Beware! EurSwiss 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.
When you look at its interface, EurSwiss looks the typical run of the mill forex broker and the website presents all the paraphernalia projecting the confidence of making traders successful and rich.
EurSwiss Regulation and safety of funds
From the documents provided on the company’s website, we understand that this broker is registered in St. Vincent and the Grenadines (SVG) but the legalities are governed by the law of the British Virgin Islands. Both jurisdictions are offshore zone for forex trade and in St. Vincent and the Grenadines, the Financial Services Authority has issued an official warning that it does not regulate forex and CFD brokers.
Furthermore, the National Securities Market Commission (CNMV) which is the Spanish government agency that regulates forex brokers has issued a warning (image below) that this company is not authorised to provide investment services in this jurisdiction. This is irrefutable proof that EurSwiss is not regulated, non-legit and is a scammer.
If you are looking for a reliable broker to trade with, let us tell you that offshore zones won’t provide you with one. The reason is that brokers there cannot guarantee the safety of your funds and if the broker goes belly up or simply shuts down the website, your hard-earned money will be gone. On the other hand, forex brokers regulated in one of the well-established jurisdictions, such as the US, Australia, the EU and the UK can provide you with such a guarantee and a lot more. One of the conditions that forex brokers from these jurisdictions must meet is to be well-capitalised. This, among other things, serves as a wall against scammers. You can’t imagine scammers investing $20 million in the US, 1 million AUD or 730,000 EUR in the EU and the UK just to lool legit! Being well-capitalised in the US and Australia also means that clients will be protected in case of bankruptcy whereas in the EU and the UK licensed brokers must contribute to local compensation funds or schemes from which their clients can be refunded in case of bankruptcy. Clients of a regulated by CySec broker that contributes to the local Investor Compensation Fund will be refunded up to 20,000 EUR per person. In the UK, the compensation can reach even higher – 85,000 GBP per client but only if the broker is regulated by FCA and deducts funds towards the local Financial Services Compensation Scheme.
EurSwiss Trading software
EurSwiss trades in forex, CFD, metals and cryptocurrency and offers MetaTrader 4 and Sirix trading platforms.
In the screenshot below you can see what Sirix trading platform looks like. On the left-hand side, you can see the trading instruments. We chose forex and you can see the forex currency pairs with their bid/ask value. In the centre of the screen is shown the display of the EUR/USD currency pair’s chart with the fluctuation in price in a given time frame. The right-hand side is reserved for social trading and traders can choose a more experienced trader and mirror his/her transactions. Of course, mirroring transactions is not without its risks and you must make sure that the trader whose transactions you decided to follow is a reliable one.
Form the bid/ask price for the EUR/USD currency pair we calculated that the spread is 3 pips. We must say that this spread is high and above the industry average. The implications for traders are that the cost of transactions will rise with such high spread and they won’t be able to make a sustainable long-term profit. Another thing that worries us is the sky-high leverage this broker offers and that can reach up to 1:1000. Such high leverage may look good as it seems to add more trading power and increase tenfolds the trader’s chances for making a profit. However, there is a hidden risk given the fact that around 70% of traders experience financial loss in transactions. If you keep this in mind, you will realise that the chances of losing your funds are higher than the chances of increasing them.
We also want to inform you that regulated brokers in the EU and the US have a cap on leverage and they cannot exceed 1:30 in the EU and 1:50 in the US. This is one of the measures of protecting traders funds by preventing them from trading recklessly and increasing their funds’ risk exposure. Australia, the last of the well-established jurisdictions where leverage can be unlimited, will impose new regulations in forex trade in March 2021 and introduce a cap on leverage that will match the one in the EU.
We must say that Sirix is one of the good trading platforms. However, it can never beat MetaTrader 4, the other platform offered by EurSwiss. Despite its old age of 15 years, this platform still reigns unchallenged thanks to its excellent package of trading tools and instruments which include an auto trading option, trading signals, code base with customs scripts, VPS, an app market and numerous charting options. In addition to that, it is well equipped with technical analysis indicators that help traders to predict the future direction of exchange rates and make a profit.
EurSwiss Deposit/Withdrawal methods and fees
If you look at the screenshot below, you will see that EurSwiss offers 6 trading accounts. The minimum initial deposit for the MT4 Cent account is $0 and the highest for the MT5NDD account is $1,000.
Minimum withdrawal amount and fees depend on the choice of payment method. For example, the minimum withdrawal amount for bank transfer is $80 and the withdrawal processing request may take between 2 and 5 business days. For a withdrawal via credit card, the maximum amount is 3,000 EUR per 24 hours or not more than 10,000 EUR per month. The commission is 2.5% on the withdrawal amount plus 1.5 EUR.
If an account stays inactive for over 90 days, it is considered to be dormant and the monthly fee for maintenance is up to $5.
We must say that the deposit/withdrawal methods, as well as the fees charged by this broker, seem to be fair. However, the fact that this broker is not legit is our first and foremost point of concern and no matter what exclusive terms and conditions for trade it offers, you should avoid it!
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!