Read our Gainsmarket review to see if this broker is a scam or legit. Just to clear doubts, this is a gainsmarket.com review.
The online trading space has attracted a lot of attention in the last decade or so, particularly with the introduction of cryptocurrencies. Likewise, people had also shifted their focus to the financial markets amidst the global coronavirus pandemic because other forms of investment were not generating the same returns as before.
This has obviously resulted in a high demand for brokers because they provide you the services needed for engaging in online trading. But, why do you need to go through this Gainsmarket review?
This is because not all brokerages that are operating in the market are a good choice. Yes, there are some that have a really strong reputation and are known for offering quality services, but it does not mean that the rest offer the same as well.
The phenomenon of scam brokers has become quite widespread and there is an endless list of people who have suffered at their hands. It is true that you can make both profits and losses during online trading, but you do not want to lose money to a scam.
In order to ensure you don’t have to, your priority should be to find a broker with the right qualities that checks all the boxes. Bear in mind that just because a company looks good on the surface is no guarantee that it is actually authentic.
A little digging is required in this case to ascertain what type of broker you are dealing with and if it has any issues, then you need to avoid it. This is the approach you need to take with Gainsmarket that is advertised as a proprietary trading firm in the UK and the US.
It promises a hassle-free trading experience to everyone with the best conditions and more. This makes it sound like just the right broker, but a little digging shows that Gainsmarket does not really check out. In fact, you will discover that avoiding this brokerage is a better option. Why? Let’s go digging.
An anonymous broker
When you are opening an account with an online broker, they will have access to your personal information and you will also deposit your funds in the account, which means they will have your money.
Would you share this with just any random company over the internet? No matter how naïve one may be, everyone is still familiar with scams that happen online, so it does not make sense to hand over such sensitive data or money to a company you know nothing about.
It is always best to pick a regulated and licensed brokerage because those you can trust and they are monitored by a regulatory authority. This ensures accountability, safety and transparency, but Gainsmarket cannot offer you any of that because it does not mention a single word about authorization, or licensing on its website.
If you check out the FAQ section of its website, you will find that Gainsmarket makes a vague reference to the Financial Conduct Authority (FCA), but that is it.
Even if you check the online register of the FCA, you will not find the broker listed. As a matter of fact, the contact section of the website is also devoid of any relevant information. In reality, Gainsmarket appears to be a fully anonymous broker because there is no corporate address, or background provided.
There is not even a company name mentioned, so you do not know who owns and operates Gainsmarket and there is no phone number either. The obscure email address does nothing to add to the company’s credibility.
Trading platform issue
The fact that you can access the MT5 trading platform at Gainsmarket can often draw people towards the broker, but signing up with it because of the platform would also be a big mistake.
There is no denying that the MT5 is the top trading platform that exists in the market today, integrated with advanced trading tools and boasting cutting-edge technology that can make trading seamless and smooth.
But, the problem with the distribution of the MT5 platform that you find at Gainsmarket is that it is branded for a completely different broker altogether. You will find the name GCX Prime mentioned, which means that Gainsmarket does not have its own platform.
Things get worse because if you search GCX Prime, you will find that this is a scam brokerage, which means that Gainsmarket could actually be part of a serial scam.
High leverage ratios
Going through the trading conditions of a broker is a must because it affects your profitability, thereby your financial goals. When you check out the conditions that Gainsmarket is promising, you will discover that they have leverage as high as 1:100.
This should be considered a problem because this ratio is considered quite high in a lot of jurisdictions. Maximum leverage has been capped at 1:30 for retail traders in the UK by the FCA, which is mentioned by Gainsmarket, so it should not be offering this much leverage as it can be highly dangerous.
No refunds possible
When you are making deposits with an online broker, you want to make sure that you can get your funds back if you want. This depends on the payment methods available and unfortunately, Gainsmarket has blocked this option for you. How? This is because the broker only supports crypto payments in bitcoins, USD Tether and Ripple.
Transactions made in cryptocurrencies are irreversible, so if you believe you have been scammed, you cannot get a refund from Gainsmarket because chargeback is not possible, as in the case of credit cards like VISA and MasterCard.
High minimum deposit
The minimum deposit that Gainsmarket asks for is around $1500, which is too high. These days, most brokerages are facilitating their clients by asking for a deposit as low as $10.
Even if standard amounts are asked for, the deposit should not be more than $250, but this is almost six times more and a common practice by fraudsters because they want to get as much money as possible in the first attempt as there is unlikely to be a second.
These are some very strong reasons for people to avoid opening an account with Gainsmarket for trading purposes.