Webit – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Webit - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$100
Minimum Depositupdated 2022
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://webitaab.com
Founded: 2022
Regulations: Unregulated Broker
Languages: English
Deposit Methods: Bitcoin, Ethereum, Tether
Minimum Deposit: Unknown
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Forex, Cryptocurrencies
Trading Accounts and Conditions
Webit has not provided any details about the types of trading accounts they are providing. Furthermore, there is no information about the trading conditions either. When we checked the trading platform, the leverage this broker offers ranges from 1:50 to 1:100 for various cryptocurrencies. There is also a 40-unit handling fee shown on their platform, but there is no currency unit mentioned or even what kind of handling fee this is.
Webit – Advantages
There is nothing positive to write about Webit. This broker is a part of serial scam operation.
Webit – Disadvantages
Here are the disadvantages of using Webit:
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Regulation Issues
As soon as we checked the website of Webit, we felt alarm bells going off. The first thing we noticed was that there was absolutely no corporate information anywhere on their website. So, we do not know which company owns this website, where they are located or what their contact number is. The only way to connect with them is via a vague email address.
The next red flag is that this broker claims to be regulated by three different financial authorities – the St. Vincent and the Grenadines Financial Services Authority (SVGFSA), the Canadian Financial Crime Enforcement Bureau and the Monetary Authority of Singapore (MAS). There are links to each of these licenses, in which we find a company name – Bcoins Fimancial Ltd. However, there does not seem to be any connection to this broker.
Now, why are these claims such red flags? Firstly, the SVG FSA has announced repeatedly that is has no regulatory oversight for forex and CFD brokers. Therefore, even if a broker is registered with SVGFSA, it makes no difference – that broker is no regulated anyway.
Next, brokers in Canada are not regulated by the Financial Crime Enforcement Bureau. In this country, all brokers – local or offshore – are required to be registered with the IIROC (Investment Industry Regulatory Organization of Canada). So, this claim is just made up to make this broker look legitimate.
And finally, we also checked the Singapore MAS website, and found no trace of this broker listed there.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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Warning by Regulator Against Webit
We also noticed that this broker has been blacklisted by the Singaporean financial regulator – the MAS. While checking their online register to verify Webit’s claims of being regulated by the MAS, we found a notice that this broker (and the company we found mentioned in its so-called licensing documents, Bcoins Fimancial Ltd.) has been flagged off as a scammer by this financial authority.
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No Legal Documents
Another clear sign of this broker’s scam is the fact that there are no legal documents to be found anywhere on their website; there is no User Agreement, Customer Agreement, Privacy Policy, or any other legal document.
These documents are the contract between the customer and the broker, which details the terms offered by the broker – the kinds of fees the broker will charge for their services, the policies around withdrawals and deposits, the trading conditions and so on. If a trader signs on without first checking these conditions, then they are basically signing away their rights and the broker can do what they like with the traders’ money and even personal details.
Thus, the lack of legal documents is a clear sign of a scam.
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Serial Scammer
We also found out that Webit is linked with another scam broker – Biboxa.com. This broker has also been blacklisted by the Singaporean financial regulator.
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No Functional Trading Platform
When we checked this broker’s trading platform, we found out that they do not really have a functional trading software. We saw interactive charts, the type that could be imported from free websites such as TradingView. We also saw another menu that allowed for the buying and selling of cryptocurrencies; there wasn’t anything else that you could do with this broker’s trading software.
This is just another indicator of the scam that Webit is running, since legitimate brokers ensure that they offer their clients the best possible trading platforms to ensure efficient and secure trades. So, with reputed brokers, you will see the MetaTrader 4 or MetaTrader 5 platforms being offered – not this sham of a web-based software that does nothing for the trader.
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Extremely High Leverage
Firstly, this broker has not advertised its trading conditions. And when we checked their trading platform, we found out that Webit is offering a leverage that ranges from 1:50 to 1:100 for cryptocurrencies. This is much too high, especially when you consider that the leverage for cryptocurrencies ranges from 1:2 to 1:5.
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Limited Payment Options
The only way that you can make payments with Webit is by using three types of cryptocurrencies – Bitcoin, Ethereum and Tether. While there are many regulated and reputed brokers that also offer cryptocurrencies as a payment option, this method is a particular favorite with scammers. This is because crypto payments are more or less anonymous and permanent. Therefore, once a payment is made, it cannot be traced and neither can it be reversed.
Thus, if you are planning to sign up with a new broker, it would be best to choose credit cards as your payment option. This way, if you are scammed, then you will still stand a chance of getting your money back by filing for a chargeback with your bank.
Conclusion
Webit is a part of a serial scam operation, trying to attract customers by lying about its regulation status. The lack of transparency about its trading conditions and legal documents also clearly shows the malintent of this broker. It would be best to avoid Webit completely.
Webit
Pros
- None
Cons
- Regulation Issues
- Warning by Regulator Against Webit
- No Legal Documents
- Serial Scammer
- No Functional Trading Platform
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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