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Pips Station Review: Can You Trust Pipsstation.com With Your Funds?

Argos and John Lewis have very different average reviews – likely due to Argos paying the site

Questions raised over Trustpilot reviews

As with any successful business, Trustpilot has its supporters and critics.

Investigations have previously looked at the possibility of gaming the system, including research by BBC 5 Live Investigates, which found that it was possible to buy a false, five-star recommendation placed on Trustpilot via a Facebook group.

Company pages

On Trustpilot, all company profile pages are defined as either:

Asking for reviews: The company has claimed its profile on Trustpilot and regularly asks its customers for reviews.

Claimed: The company has claimed its profile on Trustpilot and has access to its Business Account, but we don’t have information that the company is actively asking for reviews.

Unclaimed: The company hasn’t claimed its profile on Trustpilot and we don’t have information that the company is actively asking for reviews.

These groups had been set up to encourage customers to buy a product from a website and post a positive review on Amazon or Trustpilot, for example, in return for a full refund.

Meanwhile, a Times investigation earlier this year revealed that some estate agents and banks were found to be playing the system to help them gain better review scores.

It said the online estate agent, Purplebricks had 62,000 Trustpilot reviews and a score of 9.5 out of ten. However, Countrywide, one of Britain’s largest estate agents, has only 123 reviews and a score of one out of ten.

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The difference found was that Countrywide is not a paying subscriber to Trustpilot but Purplebricks is.

Trustpilot said it had invested in time and technology to eradicate the practice.

It then published an open letter in 2020 specifically addressing claims made about about Purplebricks and its use of the site. It said the site had not contravened any of its guidelines and emphasised that its takes reports of any fake reviews very seriously.

Firms who pay Trustpilot a monthly fee gain access to analytics and can advertise their score

This is Money was also recently contacted by a whistleblower, who asked not to be identified, who claimed that paying members can get more control over their reviews and ratings than those who refuse to pay.

The source claimed that a previous company they worked at was annoyed by the amount of negative reviews that were left on their page from years ago, when they partnered with different firms, which was skewing ratings for their current activities.

They alleged that Trustpilot representatives said they were unable to remove the negative reviews, but heavily implied that they would be better able to help if the company signed up for a £500 per month subscription.

Trustpilot will reveal on the page when companies are asking for reviews from their customers

After subscribing, the source found it far easier to remove these inaccurate reviews.

However, this is a claim that Trustpilot strenuously deny and to protect the source’s identity we were unable to give exact details of the company they worked for, so Trustpilot was not able to investigate fully.

A Trustpilot spokesperson said: ‘This is a very serious allegation that goes against everything we stand for at Trustpilot. If evidence were presented to us we would investigate it thoroughly. If an individual were to make a misguided promise, it would be a dismissable offence.

Get in touch

Have you worked at a review website or work for a company that has been quoted large sums to have a review website account manager?

The fact is, no company can delete their reviews on Trustpilot and no salesperson within our organisation can do this on their behalf – our systems simply do not allow it.

‘All companies must abide by exactly the same rules whether they use our platform for free or purchase additional services from us. This is in contrast to other review platforms, where a company can pre-moderate and unpublish reviews they don’t like.’

Trustpilot says the reason people pay monthly amounts is to have access to analytics and also to be able to advertise their rating on their website.

A company, however, would pay more than £400 a month for that service whilst paying to display their reviews also suggests confidence that they have more positive reviews to show.

Looking at review sites is often how people decide whether to make a purchase or not

How has Trustpilot made reviews more transparent?

Trustpilot has faced criticism before and earlier this year, it changed its policy to make it easier for the public to detect when companies are trying to stop complaints posted to its platform.

Amazon reviews

Millions of Amazon shoppers are at risk of buying a sub-par product, thanks to fake reviews, according to research by Which?.

Popular items such as headphones, vacuum cleaners, dash cams and Bluetooth speakers that perform badly have positive reviews on the site.

Which? tested eight ‘recommended’ products with most of them falling short of an average performance score with three performing so badly they were rated as a ‘Don’t Buy’.

The consumer group said a sudden surge of positive reviews over a short period should be seen as a tell-tale sign they are unreliable and that fake reviews are used routinely by unscrupulous online sellers to undermine honest small businesses legitimately using online marketplaces to reach new audiences.

It said it will now reveal how many reviews each company has flagged for investigation over the previous year, which causes them to be hidden.

It will also say how many of the posts were subsequently returned online and how many were deleted.

