In this review we address the reasons why you should not invest money with Silwana Brokerage and possibly also with Silwana Diamond Investment.
What is Silwana Brokerage
As its name suggests, Silwana Brokerage is an investment company that will allow you to trade financial markets – Forex, stocks, commodities and indices.
The minimum deposit for a real account is 100 USD. The broker will provide you with daily market analysis so you can make better trading decision.
Silwana also runs an investment fund that allegedly places money in different markets: precious metals, oil, cryptocurrencies, commodities, stocks and indices.
The performance of these investment funds in last year allegedly was between +25 and +50%.
The Silwana investment funds are supposed to be passive income streams, you just have to choose your fund, invest money and wait for the profits. But does it really work like that?
Is Silwana legit?
Stay away from Silwana Brokerage
Within our investigation of the Silwana Brokerage we found a few reasons for not recommending this company for investments. We explain them in this review.
Not regulated = problem
The number one reason why you should stay away from Silwana Brokerage is that it is a broker that is not regulated.
The company gives a Dubai address as its main address, however if you read the fine print at the bottom of the page, you will find out that the broker is incorporated in St. Vincent & the Grenadines.
Which is a red flag. If the company is based in Dubai, why it is not regulated in Dubai by the DFSA? It is never a good sign if you do not want or can’t meet the regulatory requirements in your home country and you go offshore to establish an investment company.
We believe that people should always invest and trade with regulated companies only. It is because financial regulation provides a certain degree of consumer protection. For example, in a lot of countries deposits with regulated brokers are insured. You will never have that with unregulated ones.
It is also worth mentioning that since Silwana Brokerage is not regulated, it can’t legally solicit customers almost in any country of the world. Be it the US, Canada, UK, EU, Australia or for example New Zealand, all these countries require investment companies to be registered and regulated. If they are not, they just can’t offer their services to residents of those countries.
You can alway ask your national financial regulator about any investment company if it is allowed to offer its services in your country. Silwana Brokerage is not, because it is not regulated.
Dubious returns on investment
In its table of investment funds (see the picture below) Silwana shows results from the last month, last 3 months, last 6 months and last year. And all funds have supposedly been in profit in every mentioned time period, everything is green.
Which looks very dubious. It would take an investment genius to get such results, but more importantly, they also seem impossible.
For example: take a look at the last fund “Dow Jones – S&P – Nasdaq”. Silwana says it managed to get home profits in every time period to make a total of 35% ROI in a year.
Which is very different from what happened in reality in the markets. On the right side of our picture you can see the real performance of the Dow Jones Industrial Average, S&P 500 and NASDAQ Composite Index from Marketwatch, and it is all red. Except for the S&P 500 1 year return that is a meagre 0.26%.
So in reality a fund composed of those three indices would be red, it would be losing money.
Therefore it is very hard to believe that Silwana somehow managed to do the opposite of what happened in the markets.
We are not saying it is impossible, because theoretically you can day trade and have different results to those who only buy and wait for the markets to their thing.
But again, Silwana’s results look very unlikely, especially for an unregulated and offshore company. Having every month, every quarter, every half a year and the whole year on every market in the profit – from the perspective of an experienced trader this looks like a fairy tale.
We would like to see audited results, some actual proof of performance.
Silwana Global a Silwana Diamond Investment
Under the umbrella of the same name you can also find Silwana Global and Silwana Diamond Investment that are also focused on investment services.
Silwana Diamond Investment offers investments in various non-digital projects, like growing cattle, fish, vegetables etc.
But these projects look as suspicious as the brokerage investment funds. For example, let’s take a look at the rabbit breeding project.
They say that total costs are 170,495 EGP while you will get 45,055 EGP in profits every 45 days, starting 4 – 6 months after the start of the project.
45,055 EGP is 26,43% of the initial investment. Let’s say you start getting your profits after 5 months, so for the rest of the first year, you will get 4,6 times your 26,43%, which is a total of 124,58% in profits in the first year.
Which is a lot. Especially for just breeding rabbits. And in the second year you would be getting your profits from the start to the end in a total of 214,37% of your initial investment.
Also, the calculations done by Silwana are confusing, because first they say yearly costs will be 170,945 EGP, and a few lines later they say they will be 270,800 EGP, which would change the profits in the first year to 55%, which still is very high.
So all in all returns on investment promised by Silwana Diamond look very unrealistic.
And for an investor it will be extremely difficult to verify that Silwana is really doing with the money what it is supposed to do.
Silwana review – Conclusion
Silwana Brokerage and Silwana Diamond Investment offer suspiciously high returns on investments and they are not regulated, which is why we recommend staying away from them.
For financial trading and investing we recommend staying with regulated companies, you can try them on a free demo.
Most importantly, before investing real money you have to understand the risks and accept the fact that there are no guaranteed returns.