GMI Edge Review: Is GMIEdge Scam or Trusted Forex Broker?

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GMI Edge is a relatively new, unregulated forex broker (founded in 2018) that provides online trading via MetaTrader 4 (MT4) on a limited number of assets.

When we weighted the advantages of GMI Edge, the one that stands out is that one of the members of the GMI Group holds a license with the UK’s Financial Conduct Authority (FCA). Generally speaking, if you deal with a broker regulated in the UK, you should feel pretty secure for your funds at the company. However, it seems that this is not the case with GMI Edge.

Although one of the members of the GMI group holds an FCA license, if you contract GMI Edge, you are actually dealing with an offshore broker, registered in Vanuatu. The Vanuatu Financial Services Commission has rather lax requirements and practically does not exercise any oversight on “licensed” entities. With no regulatory oversight, we can’t be certain about the company behind the operation and whether it will fulfill its obligations towards clients.

It seems that the UK entity, Global Market Index Limited, operates only the Global Market Index (GMI) brokerage brand. So, if you plan on opening a trading account, be sure to check which company you are dealing with. 

We also found out that the company behind GMI Edge has operated another brokerage brand, GMP FX, the website of which is no longer active. Changing names and domain names is a popular scam tactic, so be careful with this broker.

GMIEdge Review

Many traders shop for a forex broker to work with and find endless reviews on the web, and not all are genuine. There are lots of websites that specialize in broker reviews and lots of talk about brokers in various forums, social media channels, and groups. While some information comes from a real trading experience of people that have used brokers’ services, some have a hidden agenda of promoting the broker(s). Promoting a forex broker is a legitimate and normal practice, as long as it’s done in a transparent way.

As of today, there are very few forex websites with trusted brokers’ reviews. One of the most trusted is forexpiecearmy.com, due to its security level which filters fake reviews. Anyway, use your intuition when you read GMIEdge reviews. 

GMIEdge’s overall rating on the largest portal for broker reviews is…totally missing. Unlike 99.9% of the offshore brokers out there, it is almost impossible to find any trusted GMI Edge reviews.

This is a big question mark regarding the activity of this forex broker. 

Here are few GMI Edge verified client reviews we were able to find:

Lag or hang

I’ve been using this broker almost 2 weeks or something. Either with pc or mobile phone, there seem to be a lag trade..you have to quit everytimes it lag. I’ve tried with others broker it seems fine with MT4. When you want to close the order, it’s also lag. Their server is really slow. Never have this type of problems with other brokers. And i did email them to cs@gmiedge.com and gmail sent me that their email address is not exist or wrong address. Even their phone number could’nt be reached.

khairy, Kuching, Malaysia, Jul 18, 2020

SCAM BROKER, VERY SLOW SERVER, ALWAYS SLIPPAGE! UNREGULATED BROKER

BE CAREFUL IN TRADING THIS POOP BROKER, I AM SO TIRED OF THEIR SERVER. THEY ARE ALWAYS DOWN AND TOO SLOW! be careful, they will never refund your slippage!

babetrader, MANILA, Philippines, Jul 15, 2020

Good Execution , Slow Withdraw

Platform is good, but Withdrawal operation takes a lot of time
It took me more than 6 days for the Withdraw

– FX_TradeMalay, Selangore, Malaysia, Feb 14, 2019

source: https://www.forexpeacearmy.com/forex-reviews/15673/gmiedge-forex-brokers

gmiedge reviews
source: forexpeacearmy.com

Is GMIEdge Scam or Legit?

If someone search “gmidge scam” or “gmi edge scam” on google or any other search engine, can not find an answer or trusted information which is very strange for a broker. Unless you are just an apartment call center focused on cold calling.

GMI Edge is considered low-trust (high-risk). GMIEdge is not publicly traded and does not operate a bank. GMIEdge is authorized by zero tier-1 regulator (high trust), zero tier-2 regulators (average trust), and zero tier-3 regulator (low trust). 

GMI Edge looks totally unknown all over the world, except for Malaysia. GMIEdge operates mostly in Malaysia (most of the business) followed by Thailand according to the number of brand searches (source: ahrefs.com). Overall, gmiedge shows very very low popularity and a limited global presence.

gmiedge review
source: Ahrefs

While GMI Edge remains unregulated, and numerous reports of issues exist, we can not say it is a scam. There are a lot of question marks regarding their activity, ownership, and presence. The following sections will highlight the suspect activity.

GMI Edge Trading Conditions

Accounts

Forex and CFD brokerage GMI Edge offers its clients a choice of several account types and access to the popular MT4 platform:

  • Standard (starting from $25)
  • Cent (starting from $15)
  • ECN (starting from $100)

Markets

The range of assets is really tight, specific to a small off-shore broker that acts as a market maker and can not afford an extensive offer. This is also visible from the cap on maximum position size (50 lots) and leverage structure, usually used by brokers that can not afford to take a high Counterparty Risk.

