Beware! Swift Coin Trade is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Swift Coin Trade is a Forex brokerage registered in Belize. Clients are provided with a web-based trading platform, however, further trading conditions remain unclear.
Swift Coin Trade regulation & safety of funds
According to the website the company behind the brokerage is registered in the Republic of Belize with the name Swift Coin Trading Ltd. We further find written that the company is supposedly licensed and regulated by the local International Financial Services Commission (IFSC). Here is a screenshot of the license:
Forex brokerages in Belize have to guarantee legitimacy by having at least $500 000 in starting capital. However, even though a license by the IFSC is better than nothing, it still does not carry the same weight in Forex trading as a license by the NFA in the US or the FCA in the United Kingdom.
As you can see – the presented information and the supposed “license” are full of blatant spelling mistakes, including referring to the regulatory body falsely as “Crystal financial consult commission.” Going on the online registry of the regulatory agency we didn’t find mention of the company’s name which leads us to conclude that the information presented on the website is false and that the brokerages does not fall under the regulatory oversight of the IFSC.
However, when further going through the website of the brokerage we notice a discrepancy in the corporate information. Here is a screenshot:
Here we read that the supposed licensed company is registered in the US actually. Such irregularities in the corporate information are the signs of a shady brokerage and furthermore, the false claim of regulation leads us to conclude that clients may well be exposed to much unwanted risk if they choose to do business with Swift Coin Trade.
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.
Swift Coin Trade trading software
The brokerage supposedly provides a web-based trading platform but there is no option for downloading it, nor for registering a demo account. As a matter of fact – there is scant information at all regarding the trading conditions of the brokerage and the purported trading products the brokerage is offering. Such a lack of clarity is quite likely an indicator of shady purposes behind the website. We also point out that together with the falsely presented information we are quite certain that the people behind the website are up to no good and that Swift Coin Trade amounts to nothing more than the average scam in Forex trading.
Swift Coin Trade deposit/withdrawal methods and fees
There is no information regarding the available payment methods as well which isn’t something uncommon with shady brokers. Usually in Forex trading brokerage support a wide range of payment methods which include Visa, MasterCard, wire transfer, as well as popular e-wallets such as Neteller, Skrill.
We find no relevant information on the website but we always 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. Having in mind this caveat, we advise traders to always 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?
Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the misleading information it gave regarding its regulatory status.
After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Revolt where registration will require you to give your 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 with their peer Visa expected to follow suit in December.
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!