Beware! SFEMFX 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.
SFEMFX has a website which you will prefer to leave as soon as possible, we can assure you. It is slow, it is everything else but intuitive, also it is filled with Chinese posts and you will have to switch on the translator in order to understand what they are talking about. There is lack of any useful information about themselves, and generally, upon first click you realize that you are dealing with a really shady entity. They claim that the funds deposited by the clients are held in segregated trading accounts, but is it true, and is there a financial regulator making sure that they are keeping their promises? You will find out in the SFEMFX review.
SFEMFX REGULATION AND SAFETY OF FUNDS
We have to start with the fact that SFEMFX does not publish any legal documents, such as T&Cs, Client Agreement, Risk Dosclure etc. From their Company Brief section we understand the company we are dealing with is called Sunlaideal FE Markets Limited and that it’s located in Australia.
The search for this company in the ASIC didn’t produce any results.
On the other hand, SFEMFX provide registration numbers which leads to an US company bearing the same name. They provide a number and instructions how to check their legitimacy as a Forex broker, but it turned to become one of the biggest fails we’ve seen. An alleged Australian Company submit details about a US company listed in an agency which deals with money laundering and financial crimes, also anti-terrorism. Moreover, the government body itself does stress on the fact that the inclusion of a company in their database is in no way a certification of legitimacy, or a recommendation. Have a look!
There are some more traces of this company, matching with the information found in fincen.gov, but this is in no way a proof of legitimacy, we have to repeat that!
Surprisingly, there is also an UK company called Sunlaideal FE Markets Ltd., which was also incorporated less than two months ago, but again it isn’t regulated in any way by FCA. The search in the British watchdog database was fruitless.
Your funds are not safe if you make a deposit with SFEMFX, it is an unlicensed, unauthorized and unregulated shady entity and you should stay away from it! The broker you choose should always be legit and authorized, providing all of the details about its legal status.
A Forex broker, which holds licenses to operate throughout different jurisdiction, abiding by the local and international law, is going to treat your funds with an utmost care. Complying with the product intervention measures that the European Securities and Markets Authority has agreed, which further CySEC and FCA have implemented, the Forex brokers are required:
- to limit the leverage to between 1:30 (Forex majors) and 2:1(cryptocurrencies);
- to close out a customer position when the funds fall to 50% of the margin needed;
- to provide negative balance protection on a per account basis, meaning that losses cannot exceed the total funds;
- to restrict or completely obliterate the incentives offered to trade Forex and CFDs;
- to provide a standardised risk warning to the customers.
Failure to do so will result in disciplinary action such as salty fines or license being suspended/revoked.
SFEMFX TRADING SOFTWARE
SFEMFX offers only MT4 accounts to its clients, demo trading is also available. We managed to download the platform and open a training account, fairly speaking, the trading conditions weren’t that bad, compared to other similar brokers. There are also iOS and Android version of the platform, and possibly web trading through your browser is also available.
The spread stayed at 0.3 pips for a long period of time, the platform was responsive and the trade execution was quick. The maximum leverage offered is 1:500.
However, the registration process is a nightmare and the favorable trading conditions cannot make up for what we experienced. In fact, we could not sign-up because there is a mandatory field “Invitation code” and without it you cannot proceed. There are 19 fields to fill in order to register, it is unheard of!
Some of the fields, mildly said, left us bamboozled! You should upload copies of your Passport or ID card, and these are mandatory fields, meaning you cannot complete your registration, if left blank. Also they want your bank account and all of its details, as well as a copy from your Debit Card! You should never ever, and that must be remembered, upload copies of your Passport, ID card or bank card in the initial sign-up process. It is a red flag, you should avoid SFEMFX and report immediately if they approach you!
SFEMFX DEPOSIT/WITHDRAW METHODS AND FEES
As already explained, we were unable to register, so the information about their deposit and withdrawal methods is really scarce.
There is no minimum deposit required, listed on their main page. The funding methods are totally unknown, there isn’t even indication about such an important matter.
The minimum amount to withdraw, the processing time and fees, the withdrawal methods are also unknown.
No dormant account policy and fees specified, no other fees known, as well.
However, they have some Cooperation and Mutual Benefits program. It is an introducing broker scheme, a kind of referral program, but nothing specified, at all. You should probably get an invitation code first, so that you can register and then find out anything that you need. It’s a fishy enterprise, screaming at your face, stay away!
HOW DOES THE SCAM WORK
We suspect that the mix is going to be used heavily on the social media. The people staying behind SFEMFX will probably first introduce their demo accounts with, fairly speaking, very favorable trading conditions. Then after some training an invitation code might be given, probably with an account manager assigned and meanwhile the referral program might also take place, including more and more people. Anyway, it is a very dodgy entity and you should never upload your documents or invest there! If a Forex broker is asking for your ID card or bank details during a sign-up process you should not simply avoid it, but run away as quickly as possible!
There might be also an Identity Theft taking place, no true Forex broker insists on having copies of your personal documents before you have even registered. It is a popular fraud and a serious crime, it happens when someone uses information about you without your permission. Having your personal information the scammers can access and drain your bank accounts or they can open new ones in your name and take out loans or lines of credit. Also they can purchase expensive goods, gain access to your government online services etc. Scammers might also use personal data to register companies in your name, facilitating their illegal activities. You should never submit copies of your personal documents, when you sign-up, true Forex brokers will never ask you to do it in the initial registration process!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to defraud consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain your situation to them, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!