Beware! Zenith Wealthex is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
The website of Zenith Wealthex doesn’t meet even the lowest standard in the industry. “Hello World” is probably more sophisticated a page compared to the mess that Zenith Wealthex presents to the public. The website is available in English and Chinese, and we assume that they have used an automatic translation engine that produced horrible results. The website aside, their legal status is even bigger a mess. Find out everything you need to know about this Forex broker in the full Zenith Wealthex review.
By the way, Zenith Wealthex has been a regulated entity for at least 2000 years!
Zenith Wealthex REGULATION AND SAFETY OF FUNDS
Zenith Wealthex is a Forex creature that you should avoid, and there are way too many reasons to justify such a decision! The first one is the lack of competence, and you shouldn’t ever deal with an entity that claims to have been present in the business for 2000 years! Then there are a variety of confusing details such as the name GLKFX, which appears out of nowhere and Zenith Wealthex fails to explain anything about it.
Zenith Wealthex is supposedly run by a company called Zenith Wealthex Global Limited. The problem is that there are at least 4 companies in 4 different countries, including the UK, Hong Kong, USA and Canada. Zenith Wealthex claims to be the US regulated, but it’s a false statement misleading the customers. They hold an NFA registration but aren’t licensed to sell Forex products and services. A broker needs to meet the minimum capital requirements of 20 million USD in paid-up capital to obtain an NFA license.
They also claim to be FINTRAC licensed in Canada, but that narrative worths nothing, because the government body mentioned, has nothing to do with Forex broker authorisation. It’s a financial intelligence unit that fights money laundering and other financial crimes occurring! All of the Zenith Wealthex claims are bogus and prove that they are a phony enterprise that’s most probably a scam!
Your funds are not safe if you make a deposit with Zenith Wealthex, because it’s an unlicensed, unauthorised and unregulated controversial Forex broker that poses a danger for your funds!
Your broker should be legit, transparent and preferably regulated in EU or UK, as these jurisdictions provide the safest environment for your funds. ESMA, the European Securities and Markets Authority imposed several customer protection measures, designed to work for the benefit of the traders. A fine example is the negative balance protection rule that the Forex brokers are bound to keep, meaning that the investors cannot lose more than the sum deposited. In case the balance goes negative, the broker has to bring it back to zero as soon as possible, at no cost!
But most importantly, capital protection funds were inaugurated, such as ICF in Cyprus and FSCS in the UK, which was set up to protect the deposits made by the clients. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR in compensation per client, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Zenith Wealthex TRADING SOFTWARE
Warning! You cannot sign-up unless you submit a copy of your Passport or ID card! It’s the ultimate scam sign that we were able to detect, which makes us think that they might as well be involved in Identity Theft! You can find out more information about the matter later in the review.
Zenith Wealthex offers MetaTrader5 accounts to its clients; MetaTrader4 is not available. It’s the obvious choice because it’s the most popular Forex trading platform and the most powerful, as well. It features sophisticated trading tools such as Expert Advisors, Automated Trading, Complex Indicators and it’s own programming language- MQL. Metatrader even created a marketplace where you can buy or use for free a variety of third-party-developed trading tools.
The EUR/USD spread is usually between 0.2 and 0.5 pips, which is in line with the rest of the industry. The spread is the price for executing a trade, and it directly affects the trading performance. Zenith Wealthex offers competitive spreads, but it’s highly a controversial Forex broker and most probably a scam, so we do not recommend trading with them.
The maximum leverage is said to be as high as 1:400, which is a level that’s too dangerous for the traders, especially for those with little or no experience. The leverage is a powerful financial tool that allows the traders to increase the size of their positions, but at the same, it escalates the risks dramatically. If misused, it might cause quick financial losses that are difficult to recover.
Zenith Wealthex DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $100. The funding methods would include Credit/Debit cards and Wire Transfers if we understood adequately though. As already explained, their website is way beyond the standards for acceptable and most of the time we find it challenging to realise what they are talking about.
The minimum withdrawal amount should be $50, which is an unfair requirement because most of the legit brokers will let the traders pull out as much as they want. The withdrawal fees, however, is a matter that’s beyond our comprehension.
No dormant account policy and no fees for inactivity found whatsoever. The dormant policy is a set of clauses that specify how the broker deals with the accounts that have ceased to be active- no login, no trading, no deposits/withdrawals. Most of the genuine Forex brokers will let a few months to a year pass to put your account dormant and will charge a small fee per month or annually.
No bonuses or other trading incentives offered. We have to make it clear: the bonuses are not free money, but a leverage tool which further increases the risk for the traders and usually bound to additional clauses that will worsen the trading performance. All the reputable financial authorities disallowed the Forex brokers to offer incentives, so if you find bonuses, it’s most probably a scam!
HOW DOES THE SCAM WORK
The scam is a financial crime including all the fraudulent and ill-intentioned activities, used by the criminals to make money illicitly! The scammers want to defraud you and will create as many scam schemes as possible while trying to do it.
Identity theft is a common type of fraud and severe crime. In this scam scheme, the fraudsters are trying to get hold of your documents and bank cards. Having your personal information, they will be able to access and drain your bank accounts, or they can open new ones in your name, taking out loans or lines of credit. Also, they can purchase expensive goods, gain access to your government online services etc. Scammers might also use personal data to register companies in your name, facilitating their illegal activities. You should never submit copies of your documents when you sign-up, trustworthy Forex brokers will never ask you to do it during the initial registration process!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it’s important to protect others, as well. Be responsible!