No matter what you do on the internet, you have to be cautious. There are cybercriminals looking for an opportunity to take advantage and this is something many people have learnt the hard way. Hence, it is certainly not wise for you to forget it, especially when your money is involved, as in the case of online trading. Being able to trade without having to go anywhere has brought convenience that no one could have fathomed, but you have to be cautious. You need a broker to start trading and it is possible that it could be a scam rather than a legitimate broker. A look at this Smarketinv review can tell you how it is possible.
There have been many incidences where people ended up with such brokers because, either they were very eager to get started, or just couldn’t understand the signs of a scam. You have to bear in mind that the internet is mostly unregulated and there is no authority that’s monitoring and checking every website to ensure it is legitimate. Anyone can have a website and offer anything, so it is up to you to check and ensure you are not making a mistake.
This is of the utmost importance where brokers are concerned because they have to be trusted with your money and your personal and confidential information as well. It is true that identifying scam brokers has become a tad challenging because they have gotten better at hiding who they really are. Therefore, it is imperative that you understand the scam signs, as in the case of Smarketinv, one of the companies you will find. This brokerage is not worth your time or money and it will become apparent once you know the signs. What are they? Go through this review to know:
The broker is not licensed
Before you look at anything related to a broker, you should see if it is licensed or not. Why is that? If the broker you choose is not licensed and regulated, then you will be trading without protection and security and this is a big risk. You will have no one to turn to in case something goes wrong and will have to suffer the consequences. The problem with Smarketinv is that not only does it operate without a license, it is trying to mislead its clients.
According to the broker’s website, it based in London, United Kingdom. This means that it needs to be regulated by the Financial Conduct Authority (FCA), which is the regulator for the UK. If it were truly licensed by the FCA, then it would definitely be reassuring because it would mean that Smarketinv complies with some of the planet’s most stringent rules. Yet, a check of the FCA’s online register shows that the broker is not listed.
Moreover, a closer look at Smartketinv’s offerings reveals that the broker actually breaks the FCA policies, one of which involves offering crypto derivatives that have been banned in the UK. Trading with such a broker is undoubtedly a huge risk because they are not operating legally.
The broker offers trading bonuses
Another policy of the FCA that Smarketinv is in violation of is the practice of offering trading bonuses. The regulatory authority imposed a ban on these bonuses because they came with strings attached; traders were asked to fulfill minimum trading volume requirements that appeared to be impossible and this benefitted the brokers at the expense of their clients.
Yet, Smarketinv is offering these trading bonuses and it also requires its clients to have a 25 times turnover, which is another impossible condition that cannot be achieved. Another problem you will come across is their policy regarding non-deposited funds. According to this policy, your funds are divided into two categories; profits made via trading with the deposit you make and profits made with the bonuses issued by Smarketinv.
As per the brokerage, you cannot withdraw the latter, at least until you achieve the aforesaid turnover. But, the problem is that there is no way to separate the two category of funds, which means Smarketinv will have control of all your money until you can reach the required condition, which is practically impossible. The bottom line is that you cannot make a withdrawal.
The broker has excessive fees
If the other problems were not enough, you will also find that Smarketinv has excess withdrawal fees. Not only do they have high fees, which are now waived off by most brokers, they also apply a 10% penalty if you try to make a withdrawal before achieving 200 times in turnover. This is downright ludicrous. Moreover, they also have the policy of charging a fee for dormant accounts, which would be acceptable, if it wasn’t as high as it is here. All in all, it appears the broker is doing everything possible to exploit its clients.
The broker offers high leverage
High leverage should be considered an advantage, but not when you consider the risks associated with it. You are offered a leverage of 1:200 at Smarketinv and this is definitely not a good thing because the FCA does not permit its brokerages to offer such high leverage to its clients. Thus, it is another indicator that this company is not licensed and is operating illegally, if it really is based in London, as it has claimed.
The broker doesn’t mention any payment options
Another concern that you will have about Smarketinv is that the broker has not made any mention of the payment options it supports. How will you make your deposits and withdrawals? This is one piece of information that’s missing on their website and should be a concern because if the methods are not safe, or eligible for chargeback, then it would be a risk to use them. For instance, credit card deposits are eligible for a chargeback, which means you can get your funds back in case of a problem.
All of these are the scam signs that Smarketinv exhibits and you need to understand in order to avoid falling into their trap.