GLEX – Identifying the Problems with the Broker

GLEX

If you are just embarking on your online trading journey, you will come to know that there are a multitude of brokers to choose from. When you start checking them out, you will discover that each of them promises you a good and smooth experience in a different way. It is...

GLEX

GLEX logo

If you are just embarking on your online trading journey, you will come to know that there are a multitude of brokers to choose from. When you start checking them out, you will discover that each of them promises you a good and smooth experience in a different way. It is understandable for anyone to be left confused at the end of the day because the offers can be quite attractive. How do you select one brokerage to be your partner? In order to eliminate the options, you need to know if there any problems with the broker, as this GLEX review intends to do.

How does that help? Once you know what problems exist with a particular brokerage, you can decide if you are willing to accept them, or if they are a deal breaker. This is because some problems are evidence of the fact that the broker you are considering is fraudulent. Indeed, impostor and bogus brokers do exist in the financial markets. As a matter of fact, they have become rampant because of the influx of traffic in these markets, as this gives them access to a ton of potential victims.

So, anyone who has decided to venture into the financial markets needs to be wary because any brokerage can be a scam. These days, these fraudulent brokers do not have any such obvious signs that can help you discover their true nature. Instead, you will have to evaluate them closely to come to that conclusion and this means looking at the problems. No company would ever boast about its own flaws or shortcomings, so you have to identify them. The same approach should be taken where GLEX is concerned, which is presented as a trusted global forex and CFD brokerage.

GLEX website

As per GLEX, it offers you access to more than 9,000 trading instruments, along with low commission, a world class trading platform and a strong regulatory background. It does sound like quite a package, but you have to know the problems GLEX has before you do anything. What are they? Check them out:

No credible license

Checking the regulatory background and license of a brokerage is of the utmost importance because you have to determine if you are dealing with a safe and reliable company or not. A licensed and regulated brokerage has to maintain high standards when it comes to quality of services and they are also compliant with numerous rules, laws and policies. They offer transparent services and can also be held accountable in case of problems, but the same cannot be said for unlicensed and unregulated platforms. As mentioned earlier, GLEX claims to be a regulated platform.

However, this does not mean that you just take their word for it and not check their regulation. As per the data, they are owned and operated by a company named Global Lex Services Co. Ltd, which claims to be authorized in the Republic of Mauritius by the Financial Services Commission (FSC). But, if you check the register of the Mauritian authorities, you will not find GLEX or its parent company listed. This means that the brokerage is clearly lying about its licensing and regulation.

Even if GLEX did have a genuine offshore license, it would not make much of a difference because the Financial Service Commission (FSC) of Mauritius does not have the capacity to monitor online forex brokers in the same way as some of the world’s most renowned regulatory authorities, such as the Financial Conduct Authority (FCA) in the UK. Hence, they cannot offer the same protections or quality of services.

Lack of a good trading platform

The trading platform that is provided by an online broker plays a very important role in your trading experience. If the platform does not perform well, lags or breaks down, or does not have the right tools and feature, your performance will suffer. In its presentation, GLEX promises its clients a world class trading platform and this is very reassuring because you expect the MT4, MT5 or the cTrader, which are some of the most popular and advanced trading platforms in the market.

Unfortunately, you will be disappointed in this regard because GLEX does not offer any of these platforms. Instead, you will find a web trading platform, which lacks a great deal of functionalities that you can find in the above mentioned options. This web-based solution has become quite common amongst scam operators as well.

Excess leverage levels

Leverage is also one of the key offerings of an online broker and since it gives flexibility during trading, it is quite popular. You will discover that GLEX is offering leverage levels as high as 1:1000, which might seem impressive, but are certainly not so. Bear in mind that leverage is extremely risky, which has prompted regulatory authorities to cap the amount of leverage that can be offered to traders for minimizing risks.

Brokers in the UK, US and Europe, amongst others cannot offer leverage ratios above a certain level. Yet, GLEX appears to be offering extremely high leverage ratios that are downright dangerous.

Lying about payment methods

When you check out the payment methods that are at your disposal at GLEX, you will find a list of options available. These include deposits via crypto coins, bank transfers, and cards including VISA and MasterCard as well as Skrill. This variety is obviously very impressive, especially when you consider that it includes safe options like Skrill and cards.

But, it turns out that GLEX is only lying about offering all these methods because when you actually go to make a deposit, you will find that only two options are available. These are crypto coins and local bank wire transfers. The problem with these methods is that neither of them comes with the option of a chargeback, which means that you will not be able to get a refund in case of a problem.

Closing Thoughts

These problems show that GLEX is not a brokerage that you should consider even remotely because it is doing its best to con its clients.

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