BDSwiss Review 2022

Trust

In our trust category, we place most importance on how a broker is regulated. So let’s dive in and take a look at how the different entities of BDSwiss across the globe are regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

The various global entities of BDSwiss are regulated by the following agencies:

• BDSwiss Holding Ltd. is authorised and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license No. 199/13. We rate CySEC as a Tier 1 regulator.
• BDSwiss GmbH (Registration No. HRB 160749B) is the BaFin-registered Tied Agent of BDSwiss Holding Ltd in Germany. We rate BaFin (German Federal Financial Supervisory Authority) as a Tier 2 regulator.
• BDS Markets is authorised and regulated as an Investment Dealer by the Financial Services Commission of Mauritius (FSC) under license No. C116016172. We rate the FSC as a Tier 3 regulator.
• BDS Ltd. is authorized and regulated by the Seychelles Financial Services Authority (FSA) under license number SD047. We rate the FSA as a Tier 3 regulator.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, current BDSwiss clients in Europe benefit from the oversight of CySEC. CySEC requires that clients have negative balance protection, which means that they cannot lose more than their deposit. Client funds must be held in segregated accounts, which are protected in the event of a broker going bankrupt.

In addition, BDSwiss Holding Ltd. is a member of the CySEC Investor Compensation Fund (“ICF”), which provides compensation of up to €20,000 to clients in the event of broker insolvency. By contrast, a trader working with a broker entity regulated offshore would not have these benefits guaranteed to them.

In the table below we break down the mandated protections and benefits by entity, regulator and region.

Stability and Transparency

In our tests for the Trust category we also cover factors relating to stability and transparency. Here, we focused on how long the broker has been in business, the size of the company and how transparent they are in terms of information being readily available.

Founded in 2012, BDSwiss has a substantial operating history. The company page on LinkedIn states that there are 51-200 employees, reflecting a small to medium sized brokerage firm.

BDSwiss showed an average level of transparency in areas such as their regulatory status, fees and general background information. Information and materials are readily available on the website. The regulatory status of different subsidiaries is covered on the homepage of bdswiss.com. The Fees and Charges page clearly outlines costs. A Client Agreement (Terms of service) document is also available on the General terms and conditions page. It could have been made more clear that the benefits of being a CySEC regulated broker are available only to existing clients in the EU.

In summary, we rated BDSwiss as having a low to mid-level of trust and stability due to the following factors:

• Regulated by 1 top tier agency (CySEC), but they are no longer accepting EU clients.
• All new clients are currently assigned to an entity regulated offshore.
• Having a substantial operating history.
• Being a relatively small brokerage.
• Having an average level of transparency.

Fees

With the Classic Account, BDSwiss earns money mainly from spreads (the gap between the bid and offer prices of an asset).

Trading Fees

Spreads at BDSwiss are variable, meaning that they fluctuate slightly. The size of the spread depends on the level of liquidity in the market. Liquidity describes the extent to which an instrument can be bought and sold quickly and without moving the market. Tighter spreads are typically seen when there is greater liquidity in the market.

Spreads in some popular instruments (for example EUR/USD) are substantially wider than industry leaders, making it more expensive to enter and exit a trade. However, some instruments such as the Dax and Dow Jones 30 had quite competitive spreads in our tests.

Swap fees (the cost of holding a position overnight) were roughly average at BDSwiss.

Overnight fees (swap fees) are charged for CFD positions that stay open overnight and are relative to the value of the position. They are essentially an interest payment to cover the cost of the leverage that was used overnight.

In the table below you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of holding a sell position overnight) for one full sized contract. A full sized contract is 100,000 units of the base currency (the first currency quoted in the pair).

We recorded the data on December 15th 2021.

Non-Trading Fees

BDSwiss charges high inactivity fees. If your account is dormant for over 90 days, clients are charged a monthly account management fee of 10% of the account balance. A minimum of 25 EUR/USD/GBPand a maximum of 49.9 0EUR/USD/GBP is charged and deducted from the balance in the account.

BDSwiss does not charge any fees on deposits or withdrawals processed via credit card. However, for bank wire withdrawals equal to or less than 100 EUR/USD/GBP, BDSwiss will charge a 10 EUR/USD/GBP flat fee.

Are Fees at BDSwiss Competitive?

Overall, fees at BDSwiss are not very competitive for the Classic Account. Some spreads are rather wide and the inactivity fee is surprisingly high. The overnight fees were average. One bright spot was that spreads in certain assets such as indices were more competitive.

