Beware! SGOption is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
SGOption is a Forex brokerage which does not disclose corporate information. It supposedly provides a web-based trading platform, not the MetaTrader 5 platform and requires an exceedingly high minimum deposit of $500.
SGOption regulation & safety of funds
The only thing we read on the website is an American address which is little to go on. Furthermore, the name of the company is not mentioned which makes it impossible to ascertain the legitimacy of the website. Furthermore, the people behind the brokerage remain completely anonymous and traders have no way of contacting them.
We remind readers that anonymity is as big a red flag as any in Forex trading since the people providing the financial service answer to no known authority which leaves them free to conduct business as they see fit. The website also states that the broker provides binary trading, however, the practice has been prohibited throughout Europe. Furthermore, we could not find the terms and conditions of the broker which is where the most crucial information is written regarding the contract between a potential client and the broker in question. It goes without saying that we believe there is substantial risk in trading with the broker.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
OFBM trading software
The brokerage does not provide the MetaTrader 5 trading platform , something we consider a disadvantage for several reasons. First of, it is the foremost trading terminal at the moment, secondly it is equipped with features such as almost a 100 market indicators, as well as customizable trading robots which is what makes it the preferred choice for more than 80 percent of the traders in Forex. Instead, there is supposedly a web-based trading platform available, however, the platform is absurd and there are no discernible trading conditions. All in all, there is a staggering lack of information.
SGOption deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via only crypto coins such as Bitcoin, Litecoin and Ethereum. The standard Visa, MasterCard and bank wire, as well as popular e-wallet such as Skrill or Neteller are missing.
As we mentioned above, there are no readable terms and conditions, however, we do understand that SGOption offers some sort of bonus promotions and we remind readers that almost always such promotions are tied with hefty trading turnover requirements that make it impossible to withdraw.
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Unfortunately, the possibility of a scam looms over almost every trade in Forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!