Gulf Brokers

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Offshore Broker with Shady Conditions

Gulf Brokers is a forex broker based in Seychelles. Their address is Suite C2, 2. Floor, Orion Mall, Palm Street, Victoria, Mahe, Seychelles. They have been operating in the industry for quite some time but that’s not because they offer great services.

In this detailed Gulf Brokers review, I’ve explored why they are an unreliable broker and why you should stay away from them. 

Regulation and Ownership of Gulf Brokers

The licensing authority of Gulf Brokers is the Financial Services Authority (FSA) of Seychelles. The broker mentions in its terms and conditions that it has the license number SDO13 and its regulator is the FSA. I found that their claim is true and they are regulated by the FSA of Seychelles. 

However, FSA doesn’t provide as much security as a reputed financial regulatory authority does. For example, it doesn’t have any provision to safeguard the traders’ money in case the broker goes bankrupt.  

Powerful and reputed regulatory authorities such as the CySEC (Cyprus Securities and Exchange Commission) or the FCA (Financial Conduct Authority) have particular provisions which ensure that the broker keeps its funds and its traders’ funds segregated. Separate storage of funds makes sure that traders don’t have to worry about losing their money if the broker files for bankruptcy. So, when you’re dealing with Gulf Brokers, you’re at risk of losing all of your funds as they don’t keep their traders’ funds separate from their own. 

The owner of Gulf Brokers is Gulf Brokers Ltd., an offshore company registered in Seychelles. I’ve discussed the issue of their weak regulation in detail later in the article. It would help you understand as to why you should stay away from this broker. 

Trading Requirements of Gulf Brokers

Minimum Deposit and Commission

The minimum deposit to open an account with Gulf Brokers is 500 USD, which is exceptionally high for any forex broker. Reliable forex brokers tend to require $50 or $100 maximum as their minimum deposit. 

An excessively high minimum deposit increases the level of risk you face, especially when the broker doesn’t have strong regulation. Many prominent forex brokers have no minimum deposit requirements. So, for Gulf Brokers to have $500 as their initial deposit requirement makes them highly suspicious.

The terms and conditions of Gulf Brokers states that they don’t charge any fees, however, it also mentions that they have the right to charge multiple types of fees including order cancellation charges, telephone charges, account transfer fees, and similar regulatory charges. 

Such a provision allows them to charge hidden fees without facing any repercussions. I don’t recommend such brokers who can charge hidden fees. Usually, the trader loses almost all of the funds he/she had invested in their account due to such conditions. 

In 2019, they introduced the provision of charging a maintenance fee of $10 a month.

They charge this fee if your account remains inactive for a month, which is quite a small period of time. Reliable brokers charge such fees after inactivity of six months. 

Account Types

Gulf Brokers offers only one account type. This is a major drawback for traders because they only get a specific set of facilities. In most cases, brokers provide their customers with multiple account types so they can choose one according to their experience level and requirements. 

Moreover, Gulf Brokers don’t provide much information about their single trading account on their website. Here’s a screenshot of the page where they clarify their trading conditions:

As you can see, the title is ‘Types of Accounts’ but they don’t provide any information on this topic. Instead, they just provide all other pieces of relevant information. This is another evidence of them being a scammer because why would they keep such information ambiguous? Isn’t the purpose of that page is to enhance their credibility?

They realise that they lack a proper selection when it comes to trading account types, so they try to distract the visitor with useless pieces of information.

Offered Leverage and Spreads

Gulf Brokers offer the maximum leverage of 1:500, which is exponentially higher than the average. Residents of places with high-quality regulatory authorities can’t enjoy such leverage. For example, the regulatory authorities in the US allow maximum leverage of upto 1:50, which is ten times lower than the one offered at Gulf Brokers.

Gulf Brokers mention in their terms and conditions that they have a floating spread, which means their spreads vary according to the market. Still, they have mentioned that they offer a minimum spread of 3 pips at the standard pair of EUR/USD. As you would’ve noticed, their offered spread is significantly high and we have no idea how high it might go as they haven’t clarified it in their trading conditions.

