GDMFX Review – Unbiased Pros & Cons Revealed

WHO IS GDMFX?

According to research in South Africa, GDMFX is an International Foreign Exchange broker offering tailored trading services to clients from all over the world.

The broker aims to provide superior order execution, server performance, and personalized support services, while the diversity of its trading products is aimed at meeting each and every trader’s needs.

The broker’s strong relationship with liquidity providers and prime brokers provides it with the ability to offer its clients the best trading conditions and adequate liquidity at all times.

SAFE OR SCAM?

The forex market is extremely volatile, linked as it is to fluctuations in global currencies which in turn are determined by various market movements and global events.

While this very volatility contributes to more enhanced and lucrative trades, particularly for regular traders, it also means that a certain level of security is required within the forex trading environment in order to ensure full profitability.

Most forex brokers aim to provide a certain level of security through some form of authorization under relevant regulatory bodies. The most recognized of these bodies include such organisations as the FCA, CySEC and ASIC.

However, such regulation can also present certain restrictions, such as on the level of leverage which regulated brokers may offer.

While these restrictive measures are put in place in order to protect traders, some investors may seek out brokers with less regulatory restriction to benefit from concurrently enhanced trades – a risk which is ultimately taken at the trader’s own discretion.

The GDMFX brand is operated by Global Derivative Capital Markets NZ Limited, a company which is no longer a Registered Financial Services Provider under the New Zealand’s Financial Markets Conduct Act.

However, GDMFX is still a member of the Financial Dispute Resolution Scheme – an independent dispute resolution service in New Zealand that helps both financial institutions and their clients resolve disputes.

In case of a valid complaint the FDR can award clients with a compensation of up to NZD 200,000.

PROS AND CONS

LEVERAGE

Most brokers on the forex market today offer some form of leverage, which is essentially a small loan granted on behalf of the broker to their clients in order for them to make larger trades and increase their potential profits.

The entire forex and CFD industry to some extent relies upon the use of margin and leverage.

Leverage is the opportunity provided by a forex broker to open a speculative position worth a much larger amount of money than you have at their disposal. Leverage is expressed in ratios like: 200:1, 100:1, 50:1, etc.

For example, if your online trading company blocks €1,000 from your trading account to open a 100,000 EUR/USD position, it means you are using a 100:1 leverage. Put in different words, you control €100,000 with only €1,000.

As such, leverage is a great way for smaller traders to potentially make larger returns than they would have been able to with the investments already at their disposal.

However, making larger speculations with borrowed money also carries a higher risk of significant losses, particularly for those intending on investing large sums of money.

It is for this reason that many regulators made the decision to cap the maximum leverage which brokers operating under their authority could offer, so that most regulated brokers can now offer a maximum leverage of 1:30.

GDMFX offers a maximum leverage of 1:500, which is considered relatively high by forex standards.

ACCOUNTS

The forex industry is arguably the largest financial market in the world today, and as such abounds with a wealth of different traders of all experience levels and trading styles.

In order to facilitate this varied base of client traders, most forex brokers provide a selection of different accounts which each cater to the specific needs of traders, and are  often designed according to experience level and investment styles.

Many of these accounts come with their own spreads and commissions also tailored to the requirements and the investment potential of specific traders.

GDMFX offers two types of pure forex accounts, which each come with its own features and benefits.

Classic Forex Account

• Deposit Currency: USD/EUR
• Min Deposit: 100USD
• Leverage: Up to 1:500
• Commission: No
• Platform: MT4 Desktop/Web/Mobile
• Margin Call /Stop Out: 100% /50%
• Max Lot Size: 1000 Lots
• Max-No. Positions: 200

Additional Perks

• 4 Decimal Quotes
• Fixed Spreads

Pro Forex Account

• Deposit Currency: USD/EUR/GBP
• Min Deposit: 200USD
• Leverage: Up to 1:200
• Commission: 7 USD Per Lot
• Platform: MT4 Desktop/Web/Mobile
• Margin Call /Stop Out: 100% /50%
• Max Lot Size: 1000 Lots
• Max-No. Positions: 200

Additional Perks

• 5 Decimal Quotes
• Swap Free Account Available
• Tight Interbank Spreads
• One on One Training
• Personal Account Manager
• Straight Through Processing (STP)

Added to this, GDMFX offers its Muslim clients Islamic swap-free accounts that are Sharia-compliant.

MARKET INSTRUMENTS

GDMFX trades 36 currency pairs and several popular indices and provides leverage up to 1:500 depending on the account type. Fixed spreads are used for the Standard account; variable spreads for the ECN Blade, Elite and Prime accounts.

FEES

Different forex brokers will offer different fee structures based on how they make a profit and on the type of traders which they target, or cater for.

