Beware! SFEX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
SFEX is a forex broker that offers trade in forex, metals, crypto, commodities, indices and stocks. This broker is different from the other thousands of brokers on the Internet in terms of accounts and availability of information. Let’s look at its features one by one.
SFEX Regulation and safety of funds
SFEX is the commercial name of SFEX Global LTD with address in St Vincent and the Grenadines (SVG). First of all, you must know that St. Vincent and the Grenadines is an offshore zone where forex brokers are not regulated. Should you choose to trade via this broker, please keep in mind that not being regulated may have serious implications for the safety of your funds. Brokers from offshore zones, such as SVG, do not provide a guarantee for the safety of clients’ funds. It means that if this broker goes belly up or decides to shut down its website, your money will be lost.
It’s a different story with licensed brokers from well-established jurisdictions, such as EU, UK, US or Australia. In these jurisdictions there are a lot of preventive measures to assure that scammers cannot sneak in. First of all, you must know that licensed brokers in EU and UK must declare no less than 730,000 EUR initial capital to be able to operate. Scammers will never invest so much money just to look legit. Aslo, licensed brokers regulated by FCA deduct funds toward a compensation scheme from which traders will be compensated up to 85,000 GBP per person if the broker goes bankrupt. Similarly, brokers regulated by CySEC deduct funds towards a compensation scheme from which clients can be compensated up to 20,000 EUR per person in case of bankruptcy. As you can see, you can’t even compare the conditions offered by licensed and non-licensed brokers, do you yourself a favour and choose a licensed broker to trade with.
SFEX Trading software
The trading software that is offered by SFEX is the MetaTrader 4 platform. Although due to some technicalities we were unable to download the platform, we can say that this platform is one of the best in forex trading. It offers a lot of charting possibilities, has an auto trading option, an app market and a financial calendar, along with trading signals that come with a subscription fee , VPS and a code base with customs scripts. Over 80% of the brokers that use this platform sing praises for its truly unmatched qualities. Normally, what you can expect on the left side of the platform is the menu with the currency pairs and their bid/ask price and beneath is the navigator with the accounts, indicators, expert advice and scripts. In the horizontal bar on top, are the charting options which are truly amazing as they have different chart types time frames and technical analysis indicators to choose from. The most popular indicators are Bollinger Bands, Fibonacci retracement, moving averages, etc., that help traders predict the future direction of exchange rates and make profit. In the middle of the screen normally is the display with the charts of currency pairs that show fluctuation in their price in a given time frame. The number of these charts can increase or decrease to suit the trader’s trading preferences.
SFEX Deposit/Withdrawal methods and fees
SFEX offers 2 different types of accounts – an ECN and a VIP. If we look first at the VIP account, we’ll notice that unlike other accounts offered by other brokers, this one is in the form of subscription and consist of installments for 1 month, 6 months and 12 months where the amount per month varies. For the 12 months plan, the monthly fee is the lowest – $20.75 per months. Second lowest is the 6 months account with $23.1 per month and last is the 1 month account with initial deposit of $24.9. We must say that this is something unusual and certainly not seen with other brokers.
There is no information about the payment methods that is readily available and visible on the company’s website.
For these accounts, there is no commission.
Once per months withdrawals are also free of charge, but there is no information what the fee is for more than one withdrawal per month.
The ECN account looks different (screenshot below). There is no indication for the initial deposit and the commission for the EUR/USD product is 1.5 USD/per side which comes to $3 in total. The spread is rather tight – 0.7 pips which is good but when we add the commission of $3, we’ll get the actual spread to be 1 pip. The spread is good, however, the leverage indicated as 1:200 is rather high. It contains risks for the trader of making big loss instead of making a big win if the transaction is not successful. We advise you to refrain from selecting brokers that offer such high leverage as it leads to taking unnecessary risks with your money. Just to clarify here, licensed brokers in EU have a leverage cap of 1:30 and those in US have a leverage cap of 1:50 which prevents traders form risking their hard-earned money.
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are the so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!