Retail experts say a close eye needs to be paid to review sites, because they play an increasingly important part in people’s shopping decisions.

Graham Wynn, assistant director of business & regulation at the British Retail Consortium, said: ‘Online review websites play an important part in informing customers about both products and companies.

‘It is vital that these websites observe both EU and UK laws, provide only authentic reviews and that any commercial relationships between review websites and retailers are made clear.

‘The retail industry notes that new higher penalties for breaches of consumer protection law, including redress for misleading consumers are currently being introduced.’

Can you trust a review site?

Online reviews can be an invaluable tool when buying something or signing up to use a company, however, they should not be used in isolation.

A healthy level of scepticism should be employed when reading reviews and particularly enthusiastic or deeply negative posts should be taken with a pinch of salt.

Check for suspicious patterns and look for a general consensus – and look for reviews specific to the type of good or service you are buying.

There will always be ways that companies can get around people leaving negative reviews – or encourage overly positive ones – with many willing to pay to do so.

Whilst online reviews will no doubt continue to be a cornerstone for customers looking to get advice on a potential new purchase, it goes to show that people should be aware that not everything they read is true.

It is also a sign that actually taking a trip down to your local shop and having a look at a product in person, or seeking the expertise of a well trained shop assistant, could still be the best way to judge whether a product is worth your money or not.

How do other review sites deal with criticism?

Of course, Trustpilot is not the only place where customers often leave reviews.

Feefo is another review website, but one where customers can only make a contribution when invited by the company.

This means that not everyone who has a comment or criticism is able to make one. It says the reason it does is to stop any fake reviews.

Its websites states: ‘To stop people from leaving dishonest or fake reviews, we contact customers directly following their experience and invite them to leave a review; that review, whether good or bad, is then uploaded to the business’s Feefo page for all to see.’

Despite this, it does mean that those who had a negative experience may be unable to share their thoughts on the website.

Tripadvisor is another website that also recently came under fire by Which?, with the consumer group saying that the site was failing to stop fake hotel reviews.

The fake reviews had been used to boost the rankings of top rated hotels. The Which? investigation analysed nearly 250,000 reviews for the top ten ranked hotels in ten popular tourist destinations around the world, finding one in seven had ‘blatant hallmarks’ of fake reviews.

However, Tripadvisor said the research was ‘far too simplistic’ and claims it removed more than one million fake reviews last year.

AirBnB was also forced to make changes six months ago to how guests review their hosts after receiving complaints that reviews were being skewed.

For example, hosts said some guests were leaving five stars for cleanliness, precision and other categories but then giving a total rating of two stars which seemed unfair.

Therefore, AirBnB said it had added a new step to the review process. For example, if a guest assigns four or more stars to each of the categories and then selects three stars or less as the overall score, a pop-up window will pop up asking, ‘Is this true?’

Below will be a text that will explain that the overall rating allocated to the accommodation is less than the rating for each category. The guest will have the option to change the rating or ignore the warning.

It also changed the way the location section is rated. This is due to complaints from hosts who said that some people rated poorly their location, purely because they thought it was too far from public transport, for example, even though it was exactly as described on their page.

Therefore, it has now added a new question when guests are rating a location as three stars or below which says ‘isn’t the location accurately described?’ Since this has been introduced, it says the average rating for the site has risen by 0.8 per cent.

Honest BDSwiss Broker Review 2020

Table of Contents

Review: Regulation: Min. Deposit: Assets: Spreads:
(5 / 5) CySEC, FSC 200$ 250+ Starting 0.0 Pips

Nowadays it is difficult to find a trustworthy Forex Broker because the selection on the internet is very large and clear. BDSwiss is probably one of the best-known providers of financial products in the international broker world. So we ask ourselves the question: Is BDSwiss a good broker or not? – On this page, you will learn the truth. With more than 7 years of experience in the financial markets, we have completely tested the provider and present you in the following sections my test results. Everything about costs, conditions and more.

The official homepage of BDSwiss

What is BDSwiss? – The company presented

BDSwiss is an international Forex and CFD broker, which has its main client base in Europe. The company has been on the market for over 7 years and was founded in 2020. It offers customers trading in contracts for difference on any asset (currencies, stocks and more). Traders can speculate on rising and falling rates at small fees.

Already over 1 million traders registered with this broker because he is also known for eye-catching television advertising. The name alone inspires confidence because the group of companies is controlled from Switzerland, Zug. The head office of the broker is in Cyprus. Also in Germany (Berlin) and other countries, there is a customer center.

