Beware! This is an offshore broker! Your investment may be at risk.
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WeissFinance is an offshore CFD forex brokerage with a wide range of trading products. The brokerage does not disclose much information on its website. We learn only that the minimum deposit for the most basic account is $250, which is pretty much the industry average. There is also uncertainty regarding it’s registered address.
WeissFinance regulation & safety of funds
As was noted above- there is a striking lack of clarity regarding the company behind WeissFinance. The brokerage is allegedly owned and operated by the Estonian Carter Enterprises OU, however, the address given by the broker is in Sofia, Bulgaria. Needless to say – the company is not included in neither of the countries’ regulatory frameworks. As such – the brokerage does not fall under any regulatory oversight which opens potential clients to a great number of risks.
One such rule is the segregation of accounts which forces the brokerage to handle the finances of the clients separately from their own and greatly lowers the risk of commingling. Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to scam traders.
WeissFinance deposit/withdrawal methods and fees
Clients of WeissFinance have a very poor choice of payment methods to choose from. Potential clients may deposit or withdraw only via Visa,MasterCard and Bank/Wire transfer. Popular options such as Skrill or Paypall are missing. Furthermore, there are withdrawal conditions – withdrawals via Credit card will be charged 3.5 per cent, while deposits and withdrawals through wire transfers will be subject to a flat $20 fee. All withdrawals under $100 will also be charged $20. Furthermore, we find a monthly maintenance fee of $50 for accounts inactive for more than two months. All this is very troubling and definitely inclines us to believe that WeissFinance are scammers.
How does the scam work?
Unfortunately, the risk of fraud permeates through every trade in forex. The regulatory status of a brokerage is a good start for judging a brokers legitimacy, but we believe traders should also be well-versed in the ways of scamming. That way they will be capable of handling such an unfortunate situation. Here is how a typical scam would go about:
A click-bait add about fast money will take you to a website like BTC Prestige or Bitcoin Kiwi System where registration will require you to give your address, email and phone number. After sharing your personal information, brokers will begin calling you, telling you to invest with them and reap huge profits. After a few minutes on the phone with them, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
The scam, however, continues and what follows is called the “retention”. Senior scammers will now begin addressing you on the phone and explaining all the advantages in further investing with them. After you decide to go for it, you may even win on a few trades and go up by, say, a couple thousand. Naturally, you will begin wanting to close the account and take away your profits.
Unfortunately, closing the account won’t turn out to be as simple as you would like, or as easy. You’ll most probably be redirected to the “recovery department” where yet another representative will have some other trading opportunities to share with you. His game is pretty simple – he has to mislead you into waiting six months or more so that you may not file a chargeback with your bank and get your money back. That possibility forever closes when six months pass after the initial deposit with the broker.
What to do if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain you won’t panic and make an additional mistake. Here are the available options:
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If however you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should change it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!