SwissFXM Review – The Signs of a Scam

SwissFXM Review

One of the biggest nightmares of every online trader are scam brokerages. Yes, not every online broker you will find is legitimate. The internet became a breeding ground for fraudsters, scammers and other cybercriminals because of lack of regulation and monitoring. These numbers have only gone up, which means there are millions of victims of these criminals in every part of the world. It is understood that you do not want to join this party at all, which brings you to this SwissFXM review. Just because these impostors and fraudsters exist does not mean that you should deprive yourself of the opportunities in the financial markets.

You can find countless stories of people who have made substantial profits from the forex market and the trading space. In fact, there are people who have accumulated a great deal of wealth and have become success stories and quite an inspiration for others. You want to follow in their footsteps and this means opening a trading account with a brokerage. But, this also means exposing yourself to the risk of scams because not every brokerage is authentic and reliable. As long as you do not forget this when you are searching for a platform, you are more likely to stay safe. How?

This is because it is only when people forget or decide to not focus their attention on this fact that they end up opting for a shady brokerage.

When you are careful, you will do your homework and vet a brokerage thoroughly, which reduces the possibility of getting trapped. This is how you should approach this entire matter and it will definitely work in your favor. Vetting a brokerage does not mean that you just check out their website and choose them if it looks good. Do not forget that even fraudsters can come off as very sophisticated because it is easy to make claims and present an irresistible cover.

The reality, on the other hand, can be the complete opposite, which is apparent in the case of SwissFXM. The presentation of the broker is definitely eye-catching, particularly their claim of officially sponsoring AFC AJAX Amsterdam. But, when you start vetting the brokerage, you can see just how their presentation falls apart. What are the signs that show SwissFXM is a scam? You can see them highlighted below:

No license or regulation

There are two categories of brokers to be found; licensed and regulated and unlicensed and unregulated. The website of a former will provide you with all essential details, such as where they are licensed, the relevant number so you can check and you will also find a corporate background and other relevant details and information that can reassure you. The latter, in comparison, will not provide you any such information and this should immediately send up a red flag. You will discover that SwissFXM belongs to the latter category.

When you visit the SwissFXM website and begin scouring it for information, you will come to know that there is absolutely no mention of the legal entity behind it. Indeed, they have not mentioned the company that owns and operates the brokerage, which means there is no transparency and you have absolutely no idea who you are dealing with.

The only piece of information that SwissFXM has bothered to mention on its website is an obscure address in London, United Kingdom. The UK is one of the world’s most regulated jurisdictions, so a brokerage to be based there is quite an achievement. However, as it turns out, either SwissFXM is lying about having an office in the UK, or it is operating there illegally. Why?

This is because an online broker can only be based in London, UK, if they have a license from the Financial Conduct Authority (FCA). This is the regulatory body for the UK and issues licenses to brokerages, but if you check their online register for SwissFXM, you will not find the broker listed. This means that it is not regulated and is an illegal entity, or operating from an undisclosed location. It is an obvious sign of a scam.

No Terms and Conditions

When you are signing up with any broker, it is certain that you would want to go over their Terms and Conditions. These dictate the relationship you will have with a broker and are a kind of contract that you sign with them. Their purpose is to highlight the policies that are applicable, along with details about the fees and charges involved. Since they are so important, it comes as a surprise to know that SwissFXM does not have any Terms and Conditions mentioned on its website.

You will not find any kind of legal documentation available on the SwissFXM website, which means there are no Terms and Conditions and no Client Agreement of any kind. When you sign up, you will be expected to accept their Terms and Conditions, which means that you have to agree to them without knowing what they are, leaving yourself vulnerable to exploitation.

No genuine platform

The trading platform is the most important feature an online brokerage has to offer and you want a quality one to execute your trades. Thus, the fact that SwissFXM is promising the MT4 trading platform, which is known as one of the best ones in the market does draw the eye. When you check their website, you will find that the MT4 is indeed available and you may think this adds credibility to the broker.

But, you are in for a surprise here as well because it seems that a third-party company by the name of FT Global Financial Group Ltd is offering the MT4 and not SwissFXM itself, which does not make sense at all. Instead, it shows that you are dealing with a shady company that is most likely a scam and cannot be trusted.

Ending Thoughts

Along with these signs, the excessive leverage offered by SwissFXM is yet another indication that the broker is unregulated and not working in the best interest of its clients.