From my experiences and tests, the customer service at BDSwiss is awesome. Only a few other brokers can offer such a service to a trader. Every day webinars are organized and there are competent market analyzes for every customer. Also, trading signals can offer the broker, which had a high hit rate in the past.

Facts about BDSwiss:

  • BDSwiss Holding PLC is regulated by the CySEC (EU)
  • BDS Markets is regulated by the FSC (Mauritius)
  • Competent customer service for international traders
  • Founded in 2020
  • The group operates from Switzerland, Zug
  • Known from TV commercials and magazines

(78.3% of retail investor accounts lose money when trading CFDs)

The regulation of BDSwiss

Regulation by an official financial authority is very important in online trading. The license creates a confidential relationship with the customer. The broker must meet certain requirements and criteria in order to obtain such a license. Violations of the rules or even fraud would mean a permanent withdrawal of a license.

The BDSwiss group has several licenses, which brings a great advantage. BDSwiss Holding PLC is represented by CySec (EU), BDSwiss LLC by U.S. Patents. National Futures Association NFA and BDS Markets regulated by the FSC. The trader can decide for himself under which license he wants to trade. There is the possibility of unrestricted trading without leverage.

BDswiss is regulated by:

High leverage for European traders

The European Financial Services Authority (ESMA) banned the high leverage on private traders from 1.8.2020. This presents the trading scene with massive problems.

BDSwiss has cleverly solved this problem because for customers it is possible to trade under a license outside of Europe. This guarantees a high leverage of 1: 500.

Traders can choose between different regulators. High leverage is available.

The conditions for traders – What can you expect from BDSwiss?

CFDs and Forex Trading are very popular with private traders because you can access the global financial markets with little capital. In addition, it is possible to set not only on rising but also on falling courses. Maximum leverage of 1: 500 can be used. Even with small capital, it is possible to move higher sums on the market.

The minimum deposit is only 200$/€. This is low and acceptable compared to other competitors. Positions can already be opened with very small capital (0.01 lot). Overall, the broker offers an offer for each account size.

Overall, you can trade over 400 different assets/markets at BDSwiss. There are commodities, currencies, stocks, cryptocurrencies and more available. Shares are tradable by the German Stock Exchange, American Stock Exchange and many more on favorable terms. The spreads for these assets are always dependent on the current market from my tests and experience.

Transparent trading conditions

In fact, variable spreads are offered. Depending on the liquidity, a higher spread may occur. This is a normal stock market trading. On average, however, spreads are 0.3 pips in forex and less than 1 point in stock indices. For better spreads, you can activate the black account or use the RAW Spread account (personal offers are possible for each client).

My experience and tests have shown that BDSwiss is a better-than-average provider of CFDs, forex, stocks and more. The offer and the terms are very manageable and cheap for traders. We could not discover any hidden fees or traps.

Special conditions for traders:

  • Leverage between 1:30 – 1:500
  • Personal offers for high volume traders
  • 3 different account models
  • Very fast order execution
  • Short trading cryptocurrencies with high leverage
Assets: Spreads: Platform: Support:
250+ Forex, Stocks, Crypto, Commodities Starting variable 0.0 Pips Webtrader, Metatrader 4/5, Mobile App 24/7 Phone, Email, Chat

(78.3% of retail investor accounts lose money when trading CFDs)

Review of the BDSwiss Trading Platform

BDSwiss offers its own developed trading platform for the browser and the smartphone. The well-known Metatrader is also available in versions 4 and 5 (desktop version and app). Thanks to the clear platform, independent analyzes can be carried out easily and with the app, you can keep an eye on your portfolio at all times.

In summary, the software solutions from BDSwiss are suitable for every trading style. In the following pictures and texts, we will give you an insight into the trading platforms.

The BDSwiss Webtrader

Platforms:

  • The Webtrader and the app of BDSwiss very clear
  • The structured design of the Webtrader ist good for beginners
  • You get transferred direct market news into the trading platform
  • Easy selection of the most popular brands
  • Transparent quote and quick recognition of the conditions or spreads
  • Optimal analysis options with the chart (indicators & more)
  • Metatrader 4 and 5 is available

The Webtrader is especially good thanks to its user interface. This also allows beginners to understand trading quickly and easily. You can easily find your way around and realize exactly which actions you have to take.

If you have questions or problems with the trading platform, you can simply contact an account manager or support. Videos with instructions are also available at BDSwiss.

