Goldmar – Pay Heed to the Red Flags

Goldmar

The financial markets have always offered opportunities to people to make money, but it wasn’t as easy for everyone to access these before the internet. Today, people can trade from anywhere and anytime and all of this is possible because of technology and the internet. But, there is another essential ingredient that you should not forget and these are online brokers who facilitate the entire process. They have a key role to play, so you have to ensure that you find the best broker and not one like you will discover in this Goldmar review. Why?

This is because the internet is known for its abundance of scams and the financial markets are a breeding ground for them. Just because a company has a website that promises you good services does not mean that it will actually do so. You will find lots of online brokers making big claims and while some can live up to them, others may not. Some can only offer mediocre, or poor services and there are also those that may not be authentic at all. These are the criminals that you need to be wary of because they can walk away with your money.

Do you want to let anyone do that? Chances are that you don’t and the secret to avoiding it is by learning from others’ mistakes. This means watching out for the red flags that an online broker may have and pay heed to them instead of just blindly opting for one to start trading. Your inattentiveness can cost you the money you invest and this is a situation you want to prevent. One of the brokers that offers you its services is Goldmar and as attractive as it appears in one glance, the red flags it has should send you in the opposite direction.

Want to know the red flags that Goldmar has? Check them out here.

Its lack of regulation

What is the first and most prominent red flag that you will come across at Goldmar? This online brokerage is not licensed and regulated. The only redeeming quality you will find here is that the company has not lied about where it is operating from; it is based in a scam haven and has mentioned it openly. This means that you need to pay heed to this information right away and not trust Goldmar at all.

When you check out the Goldmar website, you will find that the online broker is owned and operated by Combobulating Group LLC, which is registered in Saint Vincent and the Grenadines. The local financial authorities of this offshore jurisdiction have clearly stated that they do not regulate the forex industry. This is a greenlight for all scam and fake companies to set up their offices there without worrying about being monitored or any accountability. Hence, it has developed the reputation of being a scam haven.

The fact that Goldmar is being operated from a scam haven is a big red flag, enough for you to reconsider the idea of opening an account with it.

Its Italian blacklisting

If you were not already on the fence about ditching Goldmar altogether, you may change your mind because it turns out that the brokerage has also been blacklisted by a regulatory authority. Indeed, CONSOB, which is the regulatory body that oversees the Italian financial markets has issued a warning about the broker’s parent company.

It appears that Goldmar is operating illegally in Italy and offering its services to people living in the country, even though it does not have a license to do so. It has been identified as an abusive offshore brokerage and this is all the warning you need to run away from this broker.

Its shady bonus policy

There was a time when trading bonuses were very common and almost every online broker used to offer them, but not anymore. This is because these bonuses have been banned in a number of countries by their respective regulatory authorities because as attractive as they might be, they come with strings attached that are aimed at taking advantage of traders and blocking their funds. This becomes apparent when you check out the bonus policy that Goldmar has outlined on its website.

The fact that Goldmar is offering trading bonuses should already be a big problem because it is not exactly a good practice and when you check out its policy, you will discover that it just means to block withdrawals. This is because it has the ‘non-deposited funds’ clause, which dictates that profits made by bonuses i.e. funds not deposited by the trader are not eligible for withdrawal.

The problem is that you cannot distinguish the profits you make from your own money and that from your bonus, so you will not be able to withdraw any money from your Goldmar account. It is a rather sinister scheme that sheds light on the broker’s intentions.

Its basic trading software

Another red flag that you will uncover at Goldmar is the basic trading software it offers. It is oversimplified and does not really come with the sophisticated tools that most traders require and can affect your performance significantly. Considering that it is the most important feature that an online broker offers, it should not be so simple. Most genuine companies stick to leading trading platforms like the MT4 and the MT5, but you will be disappointed if you are looking for it here.

Its poor trading conditions

The trading conditions affect your profits, so you want to have the best, but Goldmar fails to live up to those expectations. The spreads are as high as 3 pips, which is just too much. Legitimate brokers offer spreads that are under 1 pip.

As far as leverage is concerned, this is another review where Goldmar shows a red flag because the ratio is 1:200, which is a massive risk for retail traders and now allowed in many jurisdictions.

Ending Thoughts

You should pay heed to these red flags at Goldmar and not open an account with it because it is not a genuine company at all.