Britain’s Financial Conduct Authority (FCA) published a notice in August 2015, stating that Zurich Prime has been providing “financial services or products” in the United Kingdom without its authorization. The FCA further warned that Zurich Prime may be a scam.
In November 2016, the Ontario Securities Commission (OCS), one of Canada’s 13 provincial financial regulators, warned investors not to do business with Zurich Prime. The OCS also added U-Nex Global Ltd, operating as Zurich Prime, to its blacklist of companies illegally conducting financial services targeting provincial residents. The firm is not registered in Ontario to engage the trading of securities or advising anyone with respect to investing in, buying or selling securities.
About Zurich Prime
Zurich Prime advertises itself as “an industry leading online trading broker, specializing in stocks, commodities, CFDs and currencies.” In fact, it used to offer binary options until early 2018, when, like the rest of that odious industry, it found itself facing a backlash and was forced to re-brand itself. This was due to two major factors. The first was that Facebook and Google banned binary options advertisements. The second was the adoption of several individual national bans on binary options trading by retail investors, as well as a pan-European Union ban.
Look closely and you’ll find a number of inconsistencies on the Zurich Prime website. The company claims to “offer a unique and fully transparent trading model which guarantees best price execution.” In reality, however, Zurich Prime openly admits on its hard-to-find Terms and Conditions page that “trading does not occur on a Regulated Market, Multilateral Trading Facility or any other similar organization but Over-The-Counter (OTC).” In other words, there’s no transparency. That explains why a web search will reveal a significant number of complaints accusing Zurich Prime of being just another online binary options scam.
Zurich Prime also claims that it “equips traders from all over the world with a secure and transparent trading experience,” but it is unlicensed to actually operate as a brokerage. It claims that it “upholds strict compliance requirements,” but in reality is unregulated by government agencies that establish those requirements and monitor their compliance. It claims that its “team of top financial experts provides around the clock support in 5 languages,” but its website is available only in four: English, Arabic, German, and Russian. Perhaps its most cynical marketing gimmick is that its logo is designed to mimic the Swiss flag, even though the company has no visible connection to Switzerland. The firm is owned and operated by U-NEX SOLUTIONS SRL., whose address is given on its poorly proofread Terms & Conditions page as Bvd Dimitre Pompei 5-7, Building Hermes Plaza, 2nd floor, Office 234, District 2, Bucharest 020335, Romania. Contracts signed by customers are governed by and enforced under Romanian law.
We do give them credit for a bit of honesty, however, for noting on its Terms & Conditions page that “CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.” How much money should you expect to lose?