Should You Trade with Globex360?
When you see reviews of Globex360, you might be told that they are a registered broker in good standing. However, the reality may be more complicated. Although this seems to be a reliable broker based in South Africa with a FSCA license, there are many complaints. So many, in fact, it has affected Globex360’s website trust rating.
This doesn’t mean that Globex360 is necessarily a scam broker. However, it does indicate that even licensed financial services should be checked out carefully and that trust should be earned. We’ve spoken firsthand with clients who have complaints with Globex360 and feel we should do a deep dive on this broker.
It’s absolutely possible that customers may trade with Globex360 without any harm. However, when researching brokers, it’s important to be honest about the positives and the negatives to make an informed decision. That’s why we’ve investigated Globex360 and have written this review.
There are many apparent positives about Globex360. The first thing we recommend to people researching brokers is to ensure it has a license from a reliable regulator. The FSCA of South Africa is a highly-regarded regulator. It oversees brokers and expects certain standards that will protect clients.
This doesn’t mean, however, that every broker that is regulated is terrific. It just means there is some oversight and steps can be taken more easily by authorities if you have a complaint.
Globex360 offers varied trading of stocks, forex, CFD and indices. Since it’s a regulated broker, Globex360 offers protections, such as segregated accounts and “No Last Look” protection (meaning the broker has to be absolutely transparent with the price).
Globex360 offers MetaTrader 4, which is a high-quality and reliable trading platform. There are many account varieties as well as educational materials and assistance to help traders research their holdings.
There Are Some Issues with Globex360
Although there are some advantages to Globex360, we found many issues as well, including:
- High deposit fees and spreads on some trading products
- Risky leverage
- High minimum deposits on certain accounts
- Low trust rating because of large number of verified customer complaints
High Deposit Fees and Spreads on Some Trading Products
Many brokers don’t charge deposit fees at all. However, Globex360 does charge deposit and inactivity fees. Its fee rates still seem average compared to many brokers, but it isn’t super-low. We also wonder why it should charge deposit fees, given that many brokers forego these charges in the first place.
Globex360 also offers “floating spreads.” However some of these floating spreads can float all the way up to the stratosphere. Its spreads can be extremely high on certain trading products, such as crude oil, gold and the dollar. These are popular trades, and the high spreads are bad news for many traders.
Many regulators demand that brokers keep their leverage as low as 1:30. However, on some trading items, Globex360 offers leverage as high as 1:300 to 1:500. This can be hazardous to the average trader.
Leverage is like having a predatory lender on your shoulder while you’re trading. It’s basically trading on the margin, which means using money you don’t have to execute risky trades. It is one of the quickest way traders can wind up in debt. Usually, regulated brokers don’t offer high leverage, but Globex360 is an exception.
High Minimum on Certain Accounts
Globex360 likes to emphasize its low minimum deposit (even though, as we said earlier, they will charge a deposit fee). It should be noted that this is only true of certain accounts. Some of its accounts require a minimum of up to $1,000. Many customers didn’t realize this at the beginning, and it came as quite a shock.
Large Number of Verified Customer Complaints
We’re leaving the most serious issue with Globex360 for last. Not only does this broker have a lot of complaints about it, but the number is so high that its website trust rating has been affected.
We understand the skepticism with broker reviews online. Many of these reviews are fake and anyone can leave a nasty comment about a broker. In fact, many brokers also leave fabricated positive reviews to boost their image.
However, we have heard some complaints firsthand about Globex360 and their website trust rating has been affected because of verified, not random, complaints. The most common complaint about Globex360 is that customers can’t get access to their accounts, they aren’t granted withdrawals or they feel their trades have been manipulated, all serious issues.
Again, Globex360 is a regulated broker and is most likely not an outright fraud. However, even regulated brokers can sometimes fall from grace, and it’s best to know before it’s too late. You may be fine trading with Globex360 or you may lose money. You can decide whether it’s worth taking a risk.
If You Need Fund Recovery from Globex360 or Another Broker, Talk to Us
We create these reviews to warn consumers about brokers and schemes that may be questionable. 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