Is GemForex Scam or Legit Broker?
GemForex is not a safe broker to invest in. GemForex is a part of GemForex Limited which is regulated by the Seychelles Financial Services Authority (FSA), with the registration number 076092. The broker has been present in the market for more than a decade and offers good trading conditions, however, it does not hold any serious license. This means that trading with such a broker might be risky and jeopardize your investments.
- With the Seychelles Financial Services Authority, it is possible to start a company with minimum investments and requirements, without any obligatory business planning, management interview, or company background checking. This however means that the registered company does not follow strict guidelines or rules imposed by the authority as other top-tier regulatory bodies such as FCA or CySEC do.
|🗺️ Registered in||Seychelles |
|🗺️ Type of License||Offshore License|
|🛡️ Is GemForex safe to trade?||No|
|🗺️ Recommended Licenses||FCA in UK 🇬🇧 & ASIC in Australia 🇦🇺|
|🖥 Alternative Broker||FP Markets - licensed by ASIC in Australia|
What is GemForex?
GemForex is a Japanese online forex and CFD broker founded back in 2010. The broker is registered with the Seychelles Financial Services Authority (FSA). The registration address of the company is Vista Corporate Services Center, Suite 23, first floor, Eden Plaza, Eden Island, Mahe, Republic of Seychelles.
- When the company started in 2010, it was originally named GemTrade, and only later in 2014 it was renamed to GemForex, which is a brand name of the Gem Group Holdings LTD.
- GemForex offers high-quality services to beginner traders worldwide. It offers the industry-popular MetaTrader 4 and MetaTrader 5 platforms, and a selection of major instruments, including Forex (33 currency pairs), Energy CFDs, Index CFDs, etc.
- All in all, GemForex positions itself as a favorable broker with a long history and a number of awards. Yet, the fact that the broker does not hold a serious license is a big disadvantage in forex trading. It is founded by Japanese professional traders and offers services to the Japan residents. Still, it is not authorized by the Japan FSA, the body that oversees financial activities in the country.
- In forex trading, one of the first things that traders need to consider is the safety and security the broker can provide. In case of any problems, well-regulated brokers can offer compensation schemes and negative balance protection, whereas, in the case of offshore brokers none of these is applicable.
- Top-tier authorities such as ASIC, CySEC, or FCA provide compensation schemes and negative balance protection to the traders, as well as segregated accounts. On its website, the broker mentions that it provides account segregation for its clients, which is more typical for regulated brokers. If so, this is a huge advantage and a certain level of protection.
- GemForex is available in many countries worldwide, however, there are still regions where the broker is unavailable for trades: United States, Afghanistan, Belarus, Myanmar, Central African Republic, Congo, Cuba, Egypt, Guinea, Iraq, Iran, Libya, Mauritius, Pakistan, Somalia, Sudan, Syria, Venezuela, Yemen, Zimbabwe.
Overall GemForex Ranking
Taking into consideration our finds and revelations on the safety of GemForex, we do not rank positively GemForex, based on our Expert Opinion with over 10 Years of experience in Forex Trading due to its lack of regulation and numerous negative reviews from traders.
- GemForex Overall Ranking is 3 out of 10 based on our testing and compared to 500 other brokers, see Our Ranking below compared to other popular and industry Leading Brokers.
|Is Broker safe? ||No||Yes||Yes|
|Advantages||None||Trading Environment||Trading Platforms|
GemForex Alternative Brokers
Based on our revelations in regard to GemForex safety and regulations issues, here are much better Alternatives to GemForex with good regulations and excellent conditions. We select Good Brokers and reliable options for your comparison below:
- AvaTrade – Good Instruments and CopyTrading
- Pepperstone – Low Spreads and Competitive Trading Conditions
- XM – Wide Range of Trading Opportunities
Deposit & Withdrawal
The broker enables its client to fund their accounts through multiple methods, including Credit/Debit cards, wire transfers, Payoneer, UnionPay, Perfect Money, PayPal, Skrill, Neteller, and some other options.
- The minimum deposit for GemForex All-in-one account is $50. For the Elite and Raw account types the minimum deposit is $3,000.
- For the first withdrawal during the month, there are no applicable charges. Yet, for every next withdrawal, there is a 2% charge.
- It typically takes 3-5 business days for the withdrawals to be completed.
GemForex Review Conclusion
Our advice is to avoid non-regulated or offshore brokers as it is not safe to trade with them. GemForex offers good trading conditions and seems to be favorable, especially for beginner traders. However, the fact that it does not hold any serious license is enough reason to stay away from the broker.
Traders should invest only with brokers holding licenses from authorities alike UK’s FCA, Australian ASIC, or other similar regulators, that provide compensation and are strictly supervised. We recommend signing in with well-regulated brokers, such as FP Markets, BDSwiss, and HFM.
- Overall ranking and experience for GemForex is Negative