SCM Broker Review – 5 things you should know about

SCM Broker Review – 5 things you should know about

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Beware! SCM Broker is an offshore broker! Your investment may be at risk.


Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.


SCM Broker is one of those trading companies that seems almost legit. While their conditions are far less sketchy than those of other brokers we have reviewed, there are still some aspects that raise serious concern. Read further and decide for yourself.


Probably the most bothersome element of SCM Broker is the question of their regulation. In the footer, they name an address and a registration number in Saint Vincent and the Grenadines. The St. Vincent and the Grenadines Financial Services Authority (FSA) has on many occasions stated that they do “not issue any licenses to carry on the business of FOREX Trading or Brokerage or Binary Options Trading nor does the FSA “Regulate, Monitor, Supervise or License” International Business Companies (IBCs) which engage in such activities.” A registered address does not in itself mean that any sort of regulation is taking place.

SCM Broker does however provide a license number in another offshore location – Vanuatu. When we checked that license number and the company’s name in the local register, nothing popped up.

Claiming that you are registered and regulated when in fact you are not is never a good sign and such companies are not to be trusted. Furthermore, while Vanuatu is an offshore location with quite loose regulation it does demand that every registered company has a local office. Something SCM Broker fails to give any proof of.

There are multiple reasons why you should stick to brokers regulated by strict authorities like the FCA or CySEC instead. A license issued by one of these authorities ensures that the broker follows strict rules and can protect its clients in case of unexpected events. Every UK or EU-regulated broker has to prove its stability by maintaining a minimum capital of €730 000. These brokers are also obligated to participate in compensation schemes that cover damages inflicted by a broker`s bankruptcy – you could claim up to €20 000 in the EU or £85 000 in the UK. These safety nets are not to be overlooked when you are dealing with big amounts of money.


SCM Broker uses MetaTrader 4 – a well-known brand in the industry. MetaTrader does in fact offer one of the best trading software out there and has made a name for itself due to the many functions and tools it provides. Clients could subscribe to other successful traders` signals, have the options to create their own trading bots and back-test trading strategies. While MetaTrader 4 and MetaTrader 5 are both worth checking out, there is a huge community of regulated, legitimate brokers that use that software.


SCM Broker offers two types of accounts – a Standard one with a minimum deposit of $100, maximum leverage of 1:200, and spreads starting from 0.8 pips. The Pro account has the same deposit and leverage values but offers a “pure liquidity spread”. While the deposit and the spreads are both quite reasonable, leverage of 1:200 is far higher than the UK and EU-allowed 1:30 and the US-authorized 1:50. While our demo account gave us the option to choose between a few different leverage values, leverage of 1:200 is quite bothersome and could result in huge losses for inexperienced traders. Many such traders who look for a quick profit might end up losing a lot of money because of such high leverage.


As stated above, the minimum deposit at SCM Broker is $100. As for payment methods, they offer a huge choice. We could not however find any mention of Visa or MasterCard on the SCM Broker`s website. The Terms and Conditions did mention Credit or Debit Card but no elaborations were made. SCM Brokers accepts various cryptocurrencies like Bitcoin and Ethereum, wire transfer only through certain banks, and different online payment systems like FasaPay and Neteller.

While payment methods like cryptocurrencies do not in themselves necessarily mean that you are being scammed, they are preferred by frauds because it would be impossible for you to ask for a chargeback. Credit and Debit card transfers are safer because you could ask your bank for assistance and file for such a chargeback within 540 days.


Usually, such scams start with an ad or banner you see on the Internet that advertises the company in question as offering impossibly high profits. Such scammers want you to see them as the easy way to a luxurious lifestyle and would do anything to get your attention.

The moment you provide them with any sort of personal information or contact details, you will start receiving calls from these cons asking you to pay an initial deposit of a certain amount. With time, you will be asked to invest even more money. To compel you to do that, these experienced frauds can make it look like you are making huge profits. But the moment you decide to try and withdraw your money, they will come up with reasons to prevent you from doing so like making up additional taxes you should pay. This is done to ensure the time period in which you can get your money back through Visa or MasterCard withdraws runs out. Currently, that time period is 540 days.

It is virtually impossible to get your money back if you have paid with some sort of cryptocurrency and for that reason, such payment methods are preferred by scammers.


If you fall victim to such a scam and are using a credit or debit card, you should file for a chargeback right away. If you were paying through bank transfers, you should contact your bank immediately and ask for assistance. As stated, scammers might deny you the chargeback on the basis of the fact that you have verified your account and sent them your personal info. There is little you can do in such cases. If the frauds had gained access to any sensitive information like banking passwords and usernames, it would be best for you to change those.

One last thing you should remember – don’t trust any “recovery agents” that offer you a fast refund. Such people exploit scam victims` hopes of gaining their money back by either collecting a fee or ask you to reinvest. Once this is done, you will never hear from them again.

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