Trading Platforms of Gulf Brokers

Gulf Brokers offer the popular MetaTrader 5 as their trading platform. So far, this is the only advantage of dealing with Gulf Brokers. MetaTrader 5 (or MT5) offers numerous advantages to its users. It enables automated trading sessions where you can use customizable bots. Similarly, MT5 has multiple indicators which you can use to make better trades. MetaTrader platforms have been widely popular since they arrived in the market in 2006. MT5 is the latest version of MetaTrader platforms so it’s definitely an advantage. 

Limited Payment Methods Available at Gulf Brokers

Gulf Brokers offers very limited payment options. You can make payments on their platform only through bank wire transfers and credit cards (such as MasterCard and VISA). They don’t offer popular e-wallets such as Skrill or Neteller, which is pretty disappointing. 

Limited payment methods restrict traders and make it uncomfortable to use the trading platform of the broker. Both of the payments methods are very slow and this could lead to more hassle as you might have to wait for days to get a withdrawal. Gulf Brokers don’t provide much information on their payment methods too, which raises many questions on their credibility. 

Why You Shouldn’t Do Business with Gulf Brokers

Now that I’ve listed out the various aspects of this broker in my Gulf Brokers review, let’s now discuss the primary reasons why you should stay away from them. 

Gulf Brokers possess nearly all the qualities of being a scam. From shady terms and conditions to restricted payment options, they disappoint traders in nearly every aspect. Here are the main reasons why you shouldn’t do business with Gulf Brokers:

Excessive Leverage

As I’ve already mentioned, Gulf Brokers offer 1:500 leverage to their customers, which is considerably high for industry standards. In properly regulated areas such as the US and the UK, there are restrictions on the leverage forex brokers can offer their customers. That’s because a higher amount of leverage puts the trader at a higher risk. 

You can get buried in the debt of a broker’s leverage. Gulf Brokers try to make it 

Only One Account Type Available

Gulf Brokers only have one standard account type, which restricts you substantially. Genuine and reliable Forex broker offer multiple account types because every trader has different requirements. For example, a newbie trader might want an account with smaller minimum deposits whereas a seasoned trader with a larger portfolio would want an account with better spreads and pips. 

With just one account type, Gulf Brokers put their customers in an uncomfortable situation. This provision makes this broker unsuitable for all kinds of traders. 

Poor Regulation

The level of regulation a broker has says a lot about the quality of their services and their trustworthiness. If a broker doesn’t have proper regulation, you can’t trust it. 

Gulf Brokers is regulated by the FSA, which is not a strong regulatory authority. The FSA doesn’t even perform regular audits on its brokers and its sole purpose is to give licenses to such companies. If Gulf Brokers had a license from a reputed authority such as CySEC, things would’ve been different. 

The poor regulation of Gulf Brokers puts its traders at greater risk. You can lose all the funds you deposited with this broker and they might not face any repercussions!

Hidden Fees

When I covered the trading conditions in this Gulf Brokers review, I had discussed how they have a shady provision in their terms and conditions. Gulf Brokers can charge any kind of fees at any time from a trader’s account. This provision allows them to charge hidden fees, which is a common practice among forex scams. 

Notorious For Scamming People

This reason alone should be sufficient for you to stay away from Gulf Brokers. Many people have lost their funds they had deposited with this broker. You can see that in the screenshot below:

Gulf Brokers have scammed countless innocents

Some fraudulent Forex brokers tend to sell the information of their customers to other brokers. This way they get to earn some handsome amounts while the customers start receiving spam emails and calls from other brokers. They compromise the privacy of their users for the sake of their profits.

Seeing the reviews above, I believe Gulf Brokers fall in the category of fraudulent brokers too.

The Verdict: Gulf Brokers is a SCAM

In the conclusion of my Gulf Brokers review, I’ve found that they are a shady broker you shouldn’t do business with. They lack proper regulation, customer-friendly conditions, and multiple account types. Moreover, they are notorious for scamming their customers! 

You’d be better off with someone else. So, stay away from Gulf Brokers at all costs. 

The post Gulf Brokers appeared first on Gripeo.

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