Different brokers appeal to different traders. Each have their own unique features that could be useful to different people.
Unfortunately, there are also brokers that have no real appeal and nothing special to offer. They rely purely on people who don’t do their homework and are gullible enough to deposit money with them. Today we are going to focus on one such broker: Banc De Swiss.
If however you’re looking for a good and trustworthy broker, try Stockpair. They have a good platform, good payouts, and can be trusted.
|Banc de Swiss Summary|
|Normalized payout||Up to 85%|
|Trading assets||Stocks, Forex, Commodities, Indices|
|Min. Account size||€ 100|
|Min. Trade size||$ 20|
|Special features||Call / Put, Option Builder, One Touch, 60 sec|
Banc De Swiss bring nothing new to the table. They’re just another bland Spotoption broker. They are a Cyprus based binary options broker and have been in business since since 2011. They have a feeling of a small broker in every regards, which is never a good thing. I would have expected that after more than 2 years in the business, they would at least have taken some time to develop something new and somehow make themselves stand out from the croud. But alas, there is nothing interesting to see with Banc de Swiss.
The very name “Banc De Swiss” is the first sign of dodgy behavior on their part. They try to give the customers a false sense of security by implying that they are a bank of sorts, or even the Swiss bank. Don’t be fooled, Banc de Swiss are not a bank in any way and have nothing to do with the banking system
For a company that has been around as long as Banc de Swiss, the asset selection is very poor. They only have 73 assets in total, including:
- 15 FOREX Currencie pair
- 7 Commodities
- 24 Indices
- 27 stocks in various markets including Nasdaq, European Markets and the Tel Aviv Stock Exchange
Registering an Account
Registering and setting up an account with Banc De Swiss is pretty easy. Just like other brokers, you just choose your login details and enter some personal details and within minutes your account is ready and setup. I received a telephone call by a native English speaking lady within a few hours of registering. She asked me if everything was ok and if I needed any help in figuring everything out. They’re willing to work hard to get you to make a deposit.
I tested out their customer support by clicking the “contact us” button. This brings you to a new screen which has the option of either entering your details for them to get back to you, or telephone/fax, live or live chat.
I of course chose live chat.
A person answered the chat within a few minutes. Not too bad, but not great. The thing is that the rep that answered started speaking to me in German. I mean what?! I don’t have a German IP, name or anything that would otherwise indicate that I want to speak German.
So, when I asked if he spoke German, I got a pause which lasted a loud few minutes, afterwhich apparently an English speaking rep took over. Once we got the chat going, the answers were pretty smooth.
Banc De Swiss offer a very standard Spotoption platform with all the regular options.
Regular binary options
The default trading window houses three trading windows where you can choose which securities you want to follow. Each window has a drop down menu where you can select the currently available assets for trading (according to the current time of day).
Each chart has t he current price (live), and the correlating chart for the last hour. Putting in a trade is easy and takes a few seconds, with a minor lag.
Once you enter how much you want to put into the trade, you get a 2 second approval window with the current price (locked). This gives you exactly two seconds to decide if you want to enter the trade or not. If you don’t react fast enough, the order is autoapproved, so be careful and keep your finger on the mouse. I would have preferred it if it didn’t auto approve after 2 seconds.
A proper and good broker would keep updating the price and let you pull the trigger at the exact moment that you want to acknowledge the trade.
This review was made during European trading hours, so I could not use my NASDAQ trading software to guage the accuracy of the system. I decided therefore to use the next best thing: Google Finance.
Google Finance is probably one of the most accurate web-based quote platforms. As you can see, there is quite a difference between the Banc de Swiss quotes and Google Finance. I did not take the time to check if these were biased checks based on the direction you choose to trade, but I would be careful and check the quotes carefully with BDS before trading.
Once you purchase an option, you can monitor it in the interface, and it will indicate to you at any given time which options are currently in the money, and which aren’t. You also have two additional optional action that you can perform on existing trades:
Double up: If your option is closing near to its expiry time and you think you are going to finish in the money, you will have the option of “doubling up” and effectively creating an additional identical trade, but with the strike price being the current price. There is no logical reason why someone that is in the money would want place another exact trade with less chances of success. I think this tool has been put in place by Banc de Swiss with the sole purpose of causing traders with winning trades to lose their winnings.
Rollover: If your option looks like it is about to expiry out of the money, you have the option of extending its expiry time. Clicking the Rollover button extends the time of your current option, and increases your chance of closing in the money. This is a good tool to have as an option.
Rollover can only be applied once on each option and costs 30% of the current investment on the option. Do the math to see if it’s worthwhile.
In addition to the standard features provided by the broker, each broker usually tries to add their own flavor of unique options. Like I mentioned before, Banc de Swiss offer thhe standard Spotoption additional features.
This feature allows traders to customize their trades to fit their individual trading styles and is usually more useful for more experienced traders who understand the market and would like more flexibility in order to create their own trading strategy.
The Option builder provides a degree of freedom by allowing the traders to set the exact expiry time (within the next 4 hours) and risk level, in addition to choosing which asset and how much you want to invest.
This trading tool allows you to put in orders on certain predetermined assets and are usually more long term, lasting 4-5 days. The binary options needs only to reach (or touch) the strike price once during those few days following the option purchase for them to become winners. While these options may seem like they have little to no chance of becoming winners, as the strike prices are usually quite far off, they offer returns of up to 600%.
Like it sounds, Banc De Swiss offer 60 second options for those who like to speed trade. These options expire exactly 60 seconds after being purchased. These trades can be quite lucrative and if used correctly, a lot of money can be made very fast. Beware however, as this is not a tool for beginners. I know some traders like 60 second options, but I personally never trade with this tool since it’s more luck than anything. I mean, you can’t really make any technical prediction of how a stock is going to behave within the next 60 seconds.
This is a nice professional trading interface provided by Banc De Swiss. The interface displays a graph on the asset of your choosing, with a time frame of anywhere between 15 minutes and 5 hours. All options purchased for that asset are on the graph. New options can also be purchased directly from this screen.
Payouts and Commissions
Banc De Swiss’s payouts are considerably low for this industry, usually at around 70%.
Not only this, but BDS also charge a $25 fee if you withdraw via bank transfer and impose a minimal amount for deposit and withdraw of 100 Euros. This means that if you have 80 Euros left in your account, you won’t be able to withdraw it unless you bring it up to 100 Euros (or lose it all). Euros.
After trading for a while with Banc De Swiss, I was very unimpressed. They bring nothing new to the table, and what they do, they do mediocrily at best. Their support is pretty bad. They are a very small company, and it shows with everything from support to trading capacity.
They also have very low payouts and impose restriction on withdrawals which are very unwelcomed.
- Small minimum deposit
- Problems with withdrawals
- Low payouts
- Very inaccurate quotes
- Limited NASDAQ stock trading
- Minimum withdrawal of 100 Euros.
- Bank Transfer Withdrawals cost money
One thing is for sure though, Banc De Swiss is a scam. Steer clear of them. There are so many good binary options brokers out there, that it really does not make sense to register with this broker.
If you’re looking for a good and trustworthy broker, try Stockpair. They have a good platform, good payouts, and can be trusted.