GCM Forex is a forex broker company in Turkey.
Finding a reputable GCM Forex review local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.
Below is an in-depth review regarding GCM Forex to help you make an informed decision before opening your account or trading on their platform.
A Forex broker is a company that provides traders with access to platforms that allow them to buy and sell foreign currencies.
Forex brokers are also known as retail forex brokers or currency trading brokers. Retail currency traders in turn use these brokers to gain access to the 24-hour currency market for speculation purposes.
Forex broker services are also provided for institutional clients and large companies such as investment banks.
GCM Forex is a Turkish forex broker company that was established in 2011 and is based in Istanbul.
A great amount of capital was invested in the company and a local license was granted to provide advisory and brokerage services for financial derivatives.
As such GCM Forex is authorized by the local authorities in Turkey (Capital Markets Board) but unfortunately doesn’t have any other reputable regulation for international clients that are not residents of Turkey.
GCM Forex offers its clients the dependable and popular MetaTrader4 platform, which allows them to execute one-click trades.
Although the GCM Forex website contains a variety of information resources, including charting tools and advising services, it is only available in Turkish and also lacks some important information.
Awards and Recognition
In the world of forex broker companies being honored with awards from esteemed organizations or publications, count much for the company’s reputation.
GCM Forex claims to have accumulated the following awards during its years of service to traders:
- A High Transaction Volume Award in 2015
- Best Order Transmission from Forex Report Magazine
- Best Forex Broker in 2014
GCM Forex Accounts
A forex account is a trading account held by a trader with a company like GCM Forex that is primarily issued with the purpose of trading currencies.
Usually, the number and type of accounts that a trader can open with a broker company differ according to the country in which the brokerage operates, the country of residence of the trader, and the regulatory authorities under whose jurisdiction it operates.
Types of Accounts and Their Features
In the case of GCM Forex their homepage only indicates a Trial Account and a Real Account, the trial account being the usual demo version of the live account. There is also a VIP Account mentioned, designed for futures and options trading on the Istanbul Exchange.
GCM Forex’s trial or demo account gives traders access to 100,000 virtual currency but the account will be closed after 30 days. A new demo account can however be obtained, and it is also possible to open numerous such accounts.
The Real (Standard) Account features low spreads, a personal sales manager, and other advantages.
The minimum account size is $100, and the spread is fixed. With this account, traders can access forex, gold and silver, CFDs, oil, stocks, indices, metals and commodities to be traded.
The VIP Account offers more than 30 instruments with leverage, tax advantages, and bi-directional trading, featuring Turkey’s big companies as well as the Istanbul Exchange (Borsa) 30 Index.
Deposits and Withdrawals
The minimum required deposit is in some places indicated as 50,000 TRY or around 8500 USD. This is a high barrier of entry for most traders but considering the lower leverage, it may be needed.
Other sources mention a minimum account size of $100 though, for a standard account.
Only bank transfers are accepted as a method of funding and related costs will depend on the bank. Currencies that can be used are USD, EUR, and TRY. Withdrawals can also only be made by bank transfers.
The withdrawal form will require you to provide an IBAN number and other bank details. Withdrawal processing takes one business day by the broker, but the transfer of the withdrawn money itself may take up to seven days.
Cost and Fees, Commissions and Spreads
The cost of trading depends on different factors like commissions, spreads, and margins.
The spread of a currency pair is the difference between the bid and the asking rate. A pip represents the smallest increment that an exchange rate can move. One pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.
Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position, and the leverage applied to your trading account.
Commissions are the charges imposed by an investment broker on a trader for making trades on the trader’s behalf. The level of commissions will vary between different brokers and also depends on the asset being traded and the type of service offered by the broker.
Execution-only brokers, that is a broker that does not involve in any personal investment advice and gives traders complete control over how they trade the markets, tend to have lower commissions.
While the contract for differences (CFDs) trading is a form of derivative trading that enables traders to speculate on the rising or falling prices of fast-moving global financial markets, it’s trading on shares will incur commission.
CFD trades on other markets have no commission but do wrap a spread around the market price of a certain instrument.
GCM Forex does not charge commissions for the standard account. The swaps are very low with frequent positive figures on one side.
Inactivity fees are charged if a trader does not have any open positions and did not open any new ones for three months. Such accounts are considered as non-performing and will be charged $3 or 2€ monthly.
Trading futures and other derivatives on VIP is subject to banking and insurance transactions tax (BITT) of 0.0005%.
The facility that enables a trader to get a much larger exposure to the market than the amount he or she deposited to open a trade, is called leverage. Such leveraged products magnify a trader’s potential profit – but of course, also increase the potential loss.
The amount of leverage is expressed as a ratio, for instance, 50:1, 100:1, or 500:1. Assuming that a trader has $1,000 in his or her trading account and is trading ticket sizes of 500,000 USD/JPY, that leverage will equate to 500:1.
Exact leverage is not disclosed when you open an account with GCM Forex, but the whole instruments list exists in the Trading Conditions section. For all trading assets, the leverage is 1:10, which is considered very low. VIP Account leverage can go up to 1:30.
