Wansen Capital Limited Review – 5 things you should know about wansenfx.com

Wansen Capital Limited Review – 5 things you should know about wansenfx.com

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Beware! Wansen Capital Limited is an offshore broker! Your investment may be at risk.

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Wansen Capital Limited is not a broker who you can trust with your money – actually they are anything but. The broker provides no essential information about itself, claims to have licenses it does not hold, and only accepts irreversible crypto payments. All the signs of scam are there if you know how to see them – refrain from investing in this dangerous scam scheme.

Wansen Capital Limited REGULATION AND SAFETY OF FUNDS

Wansen Capital Limited is one of these brokers who did not think it necessary to provide any contact details – not even an email. On the website, we just get to learn that the broker is supposedly regulated by one of the US financial authorities responsible for licensing forex brokers – the NFA.

As it turned out, the broker is indeed registered by the NFA but not as a forex dealer – just as a financial advisor and commodity pool operator. The NFA also clearly states that this company is a “non-member not subject to NFA oversight”. This means, that although the NFA seems to be familiar with Wansen Capital Limited, the broker is in no way authorized to offer the services it supposedly offers.

Matters got more interesting when we discovered that the broker is actually based in the UK.

However, they are not regulated by the county’s strict financial authority, the FCA. This means that Wansen Capital Limited is in no way a licensed broker – despite everything they might want you to believe. This is all but surprising – a licensed broker would never be this anonymous.

We would suggest that you turn to a broker who is actually licensed in the UK – or the EU, or Australia. All of these brokers are subject to countless laws and regulations and have to meet countless requirements before obtaining a license. One of the regulators’ top priorities is to ensure transparency and fairness. Brokers also have to prove their  financial stability by maintaining a capital of at least €730 000 in the UK and the EU, and A$1 million in Australia. Negative balance protection is a must if you are a retail client – this prevents you from losing more money than you have in your account. Client funds are kept in segregated bank accounts – this proves that the broker would not be able to use your investment for their own business. Finally, EU and UK brokers also participate in compensation funds – in the event of a licensed broker going bankrupt, each client could receive a compensation of up to €20 000 in the EU and £85 000 in the UK depending on the size of their investment.

Wansen Capital Limited TRADING SOFTWARE

Wansen Capital Limited offers the leading platform MetaTrader 5. This is great – we fully recommend that you try out this software. But the fact that the broker offering it is so unreliable spoils everything – the scammers are surely trying to take advantage of MT5’s spotless reputation to lure victims.

Better check out these brokers who actually offer MT5 – you are bound to remain satisfied with what the platform can offer. MT5 offers access to an abundance of useful tools and features – preprogrammed Expert Advisors that track markets and trade in accordance with an algorithm, Strategy Testers, customizable signals (and the ability to subscribe to those set by others), a community chat where you could exchange strategies, hedging and netting options on newer updates, a built-in calendar, and all other tools you could wish for. We can talk about how great the software is all day – or you could see that for yourself with a licensed broker.

Wansen Capital Limited TRADING CONDITIONS

Wansen Capital Limited gave very little information about its trading conditions – no trading accounts were described, and nothing was mentioned about commissions and fees. We did manage to establish that the minimum deposit amount the broker asks for is $100 – which is in line with what most legitimate brokers would open a basic account for. However, this broker is surely a scam – there are much better brokerages that offer affordable trading experience.

We were allowed to set leverage ourselves – between 1:100 and 1:500. Being able to choose your own leverage is great – but the rates this broker offers are far too high. No legitimate US broker would offer you more than 1:50 on the least volatile asset, forex majors – because they simply would not be allowed to. Leverage restrictions exist in many jurisdictions to protect retail traders from the higher losses trading with high leverage could result in. US leverage restrictions are actually quite liberal compared to those in other countries – brokers in the UK, the EU, and Australia cannot offer more than 1:30, while those in Japan can only go up to 1:25. Always take all risks into account and don’t set your leverage higher than you could handle.

The spreads we got were impressively tight – 0.2 pips on EURUSD. However, since the broker has not mentioned anything about commissions, we are reluctant to call those spreads a good thing – trading with Wansen Capital Limited might turn out to be anything but lucrative for you and we are positive that hidden fees will emerge the moment you start trading.

Wansen Capital Limited DEPOSIT/WITHDRAWAL METHODS AND FEES

Wansen Capital Limited only accepts crypto deposits in Bitcoin, Ethereum, and Tether. Such scammers would often urge you to deposit in crypto because all crypto transactions are irreversible by default. They go into a ledger that can never be changed or tainted and verify one another which makes them quite secure but also diminishes your chance of getting a chargeback when you figure out something is wrong. Only use this payment method with people and organizations you are sure you can trust.

HOW DOES THE SCAM WORK?

Many people have fallen victims to such scams – and since scam brokers are not going away any time soon the best course of action would be to learn how to avoid them.

The scheme starts with a flashy ad on the Internet promising to make you rich must faster than humanly possible. And the best part is, you would not have to do much – the key detail is that you just have to invest with this specific broker who of course promises to be very reliable. As a start, you provide the scammers with your email and phone numbers – just to see what they have to offer. But once you have done so, they won’t leave you alone before you make a deposit. After that, you might even be satisfied with the broker’s services – often enough, scammers manipulate platforms to fabricate amazing results. They will keep asking you for more and more money – and you will be deposing since you would think you are doing great. Keep in mind that such people are well-versed in the art of smooth-talking and will find a way to sound reasonable and persuasive – before you know it, they will charm thousands off you.

But once you want to withdraw some of those profits, you will run into trouble. Additional fees and taxes, clauses in the Terms and Conditions that prevent you from withdrawing, low trading volume – these are all instruments in the scammers’ arsenal. By this point, you will know something is wrong but the scammers will stop answering your calls and emails.

WHAT TO DO WHEN SCAMMED?

The best thing you could do is not deposit with such scammers in the first place – always research the broker carefully before investing, check registers, and don’t skip over the Terms and Conditions. But if you have already invested, there are still a few things you could do.

Quickly change your banking passwords you avoid additional losses of money. In case you have given the scammers remote access to your computer, remove all software you have installed – the broker probably suggested helping you trade or manage different aspects of their platform but just wanted access to your computer in order to be able to access your bank accounts later. Notify the responsible authorities and contact your bank or credit card provider to let them know you have been scammed. If you have used Visa or MasterCard to transfer money, ask for a chargeback as soon as possible – both providers have a policy that allows such within 540 days. Don’t trust any so-called “recovery agents” that offer to retrieve your money for a fee – this is just another type of scam often conducted by the same scammers.

Finally, sharing your story with others is important – be it with people you know, or online. This way, people will know how such scams work and how to avoid them.

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1 Comment

  1. You’re exactly in target. I lost $25,000 to Wansen. They won’t communicate with me after I tried to withdraw. They blocked me on What’s App. They looked legitimate but they are a total scam.

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