Charting and analysis

Charting is one of the most important things when it comes to technical analysis of markets. MetaTrader 4/5 is one of the most flexible platforms in the trading area. Many brokers offer this software for their traders. Choose between different chart types (candles, bars, lines) and set any time period. Furthermore, BDSwiss gets its market data from well-known providers.

In Webtrader the charts are provided by TradingView. This is one of the largest market data providers worldwide. The charts in TradingView are similar to the charts in MetaTrader 4/5. The difference is that there are actually more tools available in TradingView. However, in Metatrader 4 you can use your own programs and indicators as well as automatic trading.

  • Candlesticks
  • Line Chart
  • Bar Chart
  • Flexible Charting

BDSwiss mobile trading for any device

The offer of BDSwiss is rounded off with the newly developed app for Android and iOS (picture below). Have access to your portfolio from anywhere in the world. Check the latest news and respond to political changes on the go. Nowadays, an app is actually necessary for every professional broker because mobile trading is becoming increasingly popular. From my experience, the app works just as well as the online platform or Metatrader 4/5. You will find all the necessary functions very quickly and get the fastest access to the markets.

The BDSwiss App

How does BDSwiss Trading work? – Step by step tutorial

Also the worldwide known trading platform Metatrader 4/5 is offered via BDSwiss. This platform brings a lot of configuration options. Personalized indicators or programs can be imported into this platform. This way, every trader can independently adapt the platform to his trading style.

MetaTrader 4/5 is also available as an app for the smartphone. Simply log in with the data from BDSwiss and start trading. In the upper picture, you see the order mask. In the following points, we explain to you my experiences and tests the functions.

How to trade Forex with BDSwiss web trader and Metatrader:

  1. Choose any asset on the platform
  2. Choose the size of the right position for your account
  3. Stop Loss and Take profit rescue your position and profit
  4. Buy or sell – Invest in rising or falling markets

The Ordermask for trading

CFDs are an abbreviation for Contract for Difference. It is here a contract between Trader and the broker closed. This contract (contract) has an indefinite term until it is closed by the trader or broker (only with special exceptions). This contract may be executed on any assets offered by the broker.

So if you buy a contract on, for example, oil and the price of oil rises in the next 2 hours, then the value of your contract also rises and you can close the trade in profit. Generally, CFDs are traded with a lever. There are derivatives with which an underlying value is speculated. Another advantage is the speculation on falling prices. With CFDs, you can easily open a short sale, which is difficult for real stocks.

The advantages of the platform:

  • Trading with high leverage
  • Easy trading on falling markets
  • High markets liquidity of BDSwiss

The leverage of BDSwiss

Leverage is another important feature in broker selection. There are always differences. As mentioned above, BDSwiss has a European license (leverage 1:30) and a license outside the EU (leverage 1: 400). For equities the leverage is generally between 1:20 – 1: 100 and for currencies (Forex) up to 1: 400.

A higher level of leverage means that you need to deposit a smaller margin with the broker. For example, you want to buy 100 shares of Tesla at a price of 100 €. This corresponds to the sum of € 100,000. With a lever of 1:20, you have to deposit now only 5,000 € as collateral (margin) with the broker to trade the sum of 100,000 €. This allows more risky investments with the chance of a faster and higher profit. Many traders are reasonably afraid of over-leveraging their accounts. By adjusting the investment sizes, over-leveraging can be ruled out.

In summary, BDSwiss offers all the important features of a good CFD broker. The conditions for the trade are compared in the upper average and can be recommended with a clear conscience.

Is there negative balance protection?

The additional funding requirement is feared by any private trader because account balances can come into a negative state. The negative balance does not exist at BDSwiss. So your account cannot go into a negative balance. This can happen through extreme market situations, but BDSwiss automatically closes your positions before that.

You can not lose more than your investment amount.

Free Account opening for everyone

The account opening is very fast and easy at BDSwiss. Enter your personal information in the ready-made field and start the registration process. The email must be additionally confirmed afterward. BDSwiss deals with your data with confidence and is DGSVO compliant. After you have opened the account, you can use the demo account or the real account.

Open your free account

Countries:

BDSwiss accepts international traders but not from everyone country of the world. For example, US traders are not allowed. You can see that clearly if you want to register on the homepage. Europe, Africa, Asia, and India are the most growing regions for trading. Feel free to register your account.

