Beware! SkyRocketFX 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.
SkyRocketFX says to be a California base online investment platform focused on crypto currency and forex trading. And they urge potential clients to build their financial future by joining one of SkyRocketFX’s investment plans with assurance of guaranteed returns.
If you see this as a profitable investment opportunity, we would rather suggest that you read the following review. SkyRocketFX is an anonymous, unregulated website, which our research confirmed is involved in scam.
SkyRocketFX regulation & safety of funds
SkyRocketFX says to be headquartered in California, but if you pay a closer look at their presentation you will realize that their website is completely anonymous. They do not bother to mention what is the name of their company, nor where it might be based and incorporated. And naturally, SkyRocketFX does not mention anything about a license either.
Bear in mind that all brokers, which are legally authorized to target U.S. citizens have to be licensed as futures commission merchants (FCM) and foreign exchange dealers (FED) at the U.S. Commodity Futures Trading Commission (CFTC) and to be members of the National Futures Association (NFA). We did check the NFA registers and no entry relating to SkyRocketFX was to be found there.
What is more, a broker regulated in the U.S. has to meet a steep capital requirement – the minimum operational capital should at no time go under 20 000 000 USD, which kind of explains why just a handful of really big brokers have licenses to operate in the U.S.
SkyRocketFX deposit/withdrawal methods and fees
The only payment method available at SkyRocketFX are bitcoins – you are advised to buy bitcoins from an exchange and then to invest them with SkyRocketFX, choosing your investment plan, which is supposed to generate you guaranteed returns. And SkyRocketFX even presents us with testimonials of happy clients, who claim to have their deposits tripled in just a week.
There are a couple of problems with all of that, starting from the fact that trading the forex and even more so the crypto currency markets with leverage, is a high risk investment, which obviously means that there could be no guaranteed returns. As a matter of fact, regulated brokers in Europe and the UK are obliged to publish the exact percent of traders, who lose money while using their platforms – a percent that ranges between 75% and 85% on average for the industry.
And there is another, even more serious issue. As we understand from their presentation SkyRocketFX offers to manage your trading account with a “team of expert traders”. The problem here is that like virtually all forex and CFD brokers, SkyRocketFX act as market makers, which in practice means that they make money whenever traders lose. So it is also obvious that if you leave market market makers like SkyRocketFX to manage your trading account, they will have the natural incentive to mismanage it and “lose” your money in their own pockets. This is called conflict of interest and it is also the reason why regulated brokers never offer their clients to manage their trades.
Honestly we are not surprised that SkyRocketFX promises spectacular returns and managed accounts, as we already established that they are a scam.
And one final note. The fact that SkyRocketFX accepts payments solely with bitcoins, means that you will not have the option to file for a charge back, when you realize you have been scammed. Bitcoin payments and crypto payments in general are 100% irreversible and pretty anonymous as well.
If you were allowed to pay directly with VISA or MasterCard on the other hand you will have the option to file for a charge back within 540 days. That is why scammers prefer to receive payments with bitcoins or other crypto coins.
How does the scam work?
And here is how the scam works. In SkyRocketFX Terms and Conditions we came across three peculiar clauses – that “you should not invest lower than your previous profit”, that “upgrading of an account would be required at a certain stage of your investment”, and that “if you are awarded a bonus, tax fee is required to be paid”. See for your self:
So imagine that you chose the opening investment plan with SkyRocketFX, where you are required to deposit only about 200 USD in bitcoins. The balance of your account will miraculously start growing and pretty soon it will surpass a certain amount, at which point you will be required to upgrade your account – meaning that you will have to deposit another 3000 USD before you will be allowed to request a withdraw. At least that is what you will be told.
Of curse your account will surely be manipulated and the profits that you will see in your balance will not be real. SkyRocketFX has five investment plans so you may easily end up depositing 30 000 USD or even 150 000 USD with the promise that afterwards you will be able to withdraw a couple of millions.
An there is the clause that if you are awarded a bonus, you will have to pay some taxes in advance. This again means that you will be required to send scammers yet more money, before you will be allowed to file a withdraw request, and also means that you may never be eligible to request a withdraw, as bonuses come with minimum trade volume requirements.
What to do if scammed?
As we already noted, your only chance to recover your deposit is to file for a charge back with your local bank in case you have paid with VISA or MasterCard. And you will be able to file for a charge back if you have paid with one of the major e-wallet providers like Skrill, PayPal, or Neteller too. If you have paid with bitcoins on the other hand you will not be so lucky.
And be aware as well that if under any pretext scammers have tricked you to tell them your credit card number, card security code and online banking password, immediately block your credit card and change your password.
That applies as well if you have been tricked to install and share the installation details of a remote desktop platform like Team Viewer or Any Deck. If you were convinced to install such a program under any pretext, delete it immediately and cancel your credit cards, because scammers, gaining access to your PC and banking details, would surely attempt to steal money directly from your bank account.
Finally, do not accept any offers by the so called recovery agencies. They will not help you recover a single dollar, but simply will ask you to pay them a commission in advance, basically scamming you once again.