GTCM Review

GTCM.com briefly

GTCM is the contracted form of Global Trading Capital Market, a brand name of Depaho Limited. It is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) to offer services in European Member States. In addition, FXGM is another brand of Depaho Limited. Clients can trade a wide range of financial instruments including currency pairs, commodities, indices, shares, cryptocurrencies, and ETFs with fixed spreads through the company’s own trading terminal called WebPROfit. It runs on every modern browser and the spread for major currency pairs is between 3 and 10 pips.

Regulation

It is important to know if and where the company is regulated. Global Trading Capital Market (GTCM) is a brand name of Depaho Ltd. It is a registered Cyprus Investment Firm (CIF) licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 161/11. It follows the regulatory standards of the European Securities and Markets Authority (ESMA). In addition, as of April 2017, Depaho Ltd is authorized and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa under license number 47709.

Account Types

There are six types of live trading accounts available that differ mainly in the minimum deposit amount and the spread offered.

BASIC account – It requires an initial deposit amount within USD200-1,999. The spread for the EUR/USD pair is 3 pips. Trading is commission free.

Discovery account – It requires USD2,000-4,999 to open and the price discount here is 10%.

Silver account – You must invest within USD5,000-9,999 to open and the price discount will be 20%.

Gold account – It requires an initial deposit amount within USD10,000-14,999. The spread discount will be 30% and there is a rollover discount of 17%.

Diamond account – You must deposit within USD15,000-29,999. The spread discount will be 40% and the rollover discount is 20%.

VIP account – It requires an initial deposit amount of USD30,000-49,999 to open. The Price discount is 50% and the rollover discount is 33%.

The company announces that the first 10 trades are protected and if you lose in these 10 trades, you will get your money back. There are some terms they must comply with such as the position value must be within USD1,000-2,500 base currency units and the first ten protected positions must be closed at the start of the third day with a maximum duration of 72 hours from their opening time, etc.

What Type of Broker the Company Is

The Order Execution Policy document shows that when clients place orders on the platforms, the company receives and transmits them via the platform to the execution venue Naxes Belize Limited, which then executes the orders, or alternatively the company executes the orders. This means that Depaho Limited can act as a market maker when it deems fit. When customer orders are transmitted for execution, there is no major conflict of interest, through the Straight Through Processing (STP) model, but when the company executes orders, it keeps the risk to itself. In this case, the conflict of interest exists and any loss to customers is a gain for the company.

The same document also warns that slippage may occur when trading in CFDs. This is the situation when, at the time that an order is presented for execution, the specific price shown to the client may not be available; so, the order shall be executed at the next best available price. The company informs that slippage is a normal element when trading in financial instruments and it occurs most often during periods of low illiquidity or higher volatility. It is noted that slippage can also occur with stop loss, take profit and other types of orders. The company does not guarantee the execution of client’s pending orders at the price specified but at the next best available price.

In addition, the company provides all retail clients with Negative Balance Protection, so that the client shall 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.

Fees

In addition to usual fees there also is an inactivity fee. In case of no trading activity for a period of at least three months, the company may apply a fee of EUR150, charged on a quarterly basis. Additionally, in case of transactions below USD50, the company charges a fixed fee of USD1.5 on each transaction.

Deposits and Withdrawals

Customers can use several deposit methods such as wire transfer (it can take up to 5 days), credit/debit cards (instant payment), Skrill, Neteller, Klarna, Safecharge, etc. Deposits made by credit/debit card must be minimum USD200.

Withdrawals are credited back to you via the initial method of deposit. For example, if your initial deposit was via credit card then the withdrawal is credited to you via the same method with surplus funds (if applicable) credited to your nominated bank account. The minimum withdrawal amount is USD50.

All deposits and withdrawals are processed within one business day.

Trading Platforms

You can trade via the company’s own terminal called WebPROfit. It is web-based, and you can trade without having to install any additional software. WebPROfit has a user-friendly interface and an easily customizable workspace. It also provides tools for enhanced functionality of charts and order management. The platform is available as a mobile application for Android and Apple devices.

Assets

Forex – More than 30 popular major, minor, and exotic currency pairs can be traded. The spread for the EUR/USD pair is 3 pips for the Basic account and decreases to 50% for the VIP account.

Indices – Traders receive access to 13 of the major indices globally, such as DAX30, DJIA and FTSE100. The spread for the DAX30 is 5 points and the one for the DJIA is 35 points in the Basic account.

Commodities – Gold, Silver and other precious metals traded as a spot price and Crude Oil, Brent Oil, and some cereals traded as futures. The spread for the Gold is USD1.00 for the Basic account and the one for the Crude Oil is USD0.06.

Shares – Nearly 60 of the major companies such as Apple, Intel, BNP Paribas, etc.

Cryptocurrencies – Bitcoin, Ethereum, Ripple, etc. The spread for Bitcoin is USD100 for the Basic account.

Education

There is a dedicated educational section called Education but inside you can find articles and other stuff from Investing.com. There is a short history of the international currency market development and a glossary of financial terms.

Summary

GTCM has a CySEC regulation, which allows it to provide financial services across European Union. It mostly uses the STP model to execute orders, although the company has a right to act as a market maker. The company provides a wide range of trading instruments via its own trading platform WebPROfit. There are six types of live accounts and the minimum deposit amount is USD200. However, you must invest at least USD30,000 to receive decent spreads.