Read our Skyfxtrader review to see if this broker is a scam or legit. Just to clear doubts, this is a skyfxtrader.com review.
If you speak to a trading professional, they will tell you that the right brokerage can make all the difference, not just when it comes to your overall experience, but also in terms of success. The right brokerage allows you to fully enjoy the trading process because they eliminate all the hassle associated with the process.
This saves you from a great deal of stress and allows you to focus completely on your trading activities. Therefore, when you are in the market for a good and reliable broker, you should always do some fact-checking, which is exactly what this Skyfxtrader review is for.
Yes, it means that you have to spend some time and effort, but it can turn out to be a good move in the long run. It helps you in rooting out unreliable and mediocre companies, along with scam ones because those are also quite rampant in the market.
If you end up opening an account with a scam broker, you would end up losing your money and this is an outcome that everyone wants to avoid. However, you need to take note that it is not that easy to root out these companies from your list. Why?
This is simply because by all appearances, these fraudulent platforms can also look quite similar to legitimate ones. On the surface, they do not give you absolutely any hints about who they truly are and if you were to believe everything they tell you, it would be natural to assume that they are the best brokerage for you.
But, the reality is completely opposite because they are just trying to fool you. This is something you will experience firsthand when you come across Skyfxtrader that claims to be a reliable brokerage.
It promises high returns to its clients via its innovative and simple platform, along with tight spreads and leverage that goes as high as 1:1000. This makes it hard to resist Skyfxtrader, but you have to get to know it properly first and once you start doing so, you will come across some worrisome facts about it. What are they? Check out the top 5 below:
Anonymous broker
The first worrisome fact that you discover about Skyfxtrader is that it is a virtually anonymous brokerage. Opening an account with a brokerage requires a great deal of trust because you have to share a lot of sensitive and personal information with them. Therefore, you want to get to know the company first to understand who you are dealing with and you also need to ensure they are licensed to provide their services.
When you go through the Skyfxtrader website, you will find that it claims to be based in California, United States. It has an obscure post box address posted on the website as well as an email address, but this does not have any credibility unless the broker has a license to operate in the country. After all, the US is one of the well-regulated jurisdictions in the world.
To operate in the country, Skyfxtrader would need to have a license from the Commodity Futures Trading Commission (CFTC) and be a member of the National Futures Association (NFA).
But, when you check the online register of these two bodies, you will not find the company listed anywhere. This indicates that the broker cannot be based in the US. Its credentials cannot be trusted, which means you are dealing with a virtually anonymous entity that you know nothing about.
Lack of trading platform
The second worrisome fact that you will discover about Skyfxtrader is that it does not seem to have a trading platform at all. Given that it is the most important feature that an online broker can offer and is a must for actually being able to trade, its absence is certainly something to be worried about. It is even more worrying that the brokerage is lying about having a platform.
Its claims show that Skyfxtrader is offering a simple, reliable and innovative platform to its clients when it does not have a trading platform at all. Once you complete your registration, it takes you to a funny looking dashboard that does not really offer you anything. The dashboard does not have a trading option and only allows you to make a deposit, which means that Skyfxtrader is only interested in your money.
Excessive leverage
The leverage you are offered by an online broker is also important because it can give you a lot of room for trading. But, the ratios that Skyfxtrader is offering you should be a cause for concern because they are as high as 1:1000. These levels are downright dangerous and are not permitted in many jurisdictions.
Regulatory authorities have actually restricted the levels of leverage that can be offered, but since Skyfxtrader is not interested in your best interests, it is offering such high ratios to draw people to its platform.
Discrepancies in minimum deposit
How much do you have to deposit with Skyfxtrader to open an account? It appears that even the broker itself cannot make up its mind about it. This is because it has mentioned different amounts in different areas of its website. In some places, it is asking for a $200 deposit, which does not sound too bad, but in others, it is asking for a $500 deposit and this does not bode well because it is twice higher than the standard.
Only crypto payments
Another worrisome fact about Skyfxtrader is that it is not being honest about the payment methods it is offering. Even though it claims to offer bank wire transfers, Perfect Money and crypto payments, this is not the case.
The only payment option it does provide is bitcoin and ethereum and crypto payments are never a safe bet because they are irreversible. This means that you cannot file for a chargeback and once you deposit, your money will be gone. Plus, crypto transactions also offer anonymity, due to which scammers prefer it so much.
Ending Thoughts
These worrisome factors can help you see that Skyfxtrader is not even close to the broker you want to use for your trading journey.