Other sources indicate that GCM Forex offers maximum leverage of up to 100:1, with a minimum deposit of $100 and a minimum deal size of 1,000.
Forex brokers tend to lure new traders with offers of attractive deposit bonuses. This can be useful, but it is essential to discern what a proper bonus is.
Such a bonus is but a way to compensate traders for choosing a certain broker since once the account is opened, the trader will have the same expenses as any other.
The bonus is just a reward for the trader’s choice that gives some of these expenses back to the trader, once proving himself as an active trader.
Customers should note that no deposit bonuses are a great way to help you start trading, but it often comes with ridiculous terms so that even if you do make a profit, you have to trade a high volume before you can do any form of withdrawal.
Moreover, since 1 August 2018 The European Securities and Markets Authority (ESMA) has placed investor protection measures on the marketing, distribution, or sale of CFDs to retail clients.
These prevent brokers from directly or indirectly provide the retail client with a payment, monetary or excluded non-monetary benefit in relation to the marketing, distribution or sale of a CFD, other than the realized profits on any CFD provided.
There are no promotions or bonuses offered by GCM Forex.
Trading Platforms, Software, and its Features
The forex trading software provided by a broker company to its clients is called the platform and is used to carry out their trades.
A platform can be a multi-asset one, which means that it allows clients to not only trade forex but also other asset classes like CFDs on stocks, stock indices, precious metals, and cryptocurrencies.
The decision about which platform to choose will depend on what a client would like to trade, therefore it will be one of the criteria when choosing a broker too.
GCM Forex offers the MetaTrader 4 platform for standard trading. Platform communications can be negotiated in Turkish and English. A Webtrader and an Android and Apple mobile traders are also available.
GCM Forex’s MT4 is compatible with Mac, Windows, Mobile, Web, iPhone, and iPad. Webtrader and mobile versions are available to download for Windows, Android, and iOS but not for Mac.
The MT4 platform is connected to four live servers and one demo distributed in several global locations in the UK, Netherlands, Singapore, Hong Kong, and Ireland.
GCM Forex also supports Sirix, a simple platform that is easy to be adopted by beginners, as an additional web platform.
Markets, Products, and Instruments
Most brokers offer all or some of the following kinds of market instruments for trading:
Forex trading, also called currency or FX trading, involves the currency exchange market where individuals, companies, and financial institutions exchange currencies for one another at floating rates.
As with currency exchange markets, commodity markets offer different investment opportunities for traders. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of inflation or economic uncertainty.
Equity or stock indices are actual stock market indexes that measure the value of a specific section of a stock market. They can represent a specific set of the largest companies of a nation or they can represent a specific stock market.
The trading of gold and other precious metals involves hard commodities that are contract-based tradable goods.
The high volatility of energy prices due to political and environmental factors, supply and demand, extreme weather conditions and global economic growth is a typical feature of this product, making it another popular trading choice.
Bitcoin (BTC) is the digital currency with the largest market capitalization and price levels since its inception in 2008. It dominates 50% of the total crypto market cap.
Litecoin (LTC) is similar to Bitcoin but differs in terms of scalability. Litecoin is another very popular altcoin and LTCUSD is a fork of Bitcoin (BTCUSD), copied from Bitcoin’s code and with some alterations and launched as a new project.
Ripple (RPL) is popular among big banks with the Ripple network a next-generation real-time gross settlement system. It allows instant cross-border fund transactions at very low costs.
Ethereum (ETH) is the second-largest cryptocurrency after Bitcoin and allows developers to create smart contracts on a platform.
Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a new version of the blockchain with different rules.
GCM Forex indicates that it offers 51 currency pairs, 14 stock indexes, 3Bonds, 20 commodities, and 88 shares for trading.
Safety and Regulation
One of the first things a potential trader needs to establish is whether a broker like GCM Forex is safe to trade with. One of the surest benchmarks to measure the safety of a brokerage is to establish which regulating authorities are watchdogs over its actions.
The fact that GCM Forex was established only a few years back in 2011, as well as being based in Turkey may both be drawbacks.
Firstly, the country is not known for being a hub of international trade and finance, and being relatively new to the industry is a big challenge faced by any brokerage.
Turkey is however one of the members of the G20 and ranks amongst the world’s top 15 for having the largest GDP.
The Capital Markets Board or CMB or the Sermay Piyasasi Kurulu (SPK) in Turkish is the country’s regulatory body that monitors, supervises, and reports on its financial markets.
Any business that wants to operate any financial operations in Turkey, like GCM Forex, had to obtain a license and approval from the CMB first.
To obtain such a license is quite a challenge and businesses like GCM Forex are susceptible to legal action by the CMB if they don’t meet the stringent requirements that the regulatory body enforces.
Measured against their professional conduct towards traders, GCM Forex is making a genuine effort to provide the highest level of professional trading services.
Potential traders need to be assured that the broker company they chose can offer the necessary support and help whenever they may need it.
