PT. Global Artha Futures or GAF is an Indonesian broker. In this review, we will focus on the forex part of their offering, although the company also provides access to futures trading.
Indonesian regulation – as an Indonesian broker, GAF is regulated by the Supervisory Board and the Commodity Futures Trading Regulatory Agency (BAPPEBTI). This leaves mixed feelings – while the Indonesian regulators are preferable to off-shore “watchdogs”, there are other agencies which are more established.
MT4 trading platform – GAF offers the industry-leading piece of software. This is а great piece of software, admired by a lot of traders. The platform provides top-tier charting, with a lot of customization options. There are thousands of technical indicators and automated trading systems developed for it, which one can buy at the MQL marketplace (furthermore, some of them are free). That being said, this platform is implemented rather poorly at GAF. We will cover our reservations below in the “negatives section”.
1:100 in leverage – this level is standard when it comes to forex trading. With that in mind, some may even consider it to be a low ratio, especially with the current offers provided by other brokers, like XM, where you can trade at 1:888. Remember a higher leverage ratio isn’t always beneficial – it only allows you to take a greater level of risk, which can lead to quick losses.
Bad presentation – When browsing through GAF’s website an experienced trader will not get the information he needs. The spread levels are barely mentioned, with a focus being placed on the commission structure. Other trading conditions are also not mentioned.
High costs of trading – this is probably this broker’s main disadvantage. Despite the average spreads not being mentioned, we revealed a 3.0 pips fixed spread. On top of that one has to pay a $50 commission per lot. This equates to an additional 5 pips (on pairs where USD is the second/quote currency), for a grand total of 8 pips. This is very high.
You can always check the offers provided by some of the top-rated brokers on our dedicated page. We have set-up a few live accounts and connected them with our system to display the data in real time.
Four digit quoting – another very outdated parameter. Quoting forex pairs, with only four symbols behind the decimal point creates an environment, where the importance of slippage and spread only increases. When trading with a 5-decimal broker (which are most of them nowadays) and market conditions are extreme, one may get a 0.3-0.5 pip worse than expected trade, where as with 4-digit broker the deviation will always be a minimum of 1 pip.
Only bank transfers supported – when it comes to the payment options mentioned by this broker, a clear and definitive answer is not given. That being said, bank transfers are briefly mentioned.
Few trading instruments available – at the time of writing of this review, only eleven pairs were available for trading at GAF. This, combined with the platform’s problems, which we will get to below, leaves the feeling of server issues.
Charting issues – the issues we have with this broker’s iteration of MT4 are multiple. Charting starts, from April 2016. While this may not bother scalpers, long-term traders will not appreciate it.
GAF is a forex broker operating from Indonesia. The company is regulated by the local financial watchdog BAPPEBTI, but the positives pretty much end here. The actual forex trading service provided by this broker is not in line with the current state of the industry. With trading costs going as high as 8 pips (effectively), making a profit will be even harder than it already is.
While Indonesian regulators are much more respectable than those in a lot of other places, we often like to recommend dealing with EU-based brokers. One of the regulatory agencies we mention in a lot of reviews is the UK’s FCA. In this review, we will give you a very brief preview of the benefits, of dealing with a CySEC regulated broker.
For those of you who are not familiar with forex trading, this is the Cyprus Securities and Exchange Commission. The country gained popularity among forex brokers, especially after becoming a member of the European Union. This brings a very high level of stability via the MIFID mechanism.
The specific rules applied by CySEC are segregation of client accounts and a compensation scheme. The former means all funds deposited with a broker, overseen by this agency are kept in special bank accounts, which can’t be freely accessed. The Investor Compensation Fund is a system which guarantees one’s fund in case his investment intermediary declares bankruptcy. In the case of Cyprus clients are covered up to €20,000.
GAF Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about GAF Review.