Gigachains Review – Finding the Scam Indicators

Gigachains Review

Before the advent of online trading, people had to go through a great deal of hassle to trade in any financial market. They were required to go look for a brokerage to make their deals and the investment needed was also quite hefty. You also had to be familiar with the markets, or else getting started was almost impossible. Things have changed with the option of online trading, as you can now find brokers over the internet and trade from anywhere and anytime, even without any experience. But, this Gigachains review shows that there are hurdles that you have to overcome.

You may not need a lot of money to start online trading and don’t have to have any experience or prior knowledge either. But, you do need the services of a broker and now you can find them online easily. But, it is important to note that the quality of services and their offerings can vary significantly, which means you have to do some diligence. Furthermore, it is also necessary to bear in mind that there are fraudulent brokers and scammers that also operate in the market. This requires even more caution because you can easily fall into their trap and lose your money.

This is definitely something everyone wants to prevent and the only way to do that is to choose a brokerage after doing your due diligence. Looking at the website of a broker is not enough because they are likely to boast about their services and features and it could turn out to be a sham. Are you willing to take that risk? Doing so would not be a smart move for anyone, especially when they are putting their hard-earned money at stake. Instead, you need to ensure there are no scam indicators, whatsoever, when you check out a company. Gigachains is one such brokerage that requires you to do your diligence.

The first glance at Gigachains does not tell you much about the forex and CFD brokers and you have to be look closer to find out the details. Doing so shows that there are indeed some scam indicators to be found and these are:

Lack of licensing and regulation information

Perhaps, the biggest scam indicator that you can find in an online brokerage is their lack of licensing and regulation. Companies that do not have a license to operate in their respective jurisdiction cannot be trusted because there is no way for you to verify any information they present. After all, this is the internet and anyone can do or say anything. A licensed and regulated brokerage complies with laws and rules, offers transparency and security to its clients and can also be held accountable. Where does Gigachains stand?

When you go through the Gigachains website, you will not find any information about the company that owns and operates this brokerage. They refer to it as ‘The Company’ in the Terms and Conditions you will find, so essentially it remains anonymous and you will have no idea who you are dealing with. As far as their legal framework is concerned, they have cited the ‘Investment Services and Activities and Regulated Markets Act 2007 and also claim to implement the MIFID rules.

But, at the same time, you will discover that Gigachains also seems to be making a reference to the laws in the Saint Vincent and the Grenadines. This is an offshore jurisdiction that has become a breeding ground for scam operators because their Financial Services Authority (FSA) has said outright that it does not regulate the forex industry, which means absolutely no rules apply.

Apart from that, you will also notice a company named ‘Dax100fx’ mentioned in the Terms and Conditions on the Gigachains website. This is also a scam indicator because such platforms often copy and paste legal documents of other companies and forget to edit. Moreover, a search of this company shows that it has also been blacklisted by CONSOB, the Italian regulator, which further confirms that you are not dealing with a legitimate entity.

Malicious withdrawal restrictions

You will come to know that Gigachains is offering trading bonuses to its clients and this comes with its own share of problems. It is regarded as a scam indicator because the practice of offering bonuses has been prohibited in numerous jurisdictions. If Gigachains was really complying with European directives like the MIFID, it would not be offering these bonuses because it is also one of the jurisdictions where these bonuses are banned.

Why have they been prohibited? It was because they came with strings attached that were considered abusive for traders. This is evident in the withdrawal restrictions that Gigachains on accounts that are credited with a bonus. Traders are not allowed to withdraw their funds until they have achieved a minimum turnover requirement, which has been kept so high that it is almost impossible to reach.

Excessive fees and charges

It would not be wise for anyone to choose a brokerage without knowing what kind of fees and charges they have to pay. You need to know the costs you will incur because they will affect your bottom line. A look at the fees that are charged by Gigachains will shock you because they have some very absurd charges. First off, the brokerage appears to be charging a 20% commission in advance that does not seem to make any sense at all.

Apart from that, you will also find that Gigachains charges a 10% fee on inactive accounts that have not been used for about three months. Again, this is extremely high and not something legitimate brokers charge. In addition, another problem you will encounter is that they have not disclosed their payment methods on the website. This means that you have no idea how payment will be made, so there is no hint of whether you can file for a chargeback or not.

Ending Thoughts

These scam indicators make it easy for you to determine that Gigachains is not a legitimate broker and is downright fraudulent.