SwissKapitalInvest – Is it Safe or a... - ChainBits

Posted: 31 Dec 2019 12:26 AM PST

Website URL: https://swisskapitalinvest.com/

Founded: N/A

Regulations: Unregulated

Languages: English, German

Deposit Methods: Unknown

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Forex

Trading Accounts and Conditions

SwissKapitalInvest claims to be a Forex broker that is registered in Switzerland. The broker also claims to provide its clients with the MT4 (MetaTrader 4) and MT5 (MetaTrader 5) trading platforms, along with a range of trading instruments.

The leverage that the broker has extended is quite generous at 1:200, and it also offers a decent spread of about 1.4 pips on the benchmark Forex pair, the EURUSD. The minimum deposit required is at par with the average in the industry, $250.

SwissKapitalInvest – Advantages

While there are glaring disadvantages to trading with SwissKapitalInvest, we have tried to be fair to the broker and have listed the seeming advantages it has. Here they are:

Apparently Good Spread

On SwissKapitalInvest's website, it is mentioned that the broker offers a spread of 1.4 pips on the benchmark Forex pair, the EURUSD. This is a decent spread to have, even though it is in the upper ranges of what the industry average is.

Decent Leverage

The second plus that we notice as announced by this broker is its leverage. SwissKapitalInvest offers its clients a leverage of 1:200, which is a good level – high enough to suit the needs to most types of traders, but not so high that becomes a high-risk investment.

SwissKapitalInvest – Disadvantages

The two pluses we have mentioned are nowhere near enough to make up for the many red flags we have found with this broker. Here is the list:

Lack of Regulation

According to the corporate information given on SwissKapitalInvest's website, the broker is operated by a company called Swiss Investment Capital Group Ltd.

The broker claims to be registered in Switzerland, however, there is no way to verify this claim, since there is only a Zurich contact address mentioned in website, and no other information is given.

Added to that, the parent company, Swiss Investment Capital Group Ltd. Is actually incorporated under the Republic of Marshall Islands laws. Thus, this company is actually an offshore entity, incorporated in a country where Forex brokers are not overseen by any financial authority.

Added to that, there is no mention of any license or registration nubmer from any regulatory authority, including the Swiss FINMA (the Financial Market Supervisory Authority of Switzerland), where the broker claims to be registered.

This means that this broker is actually not allowed to operate in any financially regulated market – and that includes Switzerland.

$100

Minimum Deposit

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.

$100

Minimum Deposit

76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

On the FINMA Blacklist

FINMA has put this broker on this blacklist for carrying out unauthorized trading activities in its country. FINMA is one of the most stringent regulators in the European Union, with extremely high capital requirements, which is why very few brokers are registered with this body.

The agency also keeps a close eye on unregulated brokers and warns traders immediately when a brokerage is found to be claiming to be located in Switzerland or that it is regulated by FINMA.

Thus, SwissKapitalInvest has been marked as a danger to traders since it is not entered in its commercial register.

No Downloadable Platform

The broker claims to provide the MT4 and the MT5 trading platforms. These are the two best trading platforms in the industry, since they are easy to use, and come loaded with features such as analytics tools, charting options and even automated trading bots.

However, on SwissKapitalInvest, despite its claim, you will not be able to download either platform, which makes us wonder if the broker even has these platforms at all.

No Demo Account

Another huge red flag is the fact that SwissKapitalInvest has no demo account, which means that you cannot even verify the broker's claims of having either the MT4 or the MT5 trading platforms.

What this also means is that you cannot verify the trading conditions, trading fees, spreads or leverages.

This unfortunately is a trademark strategy used by scammers. Regulated and above-board brokers offer free demo accounts so that you can test their services and understand their pricing.

Deposit/Withdrawal Methods and Fees

Another sign that this a dangerous broker to deal with is the fact that there is absolutely no information about its deposit or withdrawal methods or fees.

Even unregulated brokers will give information about deposit and withdrawal methods, even it is the traditional bank wire transfer and/or credit/debit card transactions.

However, with SwissKapitalInvest, you get no information with regard to this critical factor.

The only piece of information we could find was in the Terms and Conditions, which mentioned a dormancy fee. According to that condition, if an account has been dormant for more than 6 months, then you will be charged $25 per month.

Besides, this, we do not know what deposit fees, withdrawal fees, or any other kind of transaction fees will be charged.

Conclusion

At the end of our review, all we can say is that SwissKapitalInvest has all the signs of being a serious scam, and it would be best for you to stay as far away from this broker as possible.

The fact that FINMA, one of the European Union's strongest financial regulatory bodies, has issued a warning against trading with this broker should be enough of a red flag for everyone.

Added to that, it is not regulated by any known authority, nor does it give any information about how you can put in or take out money from a trading account, and it doesn't even have a downloadable platform.

This is one broker that you should never trade with, or you will lose all your money.