SydneyFX review – 5 things you should know about sydneyfx.io

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

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

SydneyFX holds itself out as a regulated forex and CFD broker. But this website is actually a good reminder that you should always do careful fact checking before putting your money on the line. In this review, we’ll show you why SydneyFX is a scam and recommend more credible brokers.

SydneyFX Regulation and safety of funds

SydneyFX  claims to be based in Cyprus, a jurisdiction that houses many of the brokers operating in the EU. But nowhere on the website is there any information about which company is behind SydneyFX. There are no Terms and Conditions, Client Agreement or other binding documentation.

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.

There is no licensed broker using the SydneyFX trade name and domain in the Cyprus Securities and Exchange Commission (CySEC) database. Another leading financial regulator, the Australian Securities and Exchanges Commission (ASIC), has issued a warning that SydneyFX is a scam.

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 CySEC, ASIC or UK’s Financial Conduct Authority (FCA).

SydneyFX Trading software

After account registration, we get an option to download an installation file for Metatrader 5 (MT5) – the most popular trading platform in the industry. But the software is not configured for a specific broker, it is the generic version of the platform. SydneyFX does not provide credentials for logging into a trading server.

On the website we also see links to download remote access software. Scammers often convince potential victims to install such software and provide access to their personal devices, supposedly to get technical help.

It is advisable to contact one of the many legitimate brokers that offer MT5 or the still very popular MT4.

SydneyFX Trading instruments

SydneyFX advertises trading in all major asset classes.

However, as demonstrated, this website does not have either a license or a trading server. This purported broker does not have the legal or technological capacity to offer the services it claims.

SydneyFX Spreads and cost of trading

SydneyFX  advertises low spreads of less than 1 pip. But this means nothing given the lack of a license and trading platform.

SydneyFX Maximum leverage

On the website we see two different versions for the maximum leverage offered – 1:200 and 1:400. Both exceed the levels allowed to regulated brokers by a significant margin.

Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.

Higher levels of leverage are only offered to professional clients who trade entirely at their own risk. If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

SydneyFX Deposit and withdrawal methods

SydneyFX  does not have a functioning deposit menu. Experience has shown that fraudsters direct their potential victims to cryptocurrency transactions that do not allow refunds to be requested.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

SydneyFX Minimum deposit

SydneyFX specifies a minimum deposit of 250 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

SydneyFX Withdrawal requirements

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.