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WSM FX Review - is it scam or safe?

WSM FX Review - is wsmfx.com scam or good forex broker?

RATING: 1.2 / 1 REVIEWS WSM FX
WSM FX is an offshore broker. Your money is not safe.

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Trading accounts and Conditions

 

 

Account type Minimum deposit Maximum leverage Spreads Extras
Standard $500 1:400 from 1.2 pips -
Bronze $2 000 1:400 from 1.2 pips Hedging, rebates
Silver $10 000 1:400 from 1.2 pips Hedging, rebates
Gold $50 000 1:400 from 1.2 pips Hedging, rebates

 

WSM FX offers several account types, all of which are said to offer variable spreads and leverage up to 1:400, with no commission fees on the MetaTrader 4 platform. Besides, all accounts offer the use of WSM Robot, that is developed by the broker. In our opinion, most such robots are fraudulent schemes and we don’t advise our readers to use such.

 

Bronz, Silver and Gold accounts allegedly offer some perks, such as rebates, provided that WSM FX’s clients trade more than 50 lots per month. Unlike most brokers, however, this one does not offer free demo accounts, and we could not test its services.

 

Keep in mind that WSM FX does not accept clients оrom the following jurisdictions: Canada, Hong Kong, Israel, Iraq, Iran, Pakistan, Madagascar and USA. Its website is abailable in English, Russian, Czech and Slovenian.

 

WSM FXAdvanatges:

 

- MT4 available

WSM FX offers its services on the renown Metatrader 4 – a platform that has proved to be reliable over the years. Although newer FX trading solutions keep emerging on the market, the MT4 still remains the favorite trading software of most traders. It is highly praised for its ease of use, great charting, automated strategies (Expert Advisors), technical analysis indicators, etc.

 

>>Top MT4 brokers<<

 

- Seemingly competitive spreads

As we have mentioned above, we dis not try out WSM FX’s MT4, so we are not sure that this broker’s spreads are really starting from 1.2 pips on EUR/USD. If this is really the case, then we could say that WSM FX’s spreads are in line with the industry’s average.

 

>>Compare the real-time spreads of 10 top-tier brokers<<

 

- High leverage levels available

Leverage levels reaching 1:400, like those offered by WSM FX are common among forex brokers, but nonetheless considered high. This is due to the fact that leverage can both help traders score big profits on small deposits, and lead to losses in excess of initial investments. So, you’d better not tuse the maximum leverage a broker provides.

 

>>Brokers offering leverage of 1:500 or higher<<

 

WSM FX disdvantages:

 

- Registered offshore (SVG), part of a group with shady reputation

WSM FX is registered offshore, on Saint Vincent and the Grenadines, whish means it is not regulated. It seems that this broker is a part of the WSM Group, under whose umbrella are Milton Markets (the address provided by the latter is exactly the same as those of WSM FX), former brokerage Gallant Capital Markets and WSM Robot. It appears that the company origins are in the Check Republic, as the CNB (Czech National bank) has issued a warning against it.

 

- High initial deposit required

WSM FX requires $500 from its clients in order to open an account. Such initial investment required is pretty high, as most brokers require $100-$250 as a start, and many of them are properly regulated, unlike WSM FX. For example, you can open an account with international brokerage HYCM that has more than 40 years of company history by depositing $100.

 

- No free demo accounts

Most brokers offer such for testing purposes. Besides being useful to beginner traders, free demo accounts are indicative of a broker’s pricing policy.

 

-Hedging not allowed on Standard account

Hedging is a sort of risk management strategy, that is usually supported by all forex brokers, but trhose operating in the US (because of the “First In, First Out” (FIFO) rule). We find it strange that WSM FX offers Hedging on advanced account types only, which require even higher initial investments than the Standard one.

 

- Market Maker model

WSM FX claims to be a STP broker, but in the Order execution policy document uploaded on its website it is stated that the broker acts as a principal in all trades, which means that it is Market Maker.

 

Conclusion

 

WSM International Broker Ltd., operating the WSM FX brand, is registered offshore. However, in its Client agreement as governing law is specified that of New Zealand. This is probably due to the fact that another part of the WSM group, WSM Invest Ltd NZ that used to operate Milton Markets, was regulated by NZ's FMA until May, 2017. World Systems Market, Inc., yet another arm of the group that sells automated strategies, has operations in Slovakia and the Czech Republic and claims to be based in the US. As we have mentioned above, the CNB has issued a warning against it. Another broker that was under the WSM umbrella, Gallant Capital Markets filed for bankruptcy in the US in April 2017, although the company is registered offshore.

 

To cut things short, WSM FX is an offshore broker and part of an international group with rather shady reputation. For those of you who are not familiar with the forex industry, we must warn you that Trading with a non-licensed broker is something we can’t recommend.

 

You’d better select among brokers regulated in the UK, to which FCA applies strict rules for minimum capital adequacy, account segregation, transaction reporting, etc.

 

>>Brokers regulated by the FCA <<

 

 

Pros Cons
MT4 available Registered offshore
High leverage levels offered High initial deposit required
Seemingly good spreads No demo accounts
  The company is a part of the WSM group

 

Latest news about WSM FX
No news about WSM FX. Check back later.
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Traders` reviews for WSM FX

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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Gallant - my money is gone

I held a trading account with Gallant for a couple of years. suddenly one day I didn't hear from them any more. Couldn't contact them at all and they parted with my money. On 14 April 2017 got an email saying: Effective 5pm E.T. on 14 April 2017, Gallant Capital Markets Ltd has filed for a voluntary petition under chapter 11 of the United States Bankruptcy Code, with the United States Bankruptcy Court for the Eastern District of New York. I contacted the FCA regulators in UK and apparently Gallant were claiming to be authorised and regulated by the British Virgin Islands Financial Services Commission. The financial services regulator of the British Virgin Islands, which their contact details are:
The British Virgin Islands Financial Services Commission
Pasea Estate, Road Town, Tortola, British Virgin Islands
+1 284 494 13247/4190
[email protected]
www.bvifsc.vg which I contacted and emailed but never received a reply.
Can anybody share if you have had a similar experience and have you recovered your money and how.
Many thanks,
Malu

Malu 06/13/2018
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