Beware! SwiftCFD 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.
SwiftCFD is an offshore, forex and CFD broker, which is not authorized to provide its services on regulated markets.
On top of that the broker says they are supporting the MetaTrader4 platform, which is one of the best trading solutions on the market, but when we tried to download the platform, it tuned out the link is not available. So we had no choice, but to try their web based trading platform, which was overly simplified, bearing resemblance to the platforms usually used for binary options bets.
And what we saw on the platform did not impress us either. The benchmark EURUSD spread was fixed at 3 pips, which is at least twice higher than what traders would usually expect with a standard account.
Leverage was caped at 100:1 and probably the only positive point was the selection of trading instruments – over 50 forex pairs with some exotic currencies like Danish Krone, Norwegian Krone, Hungarian Forint, Polish Zloty, Turkish Lira, Hong Kong Dollar, Mexican Peso, Swedish Krona, Russian Ruble, Singapore Dollar, South African Rand and Indian Rupee, as well as CFDs on precious metals like silver, gold, platinum and palladium, commodities like copper, cocoa, corn, wheat, coffee, sugar, cotton, orange, soybean, oil and natural gas, stocks, some 21 indices and even major crypto coins, including Bitcoin, Litecoin, Dash, Ethereum, Ripple, Litecoin, Bitcoin Cash, Ethereum Classic, Bitcoin Gold, Monero, Verge, Swisscoin, Cardano, USD Tether, Stellar, NEM, Qtum, Lisk, Golem, Tron and Wavecoin.
Our biggest concern, however, remains the brokers regulatory status, which we will discuss in the following paragraphs.
SwiftCFD regulation & safety of funds
There are two companies behind SwiftCFD – DIGITAL WORLDWIDE OU, which is based in Tallinn, Estonia, and Digital Enterprise Ltd, based on the Marshall Islands. Unfortunately both companies are not authorized to provide financial services on regulated markets like Europe, the USA, Australia or Japan and that significantly decreases the brokers credibility.
Have in mind that only brokers, regulated by reputable institutions such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC) do guarantee the security of your investment.
Among other requirements, properly regulated brokers have to provide negative balance protection to their clients, to keep their money in protected, segregated, trust accounts, to allow regular external audits, to maintain a certain minimum operational capital and in some cases even to insure traders funds.
Thus for example, traders with FCA regulated brokers will be compensated with up to 50 000 GBP in case their broker is unable to pay. Similarly, traders with CySEC brokers are entitled to a compensation of up to 20 000 EUR.
SwiftCFD deposit/withdrawal methods and fees
SwiftCFD accepts payments with major credit or debit cards like VISA and MasterCard, as well as PayPal and Bitcoins. The minimum deposit requirement is 500 USD, which is twice higher than what most brokers ask for with standard account.
Be aware as well, that if you accept a trading bonus, your right to withdraw will be subject to some minimum trade volume requirement.
With SwiftCFD we were not able to check their Terms and Conditions, because strangely, all legal documents were for a different broker – ROYALCFDS.
How does the scam work?
Scammers often use the so called robo scam websites like Crypto Revolt and Bitcoin Evolution, where you might get hooked by a well cut video add, promising you guaranteed, fast and easy returns in exchange of small investment.
And actually all you will have to do is fill the simple registration form, leaving your e-mail and phone, after which you will be transferred to the web page of an offshore, scam broker, where you will be asked to deposit about 250 USD.
And take a note that your first trades will turn out surprisingly profitable. That, however, will happen not because of your trading skills, but simply because your account will be manipulated – that way scammers will have a much better chance to trick you to invest a larger sum.
And you will receive a phone call as well. It will be “your senior account manager”, who will plainly explain you, that if you want to make some real big cash, you will simply have to invest more – like 10 000 USD for a start.
Chances are you will invest those money as well, and you will not realize that you have been scammed until the moment you decide to withdraw some of your funds. Scammers will simply refuse to send you any money back on the grounds that you have not completed some minimum trade volume requirement, you have agreed with without noticing, when you have accepted your welcoming bonus.
Of course the pretext might be different, but the result will be the same – you will not see a single penny back.
What to do if scammed?
Unfortunately, if you are a victim of scam there are just a few things that you can do and the first one is to immediately file for a charge back with your credit card company. The good news is that recently MasterCard adopted some new anti-scam rules and now you will be able to file for a charge back within 540 days after you have made the payment. The same policy will be adopted by VISA in December, while Skrill, the online payment service, is planning to ask brokers for their licenses before allowing them to use the service.
Beware that scammers might have tricked you to give them your credit card number or online banking password. If you have given away your banking details for any reason, immediately cancel your credit card and change the password for your online banking service.
Finally, if scammers have stolen money from you, do not seek the services of the so called recovery agencies. They will not render you any service, but will simply collect a payment in advance and basically that will be the end of the story.