CfdSwiss review – 5 things you should know about Cfdswiss.ch

CfdSwiss review – 5 things you should know about Cfdswiss.ch

Beware! CfdSwiss is an offshore broker! Your investment may be at risk.

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CfdSwiss is a CFD brokerage with chaotic corporate information. It provides the the MetaTrader 4 platform, and requires a standard minimum deposit of $250, however, further trading conditions remain undisclosed.

CfdSwiss regulation & safety of funds

Reading through the terms and conditions of the brokerage we discover only an Italian contact phone number and through the name of the brokerage we suspect it targets traders in Switzerland. We remind readers that both Italy and Switzerland are member-states of the European Union and online Forex trading is duly integrated within their regulatory framework which is modeled after the ESMA guidelines.

However, we find no mention of a license by the Italian authorities – thus we may safely conclude that the brokerage CfdSwiss does not fall under any regulatory oversight whatsoever. For the sake of diligence we ran a quick search on the online registry of the Italian CONSOB and can confirm that the brokerage is not licensed.  Another big problem with the brokerage is that researching it on the web we come across official warnings issued by both the Italian and Swiss financial watchdogs which read that the broker has been targeting traders without proper authorization and further taking part in scam operations. In other words – we believe that any potential client will be exposed to a substantial amount of 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.

CfdSwiss trading software

 The brokerage does provide the MetaTrader 4 terminal and we always view its availability as a serious advantage. 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).  Aside from that – there is no available demo account which only further hurts the claim for legitimacy of the broker and there is no relevant information regarding the trading conditions on the website.

CfdSwiss deposit/withdrawal methods and fees

Clients may deposit or withdraw via the standard Visa and MasterCard, as well as bank-wire, however, e-wallets such as Skrill are missing.

We could not find the terms and conditions of the brokerage which is in our view the final blow for the purported legitimacy of the website. The client agreeement is among the most crucial things in Forex trading and without it we have no idea whether the broker charges withdrawal fees or any such provisions. This is why 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?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup 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 angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.

It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And  they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

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. 

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!

 

Rich Snippet Data
Review Date
Reviewed Broker
CfdSwiss
Broker Rating
1.11star1stargraygraygray

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