de | cn | ru

SCM Review - is it scam or safe?

SCM Forex Review - is Scandinavian Capital Markets scam or good forex broker?

RATING: 3.5 / 2 REVIEWS ForexBrokerz SCM
SCM is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Trading Accounts

 

Account type  Minimum deposit  Minimum trade size Maximum leverage Spreads (7 Commission)
SCM Prime $2k  0.01 1:100 Prime + $10 / lot*

 

*According to the information on the broker’s website.

 

Scandinavian Capital Markets (SCM) offers a couple of trading accounts, but we will concentrate on their basic “SCM Prime” offering, as the other require very high initial deposits (SCM Managed -$50k, SCM Segregated - $250k). The broker claims to provide pure STP execution and offers variable spreads and

 

Hedging & scalping allowed, but unfortunately if you wish to use automated strategies, a.k.a. EAs, you will have to pay additional $249.99 per month to get them (along with VPS, News and Webinars).

 

The Company. Security of Funds

 

Company

Country

Regulation

Scandinavian Capital Markets SCM AB

Sweden

SFSA

 

Originally founded as a wealth management company in 2011, Scandinavian Capital Markets (SCM) made the natural extension into brokerage services a couple of years ago and now offer trading in around 30 currency pairs and precious metals on the MT4 platform. Popular instruments like CFDs on indices and stocks are not available with SCM.

 

The broker is headquartered in Stockholm, Sweden - a market without clear Forex regulation. The company behind the brand, Scandinavian Capital Markets SCM AB, is registered with the Swedish Financial Supervisory Authority (Finansinspektionen), whose role is to promote stability and efficiency in the financial system as well as to ensure an effective consumer protection.

 

As Sweden is a part of the EU, MiFID (Markets in Financial Instruments Directive) regulations apply. The Directive outlines the minimum capital requirements, the mandatory segregation of client and company funds, as well as a number of other requirements, the most important of which is the one for transaction reporting.

 

Trading Conditions

 

Minimum Initial Deposit

In order to open an account with SCM, traders have to invest a minimum of $2 000, which is a pretty high minimum initial amount. By comparison, major forex broker FxPro requires $100 from traders as a start for all account types.

 

Spreads & Commissions

SCN claims to provide “prime” variable spreads, and says it applies a commission of $10 per standard lot, which seems like competitive pricing. We tried out its MT4 platform and found out that with SCM`s demo account you cannot initiate a trade, unless you deposit. Nonetheless, the spread on the platform is around 1.2 pips on EUR/USD, which is average.

               

For purposes of comparison, FxPro offers spreads, averaged 0.3 pips on EUR/USD on its cTrader accounts, where a commission of $4.5 applies per standard lot (per sde). For more information, you may look up and compare real-time spreads of 15 leading brokers here.

 

Leverage

The maximum leverage level offered by SCM is 1:100, which is considered a bit low. If you need higher ratios, many brokers offer leverage equal to or exceeding 1:500. Keep in mind, however, that higher leverage ratios allow you to operate with more money, but at the same time this means greater risk of losses.

 

Trading Platforms

 

SCM supports the renown MetaTrader 4 (MT4), available as desktop download and mobile apps.

 

The MT4 is highly regarded by the online trading community mostly because it allows users to fully automate their trades by choosing from a wide range of EAs. With this broker, however, use of EAs involve additional monthly payments.

 

 

SCM’ desktop MT4. Click to enlarge.

 

Methods of Payment

 

SCM supports only credit/debit cards and bank wire transfer as payment methods. Popular e-wallets such as Skrill & Neteller are not available with this broker.

 

Conclusion

 

SCM is a MT4 forex broker, based in Sweden and registered by the local financial authority Finansinspektionen. Its spreads appear average, while the initial deposit is very high and besides, additional monthly payments are required for the use of EAs. To sum up the above:

 

Pros Cons
Registered with SFSA High initial deposit required
MT4 available Additional monthly fee for EAs
Competitive spreads No CFDs on indices and stocks
Pure STP model Limited payment methods
  No functioning demo accounts

Latest news about SCM
No news about SCM . Check back later.
Forex
Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
cTrader
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

Traders` reviews for SCM

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Outdated article

Seems your information is a little outdated. I almost didn't open an account with them after reading your review due to having to pay $250 for an EA. Thankfully, when I spoke with one of their reps I found this was not the case.

Might want to update the review.

abforex 01/10/2019
de | cn | ru