SwissGold FX Review
Millions of people all over the world are participating in the financial markets and have been doing so for ages. Some of them have managed to make massive fortunes from this space, some have enjoyed moderate success, but there are also those who have made hefty losses. It is true that you need knowledge and skill to succeed in this space, much like others, but the broker you use can also be relevant here. This is because not all companies offer the same level and quality of services and this will have an impact on your bottom line at the end of the day. How will this SwissGold FX review help?
How will you be able to choose a broker without knowing everything about them including their problems? There are just too many options in the market for anyone to be able to make a choice blindly. Not to mention the fact that a number of these companies may not be legitimate at all. Is that possible? Yes, scam brokers are a widespread phenomenon and have exploited many people and you could be next, if you are not careful. You need to tread carefully when you are checking out brokers and not ignore any problems or red flags you may come across.
The scammers are good enough to portray an image that can be hard to suspect, something you will come to see in the case of SwissGold FX. According to the company, it was founded back in 2010, which means it is not a new one and this may push people to trust it. In addition, it claims to have more than 200 branches that are spread across all prominent financial hubs all over the globe, such as Zurich, London and Singapore. Moreover, SwissGold FX claims that it is catering to thousands of clients and also assists them with their trading strategies for maximizing their profits.
There is no doubt that all of this sounds just downright appealing and you would want to make your account with such a broker right away. The reality is that SwissGold FX is not at all altruistic and there are a lot of problems that indicate it is just another scam broker. What are they? Read on to discover them:
Not regulated or licensed
If there is one flaw of a broker that you shouldn’t ignore at any cost, it is their lack of licensing and regulation. This makes the broker an unsecure option because you will be vulnerable to loss of funds and information and it is too big of a risk. According to SwissGold FX, it has its headquarters located in Bulgaria and a company named Advertising.R owns and operates the brokerage. Also, as mentioned earlier, it also claims to have offices in almost 200 jurisdictions in the world.
The problem is that when you dig deep, you will discover that SwissGold FX is not regulated anywhere. It is not regulated by the Swiss Financial Market Supervisory Authority (FINMA), the Financial Conduct Authority (FCA) in the UK, the Financial Supervision Commission (FSC) in Bulgaria or the Monetary Authority of Singapore (MAS). If it is not regulated, then it means that it cannot possibly offer its services in any of these jurisdictions, which means it is essentially lying to everyone and is just a scam.
Withdrawals are not permitted
It is a given that when you trade in the financial markets and make profits, you would want to withdraw them. Even if you don’t make profits, you may want to withdraw the money you have deposited. So, what is the issue with SwissGold FX? The problem is that they will not let you make any withdrawals. If you go through their Terms & Conditions, you will find that they have stated that your withdrawals are not committed to any time frame. This means that they can take days, weeks, months, or years to approve withdrawal requests. The underlying message is that they will not be approved at all.
False promises about trading strategies
One of the prominent claims that SwissGold FX has made to its clients is that it will help them in choosing the best trading strategies, so they can maximize their profits. Numerous brokers in the market offer the option of managing trading accounts on behalf of their clients, but none of them make such claims. The fact of the matter is that brokers are usually market makers, which means that every time a trader loses money, the broker profits.
Put simply, SwissGold FX is essentially a counter party in all your trades. Therefore, it is just not possible for it to help you in trading because their goal will be to ensure that you lose all your money, so they can profit. This is an excellent example of conflict of interest, which the broker is clearly not conveying to you.
Issues with trading platform
The trading platform offered by a broker is its most notable feature and here as well, you will find SwissGold FX unable to live up to your expectations. They claim to offer a web based trading platform to their clients, which has also become common amongst scam brokers. The platform has been named Swiss Gold FX WebTrader. In order to add some legitimacy and to confuse people, they have also added the MT4 trading platform. It is one of the top platforms in the market, so it should be reassuring.
However, a closer look reveals that the MT4 platform you will find on the SwissGold FX website is provided by a third party company named FX to All Ltd. Why would a third party company offer it to you? These are red flags that you need to know about.
The maximum leverage of 1:200 and the $250 minimum deposit may be considered as perks, but they cannot outweigh the problems with SwissGold FX. They also claim to support numerous payment options, including Skrill, Neteller and credit cards, but there is no way to confirm this information, making it yet another problem for you.