SwissRoi review – 5 things you should know about swissroi.com

SwissRoi review – 5 things you should know about swissroi.com

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

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SwissRoi wants us to believe that it represents a regulated forex broker operating in some of the world’s leading financial hubs. But experience has shown that such claims should always be subjected to careful fact-checking. This website is further proof that such verification is needed – because it is in fact yet another online scam. Under no circumstances should you trust your money to SwissRoi. Let’s see exactly why.

SWISSROI REGULATION AND SAFETY OF FUNDS

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

According to the website’s homepage, three companies licensed by financial regulators in the UK, Cyprus and Switzerland are behind the SwissRoi brand.

A check of the UK’s Financial Conduct Authority (FCA) database shows that a company with the name Swiss Crypto Advisors London Limited exists, but it has lost its appointed representative status and can no longer provide financial services and products. Furthermore, we find no evidence that the SwissRoi website has anything to do with this company.

The companies and licence numbers cited by SwissRoi cannot be found in the records of Cyprus Securities and Exchange Commission (CySEC) and Swiss Financial Market Supervisory Authority (FINMA).

Thus, basic fact checking shows that the information on the SwissRoi website is false.

On top of that, the text of the Terms and Conditions and other legal documentation of SwissRoi does not mention the name of a legal entity. Estonia and the Grenadines, presumably Saint Vincent and the Grenadines (SVG), are listed as applicable jurisdictions there.

Estonia is also a regulated jurisdiction and we did not find the SwissRoi among the forex and CFD brokers licensed by the local financial authority.

SVG, on the other hand, is an offshore zone where there are no broker regulations in place. If the actual owner of the SwissRoi is based there, it is not subject to any regulatory oversight.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like CySEC or FCA.

As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.

SWISSROI TRADING SOFTWARE

SwissRoi claims to offer customers a multifunctional platform called ProWave. But after registering an account, we only get access to a rather basic web-based platform that does not impress with functionality.

But even if SwissRoi had a more convincing platform, that would not make this website credible. Fake brokers use trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.

If you use the services of a licensed broker, you will get the opportunity to use established software with advanced features and versions for all types of devices and operating systems. The most widely used trading platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

SWISSROI TRADING CONDITIONS

On the SwissRoi website we see descriptions of three types of trading accounts – Basic, Advanced and Premium. The trading parameters listed provide us with further evidence that this could not be a licensed broker operating in the regulated jurisdictions it claims.

The specified leverage for the account types varies between 1:200 and 1:600. This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50.

SwissRoi claims to offer a welcome bonus. All leading financial regulators prohibit brokers from using bonuses and promotions to attract customers.

According to the account descriptions, the required minimum deposit is 250 USD, but the deposit menu itself sets a minimum of 100 USD. In any case, it would be wiser to use the services of a legitimate broker. Many leading brands offer beginner traders Micro and Cent accounts with a very low minimum deposit, sometimes as low as 5 USD or even 1 USD.

SWISSROI DEPOSIT/WITHDRAW METHODS AND FEES

SwissRoi only allows funds to be deposited through the shady payment processor PаyPound. We have only seen this payment method used by scammers, but not by genuine brokers.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill, Neteller and Sofort.

In the text of the Terms and Conditions we find typical fraudulent traps.

SwissRoi charges a whopping 10% levy on accounts that withdraw funds before they reach “200 in turnover”. It doesn’t specify 200 what – presumably they mean 200 lots, i.e. 20,000,000 currency units. Such vague and extortionate clauses are typical of fake brokers.

If you are allowed to withdraw any money at all, the fees for doing so are substantial and as high as 50 USD. Legitimate brokers rarely charge transaction fees, and when they do these fees are much lower. There is also a monthly fee of 10% of the balance if the account has been inactive for more than six months.

How does the scam works

Many people have a desire to invest in the financial markets but lack the necessary knowledge and experience. This makes them a potential victim of the many internet scammers posing as brokers and investment intermediaries. These types of scams have exploded alongside the cryptocurrency boom.

If you trust such a website and give them your personal information, you will be contacted by experienced scammers who will entice you with promises of easy profits. The scammers usually offer to take over all aspects of investing for you, sometimes even prompting you to install remote access software on your personal computer. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.

But you will never get the promised profits, nor will you be able to get your money back. If you want to withdraw funds from your account, you will find that you have suddenly lost everything in the market, or that you have to meet impossibly high traded volume requirements, or that you have to pay huge fees. It is also possible that fraudsters simply disappear because they hide behind fake names and shell companies in offshore areas that are not subject to any control and regulation.

What to do when scammed

One of the few options to get at least some of your money back in such a situation is to ask for a chargeback. But this is only possible if you have used a credit or debit card for the transaction. Scammers typically use cryptocurrencies or dubious e-wallets that make it impossible to get your money back.

Under no circumstances should you trust people and websites that promise to magically refund your lost money for an upfront fee. This is also a well established scam. You may even fall victim to the same scammers again.

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