GCG ASIA

Introduction

When it comes to the trading of foreign currencies and contracts for differences, one of the most important decisions traders will make is selecting a broker who they can trust to assist them as they work through the global financial markets successfully & securely. GCG ASIA is a trading broker that provides clients with an opportunity to trade various financial instruments (forex, CFDs) through its online platform from anywhere in the world. Unfortunately, there exist numerous doubts about whether GCG ASIA is legitimate due to the lack of regulation at both the country of registration (St. Vincent) and the country of operation (Australia).

This review article is intended to provide readers with detailed information about GCG ASIA, including its history and background, regulatory status, trading conditions, fees, and user experiences, by using only verified information from independent sources.

History/Background

GCG ASIA is a provider of forex trading and CFD trading services and was incorporated in Saint Vincent and the Grenadines & has been operating under the name Guardian Capital AG (and claims to be registered in Switzerland at Bleicherweg 10, 8001 Zürich). Beyond these assertions, the amount of evidence available regarding GCG ASIA’s operations paints a different picture.

In fact, GCG ASIA is another name for a broker that is no longer operating under the supervision of an Australian regulatory body (the Australian Securities and Investments Commission) after its license was cancelled in early 2019 due to non-compliance with regulations. Other financial and governmental institutions also have filed reports indicating that there are issues or concerns involving GCG ASIA and have flagged it in their public notices.

Key Features/Offering(s)

GCG ASIA is primarily a forex trading and Contracts for Difference (CFD) broker that is targeting retail traders who want to trade on currency pairs and other derivatives.The broker claims to give customers access to various markets through its online trading platform, in addition to providing digital tools and customer support channels.

However, detailed information about the broker’s technology, type of accounts and conditions of trading on the online platform is limited, inconsistent and difficult to verify, making it hard for traders to determine whether or not GCG ASIA is suitable for them.

GCG ASIA has no regulation or licensing from any major regulatory authority, which greatly increases the risk associated with trading with GCG ASIA.

The following table provides an overview of GCG ASIA's regulatory status:

Regulator

License Number

Status

Australian Securities and Investments Commission (ASIC)

Lic. #:

Status:,

Revoked (as of 2019)

Due to non-compliance, this licence was revoked in 2019.

Swiss Financial Market Supervisory Authority (FINMA)

Lic. #:

Status:,

Not registered

The company claims to have a registered address in Switzerland but there is no registration with FINMA.

Monetary Authority of Singapore (MAS)

Lic. #: N/A

Unlicensed:

GCG ASIA has been added to the MAS investor alert list.

1st, 2nd, and 3rd Level Regulators

Lic. #: N/A

Status:

Neither registered nor regulated by any other Level 1 , Level 2 , or Level 3 Authorities.

GCG ASIA is not regulated by any known financial authority. The MAS investor alert list and ASIC licence revocation indicates serious compliance issues and risks associated with trading with GCG ASIA.

Trading Conditions and Online Platform Technology

There is very little publicly available information regarding trading conditions (spreads, leverage or minimum deposit) available to GCG ASIA clients and frequently this informationFrom the limited available data provided about the broker GCG ASIA, is indicated that GCG ASIA has provided standard Forex and CFD trading services. However, there is a lack of confirmed details regarding execution time, platform stability, and technological infrastructure which makes it difficult to assess the quality of the overall trading experience.

The seller does not provide sufficient information about the conditions that apply to trading; so it is virtually impossible to provide a summary of what is known, and what is unknown. Below is a summary of what can be determined based on currently available information:

Trading Environment

Specific Information

Instruments Available

Foreign currency; CFDs

Leverage

Undetermined

Minimum Account Requirement

Undetermined

Trading Platform

Undetermined/limited information

Type of Execution

Undetermined

Commission Structure

Traders must clearly understand the cost structure, to be able to measure the potential impact to their investment. GCG ASIA has not provided adequate or reliable information about commission fees, commissions, or any other fees.

There appear to be numerous complaints about hidden fees, particularly with regard to withdrawal of funds. Without knowing the fee structure, you cannot measure whether GCG ASIA is cost-effective.

The following is a summary of the currently available information pertaining to fees:

Commission Types

Specific Information

Deposit Fees

Undetermined

Withdrawal Fees

Numerous complaints regarding delays; no clear fee structure

Commissions

Undetermined

Other Hidden Charges

Possible hidden charges related to dormant accounts

User Experience and Reputation

GCG ASIA has not established a positive reputation with traders or financial experts; there are many negative reviews from Users and financial professionals regarding the lack of transparency and the numerous complaints regarding the withdrawal of funds.

Withdrawal of Funds

There are a significantly high number of User complaints regarding their inability to withdraw funds that are in their accounts and deposits made to their accounts are usually held by GCG ASIA indefinitely.The attempts to resolve the issues have commonly resulted in unresponsiveness or even broken promises.

Allegations of Fraud

A particularly disturbing occurrence is the so-called “GIB Digital Bank” scheme whereby GCG ASIA claimed to be experiencing problems with their customers’ withdrawals and solicited further $500 deposits to address this issue. After taking this money, they then failed to address the initial withdrawal problems and ultimately disappeared.

Allegations of Fraud

It has also been investigated and determined that Chen Wei, the person behind GCG ASIA, also has ties to prior fraudulent activities. This compounded association adds to the suspicion of GCG ASIA and greatly reduces its credibility to future investors.

Losses in excess of 50,000 RMB have occurred with no options for recovery being offered by GCG ASIA.

Customer Support: Often not reaching out or answering queries posed by users.

Experts in Finance have provided expert analysis and determined that due to these considerations, users should not conduct business with this broker.

Recent Developments

Since the revocation of their ASIC license, GCG ASIA has continued to be listed on both regulatory watch lists and investor alert lists, without offering any evidence of improvements or any intention to offer improvements with regard to compliance or transparency on behalf of their customers. Their continued offshore registration and lack of credibility as a regulated broker also presents a serious issue.

Further, this new GIB Digital Bank scheme offers additional scrutiny to regulators and to the trading community regarding actions taken or statements made by GCG ASIA and to date, no public announcements or measures to correct these matters have been made.

Conclusion

In summary, GCG ASIA represents high risk to traders for numerous reasons including: the broker is unregulated, has had the ASIC licenses they were previously granted revoked due to previous regulatory issues, is in a current state of being investigated and there are very few documents that can be trusted regarding conditions associated with the trading of GCG ASIA.

Experts within the Finance Industry and regulatory bodies strongly advise against investing with GCG ASIA. Due to the number of regulatory warnings, user complaints and questionable operational practices, it is clear that they are operating in an unregulated manner and without the controls and safeguards that are expected of a reputable financial service company.

Investors should exercise the utmost caution and determine if there are any alternative and regulated brokers available in order to protect their investment and funds.