Beware! Wallarmax 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.
Wallarmax is yet another brokerage firm whose name suggest nothing of the type. We were under the impression that a brokerage name must at least hint at the fact that we are dealing with a broker, and not an e-shop, as the name Wallarmax suggests to us personally. As we well discus in this review, the name of this broker is the last thing to be concerned about; Wallarmax has more than enough issues.
To sign up, we had to complete a very bland page, which upon finishing, we were sent over to a familiar looking user dashboard. And by familiar we mean that we associate it with previously reviewed brokers, all of which were complete scams.
Anyhow, after registering, we opened a trading software, where we got a EUR/USD spread of 0.2 pips, a value that we find hard to believe applies to Wallarmax. The leverage is said to be maxed out at 1:30. The trading assets are forex pairs, commodities, crypto coins, and indices.
The website can be translated in over 40 languages, which is truly impressive, were it not for the fact that the website uses Google translate to achieve this. This is a sign that things can only go down from here on out.
WALLARMAX REGULATION AND SAFETY OF FUNDS
The legal documents are apparently governed by the laws of Estonia. We have seen this before many times, and we can say for certain that this is not the case. Even more so, there is no indication that the broker is regulated by the local Estonian Finantsinspektsioonacts (FI) FX regulator.
Well it isn’t, as we checked the official records of licensed entities. And what’s more is that there is no clear mention that Wallarmax is actually a holder of any sort of Forex license. So we have no choice but to deem this firm UNREGULATED, and a risk to all investors.
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.
The broker will net be held accountable for any mistakes arising from a user’s account money being transferred from one bank account to a different one.
WALLARMAX TRADING SOFTWARE
The trading terminal is nothing to be impressed by, as is with all unregulated brokers.
Pending orders, limited chart management, and multiple time frames are the only real features that we could spot. The rest of the trade is a below average experience that will bore you after half an hour of usage. But, what can one expect from an illicit broker?
The only thing that is illogical to us is the low cost of trade. We can only assume that there is some sort of hidden commission that all spread are burdened by, even if the Account Types page says that here is no commission. Let us not forget that this is an unlicensed broker, with no one to oversee it, and it can easily change the rules of the game.
WALLARMAX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit $250, as revealed by the payment area, which is the only real source to believe. The same place told us that the funding gateways are Bitxtech, NeoBankQ, Pradexx, and IPayTotal. None of these are the usual payment methods, which gives us reason to worry.
Withdrawals will be charged fees as stated in the Deposit and Withdrawal Policy. These are the charges applied: $50 for Bank Transfers, $35 for Credit Cards, and $25 for e-payments. There is also a turnover requirement for all withdrawals: in order to take money out a user must complete a minimum of 200 in turn over, otherwise the user will be charged with a 10 per cent tax.
Withdrawal requests are processed within 2 to 5 working days.
Here is the master clause, the one provision that will forever solidify Wallarmax as a complete scam – the Non-Deposited Funds. Essentially, users cannot withdraw their trading profits!
Bonuses have to be turned over at least 25 times (plus the deposit amount) before they can be withdrawn.
If a user has not logged in for the last 6 months, she will be issued a 10% monthly fee for her dormant account. These 10% can be quite heavy should the user have a large sum in her account.
Users agree to hold Wallarmarx innocent from any claims she may have against the company. This is your classic indemnification clause.
Considering this, the following clause claims that the materials and services on the website might be out of date, and the firm is not to be held accountable. Furthermore, the company is not under any commitment to update them. Again, pure proof that this broker is a sham!
In connection to this, the broker has, nevertheless, the right, if it wishes to lift a finger, to change the legal documents at any time without telling the user.
Last but not least, all claims against Wallarmarx will become obsolete in 12 months!
All these provisions should not be that surprising, even though some of them a truly offensive, because this is a broker that is not licensed, and can, as a result, do what ever it wants with both the information it provides and in the way it treats its customers. Do not deposit here!
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.