Scam Brokers

Wenchuan International Co. Ltd – Is It Secure enough to be Trusted?

Chainbits Staff | Publish date: 02/23/2021 (Last updated: February 23, 2021 05:52 AM)

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Wenchuan International - DO NOT TRADE WITH THIS PROVIDER

2.2/10

$100

Minimum Deposit

updated 2021

Try other platforms

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.

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Website URL:https://wc-fg.com/

Founded: No information found on the website

Regulations: Unregulated

Languages: English, Chinese (Simplified), Chinese (Traditional), Vietnam, and Indonesia

Deposit Methods: Debit/Credit card (Master and Visa), AliPay, and Union Pay

Minimum Deposit: $100

Free Demo Account: Yes

Number of Assets: No information found on the website

Types of Assets: Bullions (Gold and Silver), Major currency pairs, Cross-currency pairs, Forex, Crude oil, and Spot index CFD

Trading Accounts and Conditions:

Wenchuan International has not specified any details about the types of trading accounts they offer, or the conditions related to those accounts.

Wenchuan International – Advantages:

Wenchuan International offers no motivating incentives or rewards to the customers for investing money with them.

Wenchuan International – Disadvantages:

There are several disadvantages that we found after investigating this firm. Read below to know why it’s not trustworthy.

AnAnonymous and Unregulated Broker

Wenchuan International is an offshore scammer that is enlisted in an offshore area of St. Vincent and the Grenadines, which is the highly acclaimed area for its non-regulated financial sector. Due to this fact, this offshore area is more tempting for the dodgy forex brokers who hide their specifications and want to remain unidentified from the law.

Therefore, Wenchuan International is an illegal, unlicensed, and unauthorized offshore entity, which displays many fraud shreds of evidence. If you choose to trade with this shady forex broker, you may lose all your funds.

Plus500

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Minimum Deposit

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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.

AvaTrade

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Minimum Deposit

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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.

Non-Functional Trading Software and Poor Registration Process

Wenchuan International provides its customers Metatrader4 trading software, which is the latest and most updated trading software in the forex market due to its most convenient features. However, the truth is the opposite of it because this broker’s way of conducting forex trading is far from the standard forex business practices. When you will download and install their trading software, even so, you will not be able to register with them. You will be allowed to open neither a demo nor a real account from the software’s terminal.

Additionally, the sign-up process looks odd as well. You will be asked to enter a promotion code to complete the registration process. It means you will be unable to register with them, which shows a red flag on this broker.

High Leverage and Risky Pips

Wenchuan International claims to offer the spread of 2.2 pips on EUR/USD, which is quite an unfavorable and risky trading condition. If the customer will trade with such a high, wide, and risky spread, it will increase the cost of trading which is of course not a customer’s benefit. While the standard spread that is being followed in the forex market is below the spread offered by Wenchuan International. It is only a fraud trick to fleece the customer.

Moreover, the leverage level of 1:200 is also quite high as compared to the industry standards. The leverage figure is considered to multiply the profits, but it can multiply the loss as well because it is too risky to trade with such high leverage levels. It makes trading performance worse and turns trading into gambling. According to FCA authority, in 75% of cases out of 100, traders with high leverages lost their funds. Due to this fact, all the legit forex brokers never offer leverages higher than 1:300 which is a pretty much safe level to trade with and serves as a customer protection measure.

High Withdrawal Fees

Although Wenchuan International has mentioned the minimum withdrawal amount it is only possible in case if the customer is able to reach their specified trading volume. If the customer is not able to reach the specified trading volume, the broker will deduct 3% of their deposit amount or will reject the withdrawal request in another case.

In addition to this, if the customer has not participated in any of the trade activity, and wants to withdraw their funds, the broker will charge a 3% handling fee from their account.

Wenchuan International also charges an administrative fee of $5, if the deposit amount is less than $50. While, the real authentic forex brokers will never impose such shady and unreasonable requirements on the clients, which is why it is always advised to choose the regulated and authorized broker.

No Proper Information Available

It is a common and most usual practice of scammers that they provide insufficient information to the traders to hide their identity. Likewise, Wenchuan International has also not mentioned details about their dormant account policy, no specified fee of inactivity period, and what type of trading account they offer and on what conditions. Moreover, no incentive programs or bonuses are introduced. Hence, this puts a red flag on this broker and shows many pieces of fraud evidence.

Conclusion

Wenchuan International Co. Ltd officially seems to be a professional financial trading brand is a fishy enterprise, which does not seem to be regulated or legit. Many red flags and scam signs have been found in its business practices and in the provided information proving that it is an unregulated non-legit offshore forex creature. So, if you trade with this non-legit broker, you may lose all your funds.

Therefore, it is instructed to avoid such shady and fraud entities. Instead, choose the brokers that are authentic, legit, and regulated by renowned and trustworthy regulatory authorities like CySEC in Cyprus and FCA in the UK because they have created the most secure trading environment for the customers by implementing many types of rules and regulations such as money protection schemes and customer protection measures that are in benefit of customers. Plus, they are obliged to pay their clients with an insurance amount in case they go bankrupt or decide to cease operation. Nothing is more reassuring than that.