GoldmanFX Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this GoldmanFX Review.
GoldmanFX Review
GoldmanFX (or Goldman Capital Markets) is a company which offers forex trading and binary options, through three account types. The company has nothing to do with the famous investment bank, bearing a similar name.
The Company. Security of Funds
Company Country Regulation
GoldmanFX (Goldman Capital Markets) Seychelles N/A
GoldmanFX claims to be registered under the International Financial Service Committee, which doesn’t exist. The name bares some resemblance to another regulatory agency, but is distinctly different. The link which they provide, is to a non-functional website. The company is simply unregulated.
As you may know, financial regulation should be one of the key criteria when choosing a forex broker. Regulatory agencies are government institutions which impose rules on companies in the financial services sector. Their aim is to ensure a competitive market and provide clients with protection.
One of the most reputable such watchdogs is the UK’s FCA. It requires minimum capital holdings of EUR 750,000, as a sign of good will, from brokerages. Another key rule is the participation in the Financial Services Compensation Scheme (FSCS). As a result of this legislation, if your FCA regulated broker goes bankrupt, your account will be protected, up to GBP 50,000.
Trading Conditions
Minimum Initial Deposit
GoldmanFX has set $500 as the initial minimum deposit. This makes testing the company’s services a bit more expensive than desired. Other brokers have much lower requrements. For instance, FXTM requires only 5$ as an initial deposit. Keep in mind, this shouldn’t be a crucial factor when choosing you broker, as a successful trading plan requires a serious capital investment, risk management and discipline.
Average spreads & Commissions
Spreads on EUR/USD start at 2.0 pips when trading with GoldmanFX. Our test confirmed the 2.0 pips level, during one of the most liquid market sessions. However this is a bit over the current industry averages, as most broker offer something in the 1.0-1.5 pips range for this pair. Here you can compare spreads on some of the leading forex brokers.
The company allegedly also offers binary options, although we couldn’t start their platform.
Leverage
GoldmanFX offers a maximum leverage ratio of1:200 for the mini accounts. As your investmetn gets bigger, this level will drop. This is in line with the current industry standards, while some brokers go even further, offering 1:500 or even higher levels.
You may already know this, but trading with higher leverage is riskier. There is a reason why US regulators have set the cap at 1:50. There were talks of the UK’s Financial Conduct Authority following suite, but nothing has yet came to fruition.
Trading Platforms
GoldmanFX provides the MetaTrader 4 (MT4) platform, which is an industry staple at this point. It offers a solid charting package, with lots of custom technical indicators. The same goes for the automated trading environment, where you can run a variety of trading robots (known as Expert Advisors).
The platform also has mobile versions for Android and iOS. Of course, they are not ideal for doing technical analysis (like all mobile platforms), but they do offer an easy way to catch-up with recent developments.
Methods of Payment
GoldmanFX offers few deposit and withdrawal methods. They are: Bank Transfer, Credit/Debit Card and even China Union Pay. Most e-wallet options are left out.
GoldmanFX is a forex broker registered in the Seychelles. However it does not stand under any financial regulation. The fact it points to a fake regulatory agency doesn’t inspire trust. If that wasn’t enough, the company “borrowed” the name of a well-known bank, without having any connection to it. Trading conditions are worse than the current industry standard.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
GoldmanFX Review Conclusion
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