Should You Trade with Global GT?
If you’ve run across Global GT, a licensed broker that offers CFD trading, you may be wondering if this broker is legit or if it’s just another broker scam. On the surface, GlobalGT seems acceptable, especially since it has a license from the FSCA, the financial regulator of South Africa.
However, even regulated brokers can have a problematic side and can be the subject of many customer complaints. We have heard complaints firsthand from a number of our clients. We have decided, then, to investigate GlobalGT and create this review to give you our verdict on this broker.
What Is GlobalGT?
GlobalGT is a new version of a broker that opened in 2019 and originally operated under GT Group, which operated in Southeast Asia under the entities FXGt and CryptoGT.
Global GT is a spinoff of this parent company and is based in South Africa. It has a license from the FSCA, the main financial regulator in South Africa, as well as a license from the FSA, based in Seychelles. This second “license” gives us pause for thought, but we will revisit this issue later in the review.
GlobalGT offers a wide variety of trading instruments, but these are mainly available through CFDs, which aren’t legal in all areas of the world, including the United States.
Some Good Points ABout GlobalGT
GlobalGT has some apparent advantages. It’s licensed by one reliable regulator, the FSCA. This begs the question of why it has the sub-par license from Seychelles at all (but there are some reasons for this–not great ones).
For CFD traders, GlobalGT offers a wide variety of CFD trading instruments. It has relatively low fees, with no deposit or withdrawal charges. Its spreads are in tune with the industry average, except its spread on BTC and USD, and crude oil, which are rather high.
GlobalGT offers MetaTrader5 and WebTrader. MetaTrader 5 is a state-of-the-art trading platform. There is a selection of trading plans with different services and products.
However, There Are Problems with GlobalGT
Although some people may be fine trading with GlobalGT, we advise caution. In addition to hearing complaints firsthand about GlobalGT, we noticed the following problems with this broker:
- Problematic Seychelles license
- Offers tricky bonuses on some accounts
- Potentially Hazardous Leverage
- Many Verified Customer Complaints
These issues should all be taken seriously.
Problematic Seychelles License
So what about that Seychelles license? The first question we would ask is why, if a broker had a respectable license from the FSCA, would they then get a so-called license from Seychelles?
This is an offshore so-called regulator that doesn’t demand anything from its licensees. Many scam brokers get the stamp of approval from Seychelles to con people into thinking they are regulated.
This doesn’t seem worthy of a broker like GlobalGT. However, the answer may sound a bit cynical but it’s the only one that fits. GlobalGT wants to get away with certain things, like dangerously high leverage and bonuses, that a reliable regulator like FSCA won’t allow. This means that GlobalGT is living another life, so to speak.
However, a broker should protect all of its clients not just some of them. This isn’t the moral equivalent of offering CFDs to some people and not others in countries CFDs aren’t allowed. That’s because regulated brokers do allow these trading products whereas no reputable regulator allows extremely high leverage and bonuses.
Offers Tricky Bonuses on Some Accounts
Bonuses sound like perks. They often attract investors who don’t know what kind of a trap they are. You won’t see bonuses on all of GlobalGT’s accounts but on some of them.
Bonuses often involve conditions such as not allowing customers to withdraw money until they have made a certain amount of money trading over and above the bonus. Clearly, this is designed to keep the client’s money in the account and in the broker’s hands.
Potentially Hazardous Leverage
Leverage is trading with money you don’t have. It’s like being at a casino and the house “lends” you money. Not only will are you likely to lose all of the principal, but you’ll be in debt. That’s why regulators don’t allow high leverage. However, on some accounts, GlobalGT offers up to 1:1,000 leverage.
Many Verified Customer Complaints
We’ve seen a lot of verified complaints about GlobalGT, over and above the ones we have heard directly. This is surprising for a regulated broker, but it happens. Customers are saying that they can’t withdraw their funds, that they have seen sudden account closures, and that the spreads were higher than were initially promised.
Should You Take the Risk with GlobalGT?
So there seem to be some good things about GlobalGT and more than a few causes for worry. What should you do? If you like what you see with GlobalGT and want to take the chance, it’s your money. Just know you’ve been warned that it may not be safe. This isn’t an outright scam broker, but there are enough problems that we’d prefer to choose another broker.
If Youve Lost Money to GlobalGT or Another Broker, Talk to Broker Complaint Registry
We create these reviews to warn consumers about brokers and schemes that may be fraudulent. If you have an account with this broker close it and request a withdrawal. If you are not given your money back, contact Broker Complaint Registry right away. We will consult with you, work to track down your funds and create investigative reports, and will assist with fund recovery efforts.