SkyFxtrading review – 5 things you should know about skyfxtrading.com

SkyFxtrading review – 5 things you should know about skyfxtrading.com

Rating: 1

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

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SkyFxtrading presents itself as a company operating according to its ethical convictions. But when it comes to investment intermediaries, it is desirable that ethical convictions are backed by robust regulatory oversight. And since SkyFxtrading turns out to be an anonymous website full of false and misleading claims, promises of honesty are not nearly enough. Let’s take a detailed look at why it is advisable to avoid this website.

SKYFXTRADING REGULATION AND SAFETY OF FUNDS

If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.

This is exactly the case with SkyFxtrading – there is no information whatsoever about the owning company. When signing up for an account, consent to the Customer Agreement and other company policies is required, but access to these documents is not provided. If you have no idea who you are dealing with and what terms you are agreeing to, it would be very unwise to put your money on the line.

SkyFxtrading provides a contact address in the United States that we are reasonably certain is false.

The United States is a jurisdiction with particularly high regulatory requirements for financial service providers. Only a small number of established brands are authorised to offer such services in the US, and SkyFxtrading is definitely not one of them.

To operate as a forex broker in the United States, a company must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). As could be expected, there is no “SkyFxtrading” among the NFA’s members.

On top of all of this, SkyFxtrading is identical to another fake broker we have reviewed, Sky FX Trades.

Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online. You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.

In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.

SKYFXTRADING TRADING SOFTWARE

SkyFxtrading promises a convenient web-based trading platform, but this also turns out to be a lie. After registering an account, we get access to a non-functional buy and sell menu that is not even linked to the charts. This is an imitation, not functioning trading software.

But even if SkyFxtrading had a more convincing platform, that would not make this website credible. Fake brokers use trading software to mislead their victims that their money is really being invested. But this trade is entirely sham.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

SKYFXTRADING TRADING CONDITIONS

Legitimate forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.

And that’s another way in which the SkyFxtrading differs starkly from genuine brokers. On the website we find absolutely no information about the parameters of the alleged trade.

But there is a claim of a high and guaranteed return on investment. A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.

SKYFXTRADING DEPOSIT/WITHDRAW METHODS AND FEES

SkyFxtrading only accepts deposits via cryptocurrencies. This is common for financial fraudsters because crypto transactions do not allow the defrauded to request a refund.

While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Sofort, PayPal, Neteller or POLi.

The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet  withdrawal terms.

HOW DOES THE SCAM WORK

The idea of passive income is increasingly attractive to more and more people. The Internet gives the impression that making money through investments in the financial markets is more accessible than ever to non-experts. But the online space is full of scammers who lure inexperienced wannabe traders through flashy advertisements and fake testimonials from satisfied clients. However, these fake brokers don’t really invest the money you give them – even though they very confidently assure you that you are generating great profits and should invest even more.

But when you try to withdraw some of your supposed winnings or deposit, it turns out to be impossible. Scammers will tell you that a sudden change in the market has wiped out all your money, or point you to vague clauses in the Terms and Conditions that require a huge minimum volume traded. The victim of such a scam may also be surprised with hidden fees and taxes amounting to tens of percentages of their funds.

Holding fraudsters accountable is difficult because they operate through offshore companies that are uncontrolled and unregulated. In addition, scammers require that you provide them with a copy of your ID and proof of address so that they can claim that all transactions were voluntary and agreed upon by both parties.

WHAT TO DO WHEN SCAMMED

First of all, you should know that there is another kind of scammers who prey on victims of fake brokers. They claim they can refund your money for an upfront fee. The most realistic option to get at least some of your money back is to request a chargeback, but this is only possible if you used a credit or debit card for the transactions. Scammers usually insist on using cryptocurrencies, direct bank transfers or shady online payment platforms where refunds are impossible.

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