Globalix – Why This Cryptocurrency Broker Cannot Be Trusted
Are you ready to trade? If you have decided to start your trading career, you should know that the having the right broker can make all the difference in the world. You are going to conduct all your trades through the broker and if the broker cannot be trusted, there is no point in moving forward. The good news is that there are a horde of online brokers offering their services nowadays, which means you don’t have to settle for an option. But, this can also cause confusion because you don’t know how to decide if a broker is worth it or not. One option that you will come across is that of Globalix, which advertises itself as a forex, crypto and CFD broker that can help you take trading to the next level.
Globalix promises users a wonderful trading experience and vows to keep their funds secure. But, does it really fulfill these promises? Let’s take a look:
Introduction to Globalix
When you visit the broker’s website, you will be greeted with a sliding page that tries to sell you what the broker can do. Globalix has used some solid marketing tactics to convince people of its ability to maximize profits and this includes using convincing comments from other users. They claim that anyone who signs up with them can make huge returns, but the fact is that just because you are providing your users with access to numerous markets doesn’t guarantee them high profits.
They have also heavily advertised their trading robots and stated that they can offer high profit margins, but the fact is that these are the same promises and claims that have been used by scammers everywhere. Globalix is also attempting to trap the unsuspecting investor and it has laid out a trap similar to those used by other Forex scammers. The broker talks about their technologically advanced and informative tools for enticing newbie traders into using their robots and software. However, if you take a close look at their auto trading software policies, you will realize what a big scam it is.
According to the policy, you have to make at least 20 trades before you will be allowed to withdraw your funds. Realistically, 20 trades are not enough to make a profit, which means your money will be stuck. Moreover, if you attempt to withdraw before making 20 trades, you will be charged $100 as a fee for using the auto-trading software. Hence, it is just a way to make money off naïve traders who may not look closely at the policies before signing up.
Fake Demo Account
Globalix has also talked up the fact that it offers a demo account to its traders. This gives an opportunity to try out their trading platform and see what they are offering. But, Globalix has rigged their demo account in favor of anyone who signs up. With this demo account, newbies are able to make 95% successful trades, which is downright unrealistic. The only way this can happen is if the account is rigged. The issue with a rigged demo account is that it is essentially a trap designed to lure people into signing up for a real account on Globalix.
When newcomers see that they are able to earn a lot of money through the demo account, they will automatically want to open a real account. This is the first step where users might end up losing money. Why? When you open a real account, you have to deposit real money and your successful trades may turn into a nightmare when trading in the actual market. In a real account, you can lose money easily and you will be empty-handed.
Licensing and Regulation
If you take a look at Globalix’s legal page, you will realize that it doesn’t provide any information regarding their licensing or regulation. Thus, you cannot trust any information provided on their website because you are dealing with an unlicensed organization. A legitimate broker usually provides documents and certifications to support their legitimacy, but this not the case with Globalix and lack of these details show that we are dealing with a scam.
From the information that’s available on their website, the brokerage is being operated by a company called Trust Company Complex. This firm is registered in the Marshall Islands, a small place in the Pacific Ocean. In most cases, the location is not a problem, as long as the broker is licensed and authorized by an official regulatory entity. Sadly, this is not the case with Globalix. The problem with Marshall Islands is that it has become a top destination for any frauds or scammers because it has very liberal laws and lack of regulation when it comes to registering companies.
As a matter of fact, the government doesn’t require a person to be physically present in the country for the purpose of registering a company. This kind of loophole has been noticed by a number of scammers out there and thoroughly utilized to exploit people. Nonetheless, when it comes to Globalix, it can be safely assumed that the broker doesn’t fall under any regulatory monitoring or oversight as the government of Marshall Islands has not included forex trading or others under its regulatory framework.
The broker has also failed to provide any information regarding the people behind it. This means that the individuals cannot be verified and it is better not to work for an anonymous entity.
Four different account types are being offered by Globalix to its customers, which are Classic, Gold, Platinum and VIP. On the surface, the accounts look very impressive and the minimum deposit requirements associated with them are $250, $3,000, $15,000 and $50,000, respectively. However, when you put the features of the various accounts under the microscope, you will realize that they are extremely similar. As a matter of fact, you will not be able to find any significant difference between the various account types. This is additional proof that Globalix is a very unprofessional broker.
Why would a user sign up and deposit $50,000 when they are getting the same perks as those given to someone who deposited $250? It is obvious that the broker didn’t really think things through and this is a common mistake you would expect from a scammer. They are only interested in getting people to sign up. In addition, the broker also applies a dormant account fee of $100, which is applied if the account is left inactive for 45 days. While other brokers also charge this fee, they only apply it after a year of inactivity, another indication that Globalix is a scam.
The above mentioned information clearly shows that it is not safe to deposit your funds with Globalix. There is a major loophole on their legal page, which acts as a red flag; the broker has failed to mention the name of their depository bank. It means that Globalix is a broker that’s soliciting funds. It is possible that when you deposit funds, you are actually depositing them in the owner’s bank account.
Furthermore, it also indicates that they are pooling all funds in a single bank account. If the owner faces insolvency or goes bankrupt, traders will end up losing their entire deposits. In the case of a legit broker website, this wouldn’t be an issue because members are compensated. But, since Globalix is not regulated, you cannot expect to get your money back.
No Chat Help
The only way to contact Globalix is via email; they do not offer any chat help for resolving urgent issues. This means the broker is inaccessible and wishes to stay anonymous. It is best to stay away from such shady brokers who are not available when you need them.
Even though Globalix has claimed that they offer the MetaTrader4 for trading purposes, it is not true. When you register for an account with the broker, they give you access to a web based trading platform, which lacks a number of features that are considered standard with MT4. There are no market indicators that come with MT4 and no support for Expert Advisors (EAs). This means they are misleading their customers, which is not a good sign and points to a scam as their only goal is to draw in more traders.
Evidence clearly indicates that Globalix is a scam. It is not a regulated broker, which only hurts its credibility and its chosen location also creates doubt. On top of that, there are some major discrepancies in its claims. It states that it offers MT4, but when you sign up, you realize it doesn’t. Likewise, the spreads are really high, particularly when compared to other top brokers in the market. It also has some unusual fees when it comes to its accounts, which makes it suspicious. Even though it claims to offer trading bonuses, here again, it has unusual withdrawing conditions. In a nutshell, it is not a safe or legitimate broker and it is best to look for a different one.