WellsTrader – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
WellsTrader - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2023
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://wellstrader.com
Founded: 2023
Regulations: Not Licensed
Languages: English, Polish, Spanish
Deposit Methods: Credit Card, Debit Card, Bank Wire, Bank Transfer, Cryptocurrency
Minimum Deposit: $500
Free Demo Account: Not Available
Number of Assets: Unspecified
Types of Assets: Cryptocurrencies, Indices, Stocks, Currencies
Trading Accounts and Conditions
WellsTrader offers their client the following types of trading accounts:
- Micro: The minimum deposit amount is $500.
- Standard: The minimum deposit amount is $5,000.
- VIP: The minimum deposit amount is $100,000.
- Platinum Elite: The minimum deposit amount is $250,000.
There is no mention of trading conditions anywhere. So, we do not know what the spreads, the order execution methods, the leverage ratios, the commissions and so on are.
WellsTrader – Advantages
There are no advantages to trading with WellsTrader.
WellsTrader – Disadvantages
Listed below are all the red flags that clearly expose WellsTrader’s scam:
-
Unregulated Broker
The first indication that WellsTrader is not an honest broker is their lack of regulation. Here is how we know.
Legitimate brokers publish all their corporate and regulation details on the footer of their websites clearly. We will find their company name, the location of said company, their contact details and the registration and license details – including the name of the authority that has regulated them.
With WellsTrader, these details are missing. There is no information on their home page about their identity. You have to check their Contact Us page to get some of that information.
On that page, we find a Switzerland address given as well as telephone number from that country. In their About Us page, the broker claims to have 17 offices around the world, but there is no further information about where these offices are located.
There is absolutely no information about their license and registration.
Since WellsTrader has not provided information about their regulation, we can only assume that they would be regulated by the Swiss Financial Market Supervisory Authority (FINMA). However, upon checking the regulator’s online database, we found out that this broker is not regulated by the FINMA at all.
This means that WellsTrader is operating illegally and is therefore a scammer.
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.
-
Blacklisted by CNMV
While investigating WellsTrader’s regulation status, we found out that the the CNMV – Comisión Nacional del Mercado de Valores, has issued a public warning against them for operating in their country without authorization.
The authority that regulates forex brokers operating in Spain also warns traders not to do business with WellsTrader as their funds could be at risk.
There can be no better proof that this broker is a scammer.
-
Issues with Registration
The first step we take after checking a broker’s regulation status is to register for an account with that broker. Registering with the broker helps us understand many things. How easy the registration process is, what their live trading platform looks like, what their real trading conditions looks like, and what their client and payment areas look like.
With WellsTrader, we could not get past the registration process. Every time we tried registering for an account, we encountered an error. This is a big red flag.
Scammers use this tactic to trap novice traders. When you are unable to create an account, you will contact the broker. The broker then calls you and if you are a novice goes ahead with helping you open an account with them.
So, if there is a problem with registering with a new broker, it is a red flag that they might be a scammer.
-
Unknown Trading Platform
WellsTrader does not mention anything about their trading platform on their website. And since we were unable to register for an account, we could not check the broker’s trading platform for ourselves.
The trading platform is a broker’s prime offering. So, legitimate brokers make every effort to advertise their platform prominently on their websites. Furthermore, these brokers also offer free demo accounts where you can test their trading platform in a safe environment.
Therefore, if a broker is not even mentioning what kind of trading platform they have, it is a sure sign that we are dealing with a scammer.
-
Issues with Trading Conditions
Along with their trading platform, the service offering from a broker is their trading conditions. These conditions tell us whether it would be advantageous to trade with a broker or not.
Just like they advertise their trading platform, legitimate brokers also provide all details of their trading conditions on their websites. The detail the spreads, leverage ratios, account types, and so on very clearly.
WellsTrader, on the other hand, has no information on their trading conditions. The only thing we know is that the minimum deposit requirement is $500, which is much too high. Industry averages range between $250 and $100, and there are more and more brokers that have minimum deposit requirements that are as low as $10.
Added to this, the broker claims to have 5 trading account types, however, when we checked, there were only 4 presented.
This lack of such key information tells us that we are dealing with a scammer here.
-
Issues with Withdrawal Policy and Payments
WellsTrader claims to offer their clients multiple payment options – Visa, Skrill, MasterCard, PayPay, and HSBC. However, since we could not access their payments section, we do not know if this is true or not. What we can say is that Skrill has policies in place that do not allow brokers to use their payment platform if they are not regulated. This means that there is no way this broker would be able to use Skrill as a payments provider. So, we have doubts about the real payment options WellsTrader has.
As for their withdrawal policy, there is none.
All of this tells us that we are dealing with a scammer.
Conclusion
WellsTrader is a scammer and needs to be avoided at all costs.
WellsTrader
Pros
- None
Cons
- Unregulated Broker
- Blacklisted by CNMV
- Issues with Registration
- Unknown Trading Platform
- Issues with Trading Conditions
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.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.