FXGT and Crypto GT are brands that have many Japanese customers. Therefore, it is a very interesting point to say whether or not they have obtained permission from the Japanese Financial Services Agency. Do these two companies hold financial licenses?
financial license
Whether or not the Forex company can be trusted is whether it has a financial license. So do FXGT and Crypto GT have a financial license?
FXGT
FXGT has a financial license from the country of Seychelles in East Africa. Many Forex companies are based in Seychelles. Many countries where Forex companies are based are tax havens, so people in developed countries often don’t know much about them. Seychelles financial licenses are relatively easy to obtain, so forex companies are often based there.
Crypto GT
Unfortunately Crypto GT does not hold a financial license. If you have a financial license or permission, it is often described on the homepage, but there is no such bond issuance at Crypto GT.
FXGT Reliability
FXGT is said to be a relatively reliable company. The reasons for this are as follows.
separate management
FXGT is a tier 1 bank with strict segregation of client funds. By managing the funds separately, FXGT prevents misuse and personal use of the customer’s funds, which is a very safe system.
Take out liability insurance
FXGT has liability insurance covering up to EUR 100 million, so your funds are well protected in the unlikely event that something should happen. Therefore, it can be said that it is a Forex company that can be operated from a trader’s perspective.
Trust maintenance
On the other hand, no trust protection is provided. Trust preservation is a method of entrusting customer funds to an external financial institution (such as a trust bank) and keeping them under the supervision of a third party. Please note that if FXGT goes bankrupt, there is no guarantee that the account funds will be returned to the trader in full.
Crypto GT Reliability
On the other hand, Crypto GT does not have a financial license, but is the operation credible?
separate management
CryptoGT clearly separates and manages customer funds and CryptoGT funds. The trader’s funds will not be used by third parties such as the company’s operating funds, so it can be said that it is a company that can be used with peace of mind.
Trust maintenance
A trust maintenance system has not been adopted. Please note that if CryptoGT goes bankrupt, there is no guarantee that the account funds will be returned to the trader in full.
Relationship with Japan’s Financial Services Agency
So far CryptoGT has not received any warnings from the Japanese Financial Services Agency. On the other hand, FXGT has received a warning from the Japanese Financial Services Agency. The reason for this is that FXGT was judged to be providing services for Japanese people without permission from the Japanese Financial Services Agency. The reason is that the Financial Services Agency has been wary of operating an official Japanese website. When I hear that the company has received a warning from the Japanese Financial Services Agency, it is unreliable, but considering the content of the warning, it is not a serious problem. Why is FXGT unlicensed? This is because:
Zero cut system
Japan does not use a zero cut system. In order to obtain permission from the Japanese Financial Services Agency, there is no choice but to lose this system, but if you do this, it will become a very unattractive FX company from the user’s point of view. Zero cut is a mechanism that the Forex company compensates instead when the account funds become negative. There is no risk of the trader incurring debt.
leverage
Japan’s Financial Services Agency (FSA) has a strict leverage limit of 25 times. But in FXGT the maximum leverage is 1000x. Traders are opening accounts because this leverage has great benefits. You can see FXGT’s intention that they don’t want to go out of their way to get permission from the Japanese Financial Services Agency to go out of their way to impose leverage regulations. Lowering the leverage to 25x would probably cause the company’s sales to drop significantly.
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