Note: GSMs official site - https://www.gsmfx.net/ is currently not functional. Therefore, we could only gather relevant information from the Internet to present a rough picture of this broker.
Risk Warning
There is a level of danger that comes with trading on the financial markets. As sophisticated instruments, foreign exchange, futures, CFDs, and other financial contracts are typically traded using margin, which significantly increases the inherent risks involved. Therefore, you should consider carefully whether or not this sort of investment activity is right for you.
The information presented in this article is intended solely for reference purposes.
General Information
What is GSM？
Registered in the United Kingdom, Global Signal Markets (short for “GSM”) is an online forex broker offering its clients trading services on Foreign Exchange, Metals, energies, and Digital Currencies. GSM offers three types of trading accounts to choose from, with the maximum leverage available up to 1:200. GSM is not authorized or regulated by any regulatory authorities, please be aware of the risk involved.
Pros & Cons
Note that these pros and cons are based on the available information and may not be representative of the actual experience of trading with GSM. It is recommended to conduct additional research and due diligence before deciding to work with any forex broker to ensure that your trading needs and funds are protected.
GSM Alternative Brokers
There are many alternative brokers to GSM depending on the specific needs and preferences of the trader. Some popular options include:
IG: IG offers a range of trading platforms and competitive trading conditions, making it a popular choice among traders.
XM: With a variety of account types and trading platforms, XM is a good choice for traders looking for flexibility and accessibility.
Forex.com: Forex.com offers a user-friendly trading platform and a range of educational resources, making it a solid choice for novice traders.
It is important for traders to carefully evaluate their options and choose a broker that meets their individual needs, preferences, and risk tolerance.
Is GSM Safe or Scam？
There are several red flags and concerns that have been raised about GSM. Firstly, GSM's NFA license is reported to be unauthorized, which could indicate that they are operating outside of regulatory guidelines. Additionally, there is limited information available about the company, including their history, ownership, and management team. The unavailability of their website could also raise concerns about the reliability and stability of the company. Furthermore, the lack of transparency and oversight could potentially expose traders to higher levels of risk.
Therefore, it is crucial for traders to do their own research and due diligence before deciding to work with any financial institution, including forex brokers like GSM, to ensure that their funds are protected and their trading needs are met. It is recommended to consider alternative brokers that offer more transparency, regulatory oversight, and a proven track record of reliability and customer satisfaction.
Market Instruments
GSM advertises to offer a diverse range of trading instruments including Forex, Metals, Energies, and Digital Currencies.
Forex trading involves the buying and selling of different currencies, which allows traders to profit from the fluctuations in exchange rates.
The metals market includes precious metals such as gold and silver, which are popular investments due to their ability to retain value and act as a hedge against inflation.
Energies refer to commodities such as crude oil and natural gas, which are traded based on supply and demand factors and geopolitical events.
Digital currencies, such as Bitcoin and Ethereum, have gained popularity in recent years due to their decentralized nature and potential for high returns.
Accounts
GSM offers three trading accounts to suit different traders trading needs, namely Classic, Pro, and VIP accounts. The Classic account is suitable for all types of traders, with an initial deposit of acceptable $100. The Pro account is more suitable for professional accounts, and to open this account, only $100 is enough. The VIP account is ideal for institutional clients, and traders who want to try this account need to fund at least $5,000. The Swap-free Islamic account option is applicable with all these three trading accounts.
Leverage
Problematically, GSM permits traders to use the leverage of up to 1:200, which is higher than the levels regarded as appropriate by many regulators. Although leverage is considered an amazing tool for clients to increase their potential profits. However, it can also cause serious fund losses, especially to inexperienced traders. Thus, it is important for clients to choose the proper amount that they feel most at ease.
Spreads & Commissions
Spreads and commissions are determined by what trading accounts you are holding. The Classic account is offered a commission-free trading environment, accompanied by average spreads from 1.6 pips. Spreads start at 0.0 pips and commissions are $2 per side for every $100,000 traded on the Pro and VIP accounts, respectively.
Below is a comparison table about spreads and commissions charged by different brokers:
Note that the spreads and commissions can vary depending on market conditions and account types, and the above figures are meant to be indicative only. Additionally, it's worth noting that while some brokers may not charge commissions, they may have other fees such as swap fees or inactivity fees that traders should be aware of.
Trading Platforms
GSM provides its clients with access to a popular MT5 trading platform that can be available for PC and Mobile devices. Traders can quickly analyze market activity, place trades, and integrate automated systems thanks to this powerful platform's convenient workspace (Expert Advisors). Everything you need to begin trading on the financial markets, including all of the above features, is available in a single, convenient interface.
See the trading platform comparison table below:
Note that the availability of trading platforms may vary depending on the region and account type. Additionally, some brokers may offer additional platforms or tools, such as social trading or algorithmic trading, that may be of interest to certain traders. It is recommended to carefully evaluate the available trading platforms and features to determine which broker best meets your individual trading needs and preferences.
Deposits & Withdrawals
Unfortunately, without access to GSMs website, it is difficult to provide a comprehensive review of their deposit and withdrawal options. The only available information from the Internet is their minimum deposit requirement ($100).
GSM minimum deposit vs other brokers
Customer Service
Traders can reach out to GSM about any questions or concerns they may have about their accounts or their trading through the following methods: Telephone: +44 2084 323 088 and Email: info@gsmfx.net. Registered Company Address: 41 DEVONSHIRE STREET, GROUND FLOOR OFFICE.
Reliable and responsive customer service is an essential aspect of any reputable forex broker. Traders may wish to consider the availability, responsiveness, and quality of customer service when evaluating different brokers. Additionally, it is recommended to research customer reviews and feedback to gain a better understanding of the level of support provided by a particular broker.
Conclusion
Overall, it is concerning that GSM is reported to have an unauthorized NFA license, as this may indicate that they are operating outside of regulatory guidelines. Additionally, the unavailability of their website could also raise questions about the reliability and stability of the company. However, the fact that GSM offers multiple account types and competitive trading conditions, along with the use of the MT5 platform, may be attractive to traders looking for variety and flexibility in their trading. It is important for individuals to do their own research and due diligence before deciding to work with any financial institution, including forex brokers like GSM, to ensure that their funds are protected and their trading needs are met.
Frequently Asked Questions (FAQs)
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