Tradable Instruments

CFDs (Contract for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at BDSwiss include the following CFDs::

• 50 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example EUR/USD, which reflects the value of the euro measured in dollars.
• 6 Commodities. Commodities are raw products, such as gold and oil.
• 132 Stocks. BDSwiss offers trading in stock CFDs from exchanges ranging from the London Stock Exchange to the NASDAQ. A stock is a security that represents partial ownership of a corporation. Keep in mind that when trading stock CFDs you are speculating on the price of a stock without actually taking ownership of the underlying asset.
• 10 Stock Indices. Available index instruments at BDSwiss range from the HKG50 to the FRA40. A stock index is a basket of shares that is used to gauge a market sector, stocks within an exchange or the economy of a country.
• 19 Cryptocurrencies. Cryptocurrencies, such as Bitcoin, are digital currencies that are secured by cryptography.

While a broad range of markets are available, some instruments such as bonds and exchange traded funds (ETFs) are not available. Below is a sampling of instruments across the various asset classes.

Account Types and Terms

We opened an account with the offshore BDS Markets entity. To start out, prospective clients must enter their name, country of residence, date of birth, phone number and email. The phone number is verified via an SMS message. Along with personal profile information, individuals must upload documents to verify their identity and residential address and finally take a basic appropriateness test.

The Know Your Customer (KYC) questionnaire aims to ensure that brokers understand the risk tolerance, investment knowledge, and financial position of prospective clients.

Available base currencies at BDSwiss (the currency in which your account is denominated) are EUR/USD/GBP for all accounts. The minimum deposit is 100 EUR/USD/GBP.

We tested the Classic Account, but BDSwiss offers 4 different account types:

• Classic: spreads starting at 1.5 pips, $100 minimum deposit.
• VIP: spreads starting at 1.1 pips, $3,000 minimum deposit.
• Raw: spreads starting from 0.0 pips, $5 commissions, $5,000 minimum deposit.
• InvestPLUS: direct market access (DMA), 0.1% commission, $5,000 minimum deposit.

Leverage

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

For clients in the EU registered with the BDSwiss Holding Ltd. entity, the maximum leverage is 1:30 due to CySEC regulations. This means that with an account of $1,000, you can control $30,000 worth of market exposure.

Clients outside of Europe with the BDS Markets entity regulated by the Financial Services Commission of Mauritius (FSC) have access to leverage of 1:500. This means that with an account of $1,000, you can control $500,000 worth of positions in the market. Leveraged trading comes with a very high level of risk and is a principle reason why the majority traders lose money.

Demo and Islamic Accounts

BDSwiss offers a demo account to help users practice trading without the risk of losing real money. Islamic accounts that adhere to the principles of Sharia law are also available.

BDSwiss Supported Countries

BDSwiss accepts clients from the majority of countries globally. However, BDSwiss does not accept traders from the following countries: Cyprus, Democratic Republic of Congo, Eritrea, Libyan Arab Jamahiriya, North Korea, Somalia, Sudan, United States, Belgium, Japan, Mauritius and the Seychelles. UK and EU based traders are also not currently accepted.

Deposit and Withdrawal

BDSwiss offers mostly free deposits and withdrawals, with the exception of bank wires under 100, where a 10 EUR/USD/GBP flat fee is charged.

Deposits

Deposits are free at BDSwiss and funds are typically available immediately. Keep in mind that banks typically charge for sending wire transfers out. The following account funding methods are available:

Withdrawals

Withdrawals at BDSwiss are processed within 24 working hours. The minimum withdrawal required via Bank Wire Transfer is 60 EUR/USD/GBP. The following withdrawal methods are available:

Customer Support

Replies to customer support inquiries were fast. With live chat, a bot tries to answer your question and then you can elect to speak to a live agent, which usually takes place right away. There was no wait time for phone calls and emails were replied to within a couple of days.

We tested support with a range of questions, ranging from easy (for example what is the minimum deposit to open an account?) to harder questions (such as how can I set alerts in MetaTrader?). Agents were helpful and most of the time knew the answers to our questions immediately. If they did not know they checked with a colleague and got back to us promptly. Overall, we judged the customer service to be solid and reliable.

Customer support is available 24/5 Assistance is available in English, Italian, Spanish, Portuguese, French, Arabic, German, and Greek.

Research

BDSwiss has a team of in-house analysts providing daily coverage of the market in both written and video formats. In addition, weekly outlooks and in-depth reports offer insights into the markets.

