In our comprehensive BDSwiss review today: BDSwiss firm started as an online binary options broker in 2012. Offering binary options is illegal in most jurisdictions.
The European Union banned this type of trading in 2018, so BDSwiss has to change its offerings; now, the firm deals in CFDs and forex.
The broker had formerly operated under the name Bank De Swiss. BDSwiss Holding PLC, which also operates another forex broker called Swiss Markets, own BDSwiss.
The firm is under the regulation of the Cyprus Securities and Exchange Commission.
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BDSwiss Platform – A View From 2023
As 2023 is right here, we’d like to take a look into one of the legitimate brokers, BDSwiss, and check their current status.
BDSwiss was an example of a bad broker gone good. The firm was offering binary options services before switching to Forex and CFD trading.
The main brand and owner of the group is BDSwiss Holding Ltd, formerly known as BDSwiss Holding Plc. The company is regulated by the Cypriot authority but has also been fined several times for misconduct.
In May 2021, the Canadian BCSC issued an official warning against BDSwiss and its brands – BDS Ltd, BDS Markets, BDSwiss GmBH, BDSwiss Holdings Ltd, and BDSwiss LLC. According to the regulator, none of the aforementioned entities has the authorization to trade in or advise on securities or derivatives in British Columbia.
In August 2021, the UK FCA ordered BDSwiss Group to stop providing CFD trading to UK investors. According to FCA, the ban refers to BDSwiss, Swissmarkets, and BDS Trading, all of which are brands of the same group.
In March 2022, German BaFin issued an official warning and started an investigation of an offshore brand – BDS Markets, located in Mauritius. According to this regulator, the brand was onboarding German residents without prior authorization from the financial authority.
Currently, the brokerage mainly onboards clients through their entity in Seychelles, under the name BDS Ltd. When registering with this investment firm, check the entity since your main trading conditions, as well as the level of protection, depend on it.
To summarize, BDSwiss is not the best trading choice you can make in 2023.
About BDSwiss Regulation
BDSwiss began operations in Zurich in 2012. They are an online broker that offers a variety of assets, including forex, contracts for differences, and cryptocurrencies.
The broker has a current registration with the Cyprus financial regulator, CySEC. They are also registered with the Financial Services Commission of Mauritius. This arrangement allows for the firm to follow the rules regarding leverage for EU citizens and also offer higher leverages to non-EU citizens.
The broker offers commission-free trading to a large userbase worldwide. BDSwiss has over 1.3 million registered accounts that generate a monthly forex volume of over 30 billion.
BDSwiss is legally based in Zug, Switzerland. Brokers in Switzerland are required to register with the Swiss regulator FINMA. Despite this, they have registered with the financial regulator for Cyprus, CySEC. Registration with this regulator puts them in full compliance with the relevant EU financial legislation.
This legislation includes protection for client deposits in the form of the Investor Compensation Fund, with each investor having protection up to €20,000.
There are a number of other bodies that make up BDSwiss. Another part of the group, BDSwiss LLC, maintains current registration with the US National Futures Association.
BDS Markets is another part of this family, holding a license with the Financial Services Commission of Mauritius. BDSwiss GmbH operates within Germany as a Tied Agent, with the proper registration.
The Fee Structure at BDSwiss
There are several different account types available, each with their own mix of spreads and commissions. The Raw Account is the premium trading account, with spreads as low as 0 pips and a $5 commission on each traded lot.
Most traders use the Classic account, with spreads averaging about 1.5 pips. These are highly unfavorable rates for an entry-level account. Their VIP account brings the average down to about 1.1 pips and lowers commissions across the board.
Their index CFDs carry a fee of $2 per lot, with equity CFDs carrying a 0.15% charge on each share.
Our BDSwiss review shows that the only viable way to trade with them is to put down the hefty deposit required for a Raw Account. This takes a whopping $5,000 deposit. Equity and index CFDs are liable to be affected by various corporate actions.
However, BDSwiss does not provide any details on how this is implemented. The broker charges an inactivity fee of 10% of your account balance each month after 90 days of inactivity.
Leverage is available up to 1:500 outside of the EU, while EU citizens are limited to the ESMA mandated 1:30.
BDSwiss Trading Account Benefits
The different tiers of accounts each have bonuses beyond improved spreads. VIP and Raw accounts give traders access to trading alerts, while a Classic account has only limited access.
The VIP and Raw accounts have access to the Autochartist performance stats and a personal account manager.
The Classic account can access these as well if they increase their deposit to $500 or $1,000, respectively. The higher accounts have priority services over the Classic account.
While the Classic account gives users access to some webinars, the higher accounts provide access to special VIP webinars with more advanced tips.
Assets Available With BDSwiss Platform
The broker has a fair forex coverage, with 51 currency pairs available. There are seven commodities on which CFDs can be traded.
There are also 138 equity CFDs and a further 12 index CFDs. They also offer 21 different cryptocurrencies.
Also, BDSwiss broker claims to offer over 250 assets total, although some of these assets are only available to certain countries.
