investment platforms (PROfit, both in web and mobile version, and MetaTrader4).
Nonetheless, there are quite a few bad reviews. Some investors and foremen have accused FXGM of cheating them. The reason behind that is that they were encouraged to deposit money in exchange for a bond, and then were promised that they could perform a certain number of operations without any risk. According to those investors, they ended up losing their money. We are not sure to what extent these opinions are true or misunderstandings. What we do know, however, is that if we look for reviews from other brokers such as Plus500, although we may encounter negative comments, most opinions are good.
How can we summarize our opinion and the opinions we have found on the internet about FXGM? We believe that the best way is to create a list with the strengths of FXGM and another one which includes the things they should improve. However and before moving forward, we want to mention that there is no perfect broker, since each investor has its own needs, and a person wanting to make Forex trading with a currency pair that barely moves money is not the same as someone who trades with CFDs on stocks with the greatest volume of Stock Exchange. Therefore, our assessment is somewhat totally subjective and should not be taken as an absolute truth.
- Own platform (PROfit) and MetaTrader 4 platform
- Adjusted commissions for Forex
- Regulated in a country within the European Union
- Fraud accusation reviews
- Too aggressive in marketing their products
- It offers a feeling of distrust
- They do not have a free demo account like some competitors
In conclusion, we want to repeat some things we believe are important. On the one hand, that everything seems to indicate that FXGM is a serious organization, but there are also some things that make us believe that there are certain difficulties when paying. In addition, even though it is well regulated, it gives the impression of not being reliable and that their agents pressure their clients to invest. Therefore, we believe opinion that it might be a good idea to look for an alternative broker with a better image and without these types of problems. For example, Plus500 is properly regulated, they do not pressure their investors and are well-known. Also, Plus500 allows you to trade without paying operating commissions (76.4% of retail CFD accounts lose money).