GBCFX Review – An Online Broker With Great Potential but Not So Great Service
When you want to start your trading career and pick a broker to start things off, you have to make sure you will be getting everything you want as a new trader. Not every online broker is there for new traders. You can see that some brokers are mainly focused on advanced traders. Their entire systems and the account types have been designed for these advanced traders. GBCFX, on the other hand, is one of the online brokers that mainly focus on new traders. This makes GBCFX unique and very attractive for new traders. However, this potential is wasted when you look at a few other things that a broker should be good at.
Let’s find out about the reasons why this broker might not be the best broker for you as a new trader despite a great potential.
GBCFX Is Unregulated
For the wisest of traders out there, the journey of trading right here. If you know what regulation is all about, you will not think of anything else other than this. When you sign up with a company that provides you services online, you have to make sure that your money and information will be safe. You might not even be located in the country where the company is headquartered. The only way you can have some satisfaction of your mind is when the company you are about to sign up with is regulated. It means that there is a third party to which this broker is accountable for its financial activities.
When it comes to GBCFX, you know that this broker is not regulated. Yes, it is a registered company so you can’t call it a fraud entirely. There are many brokers who made their names when they were not regulated. Later on, they added regulations to their credibility. However, there is no regulation in this particular case and there is no mentioning of such information on the website. You are sure given a warning on every web page that trading involves huge risks and they losses can be bigger than the deposit you make in your account.
If there are a few things that are convincing you to sign up with this broker, here are the two factors you should consider. If after considering these two factors you still think you should sign up with this broker, you are free to make your choice. The first thing is that there are other options available. Why would you take the risk of signing up with an unregulated broker when you have hundreds of regulated brokers providing you the same or better service? The second point is that you are going to trust this broker with your money and information both.
If the broker is not regulated, there is no way for you to get your money back if something wrong happens. At the same time, if your information gets stolen, you can’t hold the broker answerable. This is the advantage that the broker enjoys without any type of regulation. You, as an individual, can’t do much about whatever has happened to you. You need an institution to help you with the issue and that institution is none other than the regulating authority. In a nutshell, when you sign up with this broker, you have to know that it is not a regulated one.
The Account Features Don’t Make Much Sense
Let’s take a look at the account types and their features because that’s where you find out what you will be getting when you sign up with a broker. The first thing is that there are three types of accounts. Again, all the three accounts are suitable for new traders in some sense. For example, the most expensive and advanced account is called the standard account and the minimum deposit you need in it is $10,000. It might sound like a big deposit but when you compare the premium accounts from other brokers, they can require you as much as $50,000 from you to open their premium accounts.
The only currency you can use to deposit money in your account is the US dollar. This is a big limitation because the broker is available for people from all around the world to sign up. There should be more options available for people to deposit money in their accounts. The leverage is something that won’t make much sense to you. If you go with the most advanced account, you have a leverage of 1:100 available. On the other hand, if you go with the most basic account, you have a leverage of 1:400 available. These ratios do not really make any sense at all.
Why would the broker give a new and novice trader a leverage of 1:400? The trader might end up with a loss so big that he/she might get nightmares about it for years. On the other hand, why would you shrink the leverage for a trained and professional trader? If you are a new trader who does not know much about trading, leverage is a contribution that comes from your broker to allow you to control huge trades. When you read a leverage of 1:100, it means that for your one dollar, the broker is going to contribute 100 dollars. As a result of this contribution, your profits can grow up immensely.
What new traders do not realize is that this effect applies to their losses as well. If leverage can amplify your profits, it can amplify your losses as well. When you are a new trader, you are expected to end up with a loss more than you are expected to profit from your trades. So, having such a huge leverage right from day one does not really make much sense for a new trader. Contrary to that, the advanced account has a leverage of only 1:100. If there is someone you would want to take a bigger risk, it has to be a trader who has been trading for a long time.
The Trading Platform Is MT5
If you are new to trading, you might not know much about trading platforms. Some brokers can offer you their own trading platforms. However, developing your own trading platform can be extremely expensive so a broker offering one is definitely a big broker. The most common way for brokers to offer a trading platform is by buying the subscription or license to a third party trading platform. Among many trading platforms that exist today, MetaTrader is consider the best. However, MetaTrader 4 is the one that has made its name around the world for being the best trading platform.
MetaTrader 5 is the later version of MT4. While there is nothing wrong with MT5, it could not make the name that MT4 did. When you look at the expert opinion, MT4 is best for you if you are only a forex trader. On the other hand, you would want to go with MT5 if you want to trade CFDs and some other types of contracts. However, you can have a web trader to trade whatever assets you want to trade. The thing about MT4 is that the trading world is already familiarized with it. Secondly, many of the options it offers in addition to what MT4 already offers are not suited to new traders.
So, you can say that MT5 is an upgrade of MT4, but it is not really the best trading platform for new traders. You do have additional options but you might never use them. MT5 is more about advanced traders who want more timeframes and more detailed technical analyses before entering trades. Most of the online brokers take care of this issue by offering both i.e. MT5 and MT4. On the other hand, GBCFX is one of the very few online brokers offering only MT5 access to its traders. This can be a bit disappointing for many traders out there.
Withdrawals Are Not So Smooth
This particular point is going to worry you a lot. Many online reviews of this broker have expressed that withdrawals are not so easy with it. Of course, how can you feel comfortable when you can’t even withdraw the money you have made on your account after your trades. You can use just about any method of money deposit including bank wire, credit cards, and internet payments. However, the broker has not earned a very good name when it comes to you withdrawing your money. What makes matters worse is that there is not much information given on the website about deposits and withdrawals either.
So, you have three major aspects that you have to check before you finalize a broker. However, when it comes to GBCFX, you do not get a satisfactory response. When it comes to the security of your information and money, there is no regulation of this broker. Secondly, there is only one trading platform available for you and it is not MT4. Withdrawals can be troublesome as many online reviews point out. So, there is no doubt about the potential this broker has for new traders, but that potential is easily marred by the issues stated above.