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SKY Forex Review - is it scam or safe?

SKY Forex review - is skyforex.co scam or good forex broker?

RATING: 1.2 / 0 REVIEWS
SKY Forex is an offshore broker. Your money is not safe.

 

Trading Accounts & Conditions

 

Account type

Minimum deposit

Maximum leverage

Spread

Gold

$250.00

1:200

Fixed / Variable

Platinum

$2500

1:200

Fixed / Variable

Diamond

$25000

1:200

ECN + commission

VIP

$100 000

1:200

ECN+ commission

 

SKY Forex offers its clients the above listed account types, as well as an Islamic one. All of them offer trading in micro lots with leverage up to 1:200. Unfortunately, the broker does not specify its spreads and commission fees.

 

 

SKY Forex Advantages

 

 

Seemingly competitive spreads

We registered an account with SKY Forex and found out that the spread on EUR/USD floats around 0.6 pips, with some commission fee. So, trading costs with this broker seem comparatively low. You can always compare the spreads of some of the best brokers at our dedicated page.

 

 

>>Real-time spread comparison<<

 

 

Rich product portfolio

SKY Forex offers trading in wide range of forex pairs, and various CFDs - on commodities, precious metals, indices, stocks and cryptocurrencies. If you are into digital assets trading, check out our list of reliable brokers that offer trading in Bitcoin:

 

 

>>Reliable forex brokers offering trading in Bitcoin<<

 

 

Many payment options

The payment options listed on SKY Forex’s website are bank transfers, credit cards, PayPal, and Skrill. You can deposit either in US dollars or Euro.

 

 

SKY Forex Disadvantages

 

Not regulated

The broker has not mentioned any regulator on its website, nor claims to be licensed. So it obviously operates without a license, which is a huge red flag. Most scammers in this sector are either not authorized by any governmental agency to provide financial services, or are “licensed” offshore.

 

 

Unclear company background

Judging by its logo, SKY Forex stems from the Arabic world. Nonetheless, it is not clear where are its headquarters, as in various sections on its website are mentioned UK, St. Vincent & the Grenadines and British Anguilla. In its terms and conditions we found out that SKY Forex is operated by HALAL TRADE Ltd., but there is no information about this company on the broker’s website and we could not find anything in the Internet either. All decent brokers have “About US” Sections on their websites, which includes company background, regulation and other relevant information.

 

Claims to support MT4, but does not

SKY Forex says it offers both the industry leading solution MetaTrader4 (MT4) trading and its Sky Web trader. However, we registered both a demo and live trading accounts and were offered solely Sky Web trader, which seems like the Sirix Web platform, but without the built-in social streaming. Here is a preview:

 


Click on the image to zoom in.

We consider the unavailability of MT4 as a weak side of any broker. This platform is favoured by the majority of traders, because it provides great charting and a lot of custom technical indicators and automated trading systems, simply known as Expart Advisors. It also has very nice mobile and web versions.

 

 

>>Choose a MT4 broker<<

 

 

Relatively high initial deposit required

SKY Forex requires an initial investment of $250, which is relatively high amount, especially considering that this broker is not regulated. Many licensed brokers require less. For example, you can open an account with leading global brokerage FxPro by depositing a mere $100.

 

 

Conclusion

 

SKY Forex offers trading in more than 120 currency pairs and CFDs on commodities, precious metals, indices, stocks and cryptocurrencies (Bitcoin, Ethereum and Litecoin). It claims to offer the popular MT4 but it seems that trading with this broker is only doen on its Sky Webtrader platform. While its spreads seem attractive, we have some serious concerns about this broker.

 

Its website fails to provide adequate information on its company background and headquarters, and obviously the broker operates without a valid license.

 

Experienced traders will probably know this, but we feel obliged to clarify this for beginner traders. Trading with an unregulated broker is very risky. You only have their word as a guarantee of the security of your funds. To put it simply, this means that you may be scammed out of your money.

 

That is why we usually recommend the United Kingom’s Financial Conduct Authority (FCA), as it is one of the most reliable financial governmental agencies worldwide. Forex brokers authorized by the FCA are required to meet strict rules, such as to keep client funds in segregated accounts, to report transactions, and more. Additionally companies have to be members of the Financial Services Compensation Scheme (FSCS) which later guarantees client funds, in case their partner becomes bankrupt. Coverage is capped to £50,000 per account.

 

Here is our summary of SKY Forex:

 

Pros

Cons

Seemingly competitive spreads

Not regulated

Multiple payment options

Unclear company background

Rich product portfolio

Claims to support MT4, but actually does not

 

Relatively high initial deposit required

 

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Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Traders` reviews for SKY Forex

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