Beware! Wenchuan International 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! Wenchuan International doesn’t behave like a true Forex broker; it’s a fishy enterprise which doesn’t seem to be legit. We discovered many red flags proving it’s a Forex creature that should be avoided. Find out everything you need to know about this Forex broker in the full Wenchuan International review.
Wenchuan International REGULATION AND SAFETY OF FUNDS
Wenchuan International is an offshore Forex broker that’s allegedly registered in St. Vincent and the Grenadines. SVG is a tax haven known not to regulate its financial sector, attracting shady Forex brokers and dodgy companies, which more often than not are looking to remain anonymous and hidden from the law.
Your funds are not safe if you deposit with Wenchuan International, it’s an unlicensed, unauthorised and unregulated offshore Forex broker, which shows red flags and evidence of a scam.
You should avoid shady offshore creatures and go for an EU(mostly CySEC) or UK(FCA) Forex broker. Europe created the safest environment for the traders, implementing a variety of stringent rules and regulations for the benefit of the traders. But most importantly, there are money protection schemes in operation throughout Europe; in fact, each EU member is compelled to establish and further operate such a fund. ICF in Cyprus guarantee the deposits of the traders of up to €20 000 per client, while FSCS in the UK protects the customers’ accounts of even up to £85 000.
Wenchuan International TRADING SOFTWARE
Wenchuan International offers Metatrader4 accounts to the traders; Metatrader5 is not available. However, the way they conduct their business is far from the usual practices. We downloaded their distribution and managed to install it, but we were allowed to open neither Real nor Demo account from the terminal.
The sign-up process itself was quite unusual, as well. We couldn’t open an account as there was a Promotion Code required to register. We suspect that the guys behind Wenchuan International operate primarily in the social media, or attract customers in another unconventional way, but the fact that they closed their platform for registration immediately raise suspicions. It’s a red flag and a scam sign, stay away from this broker!
The EUR/USD spread is said to be 2.2 pips, however, which is not a favourable trading condition, as the industry standard is below a pip even for micro trading accounts. The leverage is said to be 1:200, a level that we do not recommend because it’s too risky for the trader. There is a leverage cap imposed in Europe at 1:30, as a customer protection measure, because the data showed that the increased leverage ratio significantly worsen the trading performance, causing more significant losses, especially for the traders with little or no experience. The higher leverage turns trading into gambling, and you should stop searching for brokers offering insane levels such as1:500 or 1:1000.
Wenchuan International DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is $100 or the equivalent; the funding methods are AliPay and UnionPay.
There is no minimum withdrawal specified, but the withdrawal fees are unbearable, and there is a scam clause that requires you to reach specific trading volume to make a withdrawal. If you haven’t placed a trade, you will be charged with 3% handling fee. Regulated Forex brokers will never impose such a requirement on the traders, that’s why you should never trade with offshore entities.
No dormant account policy and no fees for inactivity specified, which is a red flag and a scam sign. No bonuses or other incentives offered, no partnership programs introduced.
HOW DOES THE SCAM WORK
Fraudsters are acting in social media nowadays; more and more scammers will first propose their “services” to the people through Facebook or Instagram. You will click on a page, they will contact you, probably offer you a demo account and after some time you will be invited to register, enabling you to invest and “make guaranteed profits”. Once signed-up they will want from you to deposit money, and this is just the beginning because in the most of the cases the scammers will ask, again and again, no matter the results of your trading. The end is always the same: a robbed-off investor who lost his hard-earned money.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always 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 necessary 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 essential to protect others, as well. Be responsible!