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Wastrad Review - is it scam or safe?

Wastrad review - Is wastrad.com scam or good forex broker?

RATING: 1.9 / 1 REVIEWS ForexBrokerz Wastrad
Wastrad is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Wastrad is a forex and CFD broker based in New Zealand. They offer a variety of trading instruments, including forex pairs, precious metals, indices and crypto coins with a choice of three account types leverage of up to 1:200 and the MetaTrader4 platform.

 

Account type Min. deposit Max. leverage Spreads
Standard Account $50 1:200 1,3 pips, floating
Prime Account $50 1:200 0,2 pips + 4.4/side per lot 
Elite Account $50 1:200 0 pips + 3.5/side per lot

 

Unfortunately the broker is not regulated and they explain this by telling their clients, that because they do not offer financial services to New Zealand citizens, they do not have to register with the local financial regulator.

 

This is a strange logic, especially since Wastrad obviously targets customers in the European Union, which is a heavily regulated market and where brokers are obliged to have a legit license. So if you are considering whether to deposit your funds with Wastrad, we suggest that you read the following review first.

 

Wastrad Advantages:

 

Generous leverage

 

We should admit that leverage as high as 1:200, as offered by Wastrad might be attractive to many traders, who are willing to risk a somewhat more aggressive trading strategy. And since most regulators throughout Europe, the U.S., Canada, Japan and now even Australia capped the maximum leverage allowed for retail traders to levels well below 1:100, the only brokers still offering higher leverage are precisely brokers regulated in New Zealand and South Africa or unregulated brokers like Wastrad.

 

A wide selection of trading instruments

 

Wastrad offers over 90 trading instruments, among which major and exotic currency pairs, precious metals like silver and gold, major indices and some crypto coins. Still, if you would like to trade the crypto markets, we would suggest that you check our list of regulated brokers, trading with bitcoin CFDs:

 

>>Bitcoin Forex Brokers<<

 

Attractive spreads

 

The spreads offered with the different account types also seem attractive, starting from 1,3 pips with the Standard Account, 1,1 pips with the Prime Account and 0,7 pips with the Elite Account. Basically, as advertised the Standard Account comes without a trading commission, while the Prime Account and the Elite Account come with a trading commission of 4,4 USD per side per lot and 3,5 USD per side per lot respectively, which when included into the equation give us the above mentioned spreads. Still, here we may also suggest that you check our list of regulated brokers, offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

MetaTrader4 supported 

 

This is another piece of good news. MetaTrader4 is by far the most popular and one of the most reliable and user friendly trading platforms. It features well over 50 integrated market indicators and customizable trading robots, with the help of which one can easily run algorithmic trading sessions. And because MT4 also comes with a set of advanced charting tools, here you may also check our list of brokers, offering the platform:

 

>>MT4 Brokers<<

 

Acceptable minimum deposit requirement

 

At Wastrad you can open a trading account with just 50 USD and this is in line with the best practices on the market. Still, bear in mind that with some big and well known brokers like FBS and IG you will be able to start trading with just 5 USD or so.

 

Wastrad Disadvantages:

 

No license

 

This is a major issue. We understand that Wastrad is owned and operated by the New Zealand based Solidary Markets NZ Ltd, but all clearing and billing services are provided by SMFX Services Limited, which is based in UK. And as we noted, neither the broker nor the companies behind it are licensed and authorized, as they should be, to provide financial services on heavily regulated markets like the European Union, including the UK, Australia, Canada, Japan or the U.S.

 

And because all payments with Wastrad are processed in the UK, and because they offer trading accounts in Euro, it is rather obvious that they are trying to do exactly this, to attract European customers - something completely illegal as they are not authorized by the Financial Conduct Authority (FCA) in the UK, or any other official financial regulator in the broader EU for that matter.

 

Besides, trading with unregulated brokers like Wastrad has always been extremely risky as quite too often they are simply involved in scam.

 

Here you may check our list of brokers regulated by the FCA in the UK, where, by the way, your funds will even be insured for up to 85 000 GBP:

 

>>FCA Regulated Forex Brokers<< 

 

Skrill not available as payment method

 

Despite the fact that Wastrad  displays the logo of Skrill on its homepage, as we proceeded with our registration it turned out the popular e-wallet is not among the payment methods they accept. And this is notable because of the new anti scam policy adopted by the money transfer company. According it Skrill partners only with regulated brokers, and as we already established Wastrad does not have a license to provide financial services whatsoever. Here for example you may check our list of brokers, accepting payments with Skrill:

 

>>Brokers accepting Skrill<<

 

Conclusion:

 

Despite the seemingly attractive trading conditions Wastrad is not a broker we can recommend for one simple reason – they are not regulated and that means they are completely unaccountable for the fate of your funds. Once again, here we will repeat our general advise to trade only with brokers, regulated by reliable financial watchdogs like the FCA in the UK, the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC) – the three most popular regulators on the retail forex market.

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Traders` reviews for Wastrad

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