BDSwiss also provides a range of tools to help traders orient themselves in the market. These include an economic calendar, a trends analysis tool and a forex heat map showing the most traded currency pairs. BDSwiss provides frequently updated research materials of good quality, better than the industry average in our view. Materials can cater to both beginners and advanced traders.

Education

BDSwiss have gone the extra mile in the area of education with in-depth and frequently updated materials. They offer a wide range of resources including:

• Forex Lessons: Covers material ranging from the basic, (such as What is a CFD), to more advanced topics, (for example Position Sizing).
• Educational Live Webinars: Covers material such as the Fed Interest Rate Decisions and the Non-Farm Payrolls report.
• Educational Videos: Includes a 10-course video series with Frank Walbaum.
• Ebooks: These cover the Psychology of Trading and Technical Indicators.
• Seminars: Trading workshops and seminars have been held across the globe from Ireland to Thailand.
• 1 on 1 VIP Trading Coaching: Personal coaching is available to clients with VIP accounts.

We concluded that BDSwiss has a good range of educational materials catering to both beginners and advanced traders.

Platforms

Web

The BDSwiss WebTrader platform is accessible from all browsers and is available in over 20 languages. The platform has an intuitive, easy to use interface but is not very customizable. Basic order types are available, such as market orders, limit orders and stop loss orders. More advanced order types such as trailing stops are not available. Popular features such as 1-click trading and alerts are also not available via the web platform.

A built-in trend analysis tool provides trading ideas by identifying chart patterns such as triangles and wedges. Charting within the platform is provided by TradingView, which has a large range of technical indicators and drawing tools.

Desktop

BDSwiss offers the popular MetaTrader 4 and MetaTrader 5 platforms for desktop, which include advanced functions such as copy trading and automated trading.

MetaTrader 5 is available in 31 languages. The platform provides popular features such as:

• Alerts. This feature allows traders to be updated when an instrument reaches a specific price level. Alerts can be delivered via audio, an email, or a push notification to a mobile device.
• Watchlists. Traders can set up a list of their favorite instruments and follow live quotes in a panel called Market Watch.
• One-click trading. This feature allows traders to execute orders with a single click and no secondary confirmation. Being able to place a trade with a single click saves time and is especially useful for short term traders.
• Trading from the chart. MT5 also allows users the convenience of trading directly from the chart.

Order Types

MetaTrader also delivers when it comes to the range of available order types. The following order types are available:

• Market Order. This is an order to buy or sell an instrument at the current best available price.
• Limit Orders. This is an order to buy or sell an instrument at a specified price or better.
• Stop Loss Order. This is an order to buy or sell an instrument that is triggered when price reaches a specified level.
• Trailing Stop Order. This is a stop loss order that can be set at a defined percentage or dollar amount away from an instrument’s current market price. It is used to secure profits when you are in a winning trade, while not having to exit the position.

Time in force conditions such as Good ‘Til Canceled (GTC) can be applied to pending orders.

Charting

Charting features are robust. MetaTrader offers:

• 38 technical indicators. These include classic trend indicators, volume indicators and oscillators.
• 44 analytical objects. These include lines, channels, Gann and Fibonacci tools.
• 21 time frames Each instrument can be displayed in nine time frames, from one minute to one month.
• 3 chart types. Traders can choose between Bar Charts, Japanese Candlestick Charts and Line Charts.

Mobile App

The BDSwiss Mobile App has a clean and user-friendly interface. However, it only offers very basic functionality.

The BDSwiss Mobile app is intuitive and easy to navigate. The User Experience (UX) is positive as the app feels modern and up to date. Traders can use the app to follow various instruments sorted by asset class, keep track of their open positions, make trades and also fund their account.

Basic order types are available, such as market, limit and stop loss orders. The app does not offer time in force orders, such as Good ‘Til Canceled (GTC). Trailing stop loss orders are also not available.

Trading from the chart and 1-click trading are available on the app. Alerts, another popular feature, are not available.

Charts are good looking on the BDSwiss Mobile app but offer limited functionality. 2 types of charts are available (candlestick and area) across 9 different time frames. There are no technical indicators or drawing tools.

Order Execution

BDSwiss is a Market Maker and STP (Straight-Through Processing) broker and states that most trades are executed straight through liquidity providers. Market maker brokers set the bid (buy) and offer (sell) prices internally and automatically take the other side of a clients trade.

The Bottom Line

BDSwiss may have appeal for beginners with its easy to use proprietary platforms, solid customer service and abundant educational materials. However, BDSwiss has relatively high fees for Classic Accounts and clients outside the EU do not have the reassurance of strong regulatory oversight.

FAQ