SkyFx Trader Review: Stay Away From SkyFxTrader.Com
SkyFx Trader Review, If we were to believe everything that was written on SkyFx Trader, we’d think it’s possibly the best online broker out there. We’re speaking in past tense, of course, because their website isn’t working anymore.
It wasn’t a very high-quality website either, and if you just paid enough attention you can see that nobody actually proofread most of the written content.
SkyFx Trader is a virtually anonymous firm, with no credible contact information to speak of, and this is a problem. In our SkyFx Trader Review, we will analyze the claims of this faux broker, and compare them to what a legit, regulated broker would offer instead.
|Company||Sky FX Trades Markets Incorporated|
|Address||Not specified, USA (alleged)|
|Bonuses||Various deposit bonuses|
How Are You Safe at SkyFx Trader? Regulation and Security
The current state of the SkyFx Trader website makes our task of reviewing it difficult. Much of the information is missing, but we can deduce the missing information from our experience and the little clues that are left. For instance, we know that SkyFx Trader claimed to be based in the USA, but they gave us no actual address.
The USA is one of the most strictly regulated financial markets on the planet. It goes without saying that their main regulatory agencies, the CFTC and the NFA have some of the most stringent rules when it comes to licensing rights.
Brokers that wish to begin conducting business in the US of A must adhere to these conditions:
- Proof of at least $20,000,000 of starting capital
- Leverage is restricted to 1:50
- Segregated bank accounts must be provided for clients
- All transactions must be regularly reported
The extremely high initial capital is a risk-reducing measure that ensures the company is financially stable and unlikely to go bankrupt. The leverage SkyFx Trader used to offer is 1:1000, which is too high as well.
It doesn’t surprise us in the slightest that neither the CFTC nor NFA databases have any information on this SkyFx Trader.
There is one more thing worth mentioning, however. By tracing the network traffic from and to the site, we came across the information that the company that rented the SkyFx Trader domain was based in Reykjavik, Iceland.
Another database check was in order, with Iceland’s regulator, the CBI-FSA. Again, there were no companies registered under the name SkyFx Trader.
An Overview of Trading Software
It’s impossible to review the trading software that was used by SkyFx Trader. Not because the information is missing, but because the trading platform wasn’t functional in the first place. Their advertised high-quality Web Trader didn’t have any utility that allows trading. It did have a deposit function, though, as we will see later.
Many authorized brokers take full advantage of MT4 and MT5. MT4 has been in use since 2005, and in the years since it has undergone serious incremental development making it one of the most reliable trading platforms in use today.
MT5 is a younger, new-generation software that offers automated trading, and excellent execution speeds on more modern hardware.
SkyFx Trader Account Types
SkyFx Trader had 4 main account types, and these did not include a demo account. The accounts in question are named Standard, InvestiPlus, VIP and Premium. The difference between these is only in the minimum deposit amount and the guaranteed profit percentage.
A standard account requires a $200 minimum deposit, and in theory yields 10% guaranteed earnings in 7 work days. Premium requires a minimum deposit as high as $100,000, with a theoretical 45% guaranteed profits in 7 work days!
Of course, nobody can guarantee any profits on the online market. A company named Black Rock has invested billions of dollars into the development of the Aladdin stock market prediction supercomputer, and even this marvel of engineering can’t guarantee profits.
We can see the SkyFx Trader scam at work yet again when we look into the funding methods. The website claims to support Bank cards, Bank Wire as well as E-Wallet and Cryptocurrency payments. When we open the so-called trading platform, only the crypto deposit method remains. Scammers advertise a very short withdrawal process, but we doubt this as well.
Scam websites extensively use Crypto as their sole method of funding because of the inherent untraceability of Crypto Coins. Furthermore, Crypto wallets can be made “cold”, by switching the data storage device off. Once a victim has made a deposit, frauds will invent a myriad of excuses as to why a withdrawal is impossible.
Those scams that do allow for a withdrawal charge incredibly high transaction and processing fees that greatly undermine the client’s profits. Of course, you’d be hard-pressed to make any profits with SkyFx Trader, so you’d just lose a good chunk of your investment by simply depositing the money.
How is the Scam Carried Out?
It’s all in the advertisement. Great market opportunities, incredibly high leverage, deposit and trading bonuses, and guaranteed profits prove too tempting for some people. Beginners are especially endangered because they lack the knowledge on how to check a broker’s legitimacy.
Scammers like SkyFx Trader only accept crypto payments, and keep most of the trading information behind a paywall.
Once the money has been deposited, the victim will realize it’s all a scheme. By this time it might as well be too late. Scammers have put the funds in a cold wallet, or charge great expenditures for any withdrawals.
SkyFx Trader Summary
SkyFx Trader is a fraudulent entity that is not authorized to provide broker services anywhere on the planet. These swindlers capitalize on the beginner’s lack of knowledge in Forex by advertising incredible market conditions and guaranteed profits.
All the crucial information is hidden behind a paywall. You may only see what’s in store once you’ve already made a deposit. The only thing that is certain with these swindlers is that you may lose your entire investment.
FAQs About SkyFx Trader Broker
Is my Money Safe with SkyFx Trader?
No, SkyFx Trader is a scam broker that is not regulated in any financial jurisdiction.
Does SkyFx Trader Offer Demo Account?
No, there are no demo accounts on SkyFx Trader.
What Is The Minimum Deposit at SkyFx Trader?
Minimum investment amount with SkyFx Trader is $200.