Beware! Swiss Investment FX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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Swiss Investment FX is a Forex brokerage registered in the Marshall Islands. It provides both the web-based trading terminal and the MT4 trading platform, as well as an extremely generous leverage of up to 1:100. Furthermore, there is a wide range of trading products from which to choose and spread on EUR/USD is the standard pip and a half. The required minimum deposit is at $250, however, we found many irregular provisions in the terms of the brokerage.
Swiss Investment FX regulation & safety of funds
According to the website the company behind the brokerage is registered in the Marshall Islands, however, we could not find an address. Here is a screenshot:
We read that the company behind the brokerage is registered with the name Swiss Investment Corporation LTD. The Marshall Islands has become a top-destination for would-be scammers due to its very liberal laws regarding the registering of companies. The government does not even require for someone to be physically there in order to register a company. Such a loophole has surely been noticed by many ill-minded brokers and utilized. Nonetheless, it’s safe to assume that the company behind the brokerage, irrespective of its legitimacy, does not fall under any regulatory oversight because the government of the Marshall Islands does not include Forex trading within its regulatory framework.
Putting that aside, the brokerage states that it provides the MetaTrader 4 trading platform, including a web version. The MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Beginner traders will find the trading platform easy to use as well, due to its user-friendly lay out. We were able to register for a demo account.
We see a wide range of currency pairs and among them USD/CHF, USD/CAD, USD/CNH, USD/SEK, USD/RUB, USD/NOK, USD/MXN, USD/SGD, USD/NZD and USD/HKD. The spread on EUR/USD is at 1.5 pips which is just about the industry average and clients are certainly not at a disadvantage.
However, we also discover that the plaform is provided by a third party – Swiss Cap LTD – which isn’t something uncommon in Forex trading but we do have reason to suspect the legitimacy of the company. Swiss Cap LTD also owns and operates another broker brand with a similar name – Swiss Capital FX – which was blacklisted by the Italian regulator CONSOB as an unauthorized provider of such financial services and a likely scam operation.
All of the outlined above, including the offshore location of the brokerage highly incline us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
Swiss Investment FX deposit/withdrawal methods and fees
Traders may deposit or withdraw only via the standard Visa, MasterCard and wire transfer.
We did find quite a few provision worth noting in the terms and conditions.
We discern that there is a dormant account fee of 10 percent each month for traders that have not logged on or traded for more than six months. Such fees are regular in Forex trading as they force the trader to execute trading deals.
Furthermore, we read that the brokerage charges a withdrawal fee of $30 for every withdrawal following the first each month. Furthermore, the brokerage also posits a minimum withdrawal amount of $100. Such provisions are excessive and unacceptable in Forex trading – legitimate brokerages may charge some sort of a withdrawal fee but requiring a minimum withdrawal amount should be viewed always with suspicion.
Last but not least – there is a requirement for a minimum trading volume in order to withdraw from an account that has taken advantage of the bonus promotion. We urge readers to take notice that almost always a bonus promotion, especially with unregulated brokerages, is tied with extreme trading requirement conditions which make it almost impossible to withdraw your money.
This is why we always advise traders to put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Unfortunately, the possibility of a scam looms over almost every trade in forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!