Here is a list of assets offered by GMI Edge:

  • 50 currency pairs
  • 8 indices
  • 4 commodities
  • 5 cryptocurrencies

Platforms

Clients of GMI Edge are offered access to the most widespread FX trading platform worldwide, the MetaTrader 4 (MT4). It is equipped with technical analysis indicators, an advanced charting package, a wide range of Expert Advisors (EA), allowing clients to automate their trades, and an extensive back-testing environment.

Unfortunately, the successor of MT4, the multi-awarded MT5 platform is not available with this broker.

GMI Edge does not provide notable upgrades to enhance the experience, in addition to custom indicators, like the MetaTrader Supreme Edition.

Initial deposit and leverage

It is always preferable to start forex trading with a small deposit, which you can afford to lose. Clients of GMI Edge can open a Cent account by depositing just $2.50 and make use of the high leverage levels, reaching 1:2000. Standard account holders are even extended higher leverage ratios.

Keep in mind that using leverage ratios that high is very dangerous, especially for inexperienced traders. Trading on margin is risky, so make sure you understand how leverage works before you lose everything. 1:2000 leverage is something extremely rare in the forex industry and another question mark…

Leverage in forex above 1:500 should be taken with a grain of salt. Traders can see a negative balance in the blink of an eye.

Spreads and Commissions

Unlike most decent brokers who present clearly their pricing and trading conditions, GMI Edge has not disclosed its spreads on the website. This is a very rare industry practice and it is usually specific to a small bucket shop or a scam broker.

A demo account is needed to see the trading costs with this broker.

The benchmark EUR/USD spread of GMI Edge is well above 2 pips, which is not competitive pricing.

In comparison, the global leading brokerage Admiral Markets offers variable spreads of 0.5 pips for EUR/USD.

Payments

In terms of deposit and withdrawal methods, GMI Edge offers very limited options. Many popular e-wallet systems for depositing and withdrawing are not available. Neteller is the only option you can use. According to the information on the website, Fasapay will be available soon. Another option is to use Local Bank transfers. Supported banks are Maybank, CIMB, RHB, Public Bank, Hong Leong Bank. The minimum withdrawal is MYR50 for local bank transfer. For Neteller, it is $10.

On their website we found this statement: “Withdrawals from US$1,000 till US$19,999 will require manual approval and be sent to payment providers for verification within 24 hours depending on the method chosen by the client, and providing requests meet all appropriate risk / AML requirements.”

Again, this practice is specific to unregulated brokers, to manually check withdrawals, actually trades in order to find reasons to delay and/or decline them.

Conclusions

Although it is a part of an international group in which there is an FCA license holder, GMI Edge is an offshore broker. So, potential clients of GMI Edge are exposed to many risks – mainly their funds are not safe. Furthermore, they are not provided with participation in a compensatory scheme, such as the Investor Compensation Fund (ICF) of CySEC, or the FSCS of the FCA. Such compensation schemes grant clients the assurance that their losses will be covered in case the broker goes bankrupt.

Add to this the missing transparency on the website (spreads, costs, instrument specifications, margin requirements) and the huge leverage, no available information, and reviews and you get a clear image above gmiedge.com.

Cons

  • Market Maker model
  • No transparency, poor information on the website
  • No choice of trading platforms 
  • High spreads
  • No research or education

GET A FOREX PRO ON YOUR SIDE

To trade forex and CFDs, you need a well-regulated broker, where your money is safe, one that features a user-friendly trading platform with ultra-light execution, tight spreads, and fees. Trading with a trusted forex broker is crucial for success in international currency markets.

Here’s the Overall rankings for the best online brokers who participated in our 2021 Broker Review, sorted by Overall ranking.

FAQ

What is GMI Edge?

GMI Edge is a relatively new, unregulated forex broker (founded in 2018) that provides online trading via MetaTrader 4 (MT4) on a limited number of assets.

Is GMI Edge a scam?

While GMI Edge remains unregulated, and numerous reports of issues exist, we can not say it is a scam. There are a lot of question marks regarding their activity, ownership, and presence. This GMI Edge review will highlight the suspect activity.

Is GMI Edge Legit?

GMI Edge is considered low-trust (high-risk). GMIEdge is not publicly traded and does not operate a bank. GMIEdge is authorised by zero tier-1 regulator (high trust), zero tier-2 regulators (average trust), and zero tier-3 regulator (low trust). 

REVIEW OVERVIEW
Regulation & Security
Deposit & Withdrawals
Platforms & Tools
Spread & Commissions
Range of Markets
Education
Customer Support
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Cristian Cochintu is a highly experienced trader, author, and analyst, currently Chief Operation Officer at Investing Magnates. Trading Style Analytical Profile: More Technical, Less Fundamental Time Frame: Long-Term (weeks to months) Type: Position Experience Started trading in Forex in 2004 and expanded to Stocks in 2007 Has worked with Admiral Markets since 2009 starting as a market analyst Has spoken at numerous online seminars, trader expos, and conferences over the years

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