Beware! Syos Space 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.
The Syos Space website made us suspicious with the implausible claim that it serves tens of millions of clients worldwide. Even the biggest brands in the industry could hardly claim that, let alone an unknown brand. Fact-checking confirmed that our suspicions were justified. Syos Space is actually a typical online scam disguised as a forex broker.
SYOS SPACE REGULATION AND SAFETY OF FUNDS
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
According to the homepage of the website, Syos Space is run by Coconors and Partners LLC, a company based in Saint Vincent and the Grenadines (SVG).
Such a company can indeed be found among those registered in the SVG. But this does not provide any guarantees of customer protection. SVG is an offshore zone with no broker regulations in place. As soon as you open the website of the local Financial Services Authority you see a warning that the institution does not licence forex and other types of brokers and does not supervise the activities of International Business Companies engaged in such activities.
It should be noted that the name of this legal entity is not mentioned in the text of the Terms and Conditions and the other documents of the Syos Space. And even more revealing, the Terms and Conditions refer to Poland as the relevant jurisdiction. Such discrepancies are a clear sign that we are dealing with a fraud, not just an unregulated offshore broker.
If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
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.
SYOS SPACE TRADING SOFTWARE
Signing up for a Syos Space account gives us access to a web-based trading platform identical to the platforms we’ve seen at many fake brokers. This is how it looks like:
While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, 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.
The presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers have trading software to fool their victims that their money is being invested.
SYOS SPACE TRADING CONDITIONS
Syos Space claims to offer traders a wide choice of account types. However, the descriptions of these accounts do not include information about the underlying trading parameters such as leverage, spreads, commissions, tradable assets and order execution method.
The required minimum deposit is 250 USD. For the same amount you could open a starter account with almost any licensed broker. Many leading brands offer beginner investors Micro accounts with an even lower minimum deposit.
Syos Space claims to offer bonuses, which clearly shows that it could not operate in a regulated jurisdiction like Poland. All leading financial regulators prohibit the use of bonuses and promotions.
In the trading platform we see a leverage of 1:100. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
The platform also shows a spread of 3 pips. This level is double the industry average. So even if Syos Space were offering real trading, it would be very disadvantageous to the trader.
SYOS SPACE DEPOSIT/WITHDRAW METHODS AND FEES
Deposit into Syos Space is only possible through cryptocurrencies. Scammers prefer cryptocurrencies because these transactions are not subject to refunds. 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 Skrill, PayPal, Neteller or Sofort.
The Terms and Conditions include typical scam clauses. If the account has received a bonus, the withdrawal is only possible after meeting very high minimum trading volume requirements – 25 times the bonus plus the deposit.
HOW DOES THE SCAM WORK
Many people are looking for ways to make money passively, but do not have the necessary knowledge to invest in the financial markets themselves. This makes them a target for the many online scammers posing as brokers. If you come across some of them and give them your contacts, you will be contacted by skilled scam artists who will assure you that they can take on the incomprehensible aspects of investing for you. You will only be required to invest and take profits.
But when you try to collect even just a fraction of your money, it will turn out to be impossible. Your supposed profits will suddenly evaporate, or you’ll find that you have to meet impossible traded volume requirements first. Fraudsters often insert huge withdrawal fees into client agreements amounting to 10%, 20% or even more. You won’t be able to hold scammers accountable because they hide behind fake names and shell-companies offshore. Scammers also typically use non-refundable payment methods.
WHAT TO DO WHEN SCAMMED
First of all, you should be very careful not to fall straight into the clutches of other scammers. Another common scam is to promise money recoveries from fake brokers for an upfront fee.
If you used a credit or debit card for the transactions, you can charge a chargeback. Visa and MasterCard have a long period in which they allow such requests – 540 days. But keep in mind that fraudsters can dispute if you have provided them with a copy of your ID and proof of address. It would also be helpful if you alerted the authorities in your country and other people online to the activities of the scammers.
