SkyFx Trader Review: Stay Away from SkyFxTrader.Com Broker
The best advice one could give when SkyFx Trader is in question is to stay away from this fraudulent broker. It’s very clear that SkyFx Trader has no license nor is regulated by any legitimate financial institution as we couldn’t find any relevant legal documents on their website.
As a matter of fact, the address listed on their website is in the US as well as the contact number, but we see no license from the NFA or CFTC.
Our SkyFx Trader Review will point out all the red flags regarding this unregulated broker besides its complete anonymity and unregulated status, so let’s move on.
SkyFx Trader Overview
As previously mentioned, the website doesn’t reveal much about this scammer, and the same applies to their trading conditions.
We could, however, see that leverage is dangerously high at 1:1000 and that the spread goes from 0.1 pips, but that’s pretty much it.
Leverage at 1:1000 is too high, especially when considering what the maximum is among regulated brokerages. The leverage limit in the US and Australia is 1:50 and in the UK and EU 1:30. The spread is attractive at 0.1 pips, but it really means nothing as we’re clearly dealing with an unscrupulous brokerage.
License and Regulations of SkyFx Trader
The address listed on this scamming brokerage’s website is an address in California, USA. If we were to assume that SkyFx Trader is indeed based in the US, then it should be regulated by either the National Futures Association (NFA) or the Commodity Futures Trading Commission (CFTC).
We checked the CFTC and NFA registers and couldn’t find SkyFx Trader listed there, which was no surprise as the leverage advertised by this unregulated broker is way over the maximum of 1:50.
In short, SkyFx Trader is an unregulated broker and holds no trading license, which is why we advise against investing with this scammer.
Trading Platform Available at SkyFx Trader
Unsurprisingly, we couldn’t get much information about the trading software from the website. After creating an account, traders can see a poor reproduction of a trading platform. It lacks pretty much everything except for a make a deposit button.
On the other hand, MetaTrader 4 and MetaTrader 5 are among the best trading platforms in the industry and are offered by most regulated brokers. They come with a lot of advanced features and are suitable for traders of all levels.
Deposit and Withdrawal Methods
The minimum deposit is $500, which is a lot higher compared to its regulated counterparts. The payment method available is crypto, which is a staple for scamming brokers, and another clear sign SkyFx Trader is a scam.
Regulated brokers offer several payment methods such as wire transfers, card transfers as well as e-wallets like Skrill, PayPal, and Neteller. It’s strongly advised to avoid brokerages that accept only crypto payments, as crypto is difficult to trace.
Offshore Brokers Fraudulent Tactics
Scammers use many ways of tricking people into investing with them. Usually, it is done by advertising huge profits and giving out bonuses just to provoke a fear of missing out on making profits and getting rich overnight.
Another way the scam is done is by charging high withdrawal fees to discourage people from trying to get their assets back.
Regarding bonuses, they usually come with unreachable requirements that must be met in order to request a withdrawal.
But, requesting a withdrawal doesn’t mean one will be able to get their money back as scammers tend to make up excuses to either drag the process forever or to just flat-out deny it.
The Best Brokers for Forex
The forex trading market is very risky, so it’s important to make smart decisions when it comes to a broker to invest with.
All regulated brokers are obligated by law to share the statistics and risk warnings forex trading brings and are not allowed to offer any bonuses or promise quick and easy profits.
Due to the risk, this type of trading brings, regulatory bodies are monitoring all the trading activities in their designated jurisdiction to make sure everyone gets a fair chance at trading and to create an ethical trading environment.
Check out our list of legitimate brokers we highly recommend below:
|FXTM Broker||Cyprus, UK, Mauritius||4.5||$10||Forextime.com|
|OctaFX Broker||Cyprus, SVG||4.4||$100||OctaFx.Com|
|FP Markets Broker||Australia, Cyprus||4.7||$100||FpMarkets.Com|
|XM Broker||Cyprus, Belize, Australia||4.7||$5||Xm.Com|
|HFM HF Markets Broker||Cyprus, UK, South Africa, UAE, Kenya||4.3||$5||Hfm.Com|
|FBS Broker||Cyprus, Belize, Marshall Islands||4.85||$100||Fbs.com|
SkyFx Trader Summary
SkyFx Trader is an unregulated forex brokerage with no other information but a random address, email, and contact number.
Highly risky leverage at 1:1000 just further increases the chances of losing all of the assets at once, regardless of the SkyFx Trader’s regulatory status.
All in all, SkyFx Trader is not a reliable broker, it doesn’t hold any license and is anonymous.
If you were scammed by this or another fraudulent broker, we would be grateful if you could share it with us.
And if you’re seriously considering giving forex trading a shot, think twice before taking any risks while investing money.
FAQs About SkyFx Trader Broker
Is SkyFx Trader Regulated?
SkyFx Trader doesn’t fall under any regulatory body and holds no forex trading license.
What is The Minimum Deposit for SkyFx Trader?
The minimum deposit for opening an account at SkyFx Trader is $500.
Is SkyFx Trader a Trustworthy Broker?
SkyFx Trader is not a reliable broker and your money is not safe with them.