BDSwiss Trading Platforms
Broker BDSwiss lets users trade on the industry-standard MetaTrader4 and MetaTrader5 platforms. They also have their own WebTrader platform that investors can opt for.
The WebTrader platform is also available through both iOS and Android devices. The broker also gives users access to a MetaTrader plugin that provides advanced charting tools.
Many of the features are available for free, but the firm does charge for some of the more advanced features.
MetaTrader5 is the obvious choice here, with many advanced features. Users can view up to 100 charts simultaneously to compare assets. There are stop loss and take profit settings, along with more advanced order types.
The platform features over 80 technical indicators and many analytical objects. The charting and analysis options are much stronger than the other options available.
BDSwiss presents WebTrader as a versatile platform, but it fails to live up to these expectations. Traders will immediately notice the severe lack of automated trading tools that they have come to expect from most platforms.
There is little to no reason to choose this option over either MetaTrader version, as they have many features over WebTrader.
Investors can also use the BDSwiss Mobile App. This custom-made app lets users manage their accounts and make trades from anywhere.
The app is functional and provides a simple and efficient way to make minor changes and check charts on the go. The app features real-time quotes, charts, support, deposits and withdrawals, and a number of tutorials.
Education Resources at BDSwiss Platform
We found during our BDSwiss review that the broker features a wide variety of educational resources for traders. They maintain daily analysis uploads on the latest trends.
The broker also has a Telegram channel where they share trading insights. There is a free version available and even a paid version that features more trading insights.
They also have a blog on their website, with stories on the latest developments in finance. A course known as Trading Talks is available to users on a rotating two-week schedule.
The course covers a number of points on trading and finance. Investors can also find past seminars on BDSwiss’s YouTube channel.
BDSwiss Support Team Overview
BDSwiss offers customer support in several languages. This support can be reached 24 hours a day for the five days of the business week.
They also provide many other options to contact them. Help is available through email, WhatsApp, Telegram, and an integrated live chat on their website.
Setting up BDSwiss is a simple process with minimal documentation needed. Any new users must submit both proof of residency and their government-issued ID to set up an account.
They must also fill out standard personal and contact information. During the registration process, the user must complete phone verification as well, where users receive a 4-digit code via text.
Deposit and Withdrawal Options
Many payment processors are available to use with BDSwiss. These include:
The broker also accepts direct wire transfers, along with credit and debit cards. Users can also fund their accounts using several cryptocurrencies, including Bitcoin and Ethereum. The transfer times vary depending on the payment method used.
The minimum deposit for any trading account is $100. Withdrawals can only be made using Visa, MasterCard, Skrill, Neteller, wire transfers, and PayPal.
To make a withdrawal, the deposit account and the trading account must be under the same name.
Trouble With CySEC
In January of 2017, BDSwiss settled with CySEC to pay a fine of €150,000. This fine came after a number of allegations that the broker had committed business conduct violations.
CySEC investigated before the settlement was reached. They found that the broker had not met their standards of fair, clear, and non-misleading marketing communications.
This was not the first time that the regulator had fined BDSwiss. In March of 2016, the firm was fined €5,000. This fine was €2,500 each for two counts of violating the Investment Services and Activities and Regulated Markets Law of 2007.
The first violation was against Section 18, which mandates that a broker must provide “continuity and regulatory in the performance of investment services, by employing appropriate and proportionate systems, resources and procedures.”
The second violation was against Section 36, failure to “act fairly, honestly and professionally, in accordance with the best interests of its clients.”
There have been many complaints from users online regarding withdrawals. These users have been upset by the difficulty they faced when attempting to withdraw their funds.
Some say that they faced substantial delays when trying to withdraw, some for several months. The users further complain that accounts are still susceptible to inactivity fees during this time, losing money because they are unable to withdraw.
Our Take on BDSwiss Broker
Our BDSwiss review has found that the broker has had a significant user base for years, and that base is still going strong today. Thousands use their services every day.
They are a registered broker, with all the investor protections the EU has to offer.
Despite this, there are many complaints online and a slew of negative user reviews. Their past conduct has warranted two separate fines from CySEC regarding their practices. They fell into the same patterns of misleading marketing that many other online brokers have in recent years.
These are signs that investors should be cautious before proceeding with BDSwiss. Every broker carries unique risks. The risks of doing business with BDSwiss don’t seem to be offset by anything worthwhile.
Their spreads are only viable if you make a large deposit, and other fees further bring down that viability. In conclusion, the findings of our BDSwiss review are that most traders would be better off elsewhere.
Unhappy Investors Struggle With Withdrawals
There have been a significant number of complaints put forward by supposed clients of BDSwiss. The most common complaint is regarding extended withdrawal wait times.
Many traders say that they have difficulty whenever they attempt to make a withdrawal, some claiming that the withdrawals can take months to process.
These issues are made more troubling by the inactivity fees charged by the broker, which could still take effect during protracted withdrawal issues.
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