SwissFS review: 5 things you should know about swissfs.com

SwissFS review: 5 things you should know about swissfs.com

Rating: 1

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

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SwissFS is a broker which claims to be registered in Kuwait, but in fact it is not clear whether it’s regulated by any official institution. Very high leverage of 1:200, no information on the website about the payment methods it accepts – these are just some more drawbacks of this firm. Overall we can’t say for sure if dealing with SwissFS is a good idea. Keep reading for more details about SwissFS and decide for yourself.

Regulation and safety of funds

On its website SwissFS claims to be operating under the company name of Swiss For Trading in Currencies, Metals and Commodities Co. It also says to be headquartered in Kuwait and to have one additional office in Egypt.

In order to offer its trading services in Kuwait every broker must be regulated by a couple of official institutions. The first and most important of them is the Central Bank of Kuwait, which is the main regulator in the country. SwissFS doesn’t mention anything about being authorized by CBK however. Of course we checked their register, but didn’t find anything about SwissFS or Swiss For Trading in Currencies, Metals and Commodities Co. Take a look:

Furthermore, SwissFS claims to be regulated by two more institutions – the Kuwait Chamber of Commerce and the Ministry of Commerce and Industry of Kuwait. Both of them are important bodies that control the sector of forex trading. SwissFS even goes as far as providing a license number. We can’t say for sure whether this broker is regulated by them or not. The reason being that apparently the link to the Kuwait Chamber of Commerce which they provide is broken, so we can’t check this information with 100% accuracy.

All in all we can’t say for sure if this broker is legitimate or not. Instead you can see some reputable brokers that are regulated by the local authorities here.

Investing with a properly regulated broker on the other hand comes with a lot of advantages, the most significant one being your safety. Always trust forex brokers with a legit license number – this information can be easily verified in the registers of the local institution. Reputable brokers follow certain rules and guidelines that are very strict and difficult to attain. This is the reason that not many firms can actually make it to the license.

First of all, every broker that wishes to get a license must have a minimum initial capital. This serves as a guarantee for its financial stability. The amount required in different countries varies – for example in the EU and the UK it’s 730 000 EUR, whereas in the US the minimum is 20 000 000 USD. Kuwait is also said to have a solid and advanced regulatory system and follows the common guidelines like the rest of the world. This being said, the Central Bank of Kuwait doesn’t specify the exact level of minimum capital that every regulated broker must have.

Another requirement states that every european broker that wishes to be granted a license, must take part in a so-called compensation scheme. This means that in case of a broker’s insolvency (an event that is very unlikely to happen) every customer can be issued compensation by a relevant authority. For example in the UK a trader can be compensated with up to 85 000 GBP by the Financial Services Compensation Scheme. In the EU the amount differs – in most of the countries, like Cyprus for instance, the compensation is up to 20 000 EUR, while in Greece it’s even higher – up to 30 000 EUR. On the other hand, countries like the US, Australia and Kuwait don’t require participating in such compensation schemes.

Last but not least, regulated brokers are obligated to keep their customers’ funds in segregated accounts. This means that your money is kept separately, away from the company’s own capital. This measure aims to prevent any possible fraud or misuse.

Trading software

On its website SwissFS claims to offer MetaTrader 4 as its trading software.

However, opening an account with them turned out to be practically impossible, as there seems to be some kind of restriction. We tried to register, but were told that based upon our country of location the services on this website are not available for us. See for yourself:

Nevertheless, we succeeded in downloading their platform – it is in fact MetaTrader 4, so no issue here. You can see for yourself:

Furthermore SwissFS claims that MT4 is available for your iPhone/iPad as well as for all Android devices. This is also outdated information, as Apple recently removed both MetaTrader 4 and MetaTrader 5 from its AppStore.

Most reputable brokers usually rely on more sophisticated trading platforms like MetaTrader 4 and MetaTrader 5. They are proven to be the best piece of software for trading purposes nowadays and have been downloaded by millions of people so far.

MetaTrader 4 and MetaTrader 5 happen to be the most popular trading platforms around the world. Both brokers and traders praise them for a good reason, mainly because of how secure and stable they are. You can always rely on them to execute your orders promptly and efficiently. Not only that but all the essential information such as transactions and your IP address is encrypted.

MetaTrader 4 and MetaTrader 5 have some outstanding features but the best one according to traders are the Expert Advisors. These bots have one particular task – to search for certain conditions and to start trading the moment they find them. A truly unique feature that only MT4 and MT5 can brag about.

MetaTrader 4 and MetaTrader 5 are perfect for beginners as well for more advanced traders. You can keep your knowledge up to date with a variety of educational resources and daily forex news. They are also very easy to navigate – you don’t need any previous experience in order to use them. MT4 and MT5 can be downloaded on different devices like PCs, smartphones and tablets.

