Is GCM Forex Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with GCM Forex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether GCM Forex is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker GCM Forex
GCM Forex is a brand of Global Capital Markets, established in 2012. The company is currently one of the largest brokers in Turkey. It operates under the regulation of the Capital Markets Board (CMB, G-039 (398)), a respected regulator of Turkey. GCM Forex has equity of 39 million Turkish lira. The company received the Leveraged Volume Leader Award. GCM Forex has credit rating AA, according to rating agencies, which means high creditworthiness and very low probability of financial collapse.
| 💰 Account currency: | USD, EUR, TRY |
|---|---|
| 🚀 Minimum deposit: | TRY 50,000 |
| ⚖️ Leverage: | Up to 1:10 |
| 💱 Spread: | From 2 pips (Standard), from 0 pips (ECN) |
| 🔧 Instruments: | Currency pairs (51), CFDs on commodities (21), indices (14), stocks (137), bonds and promissory notes (3) |
| 💹 Margin Call / Stop Out: | Margin Call: 50% |
Pros and cons of GCM Forex
👍 Advantages of trading with GCM Forex:
•Proprietary software for trading in a browser.
•Demo account is provided for free and can be opened again after the trial period expires.
•The company’s operation is controlled by a reputable authority at the place of its actual location.
•There is a 24-hour live chat on the GCMForex website for addressing urgent issues.
•Provision of currency pair quotes in real time mode for technical analysis.
•Trading support by phone.
•The broker offers an ECN account with no spread, where the orders are executed quicker and at better prices thanks to the direct access to the market without preliminary processing.
👎 Disadvantages of GCM Forex:
•Limited choice of deposit and withdrawal methods.
•Customer support does not work on weekends and holidays.
•Maximum leverage is 1:10.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is GCM Forex Regulated? Broker’s license
Security (Protection for Investors)
GCMForex is a part of GCM Yatırım Menkul Değerler A.Ş. and is regulated by CMB, the financial regulation and oversight agency of Turkey. License number: G-039 (398).
All deposit and withdrawal transactions are carried out in compliance with the requirements of the Mali Suçları Araştırma Kurulu (MASAK) – Financial Crimes Investigation Board. The funds of the clients are held in the accounts of the partner bank Takasbank and cannot be used for the broker’s personal interests. All payment information is encrypted using a 256-bit SSL certificate.
👍 Advantages
- The funds of the clients are held in the segregated accounts
- There is a form for filing a complaint or claim on the website
- There is an electronic notification system e-CAS
- The broker provides reports on all transactions performed by a trader by email
👎 Disadvantages
- The client accounts are not insured
- Only wire transfer is available for deposits and withdrawals
- The regulator limits the size of leverage
- You can check your trading account balance only after verification
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by GCM Forex, which you can see below.
As a result of the analysis aimed to discover evident and hidden commissions, our experts established that GCM Forex commissions are transparent. For trading transactions, the commission is limited by the value of the spread, and there is a swap in case of position rollover to the following day. In some cases, swap may be positive or none at all. There is no spread on the ECN account, but there is a brokerage commission per lot, which ranges from 1.5 pips to 15 pips. The broker does not charge any fees for account opening and deposit/withdrawal.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | from $20 | No |
| ECN | from $0 | No |
Brokers that are similar to GCM Forex
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of GCM Forex conditions with its closest competitors.
Comparison of GCM Forex with other Brokers
| GCM Forex | RoboForex | Pocket Option | Exness | XM Group | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
GCM Trader, MetaTrader4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$50000 |
$10 |
$5 |
$10 |
$5 |
$100 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 2 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
The operation of GCM Forex aims at working with experienced traders, as low leverage, which the broker offers, implies that the traders have to use a considerable amount of their own funds for opening a position.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
Tickmill is a suitable broker for both professional traders and novices. The company is good for robotic trading as well as for short-term strategies.
Conclusions
GCM Forex is a quite reliable broker for trading. GCM Forex operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.