SwissFinGroup – Is it Safe or Is It a Scam?

Website URL: https://swissfingroup.com/

Founded: 2018

Regulations: Unregulated

Languages: English, Italian, German

Deposit Methods: Credit/Debit Cards, Bank Transfer

Minimum Deposit: $250

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: Forex, Indices, Stocks and Commodities

Trading Accounts and Conditions

SwissFinGroup offers its clients four different account types:

• Micro: You need to make an initial deposit of $250 to trade on this account, and the spread for this account begins at 1 pip.
• Standard: A minimum deposit of $2,500 is required for you to trade on this account. You are offered a spread starting at 1 pip.
• Premium: You need to pay a deposit of $25,000 to execute trades on this account and you get a spread of 0.6 pips, as well as $6 per lot.
• VIP: Your minimum deposit amount for this account is $100,000 to carry out trading on this account. The spread on this account is 0.2 pips and $6 per lot.

The maximum leverage on all accounts is 1:500, which is quite enough to satisfy even the most demanding of traders.

At a glance, SwissFinGroup looks like a great broker with which to trade, however when we dug deeper, there are a number of issues that concerned us deeply. Let us look at the advantages as well as disadvantages of using this broker.

SwissFinGroup – Advantages

Here is the list of advantages we found with SwissFinGroup:

• MetaTrader 4 (MT4) Trading Platform

The biggest plus about SwissFinGroup is the fact that it offers its customers the MT4 trading platform. This is the world’s most popular trading platform, offers traders over 100 technical market indicators, a huge back-testing environment, advanced charting options, and a range of Expert Advisors (automated trading bots).

• Demo Account

Most brokers of questionable reputation do not offer their clients a free demo account. However, SwissFinGroup does. This broker offers its clients a chance to try their platform before they put in real money, so it’s another big plus for it.

• High Leverage

When you see the trading conditions, they look attractive. SwissFinGroup offers its clients a massive leverage of 1:500, which is good enough to make all types of traders happy.

However, we also need to point out that high leverages also mean high risk. In fact, because of the risk involved with such high leverages, many jurisdictions put a cap on how high a leverage a regulated broker can offer its clients. So, in reality, such a high leverage ratio is a little red flag.

• Decent Spread

When we tried the demo account, the spread for the EURUSD, the benchmark currency pair for Forex, was at about 1.3 pips. While a little high, it is still below the industry average, so this is another good thing that the broker has to offer.

SwissFinGroup – Disadvantages

These advantages we have mentioned definitely show SwissFinGroup in a good light. However, when you start digging deeper, then the disadvantages that begin to crop up indicate that this is not a broker you should trust with your money.

• Not Regulated

SwissFinGroup claims that it is owned and operated by a company that is based out of the Marshall Islands. The name of the company is Terratech Ltd. This is a problem because the government of the Marshall Islands has clearly and publicly stated on numerous occasions that it does not have regulatory oversight over Forex brokers.

Added to that, the territory is known for its relaxed financial regulations. Brokers do not have to even be physically present to be able to register themselves in the Marshall Islands. What this means is that this broker’s parent company may be registered in the Marshall Islands, but it could be based anywhere!

Unregulated brokers operate outside the law and so are dangerous. The chances of you getting scammed or losing all your money because the broker suddenly shuts shop are very high.

Plus500

$100

Minimum Deposit

Start Trading

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Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• CONSOB Warning

While we were investing SwissFinGroup’s regulatory status, we discovered something very alarming. This broker has been blacklisted by the CONSOB.

The Commissione Nazionale per le Societa e la Borsa, the financial regulator in Italty, has issued a notice against SwissFinGroup’s parent company, stating that this company is not regulated and therefore not authorized to offer financial services in Italy.

• Connections with Other Offshore Brokers

This another red flag that had us concerned about the trustworthiness of SwissFinGroup. When we downloaded the MT4 platform, we realized that it is not supported by the broker. Rather, it is a platform offered by a third party called Goldman 24 Limited.

Goldman 24 Limited is another offshore company that is based in St. Vincent and the Grenadines, and it also runs its own unregulated brokerage called GMFX24.

This piece of information caused us to dig even deeper. We found out that GMFX24 is linked to another group of Forex brokers that are in turn linked to a company called Easy FX Solutions.

Easy FX Solutions, we found, is known to help with the easy establishment of new brokerages. Read easy as unregulated. Two of this company’s clients are Tradeu2 and Up4X, two brokers that are known scammers.

• Bonus Promotions

We were further disappointed to see that this broker also offers its customers bonuses. Bonuses have been banned in regulated markets because they are basically scams meant to divest investors of their money.

These bonuses come with string attached. Traders need to meet unrealistic trading volume targets (which very few do) in order to withdraw their money. In the end, they end up never getting their hands on their money.

Conclusion

After having carried out our investigation on SwissFinGroup, we would strongly advise all traders to not interact with this broker. It has all the signs of a scammer and you stand a strong chance of losing all your money.

SwissFinGroup

2.4

User Experience

2.6/10

Payment Options

2.8/10

Security

2.5/10

Support

2.0/10

Reputation

2.2/10

Pros

• MetaTrader 4 Trading Platform
• Demo Account
• High Leverage
• Decent Spread

Cons

• Not Regulated
• CONSOB Warning
• Links with Unsavory Offshore Brokers
• Bonus Promotions