When choosing a Forex brokerage there are a lot of nuances that need your attention. The reason is that those nuances can quickly grow into serious problems and lead to a loss of capital without a hope to recover them. Today we will look over the GigaFX reviews and make one of our own. We will try to determine whether or not the GigaFX scam is a reality or just a rumor. We will look over the technical as well as the legal aspects of the brokerage and try to make our decisions based on them.
The company seems to be based in the EU since they offer customer support from UK, German and Estonian numbers only leaving us to speculate whether or not they have a base of operations there. Nevertheless, the company is happy to accommodate European traders, however there is one little problem with the whole ordeal. GigaFX.com is not regulated within the jurisdiction of the EU. it is actually not regulated anywhere as a matter of fact.
However, their website says otherwise. While not clearly stating that they hold a regulatory license, the company claims to be compliant of all MiFID guidelines. But since the guidelines are a “branch” of ESMA, GigaFX contradicts their own statement. You see, GigaFX.com has a maximum leverage of 1:200 which is a clear violation of the ESMA regulations as the regulatory body imposed a restriction of only 1:30 leverage to all EU based Forex brokers. This indeed is a great way to tell whether or not GigaFX.com is conducting its operations legally withing the EU jurisdiction. And based on those facts, they are not.
In terms of features there is nothing to like with GigaFX as well. They offer lackluster traders benefits. While being an unregulated body and pretty much having no restriction on how much leverage they can offer, they still refrain to offering only 1:200, while other regulated entities are able to provide leverage of 1:500 or even higher. Their spreads are fixed however, which is a good way to keep a trader calm as they know they’ll have a steady fee ration, even if they may end up paying more. The minimum deposit is a mimic of all the companies in the industry and is sitting at EUR 250.
When it comes to trading instruments, GigaFX is not half bad to be completely honest. But this small win is not enough to clear our GigaFX scam possibilities. The software variety is also quite nice varying from WebTrader, to MT4 and MobileTrader. But we need to note that spending some money on fancy tech is not enough to cover up the shady nature of the company.
The GigaFX fraud shines brightly in their withdrawal policies however. We have to mention that their way of approaching withdrawal requests is quite appalling, making the customers wait more than 10 business days on Credit/Debit card withdrawals, it is equivalent to what regulated entities make customers wait for WIRE transfer withdrawals.
Furthermore, not only will the customer have to wait for the funds to be transferred, they will also have to pay fees for it. Also, the withdrawal process can be completely denied by the broker itself, making the wait and fees irrelevant completely. And judging the way this GigaFX review has been going, we believe that most of the withdrawals will indeed be denied.
We believe that there is no sum-up needed for the review. Our sentiment towards the company is quite clear at this point. We do not recommend anyone to deposit with GigaFX as they clearly seem to be a scam. Even if they are not, the process of trading with this company is just not worth it. The mediocre traders benefits and long waiting hours are not the type of value you get for the size of the minimum deposit. There are regulated brokers out there that offer better conditions, even when under the firm restriction of local regulators.
We deem the GigaFX scam to be a reality and would like to warn all our readers to avoid this company by all means necessary.