GDMFX Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this GDMFX Review.
There are 3 basic account types with GDMFX – a Classic one with fixed spreads and no commission fees and two Blade (STP) ones with tight floating spreads where commissions apply. All account types offer micro tradeable lots for those traders who prefer not to put much at stake.
Besides, GDMFX offers its Muslim clients Islamic swap-free accounts that are Sharia-compliant. Also, there is a Prime account with minimum initial deposit of $200 000 available to institutional traders, as well as a binary options trading account.
The Company. Security of Funds
Global Derivative Capital Markets NZ Limited
Deregistered from FSRP NZ, but still a member of the DRS
With GDMFX you can trade in forex and various CFDs on the MetaTrader 4 platform with reasonable trading conditions. Based in Auckland New Zealand, this brokerage offers STP execution and advanced social trading options.
The 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. Although the broker claims to be licensed on its website, our check revealed that the firm has been deregistered in July, 2016. Nonetheless, 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.
Despite its current unregulated status, GDMFX has earned fairly good reputation, as most user reviews we came across are positive.
Minimum Initial Deposit
The minimum initial deposit required by GDMFX is $100, which is average.
Commission & Spreads
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 really good – averaged 0.5 pips on EUR/USD on the Blade account type and involving a commission of $7 per standard lot round trip. This basically means that the trading costs for this pair would be around 1.1 pips on average.
In comparison, another NZ-based brokerage, Circle Markets (which, however is duly licensed) offers spreads from 0.2 pips and a commission of $4 per standard lot applies. For further information, you may check out and compare real-time spreads of 15 leading brokers here.
The maximum leverage level offered by GDMFX is 1:500, which is considered high. Nonetheless, many brokers provide similar or higher leverage levels, as they allow traders to operate with large amounts of money on a relatively small deposit. Keep in mind, however, that high leverage levels involve greater risk.
Circle Markets, for instance, provides leverage up to 1:200.
GDMFX offers its clients the most widely used trading platform, MetaTrader 4 (MT4), available as desktop, web and mobile versions.
Developed by Russian software company MetaQuotes, the MT4 platform, is still the preferred choice by most experienced traders, although its successor, the MT5, is gaining popularity lately. MT4 is equipped with an advanced charting tools, a number of built-in technical indicators, a wide range of Expert Advisors (EAs) and extensive back-testing environment for them. Almost any trading strategy can be formalized and implemented as an Expert Advisor, so that it automatically does all the work for you.
Besides, MT4 users can get free access to MQL5 Signals. MQL5 is fully integrated with the platform so traders can subscribe to signals from thousands of providers directly from the MT4.
Apart from that, GDMFX offers its clients advanced copy trading options via Zulutrade and AutoTrade.
What we find odd about this broker is that it does not offer VPS hosting. Even worse, GDMFX does not allow scalping.
GDMFX offers 100% on deposit bonus (to a maximum of $5000) to clients who fund their accounts with at least $1000.
The bonus becomes withdrawable once its trading requirement has been met:
bonus amount / 4 = standard lots traded (Leverage is set to 1:100)
The bonus expires in 12 months, but clients of GDMFX can get 50% bonus on second deposit 30% bonus on third and 20% bonus on fourth.
Methods of Payment
Currently GDMFX’ clients are able to make payments via bank wire, Algo Charge, Skrill, Neteller and Perfect Money (available India, Pakistan and Bangladesh).
GDMFX provides trading in forex, various CFDs and binary options and its offerings are rather attractive. The broker has 5 years of experience, but unfortunately is no longer licensed in New Zealand, where it is headquartered.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
GDMFX Review Conclusion
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