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GDMFX Review

GDMFX Review

 

 

Overall Rating

4.9/5

Rated #420 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

Not Regulated 

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

20

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

GDMFX is an STP broker and offers financial securities in Forex and Indices.

GDMFX is an established forex broker company in New Zealand. GDMFX stands for Global Derivative Capital Markets NZ Limited, which is a global online broker that provides currency trading services for a wide range of investors.

Finding a reputable GDMFX 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 GDMFX to help you make an informed decision before opening your account or trading on their platform.

The broker is an International Foreign Exchange broker offering tailored trading services to clients from all over the world.

It aims to provide superior order execution, server performance, and personalized support services, while the diversity of its trading products is aimed at meeting each trader’s needs.

GDMFX was established in 2012 and its headquarters in Auckland, New Zealand. It is also a member of the Financial Dispute Resolution Service of New Zealand.

GDMFX was registered as a Financial Service Provider (FSP) in New Zealand and an Authorized Representative in Australia. The broker maintains offices in Indonesia, India, Hong Kong, and China.

 

Awards and Recognition

In the world of forex broker companies, it counts much for the company’s reputation if it has been honored with awards from esteemed organizations or publications.

Although GDMFX is rated highly by some customers in personal online reviews, the website of the broker could not be accessed to determine whether it has received any awards since its inception.

 

GDMFX Accounts

A forex account is a trading account held by a trader with a company like GDMFX, that is issued with the primary purpose of trading through its platforms. The number and type of accounts that a trader can open with a broker company usually 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.

 

 

GDMFX Types of Accounts and Their Features

GDMFX offers demo accounts that are free to open and allows traders to trade with the accounts and platforms that GDMFX has on offer without the risk involved.

It is not clear how much virtual money the account is available or for how long it is valid. Other brokers usually have around $100 000 available for a period of 30 days.

The following live account types can be opened with GMDFX:

 

  • Standard Account
  • Minimum deposit 100 USD
  • Deposit currencies USD and EUR
  • Maximum leverage 1:500
  • Fixed spreads
  • Blade Account
  • Minimum deposit 200 USD
  • Deposit currencies USD, EUR, and GBP
  • Maximum leverage 1:200
  • Spreads from 0.1 pip
  • Swap-free account available
  • Elite Account
  • Minimum deposit 5000 USD
  • Deposit currencies USD, EUR, AUD, and GBP
  • Customizable leverage
  • STP with interbank spread
  • Commission 7USD per lot
  • Swap-free account available
  • Prime Account.
  • Minimum deposit 200,000 USD
  • Deposit currencies USD, EUR, AUD, GBP, and JPY
  • Leverage 1:100
  • STP with interbank spread
  • Customizable commission

 

In addition to these four accounts, GDMFX now also has a Binary Options account.

  • Binary Options Account
  • Minimum deposit 100 USD
  • Deposit currencies USD, EUR, and GBP
  • No commission
  • Maximum total investments 2000
  • Maximum number of positions 10

 

GDMFX also offers its Muslim clients Islamic swap-free accounts that are Sharia-compliant. This is only available on the Blade and Prime accounts.

The process to open an account can be started from links on the company homepage. It is an easy and hassle-free process. Clients just need to complete the online application form, attached the required documents, and send it off.

As soon as you received verification that you have been accepted you can start trading. As seen in the above information on the account types various currencies can be used to fund accounts but make sure you use the correct currency required in the account you want to use. Several payment methods can be used.

 

Overall Rating

4.9/5

Rated #420 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

Not Regulated 

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

20

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Deposits and Withdrawals

GDMFX requires the following minimum deposits to open the different types of accounts:

 

  • Standard Account – Minimum deposit $100
  • Blade Account – Minimum deposit $200
  • Elite Account – Minimum deposit $5 000
  • Prime Account – Minimum deposit $200 000
  • Binary Options Account – Minimum deposit $100

 

The following methods can be used to fund accounts or make withdrawals:

 

  • Bank wire transfer
  • Visa
  • Mastercard
  • Skrill
  • Swift
  • Neteller
  • Bitcoin
  • Local Deposits

 

Deposits are free of any charge, and if a deposit is made in a different currency from the denomination currency of the customer’s account, it will be automatically be converted.

All Withdrawals are subject to a fee of 1%. It is not indicated how long it takes before funds reflect in the traders’ accounts.

 

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.

The amount of money required in your account to open a position is called the margin and is calculated according to the current price of the base currency against USD, the size (volume) of the position, and the leverage applied to your 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 depends on the asset being traded and the type of service offered by the broker.

Execution-only brokers, which do not involve in personal investment advice and give traders complete control over how they trade the markets, usually charge lower commissions.

While 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.

With GDMFX, fixed spreads are used for the Standard account while variable spreads apply to the other accounts.

The fixed spreads are average for the market, amounting to 2 pips for EUR/USD pair. The variable spreads are averaged at 0.5 pips on EUR/USD on, for example, the Elite Account type, involving a commission of $7 per standard lot round trip.

