CapitalSwissFX is an unregulated offshore broker and the company behind it is called Swiss Cap LTD which is based in St. Vincent and the Grenadines. Dealing with offshore brokers is always dangerous and on top of that this is an unregulated one as well. The combination could be really risky and dangerous if you are interested in investing with this broker.
There was also a surprisingly high number of sections on the website of this broker that said something about the law in Cyprus but after checking in with the CySEC register, there was not information about this broker at all. This could mean that the company is planning to get a license there which could improve the credibility or could meant that they just copied content from another broker’s website which indicates that this is a scam broker.
The MT4 demo that could be found on the brokes’s website was also very unusual. Some of the spreads there were fixed while others were floating which means that the EUR/USD one was ‘’stuck’’ at 3 pips while the others more exotic counterparts were floating. As mentioned, the company stated that these trading conditions are not really showing the actual trading environment but this still indicates a strong red light for this broker. CapitalSwissFX does accept Credit Card deposits and Bank Transfers but the wording on their website isn’t really precise and we cannot be certain about anything.
CapitalSwissFX is an unregulated offshore broker which leads to the question whether everything else they say on their website is true. The costs of trading are allegedly low but at the and on the demo account you can see a totally different story. The company is one of the few that mention that these aren’t the real conditions and they are just there to test the platform. We must highlight that this may or may not be a company waiting on an approval from the Cyprus regulators but if this is the case we will make an update on the broker.
CapitalSwissFX explicitly noted that the demo environment isn’t similar to the conditions that the real account holders will get. They offer the clients a maximum leverage ratio of 1:4000 which shows the effectively scalp the market but for users still need to beware of the risks involved with high margin trading since the losses can get very big quickly.