GMOTrading is a CFD and Forex broker owned and operated by Royal Forex Ltd. The company is located at 2 Prodromou & Demetracopoulou, 4th Floor, 1090 Nicosia, Cyprus s and is regulated by the Cyprus Securities And Exchange Commission (CYSEC) under licence number 269/15. The company can be contacted at their UK phone +44 2039364444 and email [email protected]
Is GMOTrading A Scam?
One of the main ways to see if a broker is a scam or not is to check their regulation. A broker with full regulation is constantly audited, asked to submit compliance documents and has to maintain strict capital requirements among other things. GMOTrading is regulated by CYSEC, and so far there haven’t been any reports of misconduct so we don’t have any reason to suspect them of being a scam.
That being said, I don’t like their “we are the best” approach. A quick glance at their “About Us” section and all you’ll see are buzzwords and self-praise. The best, “unparalleled trading environment and services” and more… feels a bit cheesy but it doesn’t make them a scam.
Why Doesn’t GMOTrading Suck In 50 Words
Regulation plus Meta Trader 4 equals “A Match Made in Heaven” when it comes to brokers and GMOTrading has both. On top of that, they offer the web version of Meta Trader (Webtrader), which brings you all the features of MT4 without the need to download or install anything.
Why GMOTrading Sucks In 50 Words
They advertise cryptocurrency trading, Forex, commodities, stocks and more but when I opened a Demo account all I could find was Fiat currency pairs, no trace of the other assets. This could be because I was using a Demo account but I thought the purpose of a Demo is to emulate real market conditions and to offer the client a glance at the broker’s services and trading conditions. If I were to judge them based on the Demo experience, I wouldn’t open an account there.
Should I Open An Account With GMOTrading?
Regulated by CYSEC, Meta Trader 4 for desktop, browser, and mobile, lots of education material and a relatively low deposit. What’s not to like? Well, a couple of things: this broker relies on buzzwords and hype a bit too much and lacks easy to find information.
They have three types of accounts – Silver, Gold, and Platinum – but they don’t say how much you need to deposit for each one and they only list leverage information for Professional traders.
Education comes in form of videos, e-books, courses, and tutorials, which are all great for newbies but of little interest to advanced traders. Let’s be honest, advanced traders will not find anything to learn from any broker, mainly because the education material on brokers’ websites is geared towards the entry level.
Overall the website has a nice presentation but I would like to see more information about trading conditions, including spreads, minimum deposits, and a full asset list. That being said, I believe GMOTrading has an advantage over its competitors: the CYSEC regulation, which comes with extra perks and safety features (transparency, segregated accounts, compensation fund in case the broker goes bankrupt, etc.). But on the other hand, you can find a lot of regulated brokers nowadays, and I believe there are better options.
Many GMOTrading clients have complained about “bully” tactics and high-pressure marketing. We’ve also found people who say the brokerage spends the clients’ money without permission (by opening trades I assume) and some who cannot withdraw or even contact the brokerage after asking for their money back. These complaints are quite worrisome, so we recommend caution around this broker.
GMOTrading Regulatory Warnings And Announcements
CYSEC hasn’t issued any warnings or fines against the broker.
Withdrawals have a very fast processing time: same day if the request is sent before 9:00 am GMT+2 or the next day if the request comes after 9:00 am GMT+2 (this doesn’t apply to weekends and holidays). Then it depends on your bank how long it takes to transfer the money.
The company will charge a 50 EUR (or equivalent) withdrawal fee if there’s little or not trading on the client’s account before a withdrawal request is submitted (pretty weird if you ask me). Also, withdrawals below 100 EUR will incur additional fees, which are not mentioned.
CYSEC has put a ban on trading bonuses, so this broker doesn’t offer bonuses due to their CYSEC regulation.
Usually I am very content to see a broker that offers Meta Trader 4 and GMOTrading offers not one but 3 versions of this platform – desktop, web, and mobile. Also, seeing how many unregulated brokers still operate, we can surely consider this brokers’ CYSEC regulation an extra.
User Friendliness 16/20
The website is translated into 6 languages but not so easy to navigate, and a lot of basic information is missing. The trading platform is user-friendly but it has a learning curve. Demo accounts are freely and easily available.
Range of Markets, Spreads And Leverage 15/20
On the website, GMOTrading advertises a huge array of trading assets across 4 classes (currencies, indices, stocks, and commodities), but unfortunately, most of them cannot be found on the trading platform (Note: we used a Demo account for this review). Spreads are very high for the Silver account (2.2 pips for EUR/USD) but they become tighter for Gold and Platinum accounts. However, the deposit amount for either account is not specified.
The leverage goes up to 1:500 for currency pairs for Professional traders but it’s very difficult to qualify as a Professional according to ESMA rules. The max leverage for retail traders is 1:30 for currencies and lower for everything else.
Deposits And Withdrawals 16/20
They offer little to no information about deposit and withdrawal methods. According to the logos that appear on their website, they allow Visa, MasterCard, Maestro and V Pay. They also mention banks but don’t offer additional information.
Fees And Support 16/20
GMOTrading doesn’t charge any fees to open an account but they charge 50 EUR if you wish to withdraw before trading as much as they want you to and also an unspecified fee if you wish to withdraw less than 100 EUR. However, keep in mind that the banks involved may also charge fees. Support is available via phone, email and Live Chat; however, the Live Chat rep was totally useless and didn’t even answer simple questions like: “Do you have an FAQ section?” or “What is the minimum deposit?”
Meta Trader 4, CYSEC regulation, fast processing times and an overall professional look. All these add up to a solid broker, but nothing unseen before.
GMOTrading Overall Ratings 77 + Regulated (+3) = 80/100
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