Unlimited BDSwiss Demo Account

A demo account is very important for beginners and experienced traders. It belongs in the portfolio of a good broker. Beginners can take their first steps in investing in the demo account. This is an account with virtual money, which imitates the real money trade. In addition, experienced traders can develop new strategies or even try new unknown assets to trade.

We recommend every trader to use the demo account first before investing real money. Take enough time to get to know the trading platform. The demo account is capitalized with 10,000 € and offers enough space to test the platform.

The real account is free like the demo account. The broker requires real money verification of the account and of your person to prevent money laundering or other criminal activity. The regulation forces the broker to verify you. For example, monies may not be paid out to unsupported traders.

All that is needed is the completion of your personal data and the upload of a photo/document of your identity card and an invoice confirming your address. The verification takes less than a day from my experience and is quickly conducted.

(78.3% of retail investor accounts lose money when trading CFDs)

Review of the BDSwiss Account Types

The broker offers you 3 different account types. The basic account and RAW Spread Account is available to every trader with a deposit of 200$/€. The black count is assigned individually. You have to pay more capital and it depends on your trading style. BDSwiss does not specify a default for the deposit number for the Black Account.

The black account is made for larger account capitalizations. The conditions are better, but higher position sizes (from 0.1 lot) must be traded. Contact an Account Manager for an individual quote.

BDSwiss account types

Account types are part of a good broker. This makes it possible to respond more specifically to the wishes of traders. For example, lower spreads can only be activated if the trading volume is high so that the broker still makes enough profit. BDSwiss is very well positioned with 3 types of account and thus clearly sets itself apart from its competitors.

Overview of the account types:

Basic Account:

  • No deposit fee
  • Free education center
  • Free webinars
  • Hedging
  • Free trading tools

RAW Spread Account:

  • 0.0 pips raw spreads
  • Pay a monthly estimate $1 – $79
  • Only for Forex, Metals, and Energy Trading
  • No deposit fee
  • Free webinars
  • Hedging
  • Free trading tools

Black Account:

  • No deposit free
  • VIP education
  • VIP alarms
  • VIP support
  • VPS server
  • Custom offers for high volume traders

(78.3% of retail investor accounts lose money when trading CFDs)

Review of the deposit and withdrawal at BDSwiss

The deposit and withdrawal at BDSwiss should not be a problem for you as the broker offers many different payment methods to capitalize on your trading accounts. Deposits work in real-time (electronic methods) and are completely free. Funds deposited via bank transfer are credited to the account within 1 – 4 working days. The minimum deposit for a live account is 200$/€.

How does the payout of profit work?

The payouts will be processed and sent within 3 days. Simply go to the account dashboard and click on “Payouts”. With payments of less than 100€, it can be expensive because there are fees of around 10 €. This fee is likely to be taken because smaller accounts bring too little profit to the broker.

Since BDSwiss is a regulated and licensed broker, payouts are handled quickly and conscientiously. From my experience, the company always pays the money of the traders. This overlaps also with the experiences of my community.

With unregulated brokers, it can come to the delays of the disbursements or customer money frauds. This is not the case with BDSwiss because the company wants to continue to enjoy its good reputation.

Payment methods:

  • Bank wire
  • Electronic Klarna
  • Electronic payment methods
  • Credit Cards (Master, VISA, and more)
  • Skrill, Neteller
  • Withdrawal within max. 3 days
  • Payouts over 100€ are free

Which support and service BDSwiss can provide?

The customer support also scored very well in our review. Since BDSwiss is an international broker, more than 10 languages ​​are available. Support is available by phone, email or chat 24/5 a week. Competent answers are given and questions answered within seconds.

BDSwiss has a strong presence in the German (DACH) region and has therefore opened a customer center in Berlin. Also, countries like Cyprus, Seychelles, and Mauritius are included. This is another advantage for the broker because only a few brokers offer the service from a regional branch. In addition, there are more other customer centers too. Service is capitalized at BDSwiss, so get trader with the higher deposit a personal contact.

Also, there is a very large training center on the website of the broker. There you can watch video tutorials and learn new strategies. There are also daily market updates and multi-language webinars. In summary, the service package from BDSwiss is great and offers a trader with everything he needs.

Support: Time: Phone number: Special:
Phone, Email, Chat, Whatsapp, Telegram 24/5 working days +44 2036705890 Personal service for each client

BDSwiss offers Trading Signals with a high possible profit rate

A new project of the broker is the trading alerts. Receive alarms in real-time on your phone. The past has already shown very good results with a profit share of more than 60%. You can always view the past trades transparently on the homepage. The trading alerts are only available to Black Account customers.

