Beware! Sky Financial Services is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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At first glance, Sky Financial Services looks like any other forex trading company. If you are wondering whether it is safe to trade via this brokerage, we can help you by looking at some key features. So, let’s begin.
Sky Financial Services brokerage trades in forex, CFDs, commodities, equities, indices, futures and FX options through a suite of trading platforms. The company offers 3 accounts.
Registration is a bit of a hassle as some of the links for registration are broken but after trying a few options we finally succeeded. After registration, you get an email with a link to the account dashboard. However
Sky Financial Services Regulation and safety of funds
The firs thing we should look for is whether the company is registered and regulated which is the cornerstone of a genuine and legitimate forex trade company. From the Terms and Conditions document we understand that Sky Financial Services is the operating name for KBS Capital Markets LTD, registered in the Marshall Island. You may know that the Marshall Islands is an offshore zone and as such does not have a regulating authority for forex companies registered there. Practically anybody can register a forex company without even having to go there. The lack of regulating authority in the Marshall Islands means that you won’t have any guarantee for safety of funds should you choose to trade via this brokerage.
But let’s investigate further the legitimacy of this company. On the company’s website, in the ‘about us’ section, we find out that the company claims to be registered in UK. After checking in FCA register, we find out that a similar company is indeed registered there. But is it ours? No, it’s not! The company in the FCA register has a different domain than the company we are currently investigating. Please compare skyfinancialservices.co to skyfinancial.co.uk – same, same but different! The difference is so little that everyone can get duped and confuse a genuine company for a scam one. That is why, it’s crucial to check these facts carefully so you don’t fall victim to scammers. We further checked in Google and found this warning (screenshot below). Without any doubt we ca say that this company is scam!
It is easy to fall victims to scammers because they are very crafty in their attempt to rob you off your hard-earned money. We advise you to research the registers of well-established jurisdictions, such as EU, UK and US if you are looking for genuine and legitimate forex trade companies. The laws that are in place in these jurisdictions are very strict to allow only genuine brokerages to get registered and regulated. For example, to register in EU or UK, a forex company must have an initial capital of 730,000 EUR. In US it is much higher – $20 million! In addition to that, brokerages must contribute to compensation funds which in case of bankruptcy will compensate clients up to 20,000 EUR if regulated by CySEC and up to 85,000 GBP if regulated by FCA. In addition to that, they must report on regular basis about their deals. It is crystal clear that it is much more advantageous to choose a legitimately registered and regulated forex trade company rather than a shady one.
Sky Financial Services Trading software
The company offers a web trader and MetaTrader 5 trading platforms. We must say that MetaTrader 5 is a good choice of a trading platform as it is considered one of the best and is very popular among forex brokers and traders for its many advantages which include a financial calendar, an app market, trading signals (which you can get for a subscription fee), VPS and code base with customs scripts. If you look for a brokerage, we advise you to look for one that offers this trading platform or its older version MetaTrader 4. However, an excellent trading platform is not enough to compensate if the company is not legitimate!
We opened the web trader (as per the screenshot below) and what we see is the currencies pairs with their bid/ask price. We chose the EUR/USD pair, as displayed in the middle of the screen. The spread for this currencies pair is 0.6 pips which is not very wide. The leverage (as shown in the trade accounts info in the first screenshot of this review) is 1:200. We must say that for it is quite high. It could be tempting to trade using high leverage because if you win, you win big. However, don’t forget the fact that the financial loss in forex trade is over 70% and using high leverage in forex trade may lead to big financial loss as well.
Sky Financial Services Deposit/Withdrawal methods and fees
The initial deposit is $250 for the Micro account. The other accounts ask for initial deposits of $2,500 for the Standard account and $20,000 for the Pro account. To feed their account, clients have a choice between wire transfer and VISA/MasterCard.
Sky Financial Services charges a hefty fee for withdrawals. For wire transfer clients must cough up 50 C or 25 USD/GBP/EUR for credit cards in addition to a processing fee of 10 USD/7EUR/5GBP. ePayments are being charged 25 USD/GBP/EUR. Also, please be aware that should you choose to trade via this company, a levy of 10% of the withdrawal amount will be charged if you have not executed more than 200 in turnover. The minimum withdrawal amount is 250 USD/GBP/EUR for wire transfers or 100 USD/GBP/EUR for other methods. In addition to that, clients may be charged a transaction fee of $50. In addition to that, the processing time for withdrawal request could be between 2-5 business days, which is too long. These are the facts, you decide if these conditions are favourable to you!
Another thing we want to warn you about is accepting bonuses and non-deposited funds which the company may offer to its clients. Please be aware that bonuses or non-deposited funds are funds that belong to the company, not the client. Should you choose to receive one, you must know that they usually come with difficult to fulfil conditions. For example, in this case, clients may withdraw bonuses only if they execute a minimum trading volume of 25 times the deposit amount plus the amount of the bonus. If you think that this is easy enough to achieve, you are wrong! Think over very carefully before accepting a bonus or a non-deposited fund and don’t take unnecessary risks with your hard-earned money. Legitimate and regulated forex traders will not offer you such bonuses or non-deposited funds.
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.