Is Skyforex a scam broker?
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Skyforex (SkyFX) is owned by Halal Trades Ltd according to their website’s information in terms and condition page. In various sections on their site, it’s headquarter is mentioned as the UK, British Anguilla, and St. Vincent and the Grenadines. Quite confusing which is original?
Account types are Gold (minimum deposit $ 250), Platinum ($ 2500), Diamond ($25000), and VIP ($ 100000). All with maximum leverage 1:200. All of them can be traded in micro lots. It also has an Islamic account which works on Shariah law i.e. no interest, no swap fee, and no storage fee. It has seemingly competitive spreads hence trading costs are comparatively low.
Skyforex enables its client to deposit money into the accounts by various methods. Deposits can be made through bank wire transfer, credit/debit (Visa, Visa Electron, MasterCard, Maestro card) and e-wallet (Skrill, Paypal, JCB etc). Deposits can be made in USD or EUR. Regardless what the funding method is it must be in the same name as of account holder. Under no circumstances, the company will make or receive payments via third parties.
Skyforex offers a wide range of forex pairs and various CFD’s on stocks, indices, commodities, and cryptocurrencies (mostly bitcoin).
The trading platform is MetaTrader4 which was created by MetaQuotes Software Corporation and is one of the most popular platforms in the world. The platform is user-friendly, easy to navigate, and provides a good range of customizable tools and features. It is available in all major languages like English, French, Russian, Arabic, and Italian etc. Few features of MetaTrader4 are technical indicators, charting tools, programmable price alerts on open positions, customizable trading strategies. There is also news and upcoming market events to help traders take right and informed decision.
Skyforex is a scam broker as they are not regulated. It is seen that most of the companies that scam traders are the one which is not regulated. Nowhere on the site have they mentioned about being regulated or not.
Company’s background is not clear. From their logo, they seem from the Arabic world. Even they have not mentioned their headquarters clearly. In different section they have written that they are headquartered in the UK, British Anguilla and St. Vincent and the Grenadines. They do not have “About Us” page.
The company website claims that they use a MetaTrader4 platform and Sky Web Trader. But practically the company is only offering their Sky Web Trader (which is more like Sirix web platform). There is no inbuilt social streaming. In other words, they are telling lies about their platform too.
In May 2016, CySEC has withdrawn the license of Skyforex and directed the company to return all the clients’ fund. It is one of the brokers that FPA has warned of scamming traders.