We did not find information about different accounts on GWG (Cyprus) Ltd.’s website. So we assumed that the broker offers a single account with leverage of 1:50, no commission fees and no option for trade in micro lots.
This broker says it does not provide services to citizens/residents of USA, British Columbia, Canada, Australia, Belgium, Japan, Islamic Republic of Iran, Sudan, Syria and North Korea and some other jurisdictions.
GWG (Cyprus) Ltd. Advantages
The greatest advantage of this broker is that the company behind it, GWG (Cyprus) Ltd., is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). This means the broker complies with a set of requirements and is monitored by the above commission.
– MT4 available
The software solution offered by GWG (Cyprus) Ltd. is the renown MetaTrader 4 platform. It is a reliable trading terminal that offers advanced technology and key features such as great charting, wide range of technical analysis indicators, automated strategies (EAs), and many layers of customization.
– Comparatively low initial deposit
This broker requires a minimum of $100 as an initial deposit, which is not much. There are many offshore brokers that demand more as a start.
– Commission-free trading
We are not sure about that, but since GWG (Cyprus) Ltd. does not mention charging fees anywhere on its website, we assumed that there aren’t any.
GWG (Cyprus) Ltd. Disadvantages
– Poor presentation
GWG (Cyprus) Ltd. could have made a better presentation of the actual trading conditions they offer. There is no clear indication of the maximum leverage provided by this broker, nor of spreads on their website, only GWG (Cyprus) Ltd., only examples of a trading scenario:
From the below examples of a trading scenario, we assumed that the spread on EUR/USD is fixed at 2 pips.
Such spread is not bad, yet other brokers have better offers.
No functional demo accounts
We downloaded the demo MT4 offered on GWG (Cyprus) Ltd.`s website, yet could not initiate a single trade. A message saying “Off quotes” kept popping up. Nonetheless, we saw that the spreads on the platform differ from those in the example scenario. This raises yet another red flag.
No micro lots
It seems that this broker does not support trading in micro lots. This is not a major flaw, yet smaller trade sizes allow for better risk management strategy.
As we mentioned above, the most prominent strong side of GWG (Cyprus) Ltd. Is that it holds a CySEC license. Regulation in Cyprus provides a decent level of security, as it involves a number of requirements to authorized brokers. They must meet certain capital adequacy requirements, to keep client funds separated from company assets, to report their transactions, among other things. Besides, Cypriot brokers are allowed to operate throughout the EU and the EEA under the MIFID regulations.
Although GWG (Cyprus) Ltd. is regulated in Cyprus and supports the MT4 platform, we would not recommend it. All decent brokers provide transparent pricing, as well as functional demo accounts, so that traders can test their services, while this is not the case with GWG (Cyprus) Ltd. Actually, the company’s previous name is Gametech (Cyprus) Ltd. It operated NenX – a mobile-only binary options broker with quite dubious reputation that now seems out of business.
GWG Review Conclusion
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