In this review we have a look at the broker Wastrad and we explain why you should not trade with it.
What Wastrad is about
The broker also claims to have a social trading platform which will allow you to share and copy trades with other traders.
The minimum deposit to open an account with Wastrad is 50 USD or 0.5 BTC, while the leverage is 1:200. Can you trust this broker?
Beware, Wastrad is not regulated
The first thing you should check with every broker you are considering is whether it is regulated. This is because with regulated brokers your money is insured and the company is overseen by an independent regulator.
A quick search about Wastrad shows that it is not regulated! It allegedly is run by Solidary Markets Ltd. from New Zealand that used to be regulated but was deregistered in 2016.
Wastrad claims that it doesn’t have to be regulated since it does not provide services to New Zealand’s residents, but it is a very misleading statement.
Because most of the countries in the world have financial regulation that require brokers to be licensed. So, for example in the US, EU, Australia, Japan, Russia, New Zealand, India, China… you name them, brokers cannot legally offer their services without being authorized by the national regulator.
Since Wastrad is not regulated, it cannot legally serve people from most of the countries. Not to mention that it is in everybody’s interest not to trade with unregulated brokers, because deposits are not protected with them and the percentage of scams among unregulated brokers is way, way higher than among the regulated ones.
You don’t really need to look for Wastrad testimonials and reviews, you just need to know that this broker is not regulated, so you should not trade with it. It is as simple as that, it is a simple measure to protect your money, the risk is way too high with unlicensed companies. There are tons of regulated brokers to chose from, you don’t have to risk your capital with companies that don’t have to respond to anyone.
Wastrad review conclusion
Wastrad is not regulated, deposits with this broker are not insured, stay away from it!
In trading you should always use regulated brokers only and start on a demo account to try things with virtual money.
If you decide to trade with real money, you have to be aware of the risks and use only money that you can afford to lose.