SwissCFD is a comparatively new forex offshore broker. While the name SwissCFD might be new, some seasoned traders might know its parent company, Brown Fox Ltd. Read the full SwissCFD review here. The parent company is registered in the Marshall Islands, but all financial transactions are routed through Estonia by a company called Pexil Financial OU. The company offers a variety of CFDs on precious metals, various currency pairs and cryptocurrencies. The company offers just three different account types with leverage as high as 1:500. The spreads on offer do look good with the basic account also getting 1 pip.
While we do know offshore companies can be shady, but with the right licences and authorization by regulatory bodies, things are not so bad. However SwissCFD is an unregulated broker with no license to operate anywhere in the world. However what is even more alarming is that the Italian financial regulator body Commissione Nazionale per le Societa e la Borsa (CONSOB). Traders who know of the parent company, Brown Fox Limited, might also know that it is also the parent company for a variety of other brokers that have scamster like traits and have been banned and warned against by financial regulators. Some of these scamster-like brokers parented by Brown Fox are EurTrades, Dax300, TradesFly and a broker that goes by the name of ECNpremium.
One good thing we found about the broker is that it trades on Meta Trader 5. Another interesting but suspicious thing we found in the Terms and Conditions of SwissCFD is that it acknowledges to be a market maker. This creates a very visible conflict of interest; as market makers make money every time traders lose money. They also offer some lucrative bonuses on different account types, but bear in mind there are special conditions attached for withdrawals when it comes to bonuses. The broker also has a rather high minimum deposit of 500 USD for it’s basic account, which is twice the market average of 250 USD. Add to this the fact that there is no demo account, a trader has to basically commit to 500 USD to even try out the platform.
As trading on the internet is becoming more and more accessible to new traders, potential scamsters and frauds are coming up every other day in the market. Regulator bodies do their best to warn the public against them, but often companies like Brown Fox Ltd. use multiple brands of brokers to potentially scam beginner traders. Given the fact that SwissCFD doesn’t have a valid license to operate and is also blacklisted by CONSOB, makes it a good decision to avoid investing with them and putting your funds in jeopardy.