What is XSpot Wealth？
XSpot Wealth, headquartered in Cyprus, operates as a regulated brokerage firm under the surveillance of the Cyprus Securities and Exchange Commission (CYSEC). However, it's worth noting that its regulation by the Financial Conduct Authority (FCA) has been revoked, and the firm has gained attention from BaFin and AMF as a suspicious clone.
Pros & Cons
Pros
Regulated by CYSEC (Cyprus Securities and Exchange Commission) - This demonstrates that the firm adheres to financial regulations and standards set by the CYSEC.
Abundant Market Instruments - They provide a diverse range of over 13,000 market investment options including Bonds, Funds, Stocks, and ETFs. This allows clients to diversify their investment portfolios.
Multiple Customer Service Channels - Availability of various channels of assistance for their clients: telephone, fax, email, video call, live chat and contact form.
Various Security Measures Provided - They ensure the client's fund's safety by maintaining segregated bank accounts, providing compensation funds, securities ownership under the client's name, and more.
Cons
High Minimum Deposit - It requires a large sum of 1,000 EUR to begin investing, which could be a barrier for smaller investors.
Regional Restrictions on USA - Its available regulatory status does not cover users from the United States, thus limiting its accessibility.
Is XSpot Wealth Safe or Scam？
Cyprus Securities and Exchange Commission (CySEC) License: XSpot Wealth (EU) Ltd is regulated by the CySEC and holdsa Straight Through Processing (STP) license, bearing the number 235/14. This license is an important sign of credibility, and it suggests that XSpot Wealth meets the high standards set by the regulator for financial transparency and client security.
Financial Conduct Authority (FCA) License: XSpot Wealth previously held a European Authorized Representative (EEA) license issued by the Financial Conduct Authority in the United Kingdom. However, this license, number 655426, has been revoked due to unspecified reasons.
Federal Financial Supervisory Authority (BaFin) License: XSpot Wealth has come under scrutiny by the BaFin in Germany. The regulator has identified XSpot Wealth as a “suspicious clone,” with license number 141183.
Autorité des Marchés Financiers (AMF) License: Similar issues have been found by the AMF in France. The AMF also recognizes XSpot Wealth as a “suspicious clone,” with license number 75060.
The feedback gathered from users regarding XSpot Wealth reveals significant discontent and disappointment, primarily due to problems with the withdrawal of funds. Numerous users reported being unable to access their money after funding their accounts. In some instances, withdrawals would either be denied due to technical issues, or users would be continuously asked to deposit more funds under various pretexts, such as increasing their credit score or paying for international remittance certification fees.
Aside from withdrawal issues, existent cases of misleading and fraudulent activities by the company were mentioned. Users described being enticed into depositing hefty sums of money with promises of high returns, only to subsequently face significant losses and, in some instances, outright inability to access their accounts.
There are also reports about the company's lack of transparency and honesty. Some users expressed concerns over XSpot Wealth altering financial data, using delay tactics when responding to complaints, or simply failing to provide any response at all. Furthermore, the company has been accused of engaging in a series of elaborate scams that involve fraudulent broker practices and deception to induce further deposits.
Finally, one user alerted of a significant case of system slippage and operations failure that suggests a potential technical malfunction. In a few instances, users raised suspicions regarding the legitimacy of XSpot Wealth, naming it a fake platform after their unfortunate experiences.
Securities Ownership: XSpot Wealth purchases and registers all investments under the client's name. This means that in an adverse scenario, the client maintains ownership and can transfer their investments to a custodian or bank of their choice.
Compensation Fund: XSpot Wealth is a member of the Investor Compensation Fund. This fund secures the client's investments in cases where regulated investment firms fail to fulfill their obligations. If XSpot Wealth ever fails to meet its obligations, the compensation fund will compensate the clients.
Segregated Bank Accounts: XSpot Wealth maintains separate bank accounts for investors' funds and the company's funds. All investors' funds are kept in segregated accounts that are designated as 'Clients Pool Account' with major credit institutions. Auditors consistently monitor these accounts to ensure the safety and security of the funds.
User-friendly Management: Clients have the ability to manage their investments and cash through the MyXSpot portal. From here, they can deposit or withdraw from their personal bank accounts at any time.
Market Instruments
Bonds: Bonds are essentially loans that investors give to entities (like corporations or governments), who repay them over time with interest. These instruments traditionally present a lower-risk option and offer a steady income.
Funds: These are pools of investor capital used to collectively purchase a variety of securities, such as stocks, bonds, or other assets. Funds are professionally managed and offer an easy path to diversification.
Stocks: Stocks represent ownership in a company. XSpot Wealth offers its clients the opportunity to buy and trade stocks, giving them a part in the company's potential profits through dividends or stock price increases.
ETFs (Exchange-traded funds): ETFs are investment funds traded on stock exchanges. They usually aim to track the performance of a specific index, sector, commodity, or asset class. ETFs offer investors a way to gain broad exposure to the market without having to buy each individual security.
Solutions
Private Wealth: This account typeinvestors seeking personalized financial planning and access to a broader range of investment options. It could potentially offer dedicated financial advisory services, preferential rates, and other tailored services.
Smart Wealth: This is designed for investors who prefer making data-driven investment decisions. The account could possibly provide access to advanced analytical tools, market research and insights, and automated investment strategies.
Junior Wealth: This account type is possibly created for younger investors or beginners in the investment world. It could potentially offer educational resources, guidance for making investment decisions, and easier access to simple investment products.
Fees
In summary, XSpot Wealth charges varying fees depending upon the type of account. Private Wealth accounts have the highest total fees at 1.40%, including third-party fees. This is followed by Smart Wealth accounts at 1.15% and Junior Wealth accounts have the lowest total fees at 1.00%. All accounts do not incur performance, entry, corporate actions/reports, and exit fees. All accounts also have the same custody fees, transaction fees, and third-party management fees. The primary difference in terms of costs between account types lies mainly in the management fees, which decrease as we move from Private Wealth to Junior Wealth.
Conclusion
XSpot Wealth, despite being regulated by the CySEC, has faced considerable negative feedback from its users, mainly for problems with funds' withdrawal and alleged fraudulent activities. Also, its high minimum deposit may keep smaller investors away. On the positive side, it provides a variety of market instruments for investing and multiple customer service channels, alongside several security measures to ensure the safety of clients' funds.
Frequently Asked Questions (FAQs)
Q: Is XSpot Wealth Regulated？
A: Yes, XSpot Wealth is currently regulated.
Q: Is the minimum deposit high？
A: Yes, the minimum deposit of XSpot Wealth is quite high, which is 1,000 EUR.
Q: How can I contact customer service？
A: You can call them at +357 25 571044, or email them at support@xspotwealth.com. Plus, the fax number is +357 25 571125. What's more, the broker also provides video calls, live chat, and contact forms.
Q: I am a resident of the USA. Can I trade with XSpot Wealth？
A: No, you can't, due to the regional restriction on the USA.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
In addition, the date on which this review was generated may also be an important factor to consider, as information may have changed since then. Therefore, readers are advised to always verify updated information directly with the company before making any decision or taking any action. Responsibility for the use of the information provided in this review rests solely with the reader.
2023-12-05 16:58
2023-11-09 10:18
