WSM FX Review
WSM FX Review
WSM FX offers several account types, all of which are said to offer variable spreads and leverage up to 1:400, with no commission fees on the MetaTrader 4 platform. Besides, all accounts offer the use of WSM Robot, that is developed by the broker. In our opinion, most such robots are fraudulent schemes and we don’t advise our readers to use such.
Bronz, Silver and Gold accounts allegedly offer some perks, such as rebates, provided that WSM FX’s clients trade more than 50 lots per month. Unlike most brokers, however, this one does not offer free demo accounts, and we could not test its services.
Keep in mind that WSM FX does not accept clients оrom the following jurisdictions: Canada, Hong Kong, Israel, Iraq, Iran, Pakistan, Madagascar and USA. Its website is abailable in English, Russian, Czech and Slovenian.
– MT4 available
WSM FX offers its services on the renown Metatrader 4 – a platform that has proved to be reliable over the years. Although newer FX trading solutions keep emerging on the market, the MT4 still remains the favorite trading software of most traders. It is highly praised for its ease of use, great charting, automated strategies (Expert Advisors), technical analysis indicators, etc.
– Seemingly competitive spreads
As we have mentioned above, we dis not try out WSM FX’s MT4, so we are not sure that this broker’s spreads are really starting from 1.2 pips on EUR/USD. If this is really the case, then we could say that WSM FX’s spreads are in line with the industry’s average.
– High leverage levels available
Leverage levels reaching 1:400, like those offered by WSM FX are common among forex brokers, but nonetheless considered high. This is due to the fact that leverage can both help traders score big profits on small deposits, and lead to losses in excess of initial investments. So, you’d better not tuse the maximum leverage a broker provides.
WSM FX disdvantages:
– Registered offshore (SVG), part of a group with shady reputation
WSM FX is registered offshore, on Saint Vincent and the Grenadines, whish means it is not regulated. It seems that this broker is a part of the WSM Group, under whose umbrella are Milton Markets (the address provided by the latter is exactly the same as those of WSM FX), former brokerage Gallant Capital Markets and WSM Robot. It appears that the company origins are in the Check Republic, as the CNB (Czech National bank) has issued a warning against it.
– High initial deposit required
WSM FX requires $500 from its clients in order to open an account. Such initial investment required is pretty high, as most brokers require $100-$250 as a start, and many of them are properly regulated, unlike WSM FX. For example, you can open an account with international brokerage HYCM that has more than 40 years of company history by depositing $100.
– No free demo accounts
Most brokers offer such for testing purposes. Besides being useful to beginner traders, free demo accounts are indicative of a broker’s pricing policy.
-Hedging not allowed on Standard account
Hedging is a sort of risk management strategy, that is usually supported by all forex brokers, but trhose operating in the US (because of the “First In, First Out” (FIFO) rule). We find it strange that WSM FX offers Hedging on advanced account types only, which require even higher initial investments than the Standard one.
– Market Maker model
WSM FX claims to be a STP broker, but in the Order execution policy document uploaded on its website it is stated that the broker acts as a principal in all trades, which means that it is Market Maker.
WSM International Broker Ltd., operating the WSM FX brand, is registered offshore. However, in its Client agreement as governing law is specified that of New Zealand. This is probably due to the fact that another part of the WSM group, WSM Invest Ltd NZ that used to operate Milton Markets, was regulated by NZ’s FMA until May, 2017. World Systems Market, Inc., yet another arm of the group that sells automated strategies, has operations in Slovakia and the Czech Republic and claims to be based in the US. As we have mentioned above, the CNB has issued a warning against it. Another broker that was under the WSM umbrella, Gallant Capital Markets filed for bankruptcy in the US in April 2017, although the company is registered offshore.
To cut things short, WSM FX is an offshore broker and part of an international group with rather shady reputation. For those of you who are not familiar with the forex industry, we must warn you that Trading with a non-licensed broker is something we can’t recommend.
You’d better select among brokers regulated in the UK, to which FCA applies strict rules for minimum capital adequacy, account segregation, transaction reporting, etc.
WSM FX Review Conclusion
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