SWKInvest Review – Looking at the Warning Signs

SWKInvest Review

Your first step in the online trading world is signing up with a broker. There are a plethora of them operating in the market, ready to welcome you and help you on your way to achieve your aims. But, not all of them have your best interests at heart. As a matter of fact, some of them are intent on exploiting you because they are scams and want to make a quick buck.

Unless you want to become their victim, you have to be very careful when choosing a brokerage. This SWKInvest review can teach you how they may try to take advantage of you.

If you believe that a scam brokerage is going to come with big, flashy warning signs about what they really are, then you are in for a very big surprise. Why? This is because they may appear to be extremely similar to authentic and professional brokerages that operate in the market. In fact, it is because of these false appearances that they have gotten so good at fooling people. There are no such issues with their website and they make claims that are quite similar to what most legitimate companies do.

Does that mean that you cannot identify them? No, it does not because even if the scam brokers do not have any obvious warning signs, it does not mean that they do not have them at all. There are warning signs, but you just need to dig a bit deeper to find them and once you do, you can avoid them and look for a good broker for your needs. This approach can work wonders in the case of SWKInvest because at first glance you will find it to be a decent brokerage. The variety of assets if offers is quite attractive and it also mentions great bonuses.

You will also find high leverage ratios promised at SWKInvest and a good trading platform and it sounds really good. But, digging deeper will show you some warning signs that you need to take into account. You can go over them below:

An anonymous broker

The relationship you have with your brokerage requires a great deal of trust. When you open a trading account with them, you will deposit your hard-earned money and also share a lot of personal information. Therefore, you want to deal with a company you can trust to protect your data and your money and give you access to the opportunities in the financial markets. Licensed and regulated brokerages are capable of doing so because their chances of being a scam are little to zero.

This is because their activities fall under the oversight of the regulatory authority that issues them a license and they also comply with laws and agree to maintain high standards. Their policies and safety measures give you peace of mind. Before you choose a brokerage, you should always check to see if they have a license and are regulated. Doing the same with SWKInvest will leave you surprised because you will not find any mention of either in their presentation.

In fact, there does not seem to be any information about SWKInvest on its website. There is no company name given, or any corporate background. There is not even an address that tells you where the brokerage is based. It turns out that you are dealing with a completely anonymous company that you know nothing about, yet they are asking you to trust them with your personal details and your money. No one is going to feel comfortable in doing so.

The problem with bonuses

When you are going through the presentation on the SWKInvest website, you will come across the mention of trading bonuses. There is no doubt that it sounds exciting and lucrative because you will get some free funds for trading. But, you should remember that bonuses are no longer widely accepted in the online trading world. As bonus policies became malicious, many regulatory bodies decided to ban them altogether.

These days, it is mostly scammers that offer trading bonuses and they use them as excuses for preventing withdrawals. How do they do this? All you have to do is look at the SWKInvest bonus policy and you will be able to understand. It states that accounts credited with a bonus are not eligible for withdrawals until a specific minimum turnover is reached. The said turnover is so high that even professional brokers will find it too challenging. This means that the likelihood of you being able to withdraw is low, or impossible.

The high leverage

Most people would find the high leverage ratios that SWKInvest is promising appealing because it means greater flexibility during trading. Wouldn’t you want to make bigger trades to earn higher profits? This is what leverage is for, but it is also a double-edged sword. If the trade does not go your way, you will end up with higher losses. This is a big risk and it is because of it that regulatory bodies have restricted leverage ratios in most regions.

But, the leverage available at SWKInvest goes as high as 1:400 and this is considered beyond the limit imposed by most regulators, which shows that SWKInvest is not up to any good.

Absence of trading platform

The actual key that unlocks the financial markets for you and helps you enjoy trade execution is the trading platform. You cannot trade without a platform, so it is quite the shock to find that SWKInvest does not have a trading platform at all. In lieu of a platform, the brokerage has seemingly provided its clients with a bunch of charts that track the prices of different assets, but that is it.

You cannot use these charts for doing any trading and they are actually available for free over the internet. Why would you open an account with SWKInvest if you only have access to these charts? You wouldn’t because this means it is not actually a broker.

Final Word

These warning signs all show that SWKInvest is just one more scam broker that has popped up in the market and one you should reject right away.