FXGM (www.fxgm.com) is a brand name of Depaho Ltd. It is authorized and regulated as a Cyprus Investment Firm (CIF), registered under the Cyprus Securities and Exchange Commission (CySEC), with license number 161/11. Depaho Ltd. is a company that operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.
The portfolio of the company consists of 47 currency pairs, 18 commodities (metals, energy products and agriculture products), 23 global indices, 150 global shares, 11 ETFs and 6 cryptocurrencies.
Customers can trade with the platform called Web PROfit and Mobile PROfit. The terminal is developed by Vie Finance, whose liquidity provider the company is. Web PROfit is compatible with all major browsers, including Chrome, Firefox and Internet Explorer and you can trade without having to download any software. It provides various trading tools, financial news, real time charts and analysis. Mobile PROfit is an application for iOS and Android devices.
There are six types of trading accounts that differ mostly in the required deposit and the offered spreads. The Basic account requires a minimum deposit amount of USD200 and the spread for the EUR/USD pair is 3 pips, which is a relatively high value for this instrument. You must invest at least USD30,000 to open a VIP account and you will receive a spread discount of 25%. The company announces that the first 10 trades are protected and if you lose in these 10 trades, you will get your money back. Customers can fund their account by bank transfer, credit/debit cards, Skrill, Neteller, PayPal and Klarna.
The maximum trading account Leverage for Professional Clients is set at 1:200.
The Service Agreement document shows that all orders placed by the client are received by the company and transmitted for execution to the Execution Venues. However, it is also written that the company may act as a counterparty of the client. Acting as a principal counterparty to client trades (market maker) leads to a conflict of interests. In general, a conflict in interest arises between a customer and a market maker because the market maker wins when the client loses.
The same document reveals that the company will provide the retail client with Negative Balance Protection so that the client will not lose more than the total sum invested for trading CFDs and there can be no residual loss or obligation to provide additional funds beyond those in the client’s trading account. So, all retail clients are covered by negative balance protection.
It is also written that the placing of stop loss orders, which are intended to limit losses to certain amounts, may not be adequate given that market conditions make it impossible to execute such orders, for example due to illiquidity in the market. Therefore, Stop Loss Orders cannot guarantee the limit of loss, or they are not guaranteed. The same document also informs that slippage may occur when trading CFDs and this is a normal element when trading financial instruments. This happens when at the time that an order is presented for execution, the specific price displayed in the platform is not available and the order will be filled at the next best available price from the client’s requested price.
Overall, Depaho Ltd. is a strictly regulated company that uses either an STP model for order execution or acts as a market maker. Regulations oblige it to provide negative balance protection for the retail clients. The company is associated with TaoTrade as Depaho Ltd. is its sole execution venue. There are many instruments available through TaoTrade’s platform. Most likely, TaoTrade provides the platform to Depaho and gets liquidity for it. Trading conditions are remarkably similar to TaoTrade and unfortunately not so competitive – you must invest a relatively high initial deposit amount to get decent spreads.