Beware! GoDoFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
GoDoFX is a rather catchy name for a forex broker, we at least give it that. It’s easily imprinted in your memory, but the truth is that you will be remembering an illicit broker. GoDoFX might seem like the next go-to forex experience, but it is anything but. In reality, this company is one for the ever-growing pile of unregulated and risky brokers. Why is this? Well, the reasons are many; the review that follows outlines the main ones, so we encourage our readers to go through it carefully.
The account creation form is a subtle yet obvious sign that the broker is not professional. Yet it did require of us some details that not all scammer brokers do. But in the end, the resulting user area was the most common one we have learned to expect from illegally operating brokers. Not to mention that GoDoFX seems to let just about anyone in the user area.
We have to mention that this broker offers ten different account types, which is an overwhelming amount of choices. We opened the Standard account type, with a live access at that, which again might seem great but in reality, gives to show that GoDoFX will let just about anyone in.
The MT4 that followed revealed forex currency pairs, metal spots, oil spots, indexes, oil futures, and indexes as available tradeable assets. The average EUR/USD spread is 1.2 pips. which is great, but remember that we opened a Standard account type. Theleverega cap was said to be 1:200.
We find a very vague mention that the broker charges spread commission on shares and indices. Yet, we found no further evidence of this.
The website of the company is in English, Arabic, Chinese, and Hindi.
GODOFX REGULATION AND SAFETY OF FUNDS
The legal documents pull the oldest trick in the book by asserting that the broker is not applicable in jurisdictions where its usage would be contrary to local law or regulation. Of course, there is no mention of any specific countries to which this rule applies, but there never really is any disclosure. It’s by far one of the most popular messages that scammer brokers put out.
We find a couple of claims that the broker is allegedly licensed in Mauritius by the local Financial Service Commission (FSC), but the online registry of the regulator shows no result for one GoDoFX. Therefore, the broker is not regulated in Mauritius.
In fact, GoDoFX is NOT LICENSED anywhere! It’s a clear risk to all investments, as well as to all ID documents provided!
Trading should be done only with risk-free brokers, and by that, we mean regulated brokers, for all brokers pose a certain risk. Regulated ones are those that warn users of the risks and are tightly overseen by the given overseer. Thus any lost funds result only because of the user’s poor judgement or because of the dynamic fluidity of the market.
We encourage users to trade with FCA or CySec regulated entities, or other European or US-based licensed brokers. These are very severe with their firms and demand of them a ton of requirements. Regulators strive to keep brokers in touch with the law!
Moreover, the FCA and CySEC offer financial reimbursement schemes to users of brokers under their gaze. This fund cover losses of users in times when the broker becomes insolvent.
GODOFX TRADING SOFTWARE
Without having a clue how it did it, GoDoFX has included an MT4.
The MT4 is by far the most popular trading software out there, even though the MT5 is gaining popularity very fast. Both of these softwares are on the top of their game!
Now, even the MT4 is not enough to buy out the broker from the predicament of being unlicnesed. Nothing can redeem it, except for a proper license, of course.
GODOFX DEPOSIT/WITHDRAW METHODS AND FEES
Funding an account happens either through a credit card or a wire transfer. The minimum deposit requirement is $100.
The withdrawal section of the user area discloses nothing of importance. We must rely on the website, which is not the most trustworthy source out there.
From the website, we learn that if a withdrawal is €20 or less there will be a fixed €10 commission issued. If the withdrawal is made by bank the same fee applies if the wire transfer is €100 or less than.
There is no talk of withdrawal processing times.
It’s obvious that GoDoFX is not worth your time and money. It is unregulated, and a scam. Do not invest here.
How does the scam work?
The scams are very efficient and simple to follow for both the user and broker. At times, it may seem ludicrous to consider that one is in the middle of a scam! That is how effective they are!
Online ads that promise fast money, superb investment strategies, luxurious lifestyles, and beautiful sceneries, are all often a part of an investment scam. These advertisements are specifically tailored for more susceptible users. Clicking on them will redirect the person to either the website itself or an intermediary source.
It matters not where one ends up. Sooner or later the individual will be asked to provide a phone number or an email address.
Sooner or later, the unfortunate soul to have given these contact details away will start receiving emails or phone calls from the rep of the scam. The only and ultimate goal of these calls/email correspondences is to entail a preliminary deposit. This first investment is the client’s way into the scam, and after that, it will be much easier – for the user because his guard is down, and for the scammer, because he has gained the user’s trust – to bring about more deposits.
It all culminates to the point where the client wants to see results; he/she wishes to see some profit or withdraw his deposit and leave. A few things will happen. Either result will appear, completely fabricated by the fraudster, or the scammer will cut all communications with the user.
One thing is for certain. Users will not be able to withdraw! Typically, the broker will either cut all communication, quote its shady legal documents as a counter to all requests, shut down the user account, or even close the entire website!
What to do if scammed?
Immediately upon feeling suspicious file for a chargeback. Both VISA and MasterCard have extended their chargeback time span to 540 days.
Fraudsters can take out money from your bank account, and thus we encourage defrauded users to change their bank account name and password ASAP. And then users should contact the bank to set a plan of action with it.
Deposits made through any sort of cryptocurrency are for sure to be lost forever. That is why it is imperative to never invest in crypto.
So users will come across these self-proclaimed recovery agents, whose alleged job is to recover money lost to investment scams. All they ask is a service fee, which they will take and leave the user without a trace!