BDSwiss Review 2024

Trust

BDSwiss Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the BDSwiss trade name:

• BDS Ltd is licensed and regulated by the Financial Services Authority (FSA) of Seychelles under license number SD047. We rate the FSA as a Tier-3 regulator.
• BDS Markets is licensed and regulated by the Financial Services Commission (FSC) of Mauritius under license number C116016172. We rate the FSC as a Tier-3 regulator.
• BDSwiss Markets SA (Pty) Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under FSP number 49479. We rate the FSCA as a Tier-2 regulator.
• BDS Investments Ltd is licensed and regulated by the Mwali International Services Authority (MISA) under license number T2023244. We rate MISA as a Tier-3 regulator.

We have summarized the most essential aspects of BDSwiss in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All BDSwiss entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. All broker entities ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. None of BDSwiss’ entities have a compensation scheme.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with BDSwiss is 1:2000.

Is BDSwiss Safe to Trade With?

I consider BDSwiss as a relatively secure broker since it meets crucial safety standards, including negative balance protection and segregation of client funds. However, it lacks a Tier-1 license.

BDSwiss provides high dynamic leverage, which is advantageous for seasoned traders willing to take risks. Beginners, though, should be wary and approach high-leverage trading with caution, as it amplifies both potential profits and losses.

Stability and Transparency

In our Trust category tests, we also evaluate factors related to stability and transparency, focusing on the broker’s longevity, company size, and the availability of transparent information.

A standout feature of BDSwiss is its transparent order execution. The broker regularly shares detailed reports, showing how fast trades are completed, how often trades end up costing more than expected, and more. This transparency is quite uncommon and valuable for traders looking to get informed.

BDSwiss also ensures very high financial transparency, with accurate fee data being published with free access on its website. For instance, traders can read about the broker’s live spreads. I also appreciated the fact that there is a special page dedicated to introducing clients of BDSwiss to the team responsible for developing all market research.

In summary, my research indicates that BDSWiss can be regarded as having a decent level of trust and stability due to the following factors:

• Holds multiple licenses
• Ensures negative balance protection
• Publishes regular execution reports
• Has a transparent website

Fees

BDSwiss Trading Fees

BDSwiss Spreads

I tested BDSwiss’ spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on the 5th of February 2024. The results are shown in the table below:

Broken down by asset class and compared to the industry average, BDSwiss offers low spreads on FX pairs CFDs and indices CFDs, average cryptocurrency CFDs spreads, and low-to-high spreads on commodities CFDs and share CFDs.

BDSwiss Commissions

I have broken down BDSwiss’ commissions per account type and asset class in the table below.

Overall, the broker presents commission rates that range from average to high. BDSwiss’s ranking in this category is affected by the combination of its above-average spreads with its higher-than-average commissions, leading to elevated total trading costs.

BDSwiss Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My tests indicate that BDSwiss offers low-to-average swaps. This makes the broker suitable for implementing longer-term trading strategies, such as day trading and position trading.

Swap-free trading is possible via BDSwiss’ Islamic accounts.

BDSwiss’ Non-Trading Fees

The broker charges dormant accounts with an inactivity fee of $30. The fee is activated after 90 calendar days of inactivity. It is charged monthly until activity resumes or the account balance drops to zero.

Deposits and withdrawals with BDSwiss are free of charge. Apart from wire transfer withdrawals, where a $10 fee is charged for withdrawals under $100, all other withdrawal methods do not incur this fee.

What is unique to BDSwiss is that the broker also covers any banking fees incurred by the trader from third-party payment services.

Are BDSwiss’ Fees Competitive?

BDSwiss offers average-to-high trading costs. However, the swap rates I observed were more competitive and could meet the requirements of day traders and position traders.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of BDSwiss’s several account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that the Zero Spread account type of BDSwiss features the most affordable prices. Its pricing mechanism is more favorable than the typical STP account and meets the conditions of the typical ECN account type.

Platforms and Tools

MetaTrader 5 features multiple essential tools like one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is ideal for automated trading thanks to its Expert Advisors (EAs) feature and an integrated algo strategy tester.

BDSwiss offers Virtual Private Server (VPS) hosting for enhanced algo trading. Subscribed clients can take advantage of faster order execution speeds.

BDSwiss MetaTrader 5 Desktop

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The problem with MetaTrader 5, in my opinion, is that applying 2 or more indicators to the chart obscures price action rather than contextualizing it. This is due to the ruggedness of MT5.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. One of the standout features of MetaTrader 5 is its vast array of timeframes.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

BDSwiss’ MT5 Mobile App

BDSwiss’ mobile app affords traders quick and easy access to the market on the go. It is very useful for making snap adjustments to any open trades. The market is volatile and ever-changing, and staying on top of the latest developments is made easy with the mobile app version of MT5. You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Tradable Instruments

Compared to the industry average, BDSwiss offers an average amount of currency pairs, commodities, and share CFDs, and a high number of indices and cryptocurrencies.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With BDSwiss?

Below, I have detailed the available CFD instruments at BDSwiss:

My Key Takeaways After Exploring BDSwiss’ Instruments Offering

I determined that BDSwiss’ wide and varied range of trading CFD instruments is tailored for speculative trading styles, like intraday trading and contrarian trading strategies. This is owing to its large selection of volatile assets, including FX pairs and indices.

However, the absence of lower-risk options, such as ETFs and bonds, makes it less ideal for those looking to hedge.

Additionally, the focus on US and European stocks suggests that the platform is more fitting for traders within these regions.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on the 1 February at around 2:50 p.m. CET via live chat. Before connecting to an agent, you have to navigate their chatbot, which I assessed to be sufficiently sophisticated.