Most forex brokers make a profit on the commission, or the spread, or both, and some offer more competitive structures, while others charge higher commissions in return for more lucrative trading options.

Traders will ultimately have to choose a broker whose fee structure best suits their trading style, the investment they have at their disposal, and their trading strategy.

GDMFX’s fixed spreads are average for the market, amounting to 2 pips for EUR/USD pair. Its variable spreads, on the other hand, are excellent, and are averaged at 0.5 pips on EUR/USD on the Pro Account type, involving a commission of $7 per standard lot round trip.

This essentially means that the trading costs for this pair would be around 1.1 pips on average, which is very competitive.

DEPOSITS AND WITHDRAWAL

Traders often examine a broker’s deposit and withdrawal options in order to determine how the associated rates charged by the broker might affect their profitability over the long term.

Traders also often seek out brokers who provide a wide range of deposit and withdrawal options in order to make for a more streamlined and cost effective process.

GDMFX offers a range of popular deposit methods, which include the following:

• Bank transfer
• Visa
• Skrill
• Neteller
• Bitcoin
• Local Deposits

Deposits are provided free of charge, and deposits made in a currency different from the denomination currency of the customer’s account will be automatically converted.

All Withdrawals are subject to a fee of 1% (Min 10 / Max 30 currency units of the requested currency), and withdrawals can be made using the following methods:

• Bank transfer
• Visa
• Skrill
• Neteller
• Bitcoin
• Local Deposits

TRADING PLATFORMS

GDMFX offers its clients the most widely used trading platform, MetaTrader 4 (MT4), available as desktop, web and mobile versions.

MT4 has become immensely popular for its fast execution delivered with a range of charting tools and analytics, provided on a highly streamlined and navigable interface.

HOW TO OPEN AN ACCOUNT

Opening an account with GDMFX is an easy online process, which can be done directly through the broker’s website by supplying the following information:

• Account Category
• Name
• Email
• Date of Birth
• Password
• A copy of your government ID

CUSTOMER SUPPORT

GDMFX offers basic customer support in the form of a direct telephone number or an emailed enquiry, but a live chat option is not made available for more pressing queries.

Customer support is multilingual, and the support team has received numerous positive customer reviews for their efficient and speedy resolution of most issues.

EDUCATION

GDMFX offers an excellent and comprehensive educational section on their website, which consists of webinars, tutorials, a forex dictionary, and one on one trading.

RESEARCH

GDMFX offers equally comprehensive research tools, which include a calendar, daily trading signals, daily forex analysis and weekly forex analysis.

These tools are an excellent means for traders to stay abreast of important developments in the markets and adjust their strategies accordingly for more profitable trades.

AWARDS

While GDMFX enjoys multiple positive online customer reviews, the broker has not listed any awards to date.

CONCLUSION

GDMFX provides a comprehensive and user-friendly trading environment, with a sufficient amount of tradable assets provided on advanced trading platforms.

Although the broker is no longer regulated, it has protection measures in place in the case of unforeseen losses, and has enjoyed excellent client feedback to date.

DISCLAIMER

Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.

Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks, according to research done in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with GDMFX?

GDMFX trades 36 currency pairs and several popular indices

Which platforms are supported by GDMFX?

GDMFX provides the highly popular MetaTrader4 platform

Does GDMFX offer leverage?

Yes, GDMFX offers a maximum leverage of 1: 500

What spreads can I expect with GDMFX?

GDMFX’s fixed spreads are average for the market, amounting to 2 pips for EUR/USD pair. Its variable spreads, on the other hand, are excellent, and are averaged at 0.5 pips on EUR/USD

Does GDMFX charge commission?

No, GDMFX offers commission-free trading on its Classic account, but charges commission of 7 USD Per Lot on its Pro Account.

Is GDMFX regulated?

No

Is GDMFX a recommended forex trading broker for experts and beginners?

Yes, GDMFX offers a decent trading environment for both beginner and advanced traders.

What is the overall rating out of 10 for GDMFX?

8/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does GDMFX offer a demo account?

Yes

How long is the demo account valid?

The demo account is valid for 30 days

Which live trading accounts does GDMFX offer?

• Classic Account
• Pro account

What are the available deposit currencies for a live trading account?

USD, EUR, GBP

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for GDMFX?

$100

How do you make a deposit and withdrawal with GDMFX?

• Bank transfer
• Visa
• Skrill
• Neteller
• Bitcoin
• Local Deposits

Does GDMFX charge withdrawal fees?

Yes, all Withdrawals are subject to a fee of 1%

How long does it take to make a withdrawal?

Withdrawals through e-wallets take a few minutes, while withdrawals through banking institutions can take up to three business days to reflect.