GTS Financial Review – The Many Problems with the Broker

GTS Financial Review

It does not take long for potential traders to realize that the number of online brokers is continuously surging. The numbers are undoubtedly higher, but this does not mean that quality also comes along with them.

In fact, it also means that there is also a substantial number of fraudsters operating in the market because there is a lot of traffic, which means more potential victims for them. You can check out this GTS Financial review to know how these frauds operate.

It is essential to understand this because despite knowing that not every brokerage in the market is legitimate, people still end up signing on shady and fake platforms, only to lose their money.

This is due to the fact that even though they know scams exist, they just don’t know how to distinguish them from genuine platforms. Why? It is because the fraudsters are really good at presenting a good appearance. They know all the tricks and that is how they are able to convince people that they are genuine.

Plus, they are also aware just what most people are looking for in a broker and so they deliberately add offerings that blind them to the signs that could help them see the truth.

This is what you need to be careful about and not believe everything you come across. Instead, you should do your own evaluation to ensure there are no problems and the broker is actually what it presents itself as. You will be able to save your money and also a great deal of hassle of having to find another broker.

Doing the same in the case of GTS Financial is a smart move because a look at the brokerage leaves you quite impressed. It seems to be a good and professional platform for traders, but is it really? When you look closely, you will find the problems that show it really is not the right choice for anyone. Let’s check out the problems.

License and regulation

Evaluating an online broker should begin with its licensing and regulation because you do not want to make compromises in terms of security, or quality for that matter.

Opting for a licensed brokerage ensures that you are offered safety of funds and can hold the company accountable if there is a problem. Meanwhile, unlicensed entities answer to no one due to which most scams fall in this category.

Thus, it is apparent that you should give priority to a licensed and regulated broker. Where does GTS Financial come in? Interestingly enough, you will find that it claims to be based in the United States where it says it is regulated. Yet, it is offering its services to traders in the European Union because of which its website is available in German.

However, this cannot possibly be true because the regulatory regime in the US states that brokerages registered in the country can only offer their services to the US markets only.

Therefore, GTS Financial cannot be regulated in the US and provide its services in the EU. Moreover, when you check the online registers of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) for the brokerage, you will not find GTS Financial there.

This means that the brokerage is lying about its regulation altogether. It has given an office address that puts it in New York, but if it is really based there, then it is operating illegally.

The company is also breaking the rules of leverage applicable to US brokers. You will also find that GTS Financial has given an office address in Denmark, but it cannot be operating in the European Union either.

This is because GTS Financial is not regulated by any regulatory body in the EU and it is also breaking the leverage rules applicable in the bloc. Hence, these problems indicate that the brokerage is more likely to defraud you than provide you any decent services.

Trading software

Evaluating the trading software of a brokerage is also extremely important because you want to be able to trade easily and efficiently.

This will depend on the kind of software you are provided because there are different options available and it is up to the brokerage to decide what they wish to offer. The problem with GTS Financial is that it claims to offer a web platform to you, but no name has been mentioned.

This means that it is unlikely that GTS Financial is going to give you access to the MT4, or the MT5 trading software that are recognized in the markets as advanced and powerful solutions.

But, the biggest issue is that GTS Financial does not let you check the trading software before registering an account. When you try to do so, you are offered to fill out a contact form instead of a registration form and it does not go forward from there.

No legitimate brokerage operates like that, which should immediately warn you about the true intentions of GTS Financial.

Trading conditions

The trading conditions that you will be given when you sign up with a brokerage are extremely important and should be evaluated because you want to be able to trade flexibly and profitably. To know the former, you have to check the leverage that you are offered and the spreads and commissions will determine the latter.

The problem with GTS Financial is that it promises you leverage ratios as high as 1:200. Many will consider this quite attractive because it means that you can make a lot bigger trades, but leverage comes with risks as well.

Your losses can just be as high because of which regulatory authorities have caps imposed on leverage that can be given to retail traders. In the UK, the ratio is capped at 1:30, while its 1:50 in the US.

While GTS Financial claims to be based in the US and operating in the UK, it is breaking the leverage rules of both jurisdictions, adding proof that it is not regulated.

Ending Thoughts

The problems with GTS Financial indicate that it is just another scam broker under the sun and has nothing to offer to you.