Beware! WinnGroups 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.
WinnGroups advertises itself as a serious broker, one that offers some of the best trading services in the industry. Here is the issue though- most brokers do the exact same thing. So what does WinnGroups have that the others don’t? Does it really have it? Read on to find out.
First of all, we opened an account. Then we went on to get the spread for the EUR/USD pair, which was 20.4 pips on average. There is so reason why we would be making this up.
What sort of cost of trade is this?! Obviously WinnGroups has taken the road of a broker not caring for its clients! The only party that profits from this cost of trade is the broker itself.
The leverage given was capped at 1:5, however the website claims that the value is capped at 1:150. We guess it all depends on the account type a user has opened, yet here is the thing: when we were opening an account, there was no way of choosing the type. The broker automatically assigned one for us. So, the spread is in fact 1:5.
The language that the website is available in is English.
WINNGROUPS REGULATION AND SAFETY OF FUNDS
WinnGroups claims some very bold statements about its location and regulatory environment(s), all from the footer and the Contact Us page.
This would be impressive, were it accurate. To have offices in these exact locations in the world is close to impossible for most legitimate brokers, whereas with WinnGroups its impossible period. The headquarters are in the UK, with some branching offices there as well, and in Switzerland. There are also some undisclosed operations based in Singapore and Hong Kong. As per usual, we checked with the local FX regulators for WinnGroups, and without surprise, found no licensing info about it, neither in the FCA, nor MAS in Singapore or the SFC in Hong Kong, and definitely not in Switzerland’s FINMA records.
We doubt that WinnGroups is even located in either of these countries.
Besides, the legal documents hold no regulatory details. The legal documents is the place where the regulation is always mentioned, in the first paragraph no less. This is the procedure taken by regulated firms. Now, with unregulated, the story is completely different.
Furthermore, the broker has been officially blacklisted by the Belgium answer to the FCA, the FSMA, an equally respected Forex overseer. The URL in the snip is not the one that we have given here, but once you type in the URL from the pic, you will be redirected to winngroups.com.
All this amounts to overwhelming proof that WinnGroups in NOT LICENSED, and is therefore 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.
WINNGROUPS DEPOSIT/WITHDRAW METHODS AND FEES
According to the user area, the minimum deposit is $250, while the account funding means are credit cards, debit cards, and CoinPaid (a crypto payment service)
The withdrawal method is via credit cards. The processing of withdrawal requests is said to take some 4 to 7 days. The broker claims that there are no withdrawal fees.
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.