FCA stops BDSwiss from offering CFDs to UK customers

The UK regulator has taken actions to stop Cypriot-based firm, BDSwiss Holding Plc, and other members of the BDSwiss Group from offering high risk CFDs to UK traders.

According to FCA’s announcement, the BDSwiss Group used the UK authorisation of one of its entities to conduct business in the UK. The regulator stated that 99% of its UK customers, however, traded through the overseas units of the company, which are not regulated in the UK. By trading with entities without authorisation to provide services in the UK, the customers lost their protection.

Sarah Pritchard, Executive Director, Markets at the FCA said:

Sarah Pritchard, FCA

Sarah Pritchard

This group was selling high risk investments to UK investors in breach of our perimeter and the rules for CFDs we have put in place to protect retail investors.

Many investors were attracted to the firm via social media accounts.  Consumers should be very wary of those on social media making promises which look too good to be true and be careful where they invest their money. We have acted where we can but once again repeat our call for restrictions on this type of advertising to be included in the Online Safety Bill.


The UK watchdog also discovered concerning details about BDSwiss’ sales and marketing practices such as use of misleading financial promotions, unrealistic claims about returns, failing to present clearly nature of the financial instruments being marketed and failing to describe the risks involved in trading CFDs. The regulator said that the company often contacted customers directly or through media platforms in order to market their products.

In some cases, social media was used to show affiliates of the company leading lavish lifestyles, claiming it is funded from trading which was not true. In reality, those affiliates were paid commission to refer customers to the company.

The FCA reported that “numerous UK consumers have lost significant sums of money” because of the activities of BDSwiss Group and its affiliate.

The regulator has called BDSwiss Holding Plc to stop regulated or marketing endeavours in the UK and to stop other members of the Group as well. The company was also ordered to “to close all trading positions and return the money to customers.”

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