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WebMoney Brokers: What You Need to Know to Succeed
On paper, WebMoney (WM) is an international payment system. However, its actual registration location remains uncertain. The information found on its official website is from a legal firm in Lithuania. It’s important to note that, according to Russian legislation, “WebMoney” is not considered an electronic payment system. Its international recognition is also limited, with most usage in Russia and Eastern Europe. Within the European Union, WebMoney is not highly popular, although it is licensed by the FCA as a payment method.
Target Audience and Broker Orientation
“WebMoney” brokers cater mainly to Russians. Otherwise, there would be no point in supporting this specific payment system. As of February 2022, ruble-denominated WebMoney wallets are no longer serviced due to the withdrawal of the license from the bank guarantor, AO “Bank ‘KKB.” Russians can still use dollar-denominated wallets, but ruble wallets present issues. Finding a forex broker supporting “WebMoney” with Russian registration is challenging. The four legitimate brokers in Russia accept only cards or bank transfers, indicating that Russian payment methods are mainly supported by foreign platforms.
WebMoney Forex Broker and Trust
Imagine a mediator who heavily focuses on Russian traders to the extent that it allows funding through a less commonly used electronic payment method outside of Russia. However, this broker lacks a license as a dealer in the Russian Federation. This stems from its unwillingness to take responsibility for its actions while desiring to offer prohibited trading conditions within the country. Brokers supporting WebMoney typically register offshore where local regulators have simpler requirements, including the payment systems through which the broker can receive deposits.
Why Legitimate Forex Brokers Support Specific Payment Methods
Major, legitimate forex brokers primarily support payment methods like cards, bank transfers, and PayPal due to anti-money laundering regulations. Smaller companies might establish themselves offshore to circumvent these rules. WebMoney enforces strict identity verification, making it challenging to determine the source of capital through its platform. Not all brokers supporting “WebMoney” possess licenses. Some may hide behind fictitious financial regulators like the Financial Commission, lacking mechanisms to penalize violators.
Understanding WebMoney Broker Characteristics
All “WebMoney” brokers, from small to large, essentially operate as market makers, executing traders’ transactions using internal reserves. While this approach has its merits, it’s effective only under stringent financial regulation. If you’re seeking a broker that supports WebMoney, it’s crucial to ensure they are honest, safe, and capable of fulfilling their obligations.
Suitability of WebMoney-Supporting Brokers for Traders
A “WebMoney” broker is well-suited for small traders with limited capital. Entrusting significant amounts to a firm hiding offshore is a significant mistake. A WebMoney broker is suitable for those who want to calculate and remit income taxes themselves. Utilizing this payment method can be convenient.
WebMoney Broker Rankings
We have compiled a list of intermediaries, dealers, and platforms supporting WebMoney. This list is updated daily, simplifying the selection process. Learn about your potential partners, generate profits, and withdraw funds.
Choosing a Broker with WebMoney Support
When searching for a “WebMoney”-supporting broker, the first thing to consider is whether they are licensed. This is a significant advantage. Then, verify that the license has been issued by a reliable regulator such as ASIC, FCA, or CySEC. Some brokers hold multiple licenses, with one or two being issued by reputable regulators, while others are from offshore jurisdictions.
Caution with Offshore Entities
Brokers operating through offshore subsidiaries may offer high leverage and accept “WebMoney” transfers. However, exercising caution is essential. In cases of fraud, disputes will be resolved not in Cyprus or the UK but in the offshore jurisdiction that issued the license.
Evaluating Trading Conditions
Once the regulatory aspect is clear, it’s necessary to study the trading conditions. This includes the range of instruments available for trading, spreads, commissions, leverage (especially considering risks), swaps, margin call and stop-out levels, and the usability of the trading platform.
Nature of WebMoney Brokers
All “WebMoney” brokers, without exception, function as market makers. They are not permitted to offer managed accounts, trading signals, or analytics due to conflicts of interest. Such arrangements can lead to unfavorable trading outcomes.