Beware! Sealark 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.
Hastily assembled, bland and uninspiring interface is our first impression of Sealark FX. Our second impression is that there is a lot of information missing from its website. And lastly, there isn’t even a link to register and open a trading account.
Sealark FX Regulation and safety of funds
From the company’s website, we find out that Sealark’s headquarters are in London, UK. Upon checking the register of the Financial Conduct Authority (FCA), the official body that regulates forex brokers, we found that there are two firms with similar names neither of which is longer authorised by FCA or uses the website sealrkfx.com. This is proof that Sealark FX is non-registered and non-licensed and is most probably a scam.
Forex brokers in the UK are strictly regulated and they must meet a lot of conditions aiming at protecting clients’ funds before they can get their license. First of all, they must have an initial capital of no less than 730,000 EUR which among other things serves as a barrier preventing scammers from infiltrating the ranks of legit brokers. Other measures to provide a guarantee for the clients’ funds include keeping them separately from the broker’s funds with tier-1 bank establishments, providing a guarantee against negative balance, reporting transactions on a daily basis for the sake of transparency, etc. In addition to that, clients’ funds are protected in case of bankruptcy as brokers are obliged to participate in the local Financial Services Compensation Scheme and deduct funds which could be used to compensate the clients with up to 85,000 GBP per client.
In the EU the trading conditions are similar and licensed brokers must meet the same requirements. The difference is that brokers regulated by CySec must participate in the local Investor Compensation Fund from which the clients of a bankrupted broker can be repaid up to 20,000 EUR per client.
We advise you to use the links we provided above to select a licensed and reliable broker that will satisfy your trading needs.
Sealark FX Trading software
Sealark FX is a forex broker trading in forex, commodities and CFDs. From the information on the company’s website, we understand that the trading software offered to the clients is MetaTrader 5. However, not having a link for opening an account prevented us from accessing the platform.
We can say that MetaTrader 5 is one of the leading trading platforms and is very popular with forex brokers. The platform is equipped with an excellent package of trading tools and instruments that provide its traders with an advantage when executing transactions. For example, there is the auto trading option, code base with customs scripts, VPS, trading signals, an app market, a financial calendar, etc. When the hedging option was added to it in 2016, the popularity of this platform grew even more. We must also mention that MT5 offers amazing charting options that contain different charts, time frames and colours to choose from. It even has the option of creating customised templates. The array of technical analysis indicators, such as Bollinger Bands, moving averages, Fibonacci retracement, etc., help traders predict the future direction of exchange rates and make a profit.
However, a trading platform is as good as its broker is reliable and we know that with Sealark FX it is not the case. We are unable to comment on the platform’s parameters, except for the fact that it offers a low spread of 0.6 pips for the EUR/USD currency pair. However, we also noticed that in contrast, the leverage offered by this broker is sky-high – up to 1:500. First of all, this again indicates that this broker is a scammer as licensed brokers in the UK cannot exceed the leverage limit of 1:30. Also, using high leverage undoubtedly will put clients’ funds at huge risk as the high leverage amplifies the scope of financial loss the traders may suffer if the transactions are unsuccessful.
Sealark FX Deposit/Withdrawal methods and fees
The information about deposit/withdrawal methods and fees is missing from Sealark FX website. The Terms and Conditions document does not contain any noteworthy information.
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!