Beware! WideCFD is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
WideCFD is yet another offshore Forex broker, registered and headquartered at a particular place we’ve run across many times before, an address linked with hundreds of fishy companies and brokers, many of which being confirmed as a scam. Apart from that, there are plenty of other warning signs, which we are going to point out in this review. The amateur presentation of their products, services, principles and mission clearly shows that the guys standing behind this phony creature has nothing to do with a true Forex broker. Find out everything you need to know about this entity in the full WideCFD review.
WideCFD REGULATION AND SAFETY OF FUNDS
WideCFD is an offshore Forex broker, allegedly owned and operated by WideCFD Ltd, a company incorporated in St. Vincent and the Grenadine. SVG is an island which is considered a tax haven jurisdiction, where the financial regulator SVGFSA does not regulate the Forex brokers operating from the island. It effectively means that there are no customer protections in place, making the brokers risky and unstable. It’s not a surprise that SVG is a top destination for scam Forex brokers and questionable companies in general.
WideCFD is headquartered at Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines. There are many suspicious brokers residing at the exact same Suite 305, such as Proquote27, Coinsoft, Finlay.io, and Optical Invest, just to name a few! In fact there were way too many brokers sharing Suite 305, but recently a growing amount of these have changed the address on their website. Coinsoft is a fine example, which is no longer claiming to be registered at the infamous Griffith Corporate Centre.
The next major red flag, however, was detected in clause 19 in their Terms and Conditions. According to it, the business conducted by WideCFD is governed by the laws of the Marshall Islands, which doesn’t make any sense whatsoever. It is a strong evidence of scam and a warning for you, stay away!
Your funds are in danger if you make a deposit with WideCFD, it is an unlicensed, unauthorized and unregulated Forex broker, which shows too many scam signs.
Avoid anonymous and offshore Forex brokers and trust the ones which are legit, transparent and regulated in EU or UK, because the customer protection is guaranteed there. The licensed European entities, for example, have to hold the clients funds in segregated accounts, separate from their own bank accounts, meaning that the deposits made by the customers cannot be used by the broker for operational transactions or investment. As a result, the funds are protected at all times, the Forex broker is not exposed to unnecessary risks, the customers are in full control over their money and can make withdrawals whenever they want, also the withdrawal processing time significantly decreases.
There are also Deposit insurance funds inaugurated, such as ICF in Cyprus and FSCS in UK, to protect the deposits made by the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
WideCFD TRADING SOFTWARE
WideCFD offer only Metatrader4 accounts to its customers, Metatrader5 is not available for trading. Upon registration we downloaded the Desktop MT4 distribution, provided by Algo Trade, a name we are familiar with. That provider is linked with 24Tradex, another clear as mud so-called Forex broker, which is also a suspected scam. We even tried to open a short EUR/USD, but unsuccessfully, the accounts made by WideCFD are not functioning.
But it doesn’t mean that you can’t make a deposit, a major red flag which undoubtedly proves that WideCFD is a scam. You should also pay attention to the website, you are being redirected to upon registration, which additionally might be considered a scam sign.
The spread is said to be as low as 1 pip, and the leverage levels are supposed to be as high as 1:500, a ratio way too risky for the traders, which we do not recommend. However, there is no way we can confirm that it’s a valid piece of information, because their trading platform is dysfunctional.
WideCFD DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be 500 USD. There are plenty of funding methods listed, but in reality none of these is actually valid, because the only way you can make a deposit is probably over the phone. Another very obvious scam sign, have a look!
No minimum withdrawal amount or fees specified. The processing and sending of the funds is said to be within 5-10 business days, which is quite slow, fairly speaking.
No dormant account policy or fees for inactivity determined, and this is yet another red flag, you’ve probably lost the count already!
There are three different bonus programs offered- Welcome Bonus, Bonus Loyal Customer and Bring a Friend Bonus. It is definitely an evidence of scam, because the swindlers love to give out bonuses, it is a preferred and very efficient marketing tool they are using, we have to admit. You can get up to 100% on the deposit, but the Bonus T&Cs are missing, which is yet another disturbing piece of information.
HOW DOES THE SCAM WORK
The scam is a criminal activity, the scammers are trying to defraud people by making them believe that easy money can be made if the people join them and start investing. In most of the cases, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. It’s because there is no or very light FX regulation in the offshore jurisdictions such as Vanuatu, Marshall Islands or St. Vincent and the Grenadines, making them some of the most popular destinations for shady and illegitimate enterprises. Regulation is equal to customer protection and safety, financial authority such as CySEC or FCA will make it impossible for a scam Forex broker to conduct illicit activities in the jurisdiction supervised by them.
In conclusion, WideCFD should never be trusted, there are too many warning signs and red flags, but also their website is filled with lies and pieces of misleading information. For example, they claim to be regulated and authorized in Europe, also to hold the clients funds in segregated accounts, but in reality it is just a plain talk. You should stay away from WideCFD, it is a scam.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!