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WealthCapital Review - is it scam or safe?

WealthCapital Review - is wealthcapital.fm scam or good forex broker?

RATING: 1 / 0 REVIEWS WealthCapital
WealthCapital is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit* Max. leverage* Avg. Spread
Basic  €5 000 1:500 2.7 pips
Advanced  €25 000 1:500 N/A
Expert  €75 000 1:500 N/A
Master N/A 1:500 N/A

 

* As indicated in the Account types section on the broker's website. Those we saw in the platform were different.

 

WealthCapital offers four trading account types, yet the trading conditions are not that clear. Nonetheless, what bothers us more with regards to this Estonian brokerage is the fact that it is not regulated. Below, you can find detailed information on WealthCapital’s trading offer, corporate and regulatory situation and decide for yourselves whether investing with this brokerage is worth the risk.

 

 

WealthCapital Advantages

 

Solid choice of CFDs, including cryptos

The availability of various tradeable assets is always welcomed, as investors are able to diversify their portfolios. WealthCapital covers different asset classes, including forex, as well as stocks, indices, commodities, and cryptocurrencies in the form of Contracts for Difference (CFDs).

 

In case you are a crypto-enthusiast, however, you’d better select a broker from the below risk, as WealthCapital is not a reliable CFD provider.

 


>> Licensed crypto CFD brokers <<

 

 

High leverage levels

Clients of WealthCapital are extended pretty high leverage levels. According to the information in the Account types section on the broker’s website, the highest ratios are 1:500, but when we logged into WealthCapital’s web platform, we saw that the maximum available is 1:200. Either way, both leverage ratios are quite high and will suit all trading styles. That being said, be warned that using higher leverage means undertaking higher risk.

 

 

WealthCapital Disadvantages

 

Not regulated

According to the broker’s website, WealthCapital is an online brokerage that is owned and operated by Astra Consulting OÜ, an Estonian “investment company that is regulated by the GDPR (General Data Protection Regulation)”.  

 

This claim is quite ridiculous, as GDPR cannot replace proper financial regulation. Financial services providers in Estonia have to be licensed by the Estonian Financial Supervision Authority (EFSA), or by another official EU regulator. WealthCapital is not under the supervision of EFSA, nor by any other.

 

Keep in mind that if you deal with an unregulated broker, the safety of your investment depends solely on the integrity of the people who operate those companies. Needless to say, most such brokers are involved in some sort of investment scams, so we always advise traders to avoid them.

 

Incomplete and inconsistent information on trading conditions

As we mentioned briefly in the beginning, WealthCapital is not very clear about its trading conditions. First, the broker has not disclosed any reference spreads. Second, its website contains contradiction information on the leverage provided (which we already discussed) and minimum initial deposit required. According to the data in the account type section, Basic account holders have to invest at least €5 000. In the FAQ section of the website however, it is written that the minimum initial deposit is €250. When we logged in WealthCapital’s platform, we saw a minimum investment requirement of €500.

 

Overall, this company has done a rather poor job at presenting its service, which reveals lack of clear and transparent pricing, and is very typical of scam brokers.

 

No Metatrader

 WealthCapital uses its own web-based trading platform that has user-friendly interface, but is actually oversimplified and would better suit binary options trading. Here is a preview:

 

 

Click on the image to view larger.

 

This trading interface cannot be compared with the ever popular and feature-rich MetaTrader 4 (MT4). The MT4 is highly praised for its reliability, solid charting and support of Expert Advisors (automated trading), among other functionalities.

 

 

>> A list of MetaTrader 4 brokers <<

 

 

High spreads

As you can see from the image in the previous section, the spread on EUR/USD is 2.8 pips which is more than two times higher than the average in the sector and unfavorable for traders. 

 

 

Conclusion

 

WealthCapital is an unregulated, low credibility Estonian broker. It does a rather poor job at presenting its trading conditions, but they don’t seem that attractive anyway. Overall, other forex brokers better trading offers, and many of them are duly regulated, which makes them far more reliable trading partners.

 

For example, one of the preferred jurisdictions in Europe now that UK is leaving the EU is Cyprus. They are licensed and overseen by the Cyprus Securities and Exchange Commission (CySEC), which has imposed certain rules for forex brokers that provide significant assurance ofr the security of their clients’ funds.

 

 

>> CySEC-licensed forex brokers <<

 

 

To sum up the strong and weak sides of WealthCapital:

 

Pros Cons
Solid choice of trading instruments Not licensed
High leverage Inconsistent information on trading conditions
  No MetaTrader, high spreads

 

Latest news about WealthCapital
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Traders` reviews for WealthCapital

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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