Traders with years of experience and a fund manager were hired for the signals. The signals are sent directly to your computer or smartphone via an app. So you can implement the trades in real-time.

BDSwiss real-time alerts

Review of the fees for traders

Finally, we should take a closer look at the fees and costs at BDSwiss. As you have read in the previous sections, spreads may fluctuate depending on your asset and market conditions. These are the trading fees whereby the broker earns his money.

There are additional fees when paying less than 100 €. At least 10 € will be charged here. The effort is too big for the broker to manage accounts under € 200, so the fee is so high. There are no fees for higher payouts except for bank transfer. For international transfers, a maximum of € 50 is required and SEPA transfers a maximum of € 5.

There is also an inactivity fee of more than 90 days. Inactivity is when the client has not opened or closed trade and has not made any transactions. The fee is a minimum of 25 € and a maximum of 49.90 € high (10% of the account balance). In summary, the fees are manageable and not significant to most traders.

Fees:

  • Electronic payments are free
  • Outpayments under 100 € = 10 €
  • Sepa transfer 5 €
  • International transfer 50 €
  • Inactivity fee 90 days 25 – 49,90 € (10%)

BDSwiss is charging fees for low withdrawal amounts (lower than 100€).

(78.3% of retail investor accounts lose money when trading CFDs)

How to earn money with BDSwiss?

In the following section, I would like to explain how easy it is to actually earn money with BDSwiss:

In my opinion, a trade is settled in the daily chart (candlesticks). This is a very big timeframe and the trade runs for several days. Of course, earning money is also possible in a short time if you want to focus on short-term movements. In cooperation with a price average, uptrend and support zone, the trade can be successfully be sold and recorded a direct profit after the first few days.

Some beginners would now say it is just luck. This is not so. With random trading (which I do not recommend to anyone), you have a 50:50 chance to pass. If you now improve your knowledge through analysis and coaching you can get a significantly higher hit rate of more than 60 -70%. Of course, there will also be losses in trading, which will be offset by subsequent gains. You always have a certain probability of winning.

Lose money (losses):

Losses will inevitably come to you. Therefore, one should not be dissuaded from the web to become a good trader. Practice in the demo account is the top priority at the beginning. It is important that you use sensible money management. This means not to risk more than 0.5 – 3% of the total account for trade.

Too high a risk will mean long-term death for your account, as several losses can occur consecutively. If you then invest too much of your portfolio, you will see the empty account balance approaching quickly.

Retain winnings:

Profits can also be hedged with the stop loss. Should your trade run into profit, you can drag the stop loss to a certain level. The platform shows you transparently how much profit you make. The trader’s language says: They are stopped out in profit. This will prevent you from making profits in the market unnecessarily when the chart is against you.

Is BDSwiss scam? – Our conclusion of the review

In the past, we have already tested many brokers. BDSwiss is currently one of the top companies in the trading scene. The broker offers a truly comprehensive listing for traders.

The company, which has been on the market for many years and has proven itself since 2020, makes a very serious impression on me. With many licenses, the company shines in the area of customer confidence.

The service of BDSwiss stands out clearly. Webinars, coaching, market analysis, and trading signals are available to a trader. With a black account, you can enjoy VIP conditions.

Overall, there are almost only benefits for traders at BDSwiss. To make this review transparent, of course, we’ve looked at other brokers in this area. The spreads could be a bit smaller in comparison, but the broker would have to cut back on other offers. The service for customers is excellent and recommendable. The only drawback that has been noticed concerns only those with small accounts who want to pay less than 100$/€.

Advantages:

  • Multi-regulated
  • Fast order execution and high liquidity
  • Wide range of markets
  • Low spreads
  • High leverage
  • Account types
  • Optimal service by trained support
  • User-friendly and flexible trading platforms
  • Further education through coachings and training/webinars

Disadvantages:

  • Higher costs when withdrawal less than 100 €

The supply of assets is on average high. Trade commodities, stocks or currency pairs on a single platform. Spreads are low and competitive. Overall, BDSwiss is a recommended company. (5 / 5)

Can You Trust Your Trustee?

Attorneys and financial advisors commonly use trusts during the estate planning process. They aid in the distribution of holdings, ensuring that everything goes to the correct people and entities. They can also minimize estate taxes. Essentially, they allow you to remove assets from your estate so that more wealth can be passed to your beneficiaries. You can even place a life insurance policy within a trust.

