Is It Safe To Trade Forex With A Binary Options Broker? Find Out In This BDSwiss Review
BDSwiss is a Binary Options broker that also provides Forex and CFD trading as part of its product portfolio. Tons of Forex brokers provide different financial products such as binary options trading and spread betting along with their traditional FX products, but in the case of BDSwiss, it is the other way around.
Best and most trusted forex brokers in July 2020
All the brokers below are available in:
Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
Type of Brokers
Market Maker, DMA
Platform for trading Forex, analysing financial markets and using expert advisors.
Multi-asset platform for trading Forex and CFDs.
Trade online without downloading any software.
Wire Transfer, Bank Transfer, Credit or Debit Cards, PayPal
BDSwiss concentrates its efforts on advertising itself as a premium binary options broker that also indulges in FX and CFD trading through its market maker model. It is possible for traders to be confused about the origins of BDSwiss, especially due to the unique resemblance of the company’s trading name to other Swiss brokers and the likelihood that the company might have some relationship with Switzerland. In fact, BDSwiss has no affiliation with any Swiss agencies, neither has the company incorporated any branch establishments in Switzerland. BDSwiss is fully owned and operated by BDSwiss Holding Plc., a financial services company based in Nicosia, Cyprus. BDSwiss is regulated by the Cyprus Securities and Exchanges Commission (CySEC), which is a top-class regulatory agency that falls under the direct supervision of the European MiFID. BDSwiss is a binding member of the Investor Compensation Fund (ICF) under the new CySEC rules, which aims to compensate investors if a regulated company fails to meet its debt obligations due to insolvency or abrupt bankruptcy. BDSwiss is also allowed to operate in the entire EU using the CySEC license, which is authorized under the European Economic Area (EEA) agreement between all member EU nations. Therefore, BDSwiss does not have to spend any additional resources on setting up offices in other major cities of Europe, which does help the company to take advantage of Cyprus’s strategic location. Brokers specifically choose Cyprus as a Forex broker destination due to its lenient tax structure, ease of doing business, comparatively lower regulatory guidelines, and the aforementioned strategic location in Europe. Regardless, investors do enjoy a significant amount of security and safety while dealing with CySEC regulated brokers, mainly due to the strict regulatory supervision of the MiFID. Other regulatory organizations from Europe are also free to scrutinize the activities and monitor the code of conduct of brokers based in Cyprus, which further adds an incredible layer of security for investors’ capital.
Further Insight Into BDSwiss Leverage, Spreads & Trading Information
BDSwiss offers different platforms and account options that are individually tailored for binary options trading and Forex trading. Nevertheless, there is just a single choice of account for Forex traders, which begins with a minimum deposit of $100 (or its equivalent in Euros or Pounds) and a maximum leverage of 1:500. The BDSwiss spreads start from 1.2 pips, but being a market maker, we have seen the spreads being well on the better side of 2 pips on most currency pairs. The spreads are not overly expensive, but we have seen a few brokers that offer ultra-tight spreads on their normal market maker accounts, which can be less than 1 pip during most market conditions. The broker has stuck with the MT4 terminal as the primary BDSwiss trading platform, which is not a bad idea, considering that MT4 is indeed the most widely adopted trading platforms for most retail traders. Binary options traders are also offered a dedicated binary options trading platform, which requires a different trading account under modified sets of trading conditions. Forex and CFD trading should not be confused with binary options trading, especially since binary options involve betting on the direction of an asset and gaining or losing a fixed amount of money per trade. Forex and CFD trading is more akin to the conventional forms of investments, and the profit and loss potential are dependent on the size of investment and the magnitude of movement of an asset. The MT4 terminal can be used in its different iterations, each for Windows, Mac, iOS, and Android operating systems. The broker has also provided the MT4 WebTrader for BDSwiss mobile users who can’t access their trading accounts on a dedicated device. The WebTrader offers reduced functionalities when compared to the traditional desktop installable interfaces but can provide all the essential features to perform basic technical analysis and enter/close/modify orders without too much trouble. The BDSwiss apps are also specifically designed for trading on the go, which is supported on most iOS and Android smartphones and tablets.
Tutorials & Other Educational Resources
BDSwiss is primarily a binary options broker and it is common among such types of brokers to offer a lot of free information on the markets through educational resources, free technical analysis, and even free trading signals. BDSwiss has made it their policy to offer their educational materials for all account holders, regardless of whether they opt for the traditional FX and CFD trading account or the more vibrant binary options trading account. Binary Options brokers are more committed to offering an excellent graphical interface to ensure that the traders are at ease while investing in the markets. Therefore, it doesn’t come as a surprise that BDSwiss has paid extraordinary attention to detail while designing their interfaces. The company has also made sure to include all types of innovative financial products and markets so as to provide the latest financial products according to the general market consensus. The broker does not mention about any BDSwiss bonus, but it is possible to receive some reward for your initial deposits, especially since other competing binary options brokers are known to offer huge incentives for signing up. You should contact the customer service department for exact information on the available bonuses and promotions.
Is BDSwiss Safe For Forex Trading?
The broker is regulated by the CySEC, which should provide a good amount of reassurance regarding the reliability of the broker. Nevertheless, there are far better options in the market that offer excellent trading conditions at a fraction of the cost. For a $100 initial deposit, you can certainly choose a highly reliable ECN broker, which may be able to offer you the best trading conditions without worrying about the conflict of interest with a market making broker.