Beware! Globalswisspro 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.
Globalswisspro has very little to show for the brave promises of being “the world’s No.1 CFD provider” who is “invested in your success” and who will provide “support throughout your journey”. This broker only has its own interests in mind – as you will see, there is zero doubt that this is a scam. Staying away from this broker is the smartest thing you could ever do.
Globalswisspro REGULATION AND SAFETY OF FUNDS
Globalswisspro is a fraudulent broker who tried to trick clients with some pretty imaginative tricks. The broker claims to be based in Zurich, Switzerland and licensed by the local financial authority – the Financial Markets Supervisory Authority (FINMA).
Keep in mind that brokers in Switzerland need to have a banking license in order to operate – and such a license is not easy to obtain. Brokers must maintain a huge minimum operational capital to prove their financial stability – at least 20 000 000 Swiss Francs. They also have to participate in the Swiss Banks and Securities Dealers agreement which ensures client capital up to 100 000 Swiss Francs against broker bankruptcy. Finally, reporting requirements are no joke in Switzerland – these brokers have to publish annual reports, and a balance sheet and income statement twice a year.
When we checked FINMA’s register for a company with the name Swiss Global Asset Management AG, nothing showed up – which means that the broker is not licensed by this authority. What is more bothersome, however, is that the “member number” you can see above was actually a link to what seemed like the register of CySEC – the reputable Cypriot regulator many European brokers strive to be licensed by.
However, something immediately seemed off and we decided to not just trust the link but check CySEC’s register ourselves. We turned out to be right – Globalswisspro seems to have created a separate domain to mimic the one the regulator uses. The broker did not show up when we checked the actual register.
Globalswisspro is running a very insolent scam – there is no question about that. These cheap tricks should not fool you – always conduct thorough research before choosing a certain broker.
Trade with a broker who is licensed in the UK, the EU, and Australia – these are the best, most solid options you have. Such brokers answer to merciless authorities like CySEC, the FCA (the UK), and ASIC (Australia) and are obligated to conduct business in a fully transparent and legal manner. Not only must such brokers report to authorities on a regular basis and maintain a certain minimum capital to prove their financial stability – €730 000 in the UK and the EU, and A$1 million in Australia – but they also have to provide some important additional protections. Client money must be kept in segregated bank accounts – separate from the broker’s own funds. This speeds up withdrawals and means that the broker would have very limited access to your money. As a result, you would not be losing this money in case the broker goes bankrupt and you could be sure that the broker is not using it for their own purposes. The Negative Balance Protection Policy prevents you from suffering losses exceeding the amount of money you have in your account. If you work with an EU or UK broker, you could receive up to £85 000 in the UK and €20 000 in the EU in case the broker becomes insolvent because all such brokers participate in compensation schemes.
These protections are important and mean a much higher degree of security – you would not get access to the same safety nets if you choose an unlicensed scam broker like Globalswisspro.
Globalswisspro TRADING SOFTWARE
Globalswisspro offers the leading trading platform MetaTrader 4 – take a look at the web version of the software:
Every person who is serious about trading should give this advanced platform a chance – however, we recommend that you do that with a legitimate, licensed broker instead. This platform offers a variety of charting and analysis tools as well as features such as Expert Advisors, VPSs, a Strategy Tester, the chance to set customizable signals or to subscribe to those set by others, a market for various add-ons, and much more.
Globalswisspro TRADING CONDITIONS
Globalswisspro chose to remain mostly cryptic about its trading conditions. Nothing was mentioned about commissions or leverage, and no account type descriptions were provided. We were able to deposit any amount of money we saw fit – which might sound tempting if you are starting with small capital. However, whatever money you deposit with this broker will be lost, and losing even $1 is not worth it. Better check out our list of brokers who ask for a small minimum deposit.
The spreads we got on the broker’s platform were all but impressive – 2.7 pips on EURUSD. Such a spread would have you pay $27 to Globalswisspro for every lot you trade with them – which is quite a lot. The average spread for the industry is much lower – 1.5 pips but there are brokers like XM and OctaFX who can offer much lower rates.
Globalswisspro DEPOSIT/WITHDRAWAL METHODS AND FEES
Globalswisspro accepts payments made through Cardpayz or PEW – two payment methods that are quite unpopular. We hope it has become clear by now that this is not a broker you should consider investing with – depositing money would only lead to you getting robbed. However, if you have deposited with the help of your Visa or MasterCard card (which Cardpayz gives you the opportunity to do), you could still ask for a chargeback and retrieve your money – both card providers have a policy that allows such chargebacks within 540 days of the transaction.
HOW DOES THE SCAM WORK?
Scams of this sort have become quite popular and quite the problem – the best course of action would not be hunting down your lost money to unknown ends only after you have deposited it but learning how to avoid them.
The scheme usually starts with a flashy ad on the Internet promising to make great service and improbable profits. The best part is, that you would not have to do much – you just have to invest with this specific broker who of course claims to be very reliable.
The scam starts when you provide the scammers with your email and phone numbers – you open an account just to see what they have to offer. The moment they get access to your contact details, they won’t leave you alone before you deposit. After that, you will probably turn improbably amazing profits – often enough, scammers manipulate platforms to fabricate satisfactory results. However, they will keep asking you to make bigger and bigger deposits – and you will be glad to transfer money since you will think that you are doing great. Such people are familiar with the art of smooth-talking since that is what they do for a living – they will find a way to sound reasonable and persuasive and before you know it, they will have you depositing thousands of dollars.
Only when you try to withdraw some of those profits, you will run into trouble. Additional fees and taxes, clauses in the Terms and Conditions that prevent you from withdrawing, sudden changes to those Terms and Conditions – these are all instruments in the scammers’ arsenal. By this point, you will know something is wrong but the scammers will stop answering your calls and emails and disappear completely.
WHAT TO DO WHEN SCAMMED?
When it comes to staying safe from fraudulent brokers, prevention is key – don’t deposit with such enterprises in the first place. Always do your research on the broker carefully before investing, check registers, and read the Terms and Conditions carefully. If you have already invested, there are still a few things you could do.
Change all banking passwords to avoid additional losses of money. In case you have installed remote access software, remove make sure to remove it – the broker might have offered help with installing their platform or even trading advice but all they really wanted was access to your computer in order to be able to access your bank accounts later. Notify authorities and contact your bank or credit card provider to let them know you have been scammed. If you have used Visa or MasterCard to transfer money, ask for a chargeback as soon as possible – both providers have a policy that allows such chargebacks within 540 days.
Don’t trust anyone who calls themselves a “recovery agent” and offers to retrieve your money for a fee – this is just another type of scam targeting people who have lost money and are desperate to retrieve it.
Finally, sharing your story with others is important – consider posting about it online. This way, people will know how such scams work and how to avoid them.
JOE
Scammers please don’t deal with them they at the end tell you that bank doesn’t allow us to transfer your money