Beware! Swiss24.io 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.
In this review, we are going to scrutinise an offshore broker falsely claiming to offer MetaTrader4 accounts. It’s actually an exposed scam because a European financial regulator detected their fraudulent activities and issued a warning against the broker. Find out which regulator blacklisted Swiss24.io in the following review.
Swiss24.io REGULATION AND SAFETY OF FUNDS
Swiss24.io is allegedly an offshore broker registered in the Commonwealth of Dominica, which is a problem. The Caribbean island is a non-transparent tax haven, where the local financial authority doesn’t even license the brokers operating there. The regulation deficit alone is a solid reason to stay away from this broker because unlicensed entities work without supervision and can easily defraud people.
Worse though, the British regulator FCA became aware that the broker offered services without authorisation and issued a warning against Swiss24.io. Your funds would be in danger if you deposit with Swiss24.io because it’s an exposed scam, so make sure to stay away.
Instead, consider the high-rated EU brokers and British brokers on both lists provided. Europe is financially safe because the local authorities tightly regulate the financial markets, and it’s improbable to get scammed by licensed companies. Above all, the brokers are covered by the European deposit insurance funds inaugurated to protect clients’ deposits in case of insolvency and fraud. So, if you are a client of a Cyprus regulated broker, you can claim up to 20 000 EUR in compensation, while the British guarantees are even up to 85 000 GBP per person. It’s worth considering money protections when looking for a broker.
Swiss24.io TRADING SOFTWARE
As already mentioned, Swiss24.io fraudulently claims to deliver MetaTrader4, but that’s a fabrication. The only platform available is web-based, which lacks functionality and can’t offer any advantages over MT4. The EUR/USD spread is 0.1 pips, but the price action is weird and slow, so we believe they may as well manipulate prices. 0.1 pips is a highly competitive Buy/Sell difference, that’s significantly lowering the costs for trading, but Swiss24.io is an exposed scam, so don’t get excited.
Instead, we can offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists. MetaTrader distributions are reliable and provide sophisticated features such as Expert advisors, many complex indicators, and excellent charting tools, to name a few. The platforms also include a marketplace where traders can browse through 10 000 apps and third-party developed solutions you can deploy to achieve better results.
The maximum allowed leverage is 1:500, an exceptionally risky ratio that can saddle traders with severe losses very quickly indeed. In fact, leverage is so dangerous that several authorities agreed on regulations to restrict its usage and reduce traders’ losses. As a result, EU, British and Australian brokers have to limit the retail clients to 1:30 for FX majors, while the Canadian brokers and the US brokers can’t provide more than 1:50. Still, risk-tolerant traders can consider the Swiss brokers, which are highly reputable but not leverage restricted.
Swiss24.io DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Swiss24.io is $500, a requirement almost 5 times higher than the regulated industry standards of $100 on average. The funding methods are Credit/Debit cards, Wire Transfers and e-Wallets, but Swiss24.io fails to specify which ones are available. In fact, as we tested their deposit system, the e-Wallets option was constantly producing errors, so we believe it’s a method that’s not actually accepted.
While discussing deposits, we’d like to offer our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are well-regulated, and you won’t face scammers.
The minimum withdrawal amount is $100, and the first transaction for the month is free of charge. The subsequent withdrawals will be charged $30 each, which is an unfair business practice. In comparison, most of the regulated brokers do not impose withdrawal amount restrictions and do not collect fees.
Swiss24.io also collect dormant fees, which are also highly unfavourable. According to the broker’s dormant policy, after 6 months of inactivity, an account becomes dormant and will be subject to a 10% monthly deduction. That’s nothing else but a scam clause.
Swiss24.io offers bonuses of up to $20 000, claims there is a minimum trading volume requirement but fails to give comprehensive details about the campaign. We’ll say it once again, Swiss24.io is a scam, so you shouldn’t make deposits or accept bonuses from this broker.
HOW DOES THE SCAM WORK
Swindling brokers and fraudulent websites appear literally every day. Still, most of the new schemes represent a modification of common fraud that’s not typical for the local markets but similar from country to country.
Nowadays, scammers are working mostly on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record and promise high returns, seamless trading and guaranteed profits. The scammers intentionally make people believe Forex trading is risk-free, but the opposite is true in reality.
In a typical scenario, scammers just steal traders and investors money and won’t send a dollar back. Sooner or later, clients would ask for a withdrawal, but the con artists would delay or downright refuse transactions. If traders persist, scammers would find excuses to deny and would even ask for more money or simply cut the communication. Whatever the case, traders are going to lose some or all of the capital invested. At the end, when fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
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