Beware! WeberFXTradex 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.
WeberFXTradex is a shady brokerage registered offshore. They are offering Forex trading as well as some suspicious monthly subscription plans said to yield 800% returns on deposit. It’s recommended that people avoid this business, and we are going to show you why in the full WeberFXTradex review.
WeberFXTradex REGULATION AND SAFETY OF FUNDS
WeberFXTradex originates in St. Vincent and the Grenadines, a shady tax haven jurisdiction that’s poorly regulated and indeed bustling with scammers. The local authority SVGFSA doesn’t even care to license the brokers legally operating from the island, which is a big problem itself. Those companies are not supervised and can defraud people whenever they want to, without bearing the consequences for their actions. SVG is one of the few jurisdictions that’s overcrowded with scammers precisely because of the regulation deficit. Consequently, your funds are not safe if you deposit with WeberFXTradex because it’s an unregulated offshore broker that’s risky to trade with.
To make things worse, they claim to be fully regulated in various jurisdictions, so we can reasonably put them on the scam suspects list because of the fraudulent statements. Beware!
You’d better avoid this suspicious business and consider the high-rated EU brokers and British brokers on both lists instead. The European markets offer high-grade security, and the member states are compelled to operate deposit insurance funds that guarantee clients’ money in case of insolvency or fraud. Hence, CySEC brokers’ traders can claim up to 20 000 EUR, while the British protection is up to 85 000 GBP. If you are eligible to open an account with a European broker, you can safely do so; it’s a no-brainer.
WeberFXTradex TRADING SOFTWARE
WeberFXTradex is presented as a MetaTrader broker, but that’s falsehood, and they apparently only want to exploit the platform’s spotless reputation. Actually, they only deliver web-based Binary Options software, and that’s yet more evidence of a scam. There are no spreads, and traders can only bet on whether the price will go up or down within 1 minute ahead, which is a high-risk trade. The Binaries are no longer considered financial instruments but a casino game that’s currently under licensing regime by various gambling authorities. These options were banned across multiple jurisdictions, proven to be prone to fraud and price manipulation, so make sure to stay away from brokers offering fraudulent products and services.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe and deliver upper-class software. The MT distributions are packed with advanced trading features such as Expert Advisors, many complex indicators, and sophisticated charting tools. There is also a marketplace where clients can benefit from more than 10 000 apps and third-party trading solutions. MetaTrader is the best option on the market, and you’d better consider this fact when choosing a broker.
The default leverage is 1:200, but upon request, it can get up to 1:500, a risky ratio that’s considered inadequate for retail traders. In fact, leverage is so dangerous that many financial authorities restricted its usage by implementing regulations in their pursuit to reduce leverage-inflicted losses. As a result, EU, British and Australian brokers have to limit their clients to 1:30, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
WeberFXTradex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with WeberFXTradex is $300, but the offer is very suspicious. Each account comes with guaranteed returns on investment, which is a fishy offer whatsoever. There are also monthly subscription accounts, which makes us believe they offer managed accounts, but the details about it are scarce and unconvincing. As for funding, there are various methods enlisted, but it turned out that it’s only possible to deposit via Bitcoin, which means that clients won’t be able to get a refund if things go off course.
While discussing deposit methods, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated companies on both lists are stringently regulated, and you won’t face scammers among them.
There are no withdrawal restrictions, so clients can supposedly take out any sum that they want. WeberFXTradex doesn’t determine request processing time or fees either. However, that’s not the case with the inactivity fees. According to the clauses, after 3 months of inactivity, an account becomes dormant and will be subject to a $30 monthly charge, which is an oversize fee. In comparison, most reputable brokers take 5 to 10 dollars per month on average, so WeberFXTradex obviously wants to make money by imposing unfair fees.
There is nothing about bonuses or trading incentives. However, WeberFXTradex indicates that there are some promotions available and on-sale offers, but there are no further details available.
Overall, WeberFXTradex is an offshore suspected scam offering bogus services, so you’d better stay away from this suspicious business.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time.
However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!