XGlobal FX Review: A Vanuatu (Offshore) Broker
A CFD’s and FX broker, XGlobal FX is a complicated entity whose registration is in Vanuatu. The fact that XGlobalFX is an offshore broker and has a valid license is complex. XG is using the MT5 trading platform and has several trading instruments under its wing. To be clear, their trading conditions appear appealing to the eye. Since the broker is offshore-based, there’s a reason for worry. Here’s what we got from this thorough X Global FX Review in a nutshell.
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A brief history of XGlobal FX
First, investors should know that XGlobal FX is not available in the EU region. Those that sign up with such a broker face immense risks. With an unregulated broker, a lot could go wrong. On their website, they claim to fund a football team in Lebanon.
Although the team exists, such partnership remains to be seen. The only link we have of the football team does not have any information on their sponsors. It could be one of the many red flags as the platform is clearly hiding something.
X Global Holding Ltd is the company that owns and runs this platform. The company is in Cyprus, and we expect to see a license from authorities in the region. XGlobal Markets is another so-called affiliate partner with the platform. The platform is indeed licensed to operate in the EU region by CySEC.
There’s no link between the two entities, even though their names sound familiar. And this is a point we need to raise. X Global FX could be using a legit broker’s information to advance their cause.
Available Trading Instruments
There are four available trading instruments on the platform. The vendor uses Energies, Futures, Gold, Indices, and Silver. Spreads start at 0.4pips with no commissions on Indices.
There are varying features on these assets. The broker does not include any leverage on these accounts. When it comes to Energies, Lot sizes are in barrels and MMBtu. There is no rollover fees on precious metals. Forex trading features include $3.75 per side commission.
Business owner of XGlobalFX
The disclaimer at the footer of their homepage has a lot of ownership information. However, we don’t get any actual names as to who runs the entire platform. There’s no mention of a single professional broker or staff member on the platform. And this means that investors are depositing funds to an anonymous organization.
These could be an illicit money laundering operation. It also could be a legit broker who forgot to add this crucial detail. We highly doubt the latter.
Customer feedback and user rating X Global FX
Most trading forums have nothing in regards to the ratings and user-experience. Looking at trust pilot reviews, we see a trend of only positive comments, which is worrying. There has to be someone who has had mishaps with the broker.
It’s inevitable to get a client who loses money with even the best broker in the industry. This leads us to believe that most of the comments are from paid actors. The website has gone and done a “rabbit out of the hat” trick. With these comments, one will easily believe what the broker wants investors to hear.
Credentials, License, and Registration of XGlobal FX
XGlobal FX is a broker with a Vanuatu License, which means they can operate freely. We don’t recommend brokers who have such a license. The reason is that the license does not cover investors.
All liability falls solely on the investors and fully protects the broker. And this has made such licenses a must-have for offshore brokers. It’s also a license for scam artists to fool unsuspecting online investors. And this is the reason why we have issues with a Vanuatu license.
The upside of having a Vanuatu license is that the broker must have some physical presence. All brokers with a Vanuatu license must maintain a minimum capital requirement of $50,000 to operate.
These brokers have to keep the money in segregated accounts, and all these are good features. The only problem is that the regulator does not provide adequate supervision on transactions. It’s the main reason an amateur broker will easily go for a Vanuatu license.
Domain insights of xglobalfx.com
31st July 2012 is the exact date that this website went online. The platform has been in existence for over nine years. Thanks to domain details, we learn more about the traffic of the platform. Most of the traffic is from Asia and the Middle East.
A few users are from Europe, which only worsens the scenario for them. The IP location is in England, which leads us to believe this is where the owners are currently located.
Features of XGlobal FX
Account Types
XGlobal FX is operating with four account types. There’s a demo account that offers trade risk-free features. Their demo account is unlimited, which means you can use it as long as you want. The demo account is also identical to the real accounts.
There are three other account types on the platform. These include Trading Account, Islamic Account, and Corporate Account. Normal account holders get 100K lot sizes with the commission set at $7.50. Prop trading is available for corporate clients with customs conditions available.
Deposit and Withdrawal
The minimum deposit with the normal account is $100. Depository options include Bank Transfer, B2B Transfer, and SticPay. Withdrawal conditions are similar to deposit with a minimum amount set at $100. The broker covers all deposit and withdrawal fees, which is a plus for investors.
Bank withdrawal will take a minimum of two days to a maximum of five. Honestly, this is one of the best firms when it comes to suitable deposit and withdrawal conditions.
Trading platform
MT5 trading platform is available on all operating systems. The platform is compatible with all devices, which means you can trade on the go. MT5 trading platform is secure and offers a lot of exciting features. Thanks to its compatibility, it allows most traders to customize it to their preferred settings.
Downloading the platform is easy, and the signup process takes less than five minutes to complete. You need to give your personal details for verification.
Safety of funds with XGlobalFX
This is the tricky part with this broker. There’s a reason why we don’t recommend offshore brokers, and security is one of them. Although the broker does deposit the minimum capital requirement, there’s still a problem.
The license only covers the broker with no security cover for investors. Once the broker decides to shut down, no one will receive the reflecting balance on their accounts. It makes trusting the broker a hard pass for us.
Scam or Legit XGlobal FX
There’s no doubt in our minds that XGlobal FX is a broker with the right intentions. The broker has all the right qualities in terms of trading conditions. You get a platform that covers deposit and withdrawal fees, which is a huge incentive. On the other hand, you get an offshore broker whose license is from Vanuatu.
Our Verdict
If you still want to trade with the above broker, don’t put all your eggs in one basket. Ensure you withdraw your profit at every opportunity you get.
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We wish all investors a safe and transparent trading experience.