In the case of GCM Forex traders can get hold of the company’s customer support team through email, phone, and chat service. The latter is however not available in English and is not offered 24/7, just during working hours in Turkey.
Potential traders should always do as much possible research about speculative trading before commencing to do it.
Trading with confidence and success relies heavily on knowledge and understanding of the markets, therefore research options offered by brokers form an integral part of its features when choosing the right company to trade with.
GCM Forex offers research information in the form of eBooks and articles; basic analysis of interest rates, central banks, and political developments; Technical analysis with relevant indicators, chart types, and graphics.
The analysis is published daily and a timeline graphic shows traders what analysis would be coming up. Expert opinions are also published and in general contain short but quality content.
Education and Training
Before starting to trade, potential clients of GCM Forex should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
If GCM Forex’s website itself does not provide enough means, a trader should explore other information sources and means to obtain that skills and knowledge.
GCM Forex shows analysis and tools on different pages across its website. A Forex training section contains both fundamental and technical analysis, webinars, videos, and written material.
An analysis manual that describes how to interpret the reports and other indicators is also provided.
Seminars, online training (webinars), and Youtube live streams provide learning information while training videos for the use of GCM MetaTrader 4, the GCM Sirix Web Trader, and GCM cTrader are also available.
GCM Forex is a company that may be worth to be tested by potential traders, keeping in mind that it is a market maker broker that may not be properly regulated but has a good range and transparency.
GCM Forex offers some additional values for Turkish clients with most of its services being adapted to serve their needs, including futures and options trading.
GCM Forex warns all potential traders that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.
Before clients decide to trade the products offered by GCM Forex, they are advised to carefully contemplate their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.
When traders use GCM Forex’s margin leveraged accounts, they should maintain a sufficient level of margin to sustain their positions, since trading Forex/CFD and Options on margin carries a high level of risk.
Using a higher than necessary leverage can work against a trader as well as for him. It is always possible that you could sustain a loss of some or all of your initial investment.
While GCM Forex usually makes all efforts to fill a trade at the price requested, trading on-line does not necessarily reduce risks associated with currency trading, therefore quotes and trades are usually subject to the terms and conditions of a Client Agreement.
Potential traders should first acquaint themselves with all the risks associated with trading on margin and seek advice from an independent financial advisor if they have any doubts, shows research recently done.
GCM Forex at a Glance
|Broker’s Name||GCM Forex|
|Headquartered||Istanbul – Turkey|
|Regulating Authorities||Sermay Piyasasi Kurulu (SPK)
English: The Capital Markets Board (CMB)
|Countries not accepted for trade||Not indicated|
|Islamic Account (Swap Free)||Yes|
|Minimum Deposit||100 USD|
|Deposit Options||Only bank transfers|
|Withdrawal Options||Only bank transfers|
|Platform Types||MT4, Web Trader, Android Apple mobile trader|
|OS Compatibility||Mac, Windows, Mobile, Web, iPhone, iPad|
|Tradable Assets||Metals, Oil, Gold, Indices, Stocks, Commodities, ETFs, CFDs|
|Customer Service Hours||Not 24/7, just during the working hours in Turkey.|
How many instruments can I trade with GCM Forex?
You can trade several different instruments with GCM Forex, which include the following:
Which platforms are supported by GCM Forex?
GCM Forex provides the following popular trading platforms:
- Web Trader
- Android Apple mobile trader
Does GCM Forex offer leverage?
Yes, leverage can be up to 1:100.
What spreads can I expect with GCM Forex?
GCM Forex offers variable spreads on its various accounts. If details on the website is not comprehensive, more information can be obtained from the customer support service.
Does GCM Forex charge commission?
Apparently not, but more information on commissions can be obtained from the customer support service.
Is GCM Forex regulated?
GCM Forex is only regulated by SPK in Turkey
Is GCM Forex a recommended forex trading broker for experts and beginners?
GCM Forex requires a minimum deposit that may be too high for most traders.
What is the overall rating out of 10 for GCM Forex?
What is the difference between a demo and live trading account?
A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customer’s actual money.
Does GCM Forex offer a demo account?
Can I convert my demo account to a live trading account with GCM Forex?
Not clear from the information on the company homepage.
Which live trading accounts does GCM Forex offer?
- Mini Account
- VIP Account
- Segregated Account
- Islamic Account (Swap Free)
- Demo Account
- Institutional Accounts
What are the available deposit currencies for a live trading account?
USD, EUR and TRY.
Deposits and Withdrawals
What is the minimum deposit for GCM Forex?
A minimum deposit is not indicated on the website until you register for an account. The minimum deposit seems to be 50,000 TRY, although some reviews state a minimum deposit of 100 USD.
How do you make a deposit and withdrawal with GCM Forex?
GCM Forex offers only bank transfers. Withdrawals can only be made by bank transfers. A form will require you to type IBAN and other bank details.
Does GCM Forex charge withdrawal fees?
No associated costs are mentioned.
How long does it take to make a withdrawal?
Withdrawals processing takes one business day by the broker, but the transfer of the money may take up to 7 days.