GFXRoyal is an online CFD and forex broker. They list two different company names, Capital Letter GmbH and Capital Letter Ltd, as their parent companies. The broker says that the first of these companies is in München, Germany. The second has a registration in the Marshall Islands. Despite claiming to be based in Germany, the broker has no registration with BaFin, the German financial regulator. They don’t have registrations with any of the multiple regulatory bodies that can permit brokers to offer services within the EU.
Other Brokers Operated by Parent Company
Their parent company, Capital Letter GmbH, has operated at least two other brokers. These are STSRoyal and STSCrypto. The FCA has issued a specific warning about STSRoyal. The regulator says that the broker is offering financial services to UK residents without any authorization.
The Italian regulator CONSOB has warned about STSRoyal and has ordered a blackout of their website within Italy. It’s hard to trust a broker whose parent company runs two other brokers with warnings against them. GFXRoyal itself is the subject of a warning from CONSOB. On the 28th of September, 2020, the regulator ordered a blackout of their website, just as STSRoyal was.
Poor Transparency from GFXRoyal
GFXRoyal is highly uncommunicative. They do not clearly explain what services they offer. They don’t disclose their trading conditions. There is no information publically available from them on their fees.
The broker does not disclose their spreads, a critical piece of information when choosing a broker. Within their platform, the spread on EUR/USD is 6.2 pips. This is obscenely high, several times what other brokers offer. This pair is a standard indicator of the overall spreads. It shows that GFXRoyal doesn’t have anything worthwhile to offer.
Very High Deposits, Even for Basic Account
Their basic account is called the Explorer account. The minimum deposit to open this account is $500. Many other brokers have minimums as low as $100, and usually not over $250. There are four more levels of accounts, running up to Platinum. It’s not clear what the benefit of these higher accounts is. GFXRoyal has made no attempt to communicate that to investors. One would assume that they would offer better spreads, but the only way to find out is to put down the substantially increased deposit needed for the next level.
Fight Back Against Unregistered Brokers
Many unregistered brokers have high deposits to encourage new traders to put down as much as possible. Often, this is because they don’t plan on ever giving any money back. In conclusion, if you’re having trouble making a withdrawal from an unregistered broker, contact us today. With the details of your case, our expert team can determine if our system can get you back your money.