GCITrading uses Swaps as heavy extra fees

Thest

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Is GCItrading SCAM? Does GCI Financial operate a SCAM platform?

Yes. At least they scammed me in those dimensions:
- They tricked me into business with unrealistic swap rates.
- They used last minute swap rate change as extra fee, while their frequency and amount of swap rate change was out of normal.

Those are my conclusions. I by hard encourage you to draw your own conclusions.


Read the full report in the attached PDF!
 

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  • GCIisScam003.pdf
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Hi Thest,

I would disagree with you........

I don't know this broker at all, so my comments are based solely on this issue. IMHO, the issue you mentioned does not make it a scam. You are correct that people should consider swaps when deciding on a broker and, for sure, it is sensible to steer away from brokers that have unattractive swaps. It is definitely a trading cost to consider.

But you are upset that you could not arbitrage the swap differences. It's a bit harsh calling them a scam because you did not come right. Brokers can and do change swaps. Most brokers change swaps weekly, sometime more often. I have seen EURUSD short swaps come down over the last 2 months despite there being no change in underlying instruments.

Another point is that many brokers will have, in their T&C, that if they find an error in their swaps, they have the right to reverse any benefit you may have gained from it. You got off lucky.........they could have reversed things after you had the positions open for a couple of weeks.
 
Hi compu-forex,

imagine a broker that puts onto their offer for opening a forex account following condition: For every open position you pay a daily fee 'PAWS'. We can change 'PAWS' at any time to any amount we want to.

Guess what, I would not sign that contract. Hope you not, too. CGItrading is doing that, but even worse. They basicly label their 'PAWS' as 'swap', which is perceived by any other person to somehow related to money markets. Wikipedia defines 'SCAM' as 'A confidence trick (synonyms include con, confidence game, confidence scheme, ripoff, scam, and stratagem) is an attempt to defraud a person or group after first gaining their confidence, used in the classical sense of trust.' That is exactly what is labeling 'PAWS' as swap is all about.

I hear you say, that market conditions change and only because they have a change in their swap/'PAWS' does not automaticely mean, that it is not related to money markets. And here is why I contradict:
1. When it comes to swap money markets in developed countries in non-drastic-crises-times change amounts are low. That 7.25 % difference in 8 days for AUDUSD swap long in these days is a quite convincing indicator, that gcitrading is rather doing 'PAWS' than swap.
2. When forex companies really adapt their swap to market conditions, there is always a 50/50 chance that you also profit from that change. What I have not shown in the report is, that with gcitrading swap changes only things changed to the worse for me as end customer.
3. Market conditions may change any other day. Sorry, but the likelyhood, that because of market condition change cause massive swap rate change against me a couple of minutes after I opened bigger positions tend via zero. Well you could say, bad luck. So fine, but it puts the other two arguments into context.

Based on those three arguments I concluded they are doing 'PAWS' labeled as swap. If you still trust them, you are free to open an account with them. Good luck. I personally am out and will stay there. For me it is simply: 'Never again GCI trading."

Btw. that 'some company write fraud rules into their T&Cs' is a pretty lame argument. This basicly extends the 'PAWS' offer: For every open position you pay a daily fee 'PAWS'. We can change 'PAWS' at any time to any amount we want to. And we can change the amount we charge you even retroactive to any amount we want.

I still would not sign that contract if I would know that they do 'PAWS' and not swap.

Cheers,
Thest
 
imagine a broker that puts onto their offer for opening a forex account following condition: For every open position you pay a daily fee 'PAWS'. We can change 'PAWS' at any time to any amount we want to.

Ok, agree to disagree,

Good luck with finding a broker that is going to come ask your approval before changing your swaps/rollover/financing fee/PAWS or whatever you want to call it.
 
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