WAM Capital – Are They Trustworthy?

Website URL: https://wam-capital.co/

Founded: 2020

Regulations: Unregulated

Languages: English, Italian, Spanish

Deposit Methods: Credit/Debit Cards and Wire Transfers

Minimum Deposit: €250

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Forex, Cryptos, CFDs, Indices, Stocks, Commodities, and Metals

Trading Accounts and Conditions

WAM-Capital has four types of trading accounts that customers can choose from:

• Micro Account: The minimum deposit is $/€ 250, spreads are from 1 pip, and the leverage is up to 1:500.
• Standard Account: The minimum deposit is $/€ 2,500, spreads are from 1 pip, and the leverage is up to 1:300.
• Premium Account: The minimum deposit is $/€ 25,000, spreads are from 0.6 pips, and the leverage is up to 1:100.
• VIP Account: The minimum deposit is $/€ 100,000, spreads are from 0.2 pips, and the leverage is up to 1:100.

WAM Capital – Advantages

There are no advantages to investing with WAM-Capital. There are several red flags that we detected from reviewing this broker. To find out the fishy details we have uncovered, read on.

WAM Capital – Disadvantages

Below are numerous reasons why you shouldn’t invest with WAM-Capital.

• Unregulated and Unlicensed Broker

WAM-Capital’s website states that it is owned by a company called Gabioni Ltd., however, no additional details are provided, so it is difficult to know its legitimacy. After a more thorough research, we found three companies from Georgia, UK, and Russia that could potentially be the Gabioni Ltd. the website refers to. But it is not clear which one the website speaks of since there is zero information available. To make matters worse, even after using third party tools, there is no evidence that Wam-Capital is owned and operated by a company called Gabioni Ltd.

The regulatory standing of this broker is also questionable. They claim to have an Australian Forex license. However, in order to get this license, they have to be approved by the country’s regulatory authority – the Australian Securities & Investments Commission (ASIC). But when we searched the ASIC register to verify this information, the name Gabioni Ltd didn’t show up on their online register

With all these information we found, we definitely discourage our readers to invest or trade with this broker. It is clearly unregulated and unlicensed, posing a great risk to your hard earned money.

• Spread and Leverage Levels are Too High

WAM-Capital provides its customers a Metatrader4 account (Metatrader5 is not available though). However, we don’t recommend using this trading platform with WAM-Capital as your broker.

Metatrader is the most commonly used Forex trading platform by traders across the globe due to its sophisticated features. While this platform provides beneficial trading tools, you need to actually sign up with a reputable Forex broker to maximize your gains.

With WAM-Capital, you have no option but to trade starting at a spread of 1.5 pips with a minimum leverage of 1:100 and maximum leverage of 1:500. These values are too high and are fixed on their system, which means, you are forced to trade in the worst environment increasing the possibility of a loss.

In Europe, the maximum leverage cap is up to 1:30. This was imposed by the European Securities and Markets Authority (ESMA) in order to protect customers, especially the novice traders, from suffering heavy losses. Levels reaching 1:500 are already considered to be too risky and are even regarded as gambling. With these fixed values imposed on their system, it is clear that they have broken the law, a major indication that this company is a big scam.

• High Minimum Deposit

Most brokers that are actually legit and credible offer only an average of $100 as minimum deposit. However, with WAM-Capital, the minimum amount to invest is €250 or the equivalent amount for other currency. This is more than double the average minimum deposit required by other regulated companies.

If you plan to invest this much amount, it is best to trade with a Forex broker which is UK or EU regulated. This is because the leaders in retail Forex industry are mostly found in Europe. Moreover, Europe has the strictest regulatory systems in the world. In order to be regulated, several rules and regulations are imposed to companies.

One of the requirements is to secure protection funds like the Financial Services Compensation Scheme (FSCS) in UK and the Investor Compensation Fund (ICF) in Cyprus. These protection funds were created to protect traders from losing all of their money in the event a broker is unable to meet its financial obligations. FSCS provides insurance claims of up to 85,000 GBP per customer, while ICF gives up to 20,000 per client.

• Blocks the Account after 6 Months of Inactivity

The broker claims that it doesn’t charge any fees to its customers. However, it clearly states on its website that your account will automatically be blocked if your trading account is inactive (no trading activity, withdrawals or deposits) for six months. This is a major red flag since most regulated brokers only charge minimal fees to inactive accounts for a period of 6 to 12 months, not block accounts.

Moreover, this information is stated on the website’s FAQ page rather than on the Terms and Conditions page, which clearly indicates that the company wants to hide this crucial information from its customers.

Conclusion

WAM-Capital is unregulated and unlicensed and claims association with a company that is non-existent. It also offers a trading platform with very high spread and leverage levels. Investing your money with this broker is indeed a recipe for disaster that can lead to huge losses of your hard earned money. We don’t recommend this broker to any trader, beginner or advanced. Instead, we suggest that you find a regulated and reputable broker, preferably from EU or UK, with clear terms of service, to ensure that your funds are safe.

WAM-Capital

2.3

User Experience

3.2/10

Payment Options

2.2/10

Security

2.1/10

Support

2.2/10

Reputation

2.0/10

Pros

• None

Cons

• Unregulated and Unlicensed Broker
• Spread and Leverage Levels are Too High
• High Minimum Deposit
• Blocks the account after 6 months of Inactivity