Sounds great, right? But, of course, there is a catch. A trust is often only as good the trustee in charge of it. Read on as we examine the important role of the trustee and discover how to make sure yours is acting correctly, especially with complex instruments like insurance.

Trust-Owned Insurance

Life insurance located in a trust is referred to as trust-owned life insurance (TOLI); it’s similar to bank-owned and company-owned life insurance. Like any other trust, insurance trusts have documents that identify the trustees of the instrument. Unfortunately, while trustees often do an adequate job of completing basic tasks, conflicts and problems can arise when trustees don’t understand where their loyalties should be and how do deal with the complex financial issues that can come with the job.

All trustees bear a fiduciary responsibility to the beneficiaries of a trust. The trustee is required to manage the trust assets in accordance with the wishes of the beneficiaries. This is an important concept to grasp. The desires of the beneficiaries are paramount – not the desires of the individual who established the trust. This is difficult for many trustees because there is the genuine possibility that a trustee has never met the trust’s beneficiaries. Often, the trustee only meets with the person who establishes the trust. This raises the question of how trustees can fulfill their fiduciary responsibilities to someone they don’t even know.

Typically, TOLI beneficiaries have a desire to maximize the amount of wealth that they will receive when the trust assets are distributed. This requires the trustee to actively manage the insurance policy, or policies, that are owned by the trust.

Active management entails determining whether the policy is performing in line with the projections reflected in the original life insurance illustration. It is common for the policy to underperform because of aggressive assumptions used in the original illustration, lackluster investment results in the sub-accounts (for variable policies) or a challenging economic environment for the insurance carrier.

Actively managing the policy also requires the trustee to attempt to identify alternative policies that may be more in line with the desires of the beneficiaries. Recent innovations in the life insurance industry have rendered policies that were sold in the past obsolete. A policy that has been maintained in its original form and not reviewed every two or three years should often be replaced with a more attractive policy. A more attractive policy could carry a higher death benefit for the same, or a lower, premium. It may also allow the death benefit to be maintained without the need to make additional premium payments.

Are Trustees Fulfilling Responsibilities?

Unfortunately, many trustees lack the skills required to oversee trust-owned life insurance. People who establish trusts funded by life insurance typically first look to a friend or family member to serve as trustee. However, such folks often have little knowledge of the issues surrounding the prudent management of life insurance. The other popular choice is a trusted advisor, such as a financial advisor, accountant, or lawyer.

However, similar to a friend or family member, there is no guarantee that the trusted advisor is versed on the items necessary to effectively oversee the TOLI. Various court cases confirm that whether the trustees are friends, family members, or professionals, they are often not living up to their fiduciary responsibility.

The lack of follow-through displayed by fiduciaries is not something that should be taken lightly. Fiduciaries are bound by more than the ethical standards prescribed by their profession (professionals such as attorneys, accountants, financial planners, and stockbrokers are required to adhere to ethical standards established by the professional boards through which they are licensed).

They are also subject to additional requirements that are found in the Uniform Prudent Investors Act, the Prudent Trustee Rule, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and State Departments of Banking. These bodies have established rules and regulations in an attempt to insulate beneficiaries from the consequences associated with receiving poor advice from incompetent advisors. However, as is the case with much of the financial services industry, the rules fail to protect people unless they take an active role in reporting the instances when they have been the recipients of poor advice.

Take Charge

Querying the trustee is one of the most effective ways for beneficiaries to take an active role. The following are a selection of questions that beneficiaries may want to raise:

  • How is the policy performing relative to expectations?
  • When was the last time the life insurance policy was reviewed?
  • Are there other policies in the marketplace that may do a better job of meeting my wishes and the stipulations expressed in the trust document?
  • Has the credit rating of the insurance company that issued the policy deteriorated?
  • Is the allocation of the sub-accounts still aligned with the investment policy statement?

Do not be surprised if the trustee responds to your questions with a blank stare.

The Bottom Line

Trust-owned life insurance serves a critical function in the estate plans of many individuals. Not all trustees have what it takes to fulfill the fiduciary responsibility bestowed upon them. If you are the beneficiary of an insurance trust, it is crucial to monitor your trustee actively. This person is supposed to serve your best interests. There is a lot of money on the line.

Pips, Points, and Ticks: What’s the Difference?

