Werforex – Is It Safe?

Website URL: https://werforex.com/

Founded: N/A

Regulations: Unregulated

Languages: English

Deposit Methods: Bank Wire, MasterCard, Visa

Minimum Deposit: $500

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Currency Pairs, CFDs

Trading Accounts and Conditions

Werforex offers its clients a selection of 3 different account types:

• Micro: With the Micro account, you need to make a first deposit of $500 to start trading. You are offered a generous leverage of 1:400, and a spread of 1.5 pips.
• Standard: If you opt for a Standard account, you will first need to deposit $5,000. You are offered a leverage of 1:200.
• VIP: If you wish to use the VIP account, your initial deposit should not be less than $20,000. You are given a leverage of 1:200.

Since we used the demo account to check the trading conditions, we do not know how much of a spread is offered for the Standard and VIP accounts, as this information is not provided on the broker’s website.

Werforex – Advantages

Here are the few advantages we found in favor of traders using Weforex:

• MT4 Trading Platform Offered

Weforex offers its clients the use of the MT4 (MetaTrader 4) trading platform, which we feel is definitely a positive. The MT4 platform is the world’s most popular trading interface, with over 80% of traders using it to execute daily trades.

This is because the platform is easy to use and it offers tons of added features such as integrated market indicators, trading bots that are customizable and various charting options.

• Decent Spreads

Another positive that this broker has is its offered spreads. The cost of trading is an important factor in any trader’s list of conditions when choosing a broker, so the fact that Werforex offers spreads within industry norms is a good thing.

When we logged in to the broker’s platform through the demo account, we saw the spread for the EURUSD at about 1.7 pips which, while on the higher end of the spectrum, was still within reasonable ranges.

• High Leverage

Werforex offers a leverage level that goes as high as 1:400, which is very generous by any standards. This means that traders who like to make higher-risk investments will also enjoy trading on Werforex’s platform.

Having stated that, we would also like to warn our readers that with high leverage comes a lot of risk, which is why most regulators tend to put a cap on how high a leverage a broker is allowed to offer its clients.

So, the fact that Werforex is offering such high leverages actually points to a lack of regulatory oversight.

Werforex – Disadvantages

While this broker offers a great trading platform, relatively low spreads and a high leverage, there are other issues about Werforex that are of much more serious concern:

• Confusing Corporate Information

The corporate information given on Werforex’s website is rather confusing. This is the first red flag we encountered in our investigation about this broker. The broker claims to be owned and operated by a Bulgarian company called Technology Investments Ltd.

However, when we read through the Terms and Conditions given on this broker’s website, we found that this company is actually registered in the Marshall Islands.

Added to that, we also found out that this broker also has another owner – a company called Global Marketing Ltd., which is also registered offshore.

Plus500

$100

Minimum Deposit

Start Trading

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AvaTrade

$100

Minimum Deposit

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• Lack of Regulation

Based on the corporate information provided by Werforex, the broker should be registered with the Bulgarian FSC (Financial Supervision Commission). And if it is not registered with the local FSC, then the broker should be registered with any other financial regulator that is a part of the European Union.

However, upon checking, we found that this broker and its parent company – or companies – are not registered either with the FSC or any other financial regulator in the EU.

Added to that, both companies seem to be registered offshore in the Marshall Islands, where forex brokers are not governed by any regulator.

All this information we have gathered leads us to the conclusion that this broker is not regulated in any way, and this means that your money is at risk.

• Initial Deposits Very High

Werforex requires to you make a first deposit of a minimum of $500 to begin trading on its platform. This amount is two times higher that what is offered by other legitimate and regulated brokers. The industry average ranges from $100 to $250, with some of the best brokers requiring a nominal deposit of just $5 – $10.

• Limits on Transactions

When we were going through the broker’s Terms and Conditions, we came across further signs that this broker is not to be trusted.

Werforex states that there are transaction limits on the amounts of money you are allowed to withdraw from your own account. Setting a limit on the amount of money a trader can withdraw from their own account is not a usual practice in the trading world, and it indicates that something is not right with this broker.

• Unknown Withdrawal Fees

Most brokers have a withdrawal fee and that amount is clearly mentioned in their terms and conditions. However, in Werforex’s case, we could not find any mention of how much a trader would be charged were they to withdraw their funds.

What raises even more concerns is the fact that this broker claims to charge no withdrawal fees, but in its terms and conditions section, it states that it could charges its clients fees when it deems fit.

Conclusion 

This is not a broker that you should trust with your money as all the information we uncovered about Werforex clearly indicates that it is a scammer. We would recommend that you stay away from this broker.

Weforex

2.6

User Experience

3.4/10

Payment Options

2.9/10

Security

2.3/10

Support

2.4/10

Reputation

2.2/10

Pros

• MT4 Trading Platform Offered
• Decent Spreads
• High Leverage

Cons

• Confusing Corporate Information
• Lack of Regulation
• Initial Deposit Very High
• Limits on Transactions
• Unknown Withdrawal Fees