Goldman – What Makes this a Scam Broker?

Goldman

Everyone has heard about online scams, as there are a variety of them that exist and there have been tons of stories of people who have been victimized by one or the other. One of the most notorious categories can be found in the online trading space, where these fraudsters establish fake brokers to exploit people and steal their funds.

They have been quite successful in this goal so far and continue to find new victims every day because most people do not know how to identify them. You can find this Goldman review helpful in this scenario.

It is foolish for anyone to assume that they will be able to tell an online broker is a scam simply by taking a look at its website. Nothing is that simple, especially today when there are a lot of resources and tools that scammers can use to disguise themselves as genuine companies. Their websites will not come with any obvious flashing signs that will warn you straight off. You have to figure out what makes a particular company a scam broker in order to protect yourself.

Is that even possible? Indeed, you can learn the truth about any online broker this way and it allows you to make the best decision for your trading career. The key fact you need to remember is that it does not matter how many big promises and claims a company makes, you should take it with a grain of salt and do your research to know if there are any things that should alert you. One of the prime examples that you will come across is Goldman that has presented itself as a fully regulated EU brokerage offering safe trading in the financial markets.

Isn’t that what every trader wants? Yes, they do, but just because Goldman is claiming to offer it to you does not mean that it really can. It can be easy to get carried away with the promises of multilingual customer support and unique trading terminal, but you should ensure there is nothing fishy. Unfortunately, you will find that there is plenty fishy where Goldman is concerned and you are dealing with a fraudulent brokerage. What makes it a scam? You can find out here:

Taking apart the licensing claims

The secret of whether the broker is a scam or not lies in their licensing and regulatory status. Just because a company is claiming to be licensed does not automatically make it so. It is the internet where anyone can claim anything and get away with it. This means that you cannot rely on the words of a broker alone to know whether it is licensed or not. It is always smart to verify, which means checking with the regulatory body to know if it has really issued a license to the company or not.

Dealing with licensed and regulated companies is the best move because they maintain high standards in terms of service, security and transparency. You will find that Goldman is also one of the brokers claiming to be licensed by several global regulatory authorities. According to its website, it is based in Bulgaria, which is part of the European Union. It claims to have a license from the Cyprus Securities and Exchange Commission (CySEC), which is one of the top regulatory bodies in the EU.

Other licenses that Goldman claims to have are from the Australian Securities and Investment Commission (ASIC), the Vanuatu Financial Services Commission (VFSC), the Financial Services Commission (FSC) in Mauritius and the International Financial Services Commission (IFSC) in Belize. That is quite a long list of licenses, but none of it is true. First off, you should understand that the VFSC and the FSC license do not hold a lot of value, given that they are from offshore jurisdictions, but the broker is lying about those as well.

Apart from that, you can run Goldman’s name in the online register of the other regulatory bodies and not find it anywhere. In addition, the trading conditions that Goldman has advertised are against the regulatory framework of the EU and Australia, which further proves that the licensing claims are a lie.

Demand for information

Next, you will come to know that Goldman demands you to immediately verify your account with it. While KYC procedures are the norm with online brokers, they are never immediate and none of them demand full copies of your ID card. Yet, you will find that Goldman wants you to give it copies of your ID, even your credit and debit cards and your address. It is a common tactic of scammers, so they can collect the data and misuse it later on.

No professional platform

If you were expecting a professional trading platform at Goldman, then you will be in for disappointment because there is no MT4, MT5, or any such advanced and innovative trading solutions available. These are the top solutions in the market that have become renowned for their capabilities, but what you are given at Goldman is a basic and oversimplified web trading platform that is lacking in the cutting-edge tools that others can offer. Most professional and reliable brokers will offer you a leading platform to help you maximize your trading efforts.

High leverage

The fact that you can access leverage ratios as high as 1:500 via your Goldman account can be quite appealing, but you should remember that the broker claims to be licensed in the EU as well as Australia. The regulatory bodies in these jurisdiction have imposed a cap on leverage of 1:30, which means that the broker is going against the regulatory framework. It proves that it is just trying to scam people and is not licensed at all.

No refunds

As you can only make deposits in Tether and Bitcoin, you will not be able to get a refund at Goldman because there can be no chargebacks when crypto is used. Furthermore, they also offer anonymity to the scammers, which is why they are the most preferred options.

Final Word

All of these problems with Goldman show you that you are dealing with a scam broker that should be avoided.