To Trust or Not To Trust FXGM
by Vicky Leans
Nowadays, with so many Forex/CFD brokers claiming to be the best it has become difficult to trust one. Therefore, the question arises- Can I trust FXGM? Is FXGM reliable? FXGM or Forex Global Markets is a branch of Depaho Ltd. The company follows the norms of Markets in Financial Instruments Directive (MiFID) of the European Union whose goal is to increase financial transparency and support a healthy competition while offering protection to the customers in investment services.
FXGM is itself regulated by Cyprus Securities and Exchange Commission (CySEC) and is also permitted by FSB or Financial Services Board to operate in South Africa. Other than these two FXGM is also registered with CONSOB, CNMV, FI, FIN-FSA, KNF, FCA (UK), BaFin, Finanstilsynet (Norway), AFM, FMA, FSA, MFSA, Finantsinspektsioon (Estonia), NarodnabankaSlovenska (Slovak Republic), ASF (Romania), and ACPR (France). At FXGM, you can invest in a large variety of CFDs including Forex, indices and stocks.
Security Concern of FXGM
Whenever a person is choosing a Forex or/and CFD broker they must check out the security level provided by that broker. As the internet offers many advantageous features like trading from anywhere, there have also been several reports about hacks and cybercrimes. FXGM considers security of their clients’ accounts and trades to be their responsibility. To them financial integrity is of utmost importance and goes all the way to provide security to their clients’ funds. They have a multi-layered security system. Whether FXGM is trustworthy or not can also be gauged from its popularity in South Africa and rest of the countries the broker offers its services.
Investors’ Compensation Fund
FXGM also has an Investors’ Compensation Fund scheme in place to compensate their clients when a member provider of investment services fails to pay the investors’ claims as written in the agreement. The compensation fund protects all the non-professional clients. The Forex/CFD broker holds all the investments of the clients separately such as to minimise losses in case of a security breach. Another reason is that the clients’ assets should be returned to the clients whenever they request it. However, if there has been a mix up with the service provider’s assets or some other reason that will cause a delay, fund is taken from the compensation fund to recompense the clients. The compensation amount paid to an investor is 9/10 of the claim the investor has from a service provider. But, the compensation fund does not exceed €20,000. The compensation amount is also dependent on the market value of the securities.
As we know all types of trading involves taking some risks and FXGM warns their clients and potential clients about this. With a concern over security and the urge to provide the best services to their clients, FXGM is one Forex/CFD broker you can trust.