Grandefex is an online trading platform where investors could trade with different assets. These included currency pairs (Forex Trading), indices or shares. The English website is available at the URL https://grandefex.com. There is a warning message from the British FCA about Grandefex.
Do you know Grandefex and have had problems with an investment on the platform? Or would you like to learn more about this provider or the market situation in online trading? Then contact a lawyer to discuss your request personally.
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Anyone who has the idea of investing their capital on an online trading platform should inform themselves about the broker in advance. It is beneficial if you can fall back on Grandefex practical reports in this context.
If you search for Grandefex on Google & Co., many hits are displayed. Mostly these lead to blogs or forums where Grandefex opinions are discussed or where you can find Grandefex feedback. However, the views on this broker are not without restriction benevolent.
However, it is in principle difficult to assess the truth of the published experiences with Grandefex. This is because the texts that are found online are not always written from a neutral perspective.
The Financial Conduct Authority (FCA) of the United Kingdom issued a warning on Grandefex on 23 March 2020. The company is not authorised by the FCA and is targeting consumers in the UK. It is engaged in regulated activities that require authorisation.
Domicile of the Company and Regulatory Status
On a trading platform’s own website you can also find useful information for the interested investor. Here it is important to pay attention to what information can be found about the place of business and the status of regulation.
There is no legally binding imprint on the Grandefex website. The contact area provides information about the company’s registered office. An address in the Caribbean island state of Dominica is deposited here. This belongs to a Soleil Rouge Inc., the owner of Grandefex. There is also a telephone number with the country code of Great Britain for telephone contact.
There is a second Grandefex address in Barcelona, Spain. From here the website is operated.
Whether the Grandefex provider is licensed and supervised by a state supervisory authority in Europe cannot be proven. For there is no indication of approval by, for example, the German BaFin (Federal Financial Supervisory Authority) or the Cypriot CySec (Cyprus Securities and Exchange Commission).
As a result, it cannot be assumed without reservation that Grandefex has the authorisations required for business operations in Europe.
The company Grandefex is a global provider of forex trading. Therefore, this message is in the foreground on the homepage of the provider. They want to offer their customers a trading platform that is powerful and flexible. Accordingly, the provider provides four arguments on why investors should choose Grandefex:
- personalised service: support for customers through easy access to services
- Technology: powerful trading platform
- Education and training: a variety of instruments for learning
- broad diversity: access to over 350 assets worldwide
In total, Grandefex has more than 690,000 customers and more than 1.2 million orders. The provider has more than 300,000 trading actions daily. Among the products tradable on Grandefex are
- indices and
- currencies (Forex Trading).
Educational Offer from Grandefex
Grandefex has set up a special section on the subject of education on its own website under the heading “Education”. Here you will find information about the trading process and a brief explanation of the foreign exchange market. There is also a glossary explaining the main terms used in trading. In addition, there is an FAQ area (“Frequently Asked Questions”).
Trading Software for Clients
Trading on an Internet platform requires access to trading software. In many cases, online brokers make this available to their investors free of charge. The software can be a proprietary development or the program of an external manufacturer.
For Grandefex Trading, it appears that self-developed software is used. This is browser-based and can therefore be used on desktop computers as well as mobile devices. In addition, the program is available in almost 20 different languages and enables trading in real time. There does not appear to be a Grandefex app of its own.
Registration and offered Accounts
Anyone who wants to take advantage of Grandefex’s offer and trade on the online trading platform must first register. Once the client account has been created, you can choose a live trading account via the Grandefex login. According to Grandefex, there are three different account types to choose from:
- Standard: Account for investors looking for a traditional Forex trading experience
- Robot: automatic placement of orders and trades, without having to act manually on the market as a trader
- Social: copy successful traders and profit from their success
There is no information on possible minimum deposits and their amount for the different account types. There is also no further information on the methods available for deposits and withdrawals on Grandefex in this section of the website.
Risk Factor Online Trading
Anyone interested in online trading should bear in mind that this type of investment differs in many details from the classic way via a credit institution or investment advisor.
Before deciding to use the services of a trading provider, you should always ask about their reputation and standing. As a result of digitalization, the liberalization of world trade has also taken hold in the financial and investment sectors and has expanded the range of services offered.
If difficulties arise, those affected by online trading platforms are faced with the task of discussing them with the provider. Because if a broker is based abroad, this usually prevents personal dialogue, and language barriers may be added.
As a rule, online brokers focus on a number of complex products. These include above all Crypto Currencys, contracts for difference or Forex Trading (foreign exchange trading). However, these offers are not necessarily suitable for everyone.
With this type of product, detailed advice is mandatory prior to an investment. However, this is in no way standard with an online broker. In addition, fixed contact persons who speak their own language are not the rule.
This can quickly become problematic, especially if there are complications with the user account. Consequently, an inadequate assessment of the risks is always coupled with loss transactions, which often even affect the entire investment.
Losses in Online Trading?
Have you had any negative experiences with online trading? Then you should stop further payments in the first step and ask the online broker for the reasons.
If you are not making any progress with your request, you can seek investor protection by talking to a lawyer. Here the law firm Herfurtner Rechtsanwälte examines the procedure and determines, to what extent the investor can make demands valid.
Would you like to discuss with one of our legal advisors? Then you can contact us here.