Is WForex Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with WForex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether WForex is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker WForex
WForex is a broker operating on the market for 12 years. The company carries on its activity in 50 countries in the world. It is a member of the Financial Commission for Dispute Resolution in the field of financial services in the international exchange market. World Forex coops with front developers, introducing modern tools that provide traders with safe and uninterrupted trading. The company is admitted as the best Forex digital contract broker.
| 💰 Account currency: | USD, EUR |
|---|---|
| 🚀 Minimum deposit: | Form $1 |
| ⚖️ Leverage: | W-Cent, W-Profi, W-Instant: 1:33 — 1:1000; W-ECN: 1:50 — 1:500; W-Crypto: 1:1 — 1:25. The amount depends on the amount of the own funds on the deposit. |
| 💱 Spread: | W-Cent, W-Profi — fixed from 1,8 pips; W-Instant — fixed from 2 pips; W-ECN — floating from 0,2 pips; W-Crypto — floating from 0 |
| 🔧 Instruments: | Currency pairs, cryptocurrencies, metals, oil, shares, digital contracts |
| 💹 Margin Call / Stop Out: | 20% / 5% |
Pros and cons of WForex
👍 Advantages of trading with WForex:
•bonus 100% for replenishment;
•commissions compensation when depositing;
•low barrier for entry — you can deposit $1;
•Safe-box account — high interests for trader's funds, free-and-easy converting and cash transferring between your trade accounts according to official bank rates;
•making transactions with ECN/STP technologies avoid a conflict of interest between the broker and the trader;
•auto trading is available;
•wide range of replenishment and withdrawal systems;
•own developed course "Forex Guide for the trader";
•the ability to trade digital contracts provides a potential profit of 100%.
👎 Disadvantages of WForex:
•no search box on the website;
•there is no forum for communication between traders, but you can use the Traders Union forum, where traders from all over the world communicate;
•the support service may take several hours to respond
•the training section can be amended with video courses and training articles.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is WForex Regulated? Broker’s license
Security (Protection for Investors)
World Forex brand belongs to the Existrade Ltd brokerage company. The company's activities comply with all international standards for the provision of financial and brokerage services, which is confirmed by the FSA commission (registration number 24441).
WForex broker is a member of The Financial Commission. This organization provides the pre-trial, impartial resolution of disputes and conflicts between its participants and customers. Under the established rules, the work of all traders is protected by a compensation fund in the amount of up to EUR 20,000 per claim. All disputes shall be resolved with the help of The Financial Commission experts within seven days.
Every month, World Forex is under an audit and certification of VerifyMyTrade orders. Successful completion of the audit and obtaining a certificate means that the quality of execution of the broker's orders is as close as possible to the reference market execution.
👍 Advantages
- Quick financial disputes resolution
- Quality control of order execution
- Insurance coverage for financial claims of traders
- Money laundering prevention
👎 Disadvantages
- Regulator license is issued only to the management company
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by WForex, which you can see below.
Traders Union analysts examined the conditions offered by the World Forex broker to identify hidden trading and non-trading commissions. A spread was chosen as the basis for assessing the trading commission, and a withdrawal fee was analyzed to determine the non-trading commission. The replenishment fee is absent in all accounts.
| Account type | Spread (minimum value) | Withdrawal commission |
| W-Cent | From 1.8$ | Yes |
| W-Profi | From 18$ | Yes |
| W-Instant | From 20$ | Yes |
| W-ECN | From 2$ | Yes |
Brokers that are similar to WForex
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of WForex conditions with its closest competitors.
Comparison of WForex with other Brokers
| WForex | RoboForex | Pocket Option | Exness | XM Group | 4XC | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, WebTrader, Android, iPhone, MAC platform |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, MobileTrading, XM App |
MT5, MT4, WebTrader |
Min deposit |
$1 |
$10 |
$5 |
$10 |
$5 |
$50 |
Leverage |
From 1:33 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.2 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$50 |
Cent accounts |
Yes |
Yes |
No |
No |
Yes |
No |
WForex is suitable for traders of all levels from beginner to professional traders.A comprehensive set of tools allows all trades to make the most of their funds for profitable trading.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
The broker is suitable for traders with a basic trading experience, who are prepared to start trading on a real account right away.
Conclusions
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.