 

Leverage

GDMFX allows a maximum leverage ratio of 1:500.

The amount of leverage is expressed as a ratio, for instance, 50:1, 200:1, or 500:1. Assuming that a trader has $1 000 in a trading account and is trading ticket sizes of 200 000 USD/JPY, that leverage will equate to 200:1.

Leveraged product trading magnifies a trader’s potential profit – but of course, also increases the potential loss. This facility enables traders to get a larger exposure to the market than the amount they deposited to open a trade.

 

Bonuses

Forex brokers often lure new traders with offers of deposit bonuses. This can be useful, but it is essential to discern what the conditions are to really benefit from a bonus.

The bonus usually compensates traders for choosing a certain broker, since once the account is active, the trader will have the same expenses as any other. The bonus usually only starts giving some expenses back to the trader once the person has proved himself as an active trader.

Hence, although no deposit bonuses are a great way to help you start trading, the terms to benefit from it often require trading with such a high volume before you can withdraw profits, that it may not be worthwhile.

The European Securities and Markets Authority (ESMA) has also recently placed investor protection measures on the marketing, distribution, or sale of CFDs which prevent brokers to provide the retail client with a payment, monetary or excluded non-monetary benefit about the marketing, distribution, or sale of a CFD, thus ruling out the offering of such bonuses.

GDMFX offers several bonuses to its clients.

  • 50% Welcome
  • 100% Tradeable Bonus – if you fund your account with at least $1 000 you will be able to double your capital with this bonus
  • 4x Replay Bonus – Loyal clients can boost their capital on top of subsequent deposits, provided a minimum deposit of $1 000 is made.
  • Deposit Fee Waiver – When you fund your account through bank wire transfers a fee incurs. GDMFX will reimburse the fee levied by the bank if the amount is at least $500 or the equivalent.
  • 8% Fixed Income – This is aimed at the Forex and Binary options traders who can receive an 8% annual income on free funds in a trading account.

 

Trading Platforms, Software, and its Platforms

The forex trading software, also called the platform, provided by a broker company to its clients to carry out their trades can be a multi-asset one that allows clients to trade forex as well as other asset classes like CFDs on stocks, stock indices, precious metals, and cryptocurrencies.

Some companies provide their own proprietary platform, while others prefer well-known platforms. If there is a choice, the trader should keep in mind what he would like to trade.

GDMFX offers the world renown and popular MetaTrader4 platform in all its versions as the only trading platform. It is available as desktop, web, tablets, and mobile versions.

MT4 has become immensely popular for its fast execution delivered with a range of charting tools and analytics, provided on a highly streamlined and navigable interface.

These trading platforms are offered in several languages which include English, Turkish, Russian, and Chinese.

Also, the broker offers the Multi-Account Manager (MAM) which helps managers with the allocation methods or lets them trade each account with different conditions using one platform. This account uses software that operates with MT4.

 

Markets, Products, and Instruments

GDMFX offers 36 different Forex currency pairs and several indices as trading instruments.

Most brokers offer all or some of the following market instruments for trading:

 

Forex:

Forex trading, or currency or FX trading, involves the currency exchange market where individuals, companies, and financial institutions exchange currencies for one another at floating rates.

 

Commodities:

As with currency exchange markets, commodity markets offer trading in contract-based tradable goods.

 

Indices:

Equity or stock indices can represent a specific set of the largest companies of a nation or they can represent a specific stock market. It is actual stock market indexes that measure the value of a specific section of a stock market.

 

Precious metals:

This involves the trading of gold, silver, and other precious metals as hard commodities that are contract-based tradable.

 

Energy:

The high volatility of energy prices due to political, environmental, and several other factors, is a typical feature of this product, making it a popular trading choice.

 

 

Safety and Regulation

Before deciding to join a broker and start trading, a potential trader needs to establish whether a broker like GDMFX 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 forex market is extremely volatile, linked as it is to fluctuations in global currencies which in turn are determined by various market movements and global events.

While this very volatility contributes to more enhanced and lucrative trades, particularly for regular traders, it also means that a certain level of security is required within the forex trading environment to ensure full profitability.

GDMFX is operated by Global Derivative Capital Markets NZ Limited, a company that is no longer a Registered Financial Services Provider under New Zealand’s Financial Markets Conduct Act.

Despite this, GDMFX is still a member of the Financial Dispute Resolution Scheme which is an independent dispute resolution service in New Zealand that helps both financial institutions and their clients resolve disputes.

In case of a valid complaint, the FDR can award clients compensation of up to NZD 200 000.

 

Customer Support

Potential traders need to be assured that the broker company they chose can offer the necessary support and help whenever they may need it.

GDMFX offers customer support in real-time by telephone or email 24/7. The live chat option is not available. It also offers support through SMS and Skype.

Contact details are:

Telephone: (+64) 9951 8201

Email: [email protected]

Customer support is multilingual and can give support in English, Turkish, Russian, and Chinese.

 

Research

Potential traders need to do as much as possible research about speculative trading before commencing to do it and while trading. Trading successfully 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.

