GSM is not a reliable broker for traders even though it states offers that look good to be true. GSM claims to be owned and operated by GSM financial group, a financial derivatives broker founded in 2015 and headquartered in Canada with an MSB license issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
First, when we checked its domain, we found it was created in 2019. So how could it start its business in 2015? It is a red flag here.
Second, we indeed find a match result to GSM in FINTRAC, but please be informed that FINTRAC is not a regulatory body that regulates entities engaging in forex services. Having an MSB license does not mean having any valid regulations. Besides, we did not find any match results to GSM in the Canadian forex regulator the Investment Industry Regulatory Organization of Canada (IIROC).
Third, GSM shows a company address in London, the United Kingdom. As per United Kingdom law, all firms and individuals offering, promoting, or selling financial services or products in the UK have to be authorized or registered by the UK Financial Conduct Authority (FCA). However, no results are matching GSM in FCA.
The truth is, GSM is not overseen by any regulators. That means your personal data or your funds in this broker are unsafe and cannot be protected by any law. We would recommend traders stay away from unregulated brokers like GSM and trade with licensed brokers.
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