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Broker Globtrex, owned by Coverdeal Holdings Limited, offers online Forex trading, CFDs on stocks, bonds, indices and commodities on two trading platforms.
Company. Fund security
Coverdeal Holdings Limited owns the Globtrex.com domain. Coverdeal is licensed by the Cyprus Securities and Exchange Commission (231/14). The company is based in Cyprus and has branches in the Czech Republic and Poland, however, the domains of these branches are no longer active.
With a competitive tax regime, a well-developed financial sector and tough regulations, Cyprus has become a popular destination for Forex and binary options brokers.
Companies licensed by CySEC must have at least € 730,000 in their account. In addition, they are required to report transactions, keep client funds in segregated accounts, and meet a number of other requirements.
All CySEC regulated brokers can operate in all EU member states and are required to participate in the Investor Compensation Program. However, Globtrex argues that some clients' funds may be held in segregated accounts outside the EU, which means that in the event of claims from traders or bankruptcy, proceedings may take place differently than CySEC specifies.
Trading conditions
Globtrex.com offers three types of accounts, all offering interest-free trading with up to 1: 200 leverage. In fact, most of the information about trading conditions for different account types is not available on the broker's website.
Minimum initial deposit
To open an account with Globtrex.com, traders need to invest at least $ 100.
Spreads and commissions
Although Globtrex.com claims to offer floating spreads, in fact on the demo account the spreads are fixed and very high - 3 pips for the EUR / USD pair.
Leverage
The maximum leverage level offered by Globtrex.com is 1: 200 (for Forex), this is the average ratio. The default leverage provided by the broker is in line with the latest CySEC guidelines.
Trading platforms
Globtrex.com supports the MetaTrader5 platform, which is available on PCs, mobiles and tablets. The broker also offers Sirix Webtrader.
MT5 is an upgraded version of MT4. The terminal has even more functions than its predecessor. But, nevertheless, many brokers still prefer MT4 as its indicators and advisors (EA) are not supported on the MT5 platform. Recently, the popularity of MetaTrader 5 has been gaining momentum, and finally the hedging option and a number of other improvements have been added. In addition, MetaQuotes announced that it will no longer release updates for MT4.
The Sirix Webtrader web platform is also very popular in the Forex industry. It is user-friendly, requires no download, and has social trading capabilities. Investors can directly copy the trades of other traders.
Analytics and news
Globtrex.com offers a rich educational section with e-books, videos and glossary. All these materials are available to any trader.
Support service
The main office is located in Limassol, Cyprus. There is also a branch in Prague. Support specialists answer customer questions by phone and email. At the same time, online chat is not offered for communication, although this method of communication is most preferred by traders.
The website is available in English, Italian, Spanish, Polish, Czech, Slovenian, Croatian and Hungarian.
Ways of payment
Globtrex.com supports credit / debit cards, wire transfer, WebMoney, and local transfers.
Pros:
regulated broker; selection of trading platforms; selection of assets for trading.
Minuses:
high fixed spreads.
GLOBTREX is a company whose task is to provide intermediary services to traders. Brokers / Crypto exchanges provide access to currency / cryptocurrency trading, first of all. Also, many of them, if we are talking about brokers, give the opportunity to make transactions with company shares, bonds, commodities, precious metals, indices, cryptocurrency and other assets. A private person can make transactions with all these instruments only on a trading platform, access to which is provided by a broker or a crypto exchange.
In addition, thanks to such companies, an individual can operate in the market with amounts significantly exceeding the amount of his own funds. This is called the provision of leverage. For example, having a deposit of 1,000 USD with a leverage of 1:400, a trader can make transactions for 400,000 USD.
As well, the broker / crypto exchange opens access to analytics, auxiliary tools, trading signals. Without all this, modern trading is impossible.
GLOBTREX profits from traders' trades, usually in two main ways
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First – most common. Using spreads. This word refers to the difference between the best prices for buying and selling a certain asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between the broker and market users - another. The mediator takes the difference.
The second method is easier to understand. This is a fee for each operation performed. Most often it has a standard value, but can also be measured as a percentage.
Therefore, the company is interested in attracting as many clients as possible and that they conduct active trading.
How honest brokers / crypto exchanges should work and how they work, we found out. And now let's look at how scammers act, they are also called kitchens.
The most common way to cheat – is to twist quotes. Broker / crypto exchange gives the trader quotes that differ from the real market. There is a substitution of data in order to make operations unprofitable. The deposit is reduced, and then completely reset. At the same time, the trader thinks that his operations were made on the market, but in fact – just on the site of scammers.
Bonus – traps. They are generously distributed for anything: registration, account replenishment, etc. Only after that, in order for the client to withdraw his own money mixed with bonus money, it will be necessary to fulfill a number of actually impossible conditions. For example, to conduct trading operations in the amount of ten times more than the size of the deposit.
The User Agreement may also mask a clause that allows the broker / crypto exchange to dispose of the client's money. Inattention when reading such an agreement most often turns into a complete loss of the deposit.
One of the key points – it is the place of registration and regulation of the company's activities.
First let's talk about registration. As a rule, traders are more trusted by companies either from their own country or from an economically developed country, for example, a member of the European Union. Of course, compliance with UK law is reassuring, and compliance with the laws of an unknown island in the Indian Ocean does not mean anything to most at all.
On fact, most brokerage companies are registered offshore, and we are talking not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are popular offshore zones among companies. Registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has claims against such a company, then it is likely that he will have to deal with it in accordance with the laws of the same conditional Belize. It is possible to be physically present there at court hearings. And this is extremely expensive and difficult.
No is it worth running like fire from just the word «offshore»? As an answer, we will cite the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes with the help of offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point – this is the regulation of the broker / crypto exchange. First of all, it is carried out at the level of the state where the company is registered. Each country has its own regulatory body for brokering. So, in Russia it is the Central Bank of the Russian Federation. The trader can find permits on the websites of such authorities. But there are also supranational structures. For example, the International Financial Commission, which is an independent self-regulatory organization, specifies disputes between its members – brokers and their clients.
If there is no information on the broker's website / crypto exchange about the regulation of its activities or license, then it is almost certainly a scammer. Or on the site there is data on some license issued by him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, or crypto exchanges, study its history. Look at the links to its experts. If one of the leading TV channels in the economic news for 5 years in a row refers to the opinion of the analyst of the broker in question – this is good. If the broker / crypto exchange assures that it has been working for 15 years, but there is no information about it on the Internet at all – this is bad.
It is important to pay attention to reviews about the company. And read them not only on the website of the broker itself / crypto exchange. In the kitchen, they will certainly be only praiseworthy. It is better to view as many sites as possible.
Pay attention solely to the specifics in the offers on the websites of brokers / crypto exchanges. Honest companies openly write about interest, spread size, minimum deposit, etc. Scammers lure loud streamlined phrases about a rich tomorrow, a stable income, mislead with incomprehensible terms about multi-sites, superfunctions and so on.
Specify the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers / crypto exchanges sometimes hold social promotions. Scammers will definitely not do this.
Therefore, the process of choosing a broker / crypto exchange is complicated. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich around the world
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Before any trade and choosing a broker You must always read reviews on this site and on other sites. Companies who are honest, have a rating of above 3.8. Also there is always the risk of loss when trading CFDs. Be careful and read the disclosure on the website of the company you chose. GLOBTREX received a score of 1 of 5 on our resource.