Beware! Wise Investments 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.
Wise Investments is a mess that is slightly concealed in an attempt to not showcase how offshore it actually is. And in reality it really is an offshore firm, possessing all the prerequisites of such. But more on these in the review that follows. Users with a keen eye will immediately spot that there is something wrong with this one. As proof just take a look at how the texts are structured, how imprecisely everything is, how certain elements awkwardly pop up. Before doing anything irrational, do read the review.
It was a surprise to us that the registration page that was produced to us was integrated with a very familiar template. We have previously stumbled upon countless scammer brokers using the same registration page. As soon as we entered the client area we felt like entering familiar territory because it was as if we just saw some other other shady broker use it.
The leverage offered in the legal documents is capped at 1:300, however our account creation process capped our leverage to 1:100 with no way of changing it.. The spreads have not been revealed on the website, but on the trading terminal the EUR/USD is 3 pips. Seeing that one of the main ways a broker makes money is through the spread, then the higher the cost of trade is the more money it makes; 3 is very lucrative indeed. The trading instruments are forex pairs, commodities, indices, shares, and crypto.
We could not change the language of the website from English. However, the user dashboard came loaded with a Russian version, as well as ones in Arabic, Chinese, Italian, German, and Spanish, proving that the dashboard is not an original creation of Wise Investments.
WISE INVESTMENTS REGULATION AND SAFETY OF FUNDS
The only info concerning a possible license is connected to an alleged claim that the broker is operating under MiFID, or the Markets in Financial Instruments Directive. This is of course not true, because a broker must be regulated by a proper authority.
With that in mind, there is no mention throughout the website that Wise Investments hold a license from an actual financial overseer. So we must conclude that Wise Investments is UNLICENSED, and as such a risk to all investments.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
WISE INVESTMENTS TRADING SOFTWARE
The alleged MT4 desktop software was under the name of some mullerenterprise(.exe). This has no connection to the broker, meaning that the MT4 for desktop is not available. Much in the same way, the web-based MT4 does not offer Wise Investments servers, but just a MetaQuotes Demo, the default MT4 demo account. So, the brokerage does not come with the MT4. What we are left with, is the Status terminal.
This trading terminal is a commonly used surrogate platform. Its main purpose is to convince more rookie users that scammer brokers like Wise Investments are deep in the world of forex and know what they are doing; it’s just another tool to maintain the illusion of a legitimate forex trading service provider. When in fact, the only real good features are pending orders, a live news feed, chart customization, and price alerts. When put against prominent terminals such as the MT4, the Status fall extremely short.
According to some sections of the website, share spreads are commissioned. However, this is the furthest this info goes; the exact commission is lost on us.
Please note that the company will not notify a user if it closes a position:
WISE INVESTMENTS DEPOSIT/WITHDRAW METHODS AND FEES
According to the payment section, the only gateways for funding an account are a range of cryptocurrencies, which are the preferred payment methods for scammer brokers since crypto payments, despite recent attempt to regulate it, are still untraceable and as such hold a risk. Considering this, there is no real minimum deposit, but if we must put a number to it, the website claims it to be $250.
An account is maintained in the following base currencies according to the legal docs: GBP. USD, and EUR.
Withdrawals are issued fees: $50 for wire transfers, $35 for credit card withdrawals, $25 for ePayments. Furthermore, the user will be charted an additional 10% should his or her account withdraw any amount before a trading volume of at least 200 in turnover has not be completed.
The minimum withdrawal amount for wire transfers is $250, and $100 for all other withdrawal methods. Withdrawals are processed in a confusing umber of days since the legal documents all claim different things, some say 3 days, others 7, while the withdrawal section reveals that they are processed within 24 hours (this is actually the only info disclosed on withdrawals in the client area)
It’s odd that deposits are made only through crypto gateways, while withdrawal methods are so diverse… another sign that Wise Investments is completely lying to its users.
The dormant account fee of 10% is levied each month. An account is dormant if a user has not logged in for more than 6 months.
Bonuses are only available for withdrawal after a minimum trading requirement of 25 times the deposit+bonus is met.
Here is a clause that renders the whole Wise Investment experience unnecessary. The Non-Deposited Funds clause essentially prohibits users from withdrawing any profits.
Here is a revealing indemnification provision that is worrisome. Not only does it absolve the broker from doing some illegal and/or unacceptable things. Furthermore, at some point the clause mentions a “Get Option” which we amuse is from where Wise Investments stole these provisions.
Furthermore, the broker can terminate an account for no reason.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.