Beware! SotFX 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.
SotFX presents users with an approach to the forex broker look that relies on a darker interface. The background of the site is almost always pitch black, which can be quite distracting from a broker that is otherwise average at best. Certain brokerages rely on visuals, and visual cues, to distract users from the shady, or scammer, experience there are trying to push. From what we have seen thus far of SotFX, we have a significant base of evidence that the broker might just be inclining towards more illegal tendencies. The following review will reveal if our preliminary expectations are applicable. Please read on.
To create an account, users will have to go through a simple and easy process, Yet, in order to access all the functionalities of the trader’s room, clients will have to verify their email address through a provided link. Ours did not work. It gave us an error message. We assume that this happened because we are not potential scammers, and thus SotFX has no use for us. These types of moves are common with unregulated brokers, as we have explained in the last sections of the review.
Unfortunately for all, the trading conditions, as well as all the payment ones, will all have to be taken from the website. The trading assets are supposed to be cryptocurrencies, forex pairs, metals, and shares. The EUR/USD spread is 0.5 pips, while the leverage is not indicated. We cannot fully trust the spread value, not until we see it for ourselves.
The website can be opened in Russian or English.
SOFTFX REGULATION AND SAFETY OF FUNDS
Everything on the website, including the legal documents, points toward a registration in the Marshall Islands. The broker seems not to care that the Marshall Islands are an offshore location, but most importantly, that they do not offer an FX regulator. There is no organization in the country to legally legitimize FX brokers. For this reason, SotFX is not regulated there, even though it is located there.
SotFX keeps its distance from other licensing details. So our predictions came true: SotFX is NOT HOLDING A LICENSE and is thus illegally offering trading services. All investments are at risk, as well as any personal details that you may have provided!
Be aware that all investments in unregulated brokers are at risk of being lost. Deposit should only e made once you have made sure that the broker is regulated. After that, you should see if the trading conditions fit your preferences! Never be too quick to invest. Take your time! The most common regulators are the FCA or CySEC, which consequently are two of the best FX broker licensors around. Not only do these agencies guarantee the safety of users’ funds, but they also push for a fair and safe trading space. Both the FCA and CySEC offer compensation schemes that cover users who have been victimized by brokers’ inability to pay them back, usually due to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
SOFTFX TRADING SOFTWARE
It’s very easy for illegal brokers to promote a trading software. It’s completely different to actually make this trading software available.
SotFX offers an MT5 with an accompanying image that has nothing in common with the platform. But to the target audience – novice users- this discrepancy will not be noticed.
Even if the broker offered an MT5, there is no way for us to verify it. We leave things as they are, save for a warning that, and a reminder, that users are dealing with an unregulated broker!
SOFTFX DEPOSIT/WITHDRAW METHODS AND FEES
Without getting access to the trading area, we cannot extract all the necessary payment details that we usually include in this section. And the ones that we have gathered from the website might not be credible.
Actually, we have not gathered any payment details from the website, because there are no such sources.
We know for a fact that the most common payment methods are credit cards, debit cards, and bank transfers. However, illicit brokers commonly use bitcoin wallets, or other crypto means. It is never recommended to deposit through crypto-based gateways! The minimum deposit should be $250, yet illegal brokers have all kinds of requirements, from $0.1 to $5000, so one can never predict this.
Withdrawals are usually done via the same methods used for depositing. Processing times are normally between 1 to 5 days. As for fees, each unregulated broker is its own beast.
From all we have said of SotFX, there is nothing to suggest a smooth and legit trading experience. Investing in this broker will lead to loss!
How does the scam work?
There exist many takes on the most popular scam. Most brokers might add or subtract some approaches to tailor the scam more to their taste, but the general goal and structure are the same.
The first step and the most crucial part of the scam is to impel a preliminary deposit from a user. This is achieved through fake and misleading ads, phishing emails, and similar. Most of these ads promote a lifestyle that we all dream of, but never thought of actually having.
Being lured by these ads or emails will lead users to websites, either the broker itself or an intermediary source, where they will be asked to fill in their contact details and sometimes bank account or credit card info. The fraudsters will use this against the user in any way possible. Either they will withdraw all they can from an account or will contact users and convince them to deposit.
Usually, the way that happens is through a first deposit. After that, the user will be introduced to an account manager, who is nothing more than an expert scammer that will annoyingly push for more deposits. Account managers will deny all withdrawal requests by stalling the request itself, making up excuses as they go. The user will get increasingly suspicious and will want to withdraw her funds and get it done with.
At this point, the broker will have exhausted all excuses and will proceed to close down the account, block the account, or shut the website entirely! All the money will be lost!
What to do if scammed?
Filing for a chargeback with your credit or debit card company should be the first thing you do! The sooner you do it, the bigger the chance you have to recover any lost funds. There is good news here: VISA and MasterCard have increased their chargeback period to 540 days.
Bank transfer deposits are more tricky. If a user deposits through wire with a scammer broker, then he or she should immediately change their bank account password and username. Contacting the bank, and checking for a plan that they can set in motion, is also a good idea.
Any investments made through a cryptocurrency with a fraudulent broker are untraceable. That is why users should never deposit through crypto!
Beware of recovery agencies, promising to get all your money back in return for a fee. Most of these are either an extension of the initial scammers or a separate scheme! Once you pay them to retrieve your lost investments, they will disappear, putting you in an even more financially disadvantageous position.