Wisdom – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Wisdom - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$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://fxwisdom.co.uk
Founded: 2023
Regulations: Unlicensed
Languages: English
Deposit Methods: Credit Card
Minimum Deposit: Unspecified
Free Demo Account: Not Provided
Number of Assets: Not Specified
Types of Assets: Commodities, Stocks, Forex, Crypto, Indices
Trading Accounts and Conditions
Wisdom does not tell us anything about the types of trading accounts they offer. We also have not information from them about their trading conditions.
Wisdom – Advantages
There are no advantages to trading with Wisdom.
Wisdom – Disadvantages
Wisdom is a scammer and here is the list of red flags that prove it:
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Lack of Regulation
The first thing we notice about this broker is that they are unregulated.
Wisdom Trading Limited claims to be a legitimate broker which is operated by the company called Wisdom Technology Services LLC. This company is supposedly located in St. Vincent and the Grenadines (SVG), which means that we are dealing with an offshore entity.
The problem with this is that SVG’s financial regulator, the Financial Services Authority, is not know to be very stringent with their regulations around forex brokers. Because of these relaxed regulations, this country has unfortunately become a haven for scammers. So, being registered in SVG means that a broker would need to be licensed by or registered with another financial regulator to be able to operate legally in other countries. Unfortunately, we could not find proof of regulation anywhere on their website.
This lack of information tells us that we are dealing with an unregulated broker, and that means that Wisdom is 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.
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Blacklisted by FCA
The Financial Conduct Authority of the UK has also noticed that Wisdom is operating without proper authorization. In fact, the FCA has actually issued a warning against this broker. The warning explains that Wisdom is operating without proper authorization in the UK and that traders would be advised against doing business with this broker. The regulator warns that this broker is unregulated and therefore dangerous and most probably a scammer.
When a reputed regulator such as the FCA issues a warning against a broker, it must be taken seriously. Wisdom is not a broker that a trader should trust.
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Non-Functional Trading Platform
Wisdom doesn’t say much about their trading platform, and this in itself is a red flag. The trading platform is a broker’s prime offering, therefore legitimate brokers make the extra effort to advertise the kind of trading platform they have on their websites. So, when a broker does not even specify what kind of trading platform they have, we know that there is something not right with this broker.
Next, when we actually registered for an account and checked Wisdom’s so-called trading platform, we realized why this broker did not bother to advertise it. This broker does not even have a real, functioning trading platform. And this is the perfect indication of a scam. Not having a real trading platform when that itself a broker’s mainstay means that that broker is nothing more than a cheap scammer.
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Issues with Trading Conditions
The service that a broker offers in partnership with their trading platform is their trading conditions. These conditions tell us whether it will be advantageous to trade with that broker or not. The spreads and commissions together tell us how much it will cost per trade. The leverage ratio offered by the broker tells us how much risk does the broker offer their clients. The order execution methods, lots sizes and so on also tell us how much and how fast we can trade, etc.
Without this information, a trader cannot make an educated decision about signing up with a broker. Therefore, if a broker does not specify their trading conditions, it is a sign that there is something wrong, and it would be best to avoid that broker completely.
Sadly, a complete lack of information on their trading conditions is what we see with Wisdom. We are not told of their minimum deposit or spreads. The only thing that this broker states about their spreads is that they are attractive.
We are told that this broker offers a maximum leverage of 1:500, which is also a red flag. This is because such high leverage ratios are dangerous – and illegal in most regulated markets.
This lack of information on something as basic a trading conditions tells us that we are dealing with a scammer. No legitimate broker would hide such information from their prospective clients.
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Single Payment Method
According to their website, the only way to make payments with Wisdom is via credit cards. However, we were unable to check the payments section for ourselves so that we could verify this claim.
We need to highlight the fact that legitimate brokers will always offer their clients multiple payment options. You should be able to choose the payment method that you are most comfortable with. If this is not possible, then even if a broker is legitimate, it would be best to find a better broker that does offer you this facility.
The fact that Wisdom offers only a single payment method is just another indication that this broker cannot be trusted.
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No Information on Withdrawal Policy
Real brokers usually have a very detailed withdrawal policy which tells us how much of our funds will be able to withdraw at a time (the minimum and maximum withdrawal limits), if there are any fees or taxes imposed for withdrawals, if various payment methods carry fees with them, how long does it take to process withdrawal requests and so on.
When this information is missing – as it is with Wisdom – it is a cause for concern.
This lack of transparency on Wisdom’s part tells us that we are dealing with a scammer.
Conclusion
Wisdom is not a broker that anyone should trust. They are scammers it would be dangerous to invest your funds with them.
Wisdom
Pros
- None
Cons
- Lack of Regulation
- Blacklisted by FCA
- Non-Functional Trading Platforms
- Issues with Trading Conditions
- Single Payment Method
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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