I asked for clarification of BDSwiss’ leverage policies, and the agent responded fairly quickly, demonstrating her expertise. However, she struggled with explaining the broker’s execution model.

Deposit and Withdrawal

BDSwiss Deposit Methods

BDSwiss Withdrawal Methods

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should align with your goals, needs, and ambitions in the market. Consider several factors when choosing an account type, including minimum deposit requirements, spreads and commissions, execution methods, and more.

BDSwiss Account Types

BDSwiss offers affordable accounts, with even the VIP account requiring just a $250 initial deposit. However, it’s crucial to note that BDSwiss has a low stop-out level of 20%, which may attract risk-takers but also increases the risk of significant losses, particularly because the broker permits very dynamic leverage, up to 1:2000. However, the broker’s default leverage is up to 1:400.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

BDSwiss’ Execution Model

BDSwiss operates as an STP broker, though it is also licensed as a market maker. According to the broker’s website, BDSwiss achieves median execution speeds of 65 milliseconds. This is slightly better than the industry average.

BDSwiss Account Opening Process

The account creation process with BDSwiss is straightforward and quick. You can go at your own pace and be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Sign Up’ at the top-right corner of the main page.
• Step 2. Enter your personal details (name, email address, country of residence, etc).
• Step 3. Choose a platform and type of leverage.
• Step 4. Confirm your telephone number and email address.
• Step 5. Upload proof of address and ID to verify your account.

Demo Account

BDSwiss offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment with $1,000,000 of virtual funds. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account need to contact BDSwiss’ customer support and request the service from there.

BDSwiss Restricted Countries

BDS LTD does not accept clients residing in the following countries: Democratic Republic of Congo, Eritrea, Iran, Japan, Democratic People’s Republic of Korea, Libyan Arab Jamahiriya, Mauritius, Myanmar, North Korea, Seychelles, Somalia, Sudan, Syrian Arab Republic, United States (and US reportable persons), the United Kingdom, and the EU.

Research

I have broken down BDSwiss’ research content by type below:

Daily Market Analysis

BDSwiss regularly publishes highly informative analyses of recent market developments. Each article features sections on economics and fundamentals, supported by graphs and charts.

This content is an excellent way for traders to stay informed about the latest developments and understand the drivers of price action. The articles are detailed, offering deep dives into the subject matter. Market analyses are freely accessible on the website to everyone.

Technical Analysis

BDSwiss’ technical analyses are concise and often focus on contrarian trading opportunities, such as expected rebounds and reversals from key support and resistance levels.

Typically, each analysis comprises 1 to 5 paragraphs providing a basic overview of the topic. This content functions more as a trading signal than an in-depth analysis. What’s missing, in my view, is a detailed explanation of the reasons behind the expected price action behavior.

Trading Central and Autochartsit

The two services provide top-tier market research and actionable trading ideas. Traders can use the two interchangeably to gauge market sentiment from different perspectives and determine the best course of action.

Video Breakdowns

This section offers daily market breakdowns in video format produced in-house. Typically, each video lasts between 5 to 10 minutes. The content is presented in a lighter, more accessible manner. The chart walk-throughs are particularly useful, helping traders gain a clearer understanding of the concepts discussed.

Economic Calendar

The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.

Weekly Outlook

BDSwiss also develops broader weekly articles serving as weekly updates. They help traders prepare for next week’s trading events. Strong emphasis on economic events/releases that are likely to stir market reaction, e.g. CPI releases, unemployment releases, etc.

The content is also supported by charts and graphs, providing a sense of which market events are likely to cause more volatility than others.

My Key Takeaways After Exploring BDSwiss’ Research Content

One of the best things about BDSwiss’ research content is how layered it is. Traders can obtain an understanding of a particular market event or evolving trading opportunity from multiple perspectives, which is essential for developing a balanced and sophisticated trading system.

BDSwiss’ research content has a very strong emphasis on technical analysis, making it perfect for intraday traders and chart artists.

Education

BDSwiss has published over 50 educational videos on its YouTube channel, offering easy-to-grasp insights into essential trading concepts. Additionally, there are 19 written articles on a range of basic trading topics, such as how to open an account with the broker, how to implement basic technical analysis or set stop-loss orders.

The articles are geared towards first-time traders, helping them gain a very rough understanding of essential trading concepts, but even more importantly, helping them orient themselves as to how they should proceed with their learning.

Additionally, BDSwiss conducts live webinars almost daily. During these sessions, the broker’s experts discuss market movers on MetaTrader 4 and analyze weekly market trends.

BDSwiss has also issued e-books focused on the basics of technical analysis and trading psychology. I especially appreciated the latter, which I think is key to long-term success in the market. Understanding the psychology of trading is integral to successful risk management, controlling one’s emotions, such as fear and greed, and more.

The Bottom Line

Founded in 2012, BDSwiss is regulated in several offshore jurisdictions and complies with most safety requirements.

The broker has its proprietary web trader platform and mobile app, as well as incorporates the renowned MetaTrader 4&5. Moreover, BDSwiss offers VPS hosting and achieves median execution speeds of around 65 milliseconds – a pretty decent performance for intraday trading.

BDSwiss has diverse trading accounts with different pricing mechanisms serving the needs of traders with various experience levels. Its trading fees, in general, are medium to high compared to the industry average.

BDSwiss stands out against other brokers with extensive research and educational materials offerings, mostly oriented towards technical analysis. Also, the broker offers a dynamic leverage of up to 1:2000 to the benefit of only the most daring traders who are well-versed in speculative trading.

I concluded that BDSwiss is mostly geared toward high-frequency intraday traders due to its fast execution speeds and comprehensive research content.

FAQ