Sword Capital Review
Sword Capital offers access to the global financial markets via two of the most popular trading platforms. That being said we have a few concerns with this broker, which seems to target the Middle East Market.
The Company. Security of Funds
Company Country Regulation
Sword Investment Capital
Sword Capital is owned by Sword Capital Corporation. The company’s regulatory situation is a bit messy. They claim to be registered in Kuwait, but not under any specifically financial regulator. This is the equivalent of simply incorporating a company. At the same time, they claim, the African branch is Regulated in the Seychelle Islands, under the FSA. Our investigation didn’t deem that claim to be true. At this point we are going to treat them as a non-regulated company.
You may already know this, but financial regulation is probably the most important thing to consider, when choosing a forex broker. Different countries have different regulatory agencies, which oversee the financial sector. For instance the UK’s Financial Conduct Authority (FCA), one of the most reputable watchdogs, imposes strict rules to brokers who are registered there. One such rule is mandatory segregated accounts, meaning clients’ funds are kept separate from the company’s. Another key feature is the compensation scheme – a system which guarantees clients funds in case the broker goes bankrupt. The maximum amount guaranteed, with FCA regulated brokers is GBP 50,000.
Minimum Initial Deposit
Sword Capital has set the minimum deposit at $500. This is above what most brokers demand nowadays. Some, like IG markets do not require any minimum for an initial deposit. This shouldn’t be a major factor when choosing a broker, as successful trading can require more adequate capital.
The minimum deposit for the TWS platform is set at $25,000, which is higher than other brokers, who offer similar service.
Average spreads & Commissions
The company offers floating spreads starting from 0.8 pips on EUR/USD. This is in-line with industry standards. Our tests revealed good conditions on the demo server. You may check a comparison of real-time spreads of 15 leading brokers here.
Sword Capital offers 1:200 leverage for forex trading. This is relevant to the contemporary environment. Some brokers offer 1:500 or even higher levels.
That being said, higher leverage is not always better. It simply means you can risk your capital more aggressively. Be sure to completely understand the risks involved with margin trading, before participating in it.
Sword Capital offers two trading platforms – MetaTrader 4 (MT4) for those clients focused on the currency market, and Traders Work Station (TWS) for those willing to trade/invest in other products, such as stocks. Both of them are top-rated:
When it comes to MT4, it is the global leader in forex trading platforms. It is relatively simple to use, but also has a solid charting package and tons of custom indicators and automated trading systems.
WTS would be hard for new traders to pick-up. It mostly for those focused on derivatives, different from FX. Lots of products are available through this platform, although we would advise you to trade with a different broker, if you want to get a feel for it.
Methods of Payment
Sword Capital has not listed any deposit and withdrawal methods on its website. After contacting the live-support (which was rather slow to respond) we found out they offer Bank Transfer, Credit/Debit Card and Skrill.
Sword Capital is a company, which allegedly offers access to the global financial markets. Its regulation is shady at best, with no serious oversight involved. This is such a big red flag, that it overshadows everything else about the company. A few additional problems are the slow live-chat support and lack of some vital information on the website.
Sword Capital Review Conclusion
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