GDMFX offers traders the option to use research tools, which include a calendar, daily trading signals, daily forex analysis, and weekly forex analysis.

Through the research tools, traders can stay abreast of important developments in the markets and adjust their strategies accordingly for more profitable trades.

 

Education and Training

Before starting to trade, potential GDMFX clients should arm themselves with all possible information and trading skills needed to be successful in the world of forex and commodity trading. If GDMFX’s website itself does not provide enough means, a trader should explore other information sources to obtain that skills and knowledge.

Besides a choice of research tools, GDMFX also offers a comprehensive educational section on its website. It consists of webinars, tutorials, a forex dictionary, and one on one trading. The one-on-one training is offered for free with the company’s professional traders.

Also, the broker offers the Hermes Academy for those who are new to Forex and want to get acquainted. It starts with the Beginners level and works through to an Intermediate level. For those with more experience, there is the Advanced level.

 

Conclusion

GDMFX is not a regulated trader but it does have protective measures in place that ensures some level of safety and protection.

The broker provides a comprehensive and user-friendly trading environment, with enough tradable assets provided on advanced trading platforms.

We could not get into the broker’s website when writing this review which means two things, it is either under construction or the broker has closed.

 

Disclaimer

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to these risks before starting to trade on the forex market.

While GDMFX promises to make all efforts to fill a trade at the requested price, 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, which is accessible through the broker’s website.

Potential traders should first acquaint themselves with all these associated risks and seek advice from an independent financial advisor.

 

GDMFX at a Glance

Broker’s name GDMFX
Headquarters Auckland, New Zealand
Year founded 2012
Regulating authorities None
Countries not accepted for trade All countries accepted
Demo account Yes
Islamic account (swap-free) Yes
Institutional accounts No
Managed accounts Yes
Maximum leverage 1:500
Minimum deposit $100
Deposit options Bank wire transfer, Visa, Mastercard, Skrill, Swift, Neteller, Bitcoin, Local Deposits
Withdrawal options Bank wire transfer, Visa, Mastercard, Skrill, Swift, Neteller, Bitcoin, Local Deposits
Platform(s) provided MetaTrader4
OS compatibility Mac, Microsoft Windows, Mobile, Web, iPhone, tablets
Tradable assets Forex, Indices
Languages supported on the website English, Turkish, Russian, and Chinese.
Customer support languages English, Turkish, Russian, and Chinese.
Customer service hours 24 hours, 7 days a week

 

Overall Rating

4.9/5

Rated #420 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

Not Regulated 

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

20

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with GDMFX?

GDMFX trades 36 currency pairs and several popular indices

 

Which platforms are supported by GDMFX?

GDMFX provides the highly popular MetaTrader4 platform

 

Does GDMFX offer leverage?

Yes, GDMFX offers maximum leverage of 1: 500

 

What spreads can I expect with GDMFX?

GDMFX’s fixed spreads are average for the market, amounting to 2 pips for EUR/USD pair. Its variable spreads, on the other hand, are excellent and are averaged at 0.5 pips on EUR/USD

 

Does GDMFX charge commission?

No, GDMFX offers commission-free trading on its Standard account but charges a commission of 7 USD Per Lot on its Prime Account.

 

Is GDMFX regulated?

No GDMFX is not regulated

 

Is GDMFX a recommended forex trading broker for experts and beginners?

Yes, GDMFX offers a decent trading environment for both beginner and advanced traders.

 

What is the overall rating out of 10 for GDMFX?

6/10

 

Accounts

 

What is the difference between a demo and a 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 GDMFX offer a demo account?

Yes

 

Can I convert my demo account to a live trading account with GDMFX?

The broker’s website was down when writing this review and it could not be ascertained whether a demo account can be converted into a live account.

 

Which live trading accounts does GDMFX offer?

Standard Account – Minimum deposit $100

Blade Account – Minimum deposit $200

Elite Account – Minimum deposit $5 000

Prime Account – Minimum deposit $200 000

Binary Options Account – Minimum deposit $100

 

What are the available deposit currencies for a live trading account?

GDMFX offers the use of USD, EUR, AUD, GBP, and JPY, but traders should make sure the currency they want to use can be used with the account of choice.

 

Deposits and Withdrawals

 

What is the minimum deposit for GDMFX?

$100

 

How do you make a deposit and withdrawal from GDMFX?

GDMFX offers the following deposit methods:

  • Bank wire transfer
  • Visa
  • Mastercard
  • Skrill
  • Swift
  • Neteller
  • Bitcoin
  • Local Deposits

The same method that was used to fund an account must usually be used to withdraw money again and monies will only be refunded to accounts that carry the same name as the trading account with GDMFX.

 

Does GDMFX charge withdrawal fees?

Yes, all Withdrawals are subject to a fee of 1%.

 

How long does it take to make a withdrawal?

It is not indicated how long withdrawals take to reflect into the trader’s account. Traders should note however that depending on a specific bank service it may take several days for the money to be available in a client account.

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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