To those unfamiliar with financial markets, the words “pips,” “points,” and “ticks” may sound like something out of a Dr. Seuss book. But there’s a reason why these units of measurement exist in the trading lexicon. In order to assess risk and reward and understand profits and losses, it’s important to know what these terms mean in different contexts.

Points

In the stock market, points represent the whole dollar amount by which a given stock or stock index has increased or decreased. In the case of an individual stock, a single point is always equivalent to one U.S. dollar. For example, if a stock dropped from $53 to $48, the change would be expressed as a five-point drop (as opposed to a five-dollar drop). So what, you may ask, is the point of using points?

Although the dollar value of a point remains consistent across different stocks, the percent change in share value that a single point represents depends on the value of the stock in question. For instance, if a $30,ooo stock dropped by three points, those three points represent a mere 0.01 percent drop in share value (3/30,000 x 100). In contrast, if a $10 stock were to drop by three points, that same three-point delta would plummet the share value by 30 percent.

In the context of a stock index, i.e., a collection of stocks, a single point change doesn’t necessarily represent a one-dollar market shift. In other words, a one-point drop in the Dow Jones Industrial Average doesn’t mean that all 30 stocks in the index fell by a sum total of one dollar. In fact, some stocks in the index may have risen, while others fell by varying amounts. Instead, a Dow point represents a one-dollar change in the weighted average of share prices for the index. Because stock indexes typically include a variety of high-priced stocks, using points in place of dollars allows price changes to be communicated in a more succinct way, with emphasis placed on collective performance.

To complicate things further, there are a couple of additional “points” to keep in mind with regard to the financial marketplace. In bonds trading, for example, a single point represents a one percent change in the bond’s value. As such, the dollar value of a point is subject to change as a bond increases or decreases in price. In the context of futures contracts, a single point is equal to two percent of a penny, or $0.0002.

Ticks

A tick is a fractional price change in a stock or security that is less than one dollar and as low as one cent. The tick value, or tick size, is used to establish a minimum increment by which price changes can be measured in a given market. Although different markets have different tick sizes, once that tick size is established, incremental price movements below that threshold cannot be tracked. For example, if the tick size of a stock was $0.10, a change of $0.05 would not be reflected in price movement. Instead, the stock price would increase or decrease by multiples of $0.10, moving from $40 to $40.10, $40.20, and so on.

In stocks trading, ticks can also be used to indicate the direction that closing price has moved relative to prior trades. In this context, an uptick is used to describe an increase in price and a downtick refers to a decrease in trading price. Prior to 2007, an uptick rule created by the SEC stipulated that all short sale transactions (e.g. when a trader expects price to decrease and borrows an asset in the hopes of selling it and repurchasing it at a lower price) be made at a higher price than previous ticks. The purpose of this original uptick rule was to prevent short traders from collectively depreciating the stock price. In 2020, the SEC replaced it with the alternative uptick rule , which only applies when a stock’s price has plummeted by 10 percent within the span of a single day. Once this 10 percent loss threshold has been met, the alternative uptick rule grants trading precedence to sellers taking a long position, thus restricting short selling in order to combat downward market pressure.

Pips

Pips (points in percentage) are unique to the foreign exchange market (Forex) and measure fractional price changes for currency pairs. In Forex, most currency pairs are priced to the ten-thousandths decimal place (four digits after the decimal point). Similar to a tick, a pip represents the smallest increment, or basis point , by which a currency pair can increase or decrease in price. Because pips refer to a currency pairs rather than a single stock or security, their value reflects the relationship or “spread” between the two currencies in question.

After a currency trader enters into a position, profits and losses are expressed in terms of pip movement relative to that position. For example, imagine that a trader uses euros to buy U.S. dollars, anticipating a rise in the relative value of the dollar to the euro. If that trader purchased dollars at a rate of €1.6740 per dollar and sold their USD (thus exiting the trade) at a rate of €1.6765 per dollar, their profit would equate to 25 pips.

The value of those 25 pips depends on the amount of USD that the trader bought. In other words, if they only bought one USD, a 25 pip profit would only equate to a few fractions of a euro. In contrast, if they bought four million USD (at a cost of €6,696,000), a 25 pip profit would mean that they were paid €6,706,000, thus earning a €10,000 profit.

The Takeaway

Before acting on a trade, make sure that you understand the meaning and value of points, ticks, or pips relative to the market and trade in question. Armed with this knowledge, you’ll be equipped to interpret the financial implications of market movements and weigh risks, rewards, profits, and losses with greater accuracy.

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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