Beware! Sinosoft FX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Sinosoft FX is a broker that took us some time to label, yet we still achieved to reveal its true nature. The biggest issue we had with this one was that the registration page was broken, and thus we could not register an account. This means that we have to trust the company’s website for trading conditions. Nevertheless, the Accounts Page reveals that the leverage is capped at 1:300, and the minimum EUR/USD spread is 0.2 pips (for the PLatinum Account).
SINOSOFT FX REGULATION AND SAFETY OF FUNDS
We will briefly cover two alleged claims that the broker reveals. The first is its location in Dubai. In Dubai brokers must be authorized and regulated by the Dubai Financial Services Authority (DFSA), for them to operate within legal frames. Of course, Sinosoft FX is not to be found on the official DFSA website, and furtheremore, the broker does not actually claim that it is regulated in Dubai, only that it is located there.
The second piece of info that we stumbled on is found in the Funds Protection document, stating that Sinosoft FX is in fact regulated by an independent international organization called The Financial Commission. There is such a commission, with many benefits to brokers (and other companies) such as compensation funds, yet Sinosoft FX’s name was not found among the list of authorized companies.
There is further evidence of Sinosoft FX suspicious nature, including short and incomplete legal documents, and the aforementioned broken registration page.
We can therefore conclude that Sinosoft FX in UNREGULATED, making it a financial risk to anyone that invest with it!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
SINOSOFT TRADING SOFTWARE
The allegedly available MT5 is only mentioned on the website; there is no concrete evidence to support its actual presence -as we mentioned, we were not able to register-. However, the MT5 is downloadable and bears the name of the broker, which is reassuring enough.
Nevertheless, the MT5 still retains some great features even if it is still shadowed by the immensely popular MT4. MT5 is certified by many stock exchanges and allows for a centralized market trade. Improvements have been made with the chart time frames, there are better charting tools to further otpimize the trading experience, and there are more pending order types.
SINOSOFT DEPOSIT/WITHDRAWAL METHODS AND FEES
Currently, the only way to get any information on both deposits and withdrawals is the Accounts page and the Withdrawal and Deposit Funds page. In it is stated that funds can be deposited via Cards, Bank Transfer, Neteller, Skrill, PerfectMoney, and WebMoney. The minimum deposit is $100. The minimum withdrawal amount is $1-$2 for epayments, 20$ for cards, and $150 for bank transfers.
As for fees, they seem to be the same for both deposits and withdrawals: Neteller fees are 2%, Skrill charges are 1%, WebMoney’s toll is 0.8%, PefectMoney charges 0.5%, withdrawals via cards are burdened with $2.5 + 2.5%, and wire tarsnfers have fees of $40.
We strongly advice traders to only deposit the minimum deposit, or better yet – not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.