Skylarkfx Review – Is Skylarkfx a Scam?

Read our Skylarkfx review to see if this broker is a scam or legit. Just to clear doubts, this is a review.

Online brokers are dime a dozen and searching for one can often become frustrating because of the sheer choices you have. How do you sort through the options? Almost every company makes big promises and tries to draw you in with their offerings.

But, you have to be cautious because you have heard about scammers pretending to be brokers as well. This can make people suspicious of almost every company they come across. Rather than doing so, you should instead focus on the warning signs. Yes, fraudulent brokers usually have such signs, as this Skylarkfx review can show you.

This list can make it incredibly easy for you to determine what kind of a brokerage you are dealing with. It is vital to remember that you cannot just rely on the company itself to be forthcoming about its flaws or shortcomings. Even the most legitimate broker is unlikely to do so, but they are not fraudulent and that is what you want.

No company can be perfect, but you want them to be genuine and this can be a tall order when you have so many options to choose from.

A lot of people simply get so frustrated that they decide to go with the first option that seems to fulfill their requirements. But, you should not forget that even scammers can put up a good appearance. If you don’t look behind it and it turns out to be a scam, you are going to suffer for this blunder.

Hence, it is better to be aware and look for any warning signs that can tip you off about the actual nature of the broker you are considering.

You should do the same with Skylarkfx, one of the brokers that you will come across in your search. It is not a good choice because of the warning signs you will discover. What are they? Discover them below.

No regulation and blacklisted by a regulator

When you have to assess the true nature of a brokerage, you should always begin with their regulation. A regulated brokerage is a great deal more trustworthy and reliable than its unregulated counterpart because it complies with laws and policies of the jurisdiction it is based in.

It also maintains a standard of services and can offer you different types of protection, such as safety of funds.

You cannot expect these from an unregulated entity, so it is best to go with a regulated one. Where does Skylarkfx come in? According to its website, the brokerage is based in the UK, which means that it should have a license from the Financial Conduct Authority (FCA).

No brokerage can operate in the country without the FCA’s license and if it does so, then it is operating illegally.

If you check the FCA’s online register for Skylarkfx, you will not find the brokerage listed and this means the company is lying about where it is based.

Obviously, this means that you cannot trust the broker at all because if it lies about this, it can lie about anything else. But, as it turns out, Skylarkfx is actually operating illegally in the UK because the FCA has actually issued a warning against it.

The FCA has blacklisted Skylarkfx and clearly stated that the brokerage is offering its services without authorization in the UK, which means it is not to be relied upon. This indicates that the brokerage cannot offer any of the protections that any other FCA-regulated brokerage can.

Lack of legal documentation

Before signing up with any online broker, you will be asked to agree with their Terms & Conditions, so it is a good idea to go through them because this also tells you what to expect during your trading journey.

These legal documents outline the policies that are implemented by the brokerage, the rules you will be required to follow and other important details like fees and commission. It ensures that you are aware of what you are getting into and there are no surprises later on.

The problem with Skylarkfx is that when you try to find the broker’s Terms & Conditions, Client Agreement or any other legal documentation on its website, you will not discover any.

This is quite shocking because you will still be expected to agree to these T&Cs when you open an account, but you will do so blindly, which means that the company can add any policy and force you to comply with it. You will not be in a position to do anything about it because you would have agreed to their conditions when signing up.

No legitimate broker would ever do this and only a fraudulent brokerage like Skylarkfx would try to fool its clients in this manner.

Excessive leverage

One of the important trading conditions that a broker offers is leverage and this can be quite attractive for traders because it gives them room to trade more than their capital permits.

But, leverage is also quite risky, so you have to be careful with it. The problem with Skylarkfx is that it is offering excessive leverage to its clients, something that most brokers do not do, particularly those that claim to be operating in the UK.

Regulatory authorities in the UK, Europe and even Australia have imposed a cap on leverage allowed for retail traders due to its risk, yet Skylarkfx is offering leverage as high as 1:500, which it should not be doing.

No MT5

A major claim that Skylarkfx makes on its website is offering the MT5 trading platform to its clients. Even beginner traders are aware that this is one of the top trading platforms in the market because of its technology and the tools.

This draws people to Skylarkfx, but you can scour the broker’s website and not find the platform available to download. This is yet another empty promise that the company makes to lure people into its trap.

Final Thoughts

These warning signs are enough for anyone to determine that Skylarkfx is a pure scam and should be avoided.

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