WiXi Review – 5 things you should know about wixi.io

WiXi Review – 5 things you should know about wixi.io

Rating: 1

Beware! WiXi is an offshore broker! Your investment may be at risk.

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WiXi is advertised as a next-generation trading platform that creates the best environment for traders from all backgrounds to take advantage of cutting-edge tools and develop portfolios across commodities, currency and cryptocurrency. One might think it’s an advanced Forex brokerage, but the truth is quite the opposite – WiXi is a suspected scam, and we’ll explain why we claim so in the following review.

WiXi Regulation And Safety Of Funds

WiXi is NOT REGULATED! It’s reluctant to reveal its true nature, but particular clauses in its Terms and Conditions document disclose vital information – WiXi is governed by the laws of St. Vincent and the Grenadines, which means it’s an offshore brokerage. SVG is a tax haven jurisdiction that doesn’t regulate Forex brokers, meaning that WiXi isn’t controlled by anyone while carrying out its business activities. Simply put, if WiXi scams you, it will get away with it, bearing no consequences for its actions. But it’s even worse, as WiXi is essentially a company with unknown ownership, so if things get ugly, you’ll have almost no chances of recovering your money as you won’t know who inflicted the damage.

As you can see, dealing with unregulated offshore brokers is utterly dangerous, and for that reason, we endorse regulated ones only! For example, both CySEC (Cyprus) licensed brokers and FCA (Britain) brokers are proven safe as both authorities force strict regulations to guarantee safety for clients’ funds. The compulsory rules include client account segregation, risk-reducing measures like leverage restrictions and negative balance protection, and increased capital requirements to license a broker (€730 000). Most importantly, though, both authorities maintain deposit insurance funds – clients of CySEC brokers can claim up to €20 000 in compensation, while the UK protections are even higher at £85 000 per person! It goes without saying that if you trade with unregulated brokers, you’ll remain unprotected and exposed to fraud risks!

To demonstrate what a lack of regulation means, we’d like to unveil a particular clause from T&Cs. As you can see from the screenshot, WiXi charges inactive accounts $100 per month, which is a monstrous fee showing unfair business behaviour! We guarantee that no regulator will tolerate clauses intended to suck money from clients’ account balances! Have a look:

WiXi Trading Software

WiXi’s next-generation trading platform is, in fact, a simple Webtrader, which is thousands of miles behind the industry leaders MetaTrader4 and MetaTrader5. The latter two are known for their stability and the abundance of sophisticated trading features such as automated trading and analytical tools, customisation properties, many complex indicators and even a marketplace with thousands of trading apps developed by traders for traders. Back to WiXi’s Webtrader, it has no such tools, it’s slow, and you basically don’t know where the servers are and whether they are protected or not. What we mean to say is that it’s not guaranteed that customers will be safe if the Webtrader fails due to outages or other technical problems that may eventually occur. Hence, we can’t recommend WiXi only because of its poor trading software, which we even consider dangerous!

WiXi Trading Conditions

WiXi’s are good on paper. The asset classes available for trading are Forex, Commodities, Indices, ETFs, Stocks and Cryptos – a decent selection nonetheless.

The trading costs are seemingly low – the EUR/USD spread is just 0.2 pips, meaning that customers pay $2 per lot traded, while the industry standard is $10 or less (1 pip difference or below). Still, the competitive spread changes nothing whatsoever as the lack of regulation is the elephant in the room. Think about it: why would you trade with a low-spread brokerage that may scam you any time soon, bearing no consequences for its actions? It simply doesn’t make sense.

The trading risks are high – leverage varies between 1:100 and 1:600, which may be considered a downside and a positive feature at the same time. The higher the leverage, the bigger the risks, but also the bigger the profit potential, so higher ratios like 1:600 may be attractive for some customers. That said, you should also know that extreme ratios are utterly dangerous and are even prohibited in many countries (1:30 leverage cap in the EU, UK and Australia)! Leverage is a dangerous tool and should always be used with caution!

WiXi Deposit/Withdraw Methods And Fees

The minimum deposit with WiXi is 500 Tether, payable in Bitcoins only! 500 Tether equals 500 USD, so the deposit requirement is definitely higher than necessary – regulated brokers ask for $100 on average, while some open accounts for as little as $5.

However, the bigger problem is that the single funding method is direct Bitcoin deposits only. That’s a red flag for two significant reasons. The first one is that standard payment method like Credit/Debit cards is excluded, which is always a warning sign showing that the brokerage apparently has some problems with its legitimacy! But the biggest issue is that Bitcoin direct transactions are final and non-refundable, meaning there is no way to claim your money back if things go wrong! WiXi apparently limits the chargeback options, which is evidence of a scam!

As for withdrawals, WiXi doesn’t specify much, with the exception of the request processing time – 5 days, which is yet another unfavourable condition. Legit brokers deal with the matter within 24 hours!

As for fees, there is not much, either, with the exception of the dormancy clause we already discussed in the Regulation and Safety of Funds section. If you recall, WiXi charges $100 per month for inactivity, which is a midday robbery and even more evidence of a scam! Beware!

How Does The Scam Work

Forex scams are different from one another, but in most cases, the fraudulent scheme is practically carried out in the same way. Scam brokers are always unregulated and usually registered somewhere offshore, which helps scammers remain anonymous and untraceable. If you open an account with such an entity, you should expect endless phone calls. Scammers will constantly try to approach you and make you deposit money as quickly as possible. Remember that urgency is always a treacherous sign, so it’s probably a scam if someone calls you twenty times per day, asking for money.

In the worst-case scenario, you’ll deposit, and scammers will persuade you to trade instead of you. You’ll soon see magnificent profits generated – false, of course, and you’ll get excited, asking to take your money back. As you probably guess, they won’t let you do so and will try to get another deposit from you, promising that much more lucrative gains are waiting. Or, they can ask for a  false tax, saying that withdrawals are only possible if you cover the charge in advance. If you pay, you’ll increase the amount stolen from you, but if you keep asking for your money, you’ll soon realise it’s a scam!

What To Do If Scammed

You should first inform the authorities – call the police and contact your local regulators and other government bodies dealing with crime and fraud. Also, deactivate your cards ASAP and call your bank to inform them about what happened – they can provide essential information and help you reduce further financial damage.

If you deposited cryptocurrencies, there is not much you can do, but if you used your credit/debit cards, you could file a chargeback, hoping that all or some of the money invested can be retrieved. However, you shouldn’t go blindly looking to recover the loss because many fraudulent chargeback agencies are waiting to double-scam victims of fraud – be cautious about it!

And lastly, consider sharing your experience to help protect others and provide further information about how scams work!

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