Beware! MaxWise 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.
MaxWise does absolutely nothing that interests us, or that seems to go out of its way to impress. This simple and very shady broker is one of the thousands like it that will perish as soon as the fuss is over. And there isn’t really any fuss about it to begin with. So what can you expect from such a company? Nothing good really, if we have to be honest, however clients can expect many things that can go wrong here, as in things that the broker itself can purposefully do to it users to victimize them. Our advice is not to rush things, and instead read the review to find out all about MaxWise.
The account creation tool was by far one of the easiest and quickest registrations we have ever done in our career. taking us no more than a couple of seconds to complete it. This is never a good sign and is evidence that we are dealing with a definite shady broker.
The resulting client portal was an average-looking user area, even though we have never seen it before. Yes, it was kind of unique, but it also had nothing too impressive to offer in both visuals and services. Thankfully we were able to access a trading software.
On the trading platform, we read a EUR/USD spread of 1.1 pips, a very favorable cost of trade. However, the broker mentions a commission on spreads, as we shall soon see.
The leverage is capped at 1:400, and the available trading instruments are as follows: forex currency pairs, shares, indices, cryptocurrencies, and commodities.
Overall, pretty good trading conditions, but the firm’s illegitimacy is its undoing.
The website comes only in English.
MAXWISE REGULATION AND SAFETY OF FUNDS
The parent firm of this broker is allegedly operational from Seychelles, where the Seychelles Financial Services Authority (FSA) does the regulation for all FX firms in the country. However, we found no mention of MaxWise in the regulator’s databank. Moreover, MaxWise never actually says that it is regulated by the FSA. So, MaxWise is operating in Seychelles without a local license.
Going through the website we found that there was no more talk of an address or a license that we can connect to MaxWise. So, we can easily conclude that the broker is fully UNREGULATED, and therefore a risk to all investments!
Also, we cannot expect that such a limited website would be backed by a licensed broker.
To deposit in an unlicensed broker is the equivalent of throwing your money away for no reason. We always say that the first thing to do when dealing with any broker is to check for a license; this should be your priority! Usually, we would go for either an FCA or CySEC regulated brokers or other respected overseers. These regulators all employ harsh rules and impose very severe penalties on those brokerages that do not abide by the scrupulous rules. Furthermore, some agencies, like the FCA and CySEC, include reimbursement schemes to all users of brokers under their wings. These compensation funds schemes, as they are called, are put into action once broker cannot pay their clients back to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
MAXWISE TRADING SOFTWARE
Here we have another scammer broker web trader that does nothing for us.
The trader offers as main features the following: live news feed, time frames, indicators, drawing tools, and other chart customization features. Nothing really impresses us here.
We find proof that there are spread fees, however, in a very fashionable move, MaxWise does not reveal any of these fees. So do not be surprised if you cost of spread gets doubled!
MAXWISE DEPOSIT/WITHDRAW METHODS AND FEES
The depositing area did not work properly, so we had to rely on the website for all payment info.
As per the website, the payment methods are credit cards, debit cards, wire transfer, and undisclosed e-wallets. There is no minimum deposit specified, which is very suspicious. The usual minimum deposit is $250, although scammer brokers might surprise you.
According to the withdrawal policy, the minimum amount to take out is $250. It takes a total of 10 days for a request to process which is more than twice the average processing time. The minimum withdrawal amount through a credit card is said to be $100. There are no real fees indicated, but unlicensed brokers are known to launch unsuspecting charges.
Overall, we find no reason for anyone to invest in this scammer broker.
How does the scam work?
The straightforward way into an investment scam is through the thousands of online ads that flood our browsers and social media sites. These are those familiar ads that promise impossible returns and luxurious lifestyles as a result of investing.
Succumbing to such ads will lead to either the scammer investment site, or to an intermediary source with close ties to this and other fraudulent websites.
In either case, the user will be asked to provide a phone number and probably an email address. The purpose of these is for the reps of the scam to be able to contact the client and push for initial investments. This is the first wave of the fraud, and is usually done by the rookie team.
The second wave is the pros, sometimes those behind the whole scam. These are charming and cunning individuals, whose communication skills can potentially result in the users to invest a second, or third, or even fourth time.
Basically, the scam continuous until the client realizes that she is being scammed. At that moment, when she wishes to withdraw or has questions for the scammer, it is already too late.
The culprits will easily ignore all requests or stall them. There are times when unlicensed brokers even terminate entire accounts, and on rare occasions entire websites are closed!
What to do if scammed?
The safest way to get your money back is to file for a chargeback using your credit or debit card provider. MasterCard and VISA have a chargeback period of 540 days. However, this only applies if you have deposited through a card.
Wire transfers are more difficult to reimburse, although some banks may have a specific plan for such times, so we advise users to directly contact their banks and ask them for help. What’s crucial is for users to change their bank account user names and passwords as soon as possible.
As for any funds invested through a cryptocurrency wallet, be sure that they are lost! Crypto transfers are untraceable!
And finally: never trust recovery agents or agencies. These are fraudsters who will ask for money in return for nothing. Do not trust these!