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Zuitex Review - is it scam or safe?

Zuitex Review - is zuitex.com scam or good forex broker?

RATING: 1 / 0 REVIEWS Zuitex
Zuitex is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account Min. deposit Max. leverage Spread
Bronze €500 1:400 0.9 pips
Silver €5 000  1:600  0.5 pips
Gold €10 000 1:800 0.3 pips
Professional €50 000  1:1000 0.8 pips

   

Zuitex is a forex broker that claims to be based in Switzerland. It offers four trading accounts and access to the MetaTrader4. Apart from their account type and trading conditions, we have serious concerns about this broker and the details will be highlighted below in this review. If you are going to skim through it, make sure you read at least the first two points in the Negatives section.

 

 

Zuitex Advantages

 

MT4, good selection of assets

Clients of Zuitex are offered the most popular forex trading platform, the MetaTrader4. Most traders know this trading software well and actually like it. The MT4 is famous for its top-notch charting, the automatic trading bots called Exert Advisors (EAs), and the customization options, which allow traders to create technical analysis indicators and EAs of their own.

 

Besides, it seems that Zuitex‘s offer is quite broad in terms of tradeable assets – there are many currency pairs, as well as CFDs on indices, commodities, precious metals and even several cryptocurrencies available for trade. Yet, as we have major concerns about this broker, you might search for better options for trading on this platform.

 

 

>> Looking for a better MT4 broker? <<

 

 

Low spreads, generous leverage

The spreads announced on Zuitex‘s website are actually quite attractive on all account types – below 1 pips on majors like EUR/USD. That being said, keep in mind that a number of brokers offer similar or lower spreads. Many of them, unlike Zuitex, are also duly licensed.

 

Another possible advantage of this broker is the generous leverage extended to clients, reaching 1:1000. While leverage is a controversial topic, having the option to use high leverage levels is nice. 

 

Yet, make sure you fully understand the principles of margin trading before using leverage ratios higher than 1:50, as statistics show that this is among the top reasons for novice traders to lose their entire investment.

 

 

Zuitex Disadvantages

 

No financial regulation

Zuitex is a trademark of Aldima ltd. and claims to be based in St. Gallen, Switzerland. However, our research revealed that actually the company, which also operates the brokerage brand UK Financial Investments is actually registered offshore, in the Seychelles. Forex regulation in the Seychelles is not mandatory, so brokers don’t have to meet any requirements and face little regulatory supervision, if any.

 

This means that clients of such companies are subjected to substantial risk, as their interests and funds are not protected. It also means that offshore brokers are not allowed to operate on any heavily regulated financial markets, such as the USA, EU, or Canada.

 

Blacklisted by the Swiss FINMA, Austrian FMA

However, Zuitex obviously targets European investors, as its website is available in English, Spanish, Italian and German. What is worse, we found out that Swiss financial regulator FINMA has added the broker to its warning list.

 

 

 

Click on the image to zoom in.

 

More recently, Zuitex was also blacklisted by the Austrian FMA. This is a clear sign of trouble, as those regulators have probably received a number of complaints against the broker from investors who have fallen victims to their scam.

 

Demo spreads too good to be true

When we tested Zuitex’s MT4, the benchmark EUR/USD spread was floating around 0.2 – 0.3 pips, without any commission.

 

Click on the image to zoom in.

 

If trading costs are the same in live trading environment, there is no way for the broker to be profitable. Hence, we assume that the lack of commission fees and the tight spreads on demo accounts are just a trick to attract customers.




>> Compare the spreads of some top brokers in real time <<

 

 

Managed accounts offered

Last but not least, Zuitex  offers managed accounts and that is another worrisome sign. The majority of forex brokerages are in fact Market Makers – basically they win when traders lose, and vice versa. So, if a Market Maker manages your account, it will most certainly be handled in such a way that you lose.

 

 

Conclusion

 

Zuitex is another dodgy unregulated broker that has gotten under the radar of several European financial regulators. That being said, it is most likely one of the many scams on the forex market, so don’t be fooled by its claims of “Swiss finance traditions” and promises of low trading cost.

 

As always, we recommend that you only deal with well-established and licensed forex brokers. That being said, one of the most trustworthy authorities in Europe are the UK’s Financial Conduct Authority and the Cyprus Securities and Exchange Commission (CySEC).

 

 

>> Trade with a broker regulated in Cyprus <<

 

 

And finally, here are the highlights of the present review of Zuitex:

 

Pros

Cons

Generous leverage, seemingly good spreads No financial regulation
MT4 available, good selection of assets Blacklistedby the Swiss FINMA, Austrian FMA
  Demo spreads too good to be true
  Managed accounts offered

 

Latest news about Zuitex
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Traders` reviews for Zuitex

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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