GigaFX is a Forex brokerage currently operating in the EU region based on their supposed offices on the continent. The company claims to have offices in Estonia, the UK, and Germany, however, is owned by a Commonwealth of Dominica based company called Four Square International Ventures Ltd. The company has quite a shady background as we were able to find a lot of contradictions in their terms & services and the information they disclose to the community.
First of all, we will discuss all of the features of the brokerage and get to the main point of this GigaFX review, to see if the company is involved in any sort of scam or fraud.
The company seems to have invested heavily in their website development. The website itself is decent but not immaculate. The information disclosure is also something to be commended as it is just 1 click away. However, the information we get is quite contradictory. The fact that the brokerage is making this info publicly available cannot be ignored whatsoever.
The first real problem we encountered was their whole involvement in the EU region. Since the company owns (or says it owns) several offices in major European countries like the UK and Germany, it is only natural to expect full compliance with ESMA regulations from them. However, no such thing was discovered by us. In all honesty, the GigaFX scam became quite apparent when we found out the company holds no regulatory license whatsoever, even an off-shore one.
The features that the company offers are mediocre at best as well. let’s get into discussing them in detail.
Leverage & Spreads
The GigaFX fraud may have become a real possibility because of their lack of regulation, but their features, although lackluster imply no such thing. The spreads offered by the company are fixed at 0.7 which gives the traders 1 less thing to worry about. The maximum leverage offered is 1:200. These features are neither amazing nor are they dreadful. In all honesty, these features are something some EU based broker customers dream of as of today. But the lack of security and the shady background completely wipe away all of the convenience of these trader benefits.
Not to mention the registration process on GigaFX Forex broker is one of the most time-consuming activities we’ve ever encountered. The amount of personal information that the broker demands from their customers is unheard of. Including pictures of customers’ ID, Driver’s license or Passport and of course Email and phone number. But the amount of benefit a customer gets for such disclosure of information is not balanced at all.
Deposits & Withdrawals
The deposit system of the brokerage is completely fine. The minimum deposit is 250 EUR/GBP, which is an industry standard in the region at this point. The main problems come with the withdrawals, which are way more important than regulation and trade benefits. No matter how bad of a situation the broker is in, a customer must be able to quickly and effectively withdraw their funds from their account.
When doing this GigaFX review we found out that the withdrawals take an unheard of amount of time. At least 15 business days are required for the customer to receive their funds. 5 days for the broker to approve it and 10 days for the bank to process it. Alongside that, the customer will be subject to withdrawal fees, which will be applied in a fixed rate. The 15 business days are for Credit/Debit card withdrawals, so you can imagine how long it takes to make WIRE transfers.
Trading Tools & Software
In terms of trading instruments and software, the GigaFX scam falls short, as the company is able to display a large array of options. Customers will be able to trade quite a large number of assets with various software to choose from, including MT4, WebTrader, and MobileTrader from the company.
Despite all of this, it is very hard to overcome all of the negative sentiment that the offshore base and unregulated operations the company is involved in.
Is GigaFX legit?
In terms of the company’s features, we cannot necessarily say that they are terrible, however, we can’t say that they are great. The number of pros is outweighed by just 2 simple cons. The lack of a license and shady base of operations, alongside terrible withdrawal conditions. Arguably the two most important security factors of a Forex broker. GigaFX scam is a definite possibility, but reality has not shown itself yet.
Nevertheless, we recommend you stay away from this broker. Even if you are swayed by the leverage, there are far better brokes with a more solid reputation with whom you can invest with. This GigaFX review deems this company untrustworthy, although not entirely a scam.