GalaFX has three types of live trading accounts: Introduction, Standard and Pro. However, in the English-language version of the site we could only find the trading conditions for one type, which we assume is the Standards. The broker notes that residents outside the UK and Ireland can only use Pro account types, whatever this means. There is also a free demo account with $100 000 for testing purposes.
The Company. Security of Funds
GalaFX is a rather complicated affair. On one hand it is owned by a company allegedly registered in Bulgaria, on the other it provides a contact address in London. Finally, it appears that the broker is targeting Turkish clients.
There, however, are several problems with this broker. Firstly, a check in Bulgaria’s company registry revealed that there is no such company registered in the country. This is a huge red flag.
We must not forget that earlier this year Turkey’s Capital Markets Board (SPK) has taken a number of measures restricting the forex brokerages in the country. In February SPK lowered the maximum leverage to 1:10 and imposed a minimum deposit requirement of TRY 50 000 (around $13 600 at that time), or their equivalent in another currency. In this regard, GalaFX complies with the requirements.
But in July SPK forbade foreign forex brokers to operate in Turkey. To be more precise, it forbade leveraged trading or having leveraged trading accounts with foreign brokers that are not licensed by the SPK. Unless GalaFX is licensed by SPK, it is violating the prohibition.
Last, but not least, in the Turkish-language version of its site, the broker claims it is regulated by UK’s Financial Conduct Authority (FCA) and even gives a registration number. However, our check in The Financial Services Register of FCA revealed that this is the number of another company and GalaFX is not regulated by the FCA at all.
MT4 is familiar, stable and has many options and functionalities, including hedging, Expert Advisors, charting and technical analysis tools. The platform also supports algorithmic trading and a large number of third party software bridges, further expanding its functionality.
There are two types of promotions offered by GalaFX: a $250 welcome bonus and a Bring your friend bonus of up to $500.
The English-language version of the site has two more promotions: a raffle for a Mercedes GLA and a leverage of up to 1:3000 under certain conditions.
Methods of payment
It appears that GalaFX is accepting only bank transfers, mostly from Turkish banks.
In our opinion, there is something very fishy about GalaFX and it could be a scam. There are way too many easily verifiable inconsistencies and outright lies and they cannot be overlooked. The two versions of the site do not correspond to each other, which, let’s say can be explained. But the site itself, despite well-done at first sight, is actually quite sloppy and there are entire categories, especially in the English-language version, that are using the Latin dummy text, instead of having real content.
Our verdict is: avoid. It is much wiser to deal with properly regulated and reputable forex brokers, like the ones supervised by the FCA or ASIC. In the case of Turkey, you’d better abide by the local law and seek SPK-licensed brokers.
GalaFX Review Conclusion
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