GigaFX is a Forex broker that claims to operate within the Jurisdiction of the EU. The company boasts 3 offices in Estonia, the UK, and Germany. GigaFX is a child company of the Commonwealth of Dominica based Four Square International Ventures Ltd. The leverage available starts at 1:100 and ends at 1:200. Spreads are fixed for all accounts and are 0.7 pips. The minimum deposit of the company is an industry standard of EUR 250. GigaFX Forex broker does not feature a regulatory license of any shape or form right now. Neither in the EU nor in Dominica.
The layout of GigaFX
In GigaFX reviews, we will focus not only on the technical aspect of the company but also the way it presents itself, how good the transparency is from their side and of course, how is the company able to operate in the EU.
The first question that needs to be answered is the transparency of the company. They do indeed provide a lot of information to the customers, however, some of the information is contradictory. Meaning that the company claims one thing, but does the other. For example, GigaFX Forex broker claims to be compliant to the MiFID regulations, while at the same time offering leverage of more than 1:30, which is a clear violation of the ESMA guidelines.
They also claim to have offices in the UK, Germany, and Estonia, while being owned by a Dominican based company, and not holding any type of regulatory license within or even outside of the EU.
In terms of features, the company does indeed offer at least some type of benefit to their customers if they, of course, decide to overlook the security issue and deposit funds with the broker. We are now moving to the technical aspect of this GigaFX review, meaning that we will cover the Leverage, Spreads, Withdrawals & of course the support that the broker offers.
In terms of Leverage, the company offers more than any legitimate EU based brokerage can. The maximum limit at this point is 1:200 and pairing that up with a EUR 250 deposit is a nice way to maximize trades. However, it is still very dangerous to trust the company to direct your trades to the market or even processing the trade at all.
Aside from the massive security issue that is the lack of regulation, the company has some of the most bizarre withdrawal policies in the industry. According to GigaFX.com, any withdrawal request will need to be screened for 5 business days, after which the staff will decide whether or not to approve it. This adds 5 days to the already long 10 business day wait for Credit/Debit card users when applying for a withdrawal. And what’s worse the GigaFX scam becomes a real possibility if the broker outright denies the request. In addition to that, the customer will also have to pay a fee.
The spreads on the GigaFX.com platform are quite nice, however. Having a fixed 0.7 pip spread is a luxury many broker customers do not have and would like. If GigaFX scam was a reality, this spread would definitely be the main way to attract new customers.
GigaFX provides several Ebooks and educational videos on Forex trading and general economics. We cannot deny the fact that this is a great addition for any beginner trader to quickly learn the trading process. Along these educational resources, GigaFX also offers Market news, signals and various other benefits to the customers. But is it enough to disprove the GigaFX fraud? Is it enough to outweigh the massive disadvantage of terrible withdrawal policies and lack of license?
Is GigaFX legit?
It all boils down to whether or not the GigaFX scam is a reality or not. If the fraudulent business model is proven to be a reality, then all the benefits and good features we have mentioned will mean nothing. However, it is hard to really tell whether or not this company is a scam, but they are definitely leaning towards it. We cannot label it as a scam right now, but we recommend our readers to avoid the company by any means necessary.
Since it is hard to determine whether or not a company is a scam or not, it is already a red flag for beginners. A good company is just good, there are no questions tied to their operations. A shady company will always have some skepticism towards their business model and GigaFX is exactly that type of company.