Beware! Bitswapfx 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.
Bitswapfx attempts to present itself as an established broker with proper legal documentation that offers extremely favorable trading conditions. But these claims do not stand up to scrutiny. Closer inspection reveals that this is not a real broker at all. Bitswapfx is actually just part of a network of scam websites that only mimic a legitimate brokers.
BITSWAPFX REGULATION AND SAFETY OF FUNDS
The website states that Bitswapfx is a trade name of TopFX Ltd, a broker registered in Cyprus and licensed by the Cyprus Securities and Exchange Commission (CySEC). There is a link in the description that does indeed lead to the CySEC website and TopFX Ltd license detail:
Bitswapfx also uses the TopFX’s Seychelles registration details, but claims they actually apply to Australia. This claim is unconvincing even at first glance because they left the flag and the name of Seychelles:
Australia’s financial regulator is called the Australian Securities and Exchanges Commission (ASIC), not the “Financial Services Authority of Australia” as Bitswapfx claims. A check of the Seychelles Financial Services Authority (FSA) registry confirms that TopFX uses domains for its offshore operations that also have nothing to do with Bitswapfx:
Bitswapfx represents a common scam known as clonе website. In many ways it resembles the real website of the legitimate broker, but uses a different domain and has nothing to do with the licensed brokerage firm. Even the links to Terms and Conditions and other legal documentation on the Bitswapfx website redirect to the relevant documents on one of the real broker’s websites, fondex.com.
This is not even the only shameless clone of TopFX/Fondex. We have reviewed at least three other such fakes – Binacryptofx, MegaFXTrading and Coolcrypto. Most likely the same scammers are behind all of them.
If you have decided to start trading in the financial markets, you should be careful not to fall into the clutches of scammers. Make sure that the broker you choose is really who they say they are and that their activities are supervised by regulatory bodies such as Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Exchanges Commission (ASIC).
Clients of these brokers receive important guaranties such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR.
BITSWAPFX TRADING SOFTWARE
Bitswapfx claims to offer the same trading software as the broker it imitates – a platform called cTrader, with versions for desktop, browser, Android and iOS mobile devices. However, all links for the software are empty.
There is also no online trading platform or software download links in the customer portal. In fact, all functions there are blocked if the client has not verified his identity via a copy of an ID. Although the Bitswapfx themselves are anonymous and steal other broker’s identity, they are apparently very keen that their potential victims do not do the same.
BITSWAPFX TRADING CONDITIONS
Bitswapfx website describes only one type of trading account with no set minimum deposit. Legitimate brokers usually offer different types of accounts tailored to different needs of traders with different experience and capital. Many of them offer starter accounts with a very low minimum deposit.
According to the description of the trading terms on the website, Bitswapfx offers zero spreads and a 2.5 USD commission per side per standard lot. These levels are in line with the average for this type of raw spread accounts, but the values quoted on the website don’t matter because obviously Bitswapfx doesn’t offer real trading.
The website lists a spread of up to 1:500, which also proves that Bitswapfx could not be a broker licensed by regulators in Cyprus and Australia. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. CySec, like all EU regulators and ASIC, limits leverage to 1:30.
BITSWAPFX DEPOSIT/WITHDRAW METHODS AND FEES
According to the website, the Bitswapfx accepts deposits via credit/debit cards, bank transfer and the e-wallet WebMoney. However, the “see bank details” link in the description again redirects to the website of Fondex.
As mentioned, all features in the customer portal are blocked without proof of identity, including the deposit menu. Some of the other clones in the same series only accept cryptocurrencies, which is typical of fraudulent operations. It can be assumed that this also applies to Bitswapfx.
Scammers prefer cryptocurrencies because these transactions are not subject to refunds. If you’re interested in legitimate brokers that accept Bitcoin alongside other more transparent payment methods, check out this list.
HOW DOES THE SCAM WORK
The online space is full of ads promising easy money. They sound too good to be true, because they are not – they are outright scams. Many of these fraudsters pose as brokers and take advantage of the general public’s ignorance of the capital markets.
If you give your contacts to one of these scammers, they will start convincing you that they will multiply your money, with nothing required of you but to sit back and take profits. If you agree to an initial investment of a few hundred dollars, they will start persuading you to invest more and more.
But you will never get the promised profits or the money you deposited. Scammers have many ways to ensure this. First of all, they are hidden behind offshore companies, not subject to controls and regulations. For the money transfers they use shady payment platforms, direct bank transfers or cryptocurrencies that make recovering money very difficult and often impossible. The terms and conditions are always riddled with traps that also block your ability to withdraw your money, such as prohibitively high minimum trading volume requirements or withdrawal fees amounting to tens of percentages of your funds.
WHAT TO DO WHEN SCAMMED
Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable. It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.