Unfortunately not long ago Apple removed both of them from its AppStore so MT4 and MT5 can’t be downloaded on Android devices anymore. We really hope this measure is temporary. As for the users that have already downloaded the app, they can continue using it but without any future updates or upgrades. MetaTrader 4 and MetaTrader 5 can still be installed through Google Play Store.

Trading conditions

SwissFS doesn’t seem to offer any different types of accounts. The only thing it mentions is that you can open a demo account, which we actually did. Just bear in mind that most scammers tend to lie about offering great perks like demo accounts or high welcome bonuses just to convince you to register right away. The moment you open an account with them, you’ll realize that no such things are to be found on this website.

SwissFS also claims to offer a leverage of 1:200. In Kuwait the leverage is not limited, so you can see quite high levels even with reputable brokers. In the EU and the US however there’s a leverage cap of 1:30 and 1:50 respectively. This aims to minimize any potential risk, as trading with higher leverage is considered very tricky and dangerous. In fact it’s not recommended for retail traders at all, no matter if it is legal even in countries like Kuwait. So we sincerely advise you to stay away from such risky trading conditions.

Furthermore the website doesn’t mention anything about the spread it offers. After we opened a demo account we were able to see a spread between 1.5 and 1.7 pips which is considered very advantageous and is fine for trading. Remember that any spread more than 2 pips is proven to be very costly. Always look for spreads between 1 and 2 pips or even less, as it comes with lower trading costs.

Deposit/Withdrawal methods and fees

SwissFS also doesn’t specify which payment methods it accepts. This information is typically displayed on the websites of most reputable brokers right away. And as we weren’t able to open an account with SwissFS, we sadly can’t say for sure what payment options you can benefit from.

Just bear in mind that most regulated brokers tend to offer a wide range of payment methods. For example the traditional payment methods like bank transfer, credit or debit cards, or some popular e-wallets like Skrill, Paypal and Neteller as well as cryptocurrencies, are all usually seen on the websites of the respectable brokers.

Be careful however, because scammers generally lie about offering all of the above mentioned payment methods just to win your trust. In reality most of them accept crypto coins like Ethereum and Bitcoin like the only possible option. The reason is simple – crypto transactions are proven to be 100% irreversible, so you can’t return your money, as opposed to credit/debit card payments, where you can file for a chargeback. Cryptocurrency payments are also absolutely anonymous, because you don’t know to whom the wallet actually belongs to and therefore can’t prove anything, even if you have been scammed.

How does the scam work

Never underestimate online scammers as they happen to be unexpectedly inventive and come up with different ideas on how to deceive people literally every day. Most importantly, remember that offshore brokers don’t have any intention to actually invest your money and don’t care about your prosperity. Their only goal is to make you invest as much as you can and then drop out of sight completely (with your money of course). There are some techniques that are a red flag, so if you come across them, just flee as fast as you can.

Firstly, scammers would try to reach out to you via email or phone, so providing such information carefree is not a good idea. If they succeed in getting this material however do expect a lot of phone calls and emails that contain their promise to double your investment – “risk-free” indeed.

They might also guarantee a very high return on investment without any hard work from your side. This sounds ridiculous already – any investment on the forex market holds more or less risk and requires some knowledge. In fact regulated brokers are obligated to post a warning about trading risks on their websites.

The next step in scammers` fraudulent practice is to manipulate their trading software and make it look as if your funds are being invested and you make huge profits at the same time. This is also a lie with no doubt. Scammers just want to make you invest a “little more” again and again and will take advantage of you as much as they can.

They might also offer some kind of welcome bonus just to make you get in the game. Note that such bonuses come with strings attached – a very high volume requirement you certainly won’t be able to achieve. Not only that but reputable brokers in the EU are restricted from offering such bonuses or promotions exactly because of this malicious practice.

Unfortunately most people realize that all of the above is a lie when it’s too late. Once you try to withdraw any funds from your account you will find out that this is impossible. First however scammers might ask for a certain fee upon the withdrawal request – 10% or even 20%. Note that most reputable brokers don’t ask for a fee at all. Anyway, there’s no point in paying this fee, because even if you do, you still won’t be allowed to withdraw your money. Therefore you may end up losing everything.

What to do when scamed

Certainly there are some Dos and Don’ts when it comes to online scam.

Your first move has to be to turn to the bank that issued your credit or debit card in case you paid with one and file for a chargeback in 540 days. If you have used Skrill, Neteller or PayPal you can also open a dispute. Unfortunately crypto transactions are irreversible and anonymous as we already said, so they are not eligible for a chargeback.

It’s also 100% sure that you shouldn’t turn to people on the internet who suggest restoring your stolen funds in exchange for a certain fee. These people are most probably also fraudsters, so don’t take the risk of losing even more money!

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