Beware! IWCInvestment is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
IWCInvestment is a Forex brokerage with very unclear corporate information, it is supposedly registered in Denmark. According to the brokerage clients are extended an extremely generous leverage of up to 1:500. Furthermore, there is supposedly a wide range of trading options within the MetaTrader5 platform the brokerage purports to provide.
IWCInvestment regulation & safety of funds
Forex trading is widespread in Denmark and integrated within the framework of the country. Furthermore, Denmark is a member-state of the European Union and the ESMA guidelines are in full force. However, going through the registry of the Danish authorities we couldn’t find any mention of such a company which leads us to conclude that the brokerage is not regulated and is presenting misleading information. We attempted to register for the MetaTrader 5 platform the brokerage supposedly offers, however, we couldn’t find any downloadable version on the website. This is a bad sign when dealing with Forex brokerages. Furthermore, the Spanish financial watchdog CNMV has issued an official warning against the brokerage.
Such irregularities are the usual sign of a scammer. With no regulatory oversight we can’t be certain about the company behind the operation and whether it will fulfill its obligation towards clients. Furthermore, the official warning issued by the Spanish authorities, as well as the lack of any sort of more detailed information regarding the trading conditions of the brokerage highly inclines us to question the legitimacy of IWCInvestment. All in all, traders that decide to invest with the brokerage may be open to substantial risk.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible 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 swindle traders.
IWCInvestment deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via credit card, bank wire and e-wallets such as Yandex, QIWI, WebMoney. We couldn’t find any troubling withdrawal provisions in the terms of the brokerage.
However, due to the lack of information we cannot be sure whether the brokerage isn’t in fact hiding beneath its sleeve any nasty withdrawal fees. If we have to guess based on what we have seen – we would definitely consider the option viable.
That is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the misleading information it gave regarding its regulatory status.
After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Revolt where registration will require you to give your email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their peer Visa expected to follow suit in December.
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 switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!