Beware! Wam-Capital.co 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.
Warning! Wam-Capital.co is a Forex broker which speculates and misleads the public. The so-called Forex broker claims to be the largest Metatrader broker, which certainly isn’t true, a quick check will prove that this statement is miles away from the truth. Other than that, they introduce themselves as ASIC regulated company, which also doesn’t correspond with the facts. There are other red flags that we managed to detect and uncover, as well, find out everything you need to know about this Forex broker in the full Wam-Capital.co review.
Wam-Capital.co REGULATION AND SAFETY OF FUNDS
Wam-Capital.co is allegedly owned and operated by Gabioni Ltd, but there aren’t any details about the company to be found on their website. There are three different companies that we could detect- based in the UK, Georgia and Russia, but it is unclear which one stays behind this website. In fact, no third-party source confirms that a company called Gabioni Ltd owns and operates Wam-Capital.co, which is a major red flag.
Wam-Capital.co claims to hold Australian Forex license, but it’s impossible to prove this statement either. Research in the ASIC register showed that there is such a company in existence. Still, it has nothing to do with this exact website, as Forex brokerage isn’t included in their business activities. The search for Gabioni Ltd in the register didn’t produce any results whatsoever.
Your funds are not safe if you deposit with Wam-Capital.co, it’s an unlicensed, unauthorized and unregulated Forex broker, which intentionally misleads the public and should be avoided.
If you are looking for a Forex broker you should definitely go for EU or UK regulated one, as these are the leaders in the retail FX industry, and also the regulatory regimes in Europe are the strictest, providing the safest environment for your funds. There are plenty of stringent rules and regulations imposed on the FX companies, but most importantly, protection funds were established, such as ICF in Cyprus and FSCS in the UK.
Under CySEC(Cyprus) and FCA(UK) regulation, the customers are protected from losing their cash in case a financial service company gets into troubles. ICF guarantees the clients deposits of up to 20 000 EUR per client, while FSCS allows you to claim even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Wam-Capital.co TRADING SOFTWARE
Wam-Capital.co offers Metatrader4 accounts to its clients; Metatrader5 is not available. Demo trading is allowed, but we do not recommend to our clients to deal in any way with Wam-Capital.co. We recommend to our readers to stick to Metatrader4 or Metatrader5, but with a different, true Forex broker. Metatrader is the most popular Forex trading platform in the world, and that’s for a reason. It has its own marketplace and offers a variety of sophisticated trading tools that can be used by the traders such as Expert Advisors, Automated Trading tools, Complex indicators and many more.
The EUR/USD spread is fixed at 1.5 pips all of the time. The maximum leverage possible is 1:500, which is actually a very risky ratio which we do not recommend, as well. But the worst aspect of their service is the fact that you might be unable to adjust the leverage levels to your own preferences. The minimum allowed ratio is the default 1:100, and that makes Wam-Capital.co even riskier broker. They push you to trade in a hazardous environment, which increases the loss potential. There is a leverage cap of 1:30 imposed in Europe, as a customer protection measure and the ratios higher than that are considered gambling, which is indeed the truth. Levels such as 1:500 are way too risky, especially for the traders with little or no experience.
Wam-Capital.co DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is €200 or the equivalent in other currency. The funding methods are Credit/Debit cards and Wire Transfers.
At the same, a minimum opening deposit of €250 is advertised on their Account Type page- an information discrepancy and a red flag!
No minimum withdrawal amount and no withdrawal fees specified. The request is said to be generally processed within 2-5 days.
No bonuses or other trading incentives offered at the moment, but Wam-Capital.co reserves the right to launch bonus campaigns in the future. However, in the same Non-Deposited Funds clause we could see that Wam-Capital.co allows an indebted account, meaning that you can lose more than the sum deposited! It is a major red flag, evidence of scam and another proof that Wam-Capital.co is a fishy broker, which should be avoided.
HOW DOES THE SCAM WORK
A group of scammers operates many different scam brokers and scam websites. Sometimes they will simply rely on the quantity; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it seems a profitable strategy, as they carry on doing it. The scammers will constantly re-brand and create fresh scam projects, but remember that all of these will inevitably share similar characteristics. In the following list, you can find five keywords that suggest you are dealing with scammers:
“no-risk” or “risk-free”– trading always involves risk, such an offer is a scam.
“guaranteed profits”– there is no such thing in the FX trading, the same or similar to this offer is a scam.
“bonus”– trading incentives were banned in the EU and UK; if a broker offers you bonuses, it’s either offshore or illegal.
“bitcoin”– digital coin derivatives were banned by FCA, because of the extreme volatility and the inadequate Cryptoassets understanding by the retail consumers. EU still allows Crypto trading, but the leverage is capped at 1:2. You should be very cautious when dealing with brokers and other investment companies that offer Crypto trading and investing!
“leverage”– the heightened leverage level is among the major marketing tools, used by the scammers, enabling them to sell dreams. A leverage cap was agreed in the EU, UK, USA and Australia, as the Aussies were the last to implement it. It will come in effect in the spring of 2021, but until then the ASIC Forex broker will allow an increased leverage level.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it is important to protect others, as well. Be responsible!