Is SinoSoft FX legit or a scam broker?
As scam brokers are appearing on a daily basis and are soon revealed they need to catch the attention of as many traders as possible until their scam is unveiled. Therefore, one can see a lot of misleading information and claims on the webpages of the scam brokerages. SinoSoft FX is one of them, unfortunately for the broker itself, it is leading a very unsophisticated scam scheme that can be revealed very easily. SinoSoft FX Forex brokerage has been established just previous year, in 2018. Since then, the broker offers Forex and CFDs trading to the worldwide audience of the traders. The features and trading conditions of the broker look neither bad and neither good, but average. The minimum deposit with the broker is 100 USD, traders can trade currency pairs, CFDs on cryptos, commodities, and indices and use leverage up to 1:300. The broker offers several payment methods and promises fast withdrawal without any commissions. But as you could already guess, the promises that the broker makes are not delivered. Make sure to read this detailed SinoSoft FX review to see how the broker is luring the customers.
Revealing SinoSoft FX Scam
Experienced traders can guess that the broker is leading some kind of fraud from the very first glance. However, some of the inexperienced ones are under the risk of becoming the victims of the brokerage. Hence let us answer the main question first – Is SinoSoft FX legit broker or not?
The brokerage is run by a company called SinoSoft Global Company Limited. The website does not provide any information about the company, where it is registered and regulated, which could mean only one thing – the broker does not have a license to operate and hence is not legit. The only information one can get about the company is that its headquarters is situated in Dubai. However, since the broker is not regulated this information does not change anything. Those who choose to trade with SinoSoft FX Forex broker are putting themselves under the unnecessary risk of getting scammed.
The regulation is not the only thing that should concern the visitors to the broker’s website. There, SinoSoft FX makes a lot of claims. For example, the broker claims that it is offering authorized financial products, or that it is a leading and an award-winning brokerage. Needless to say, the broker makes such claims to look more legit and trustworthy in the eyes of the inexperienced traders who are not aware of such scams.
The fact that the broker is not very trustworthy can also be seen on the website. The website is not well developed and has a lot of issues. The navigation there is very difficult, as the content is placed badly and it takes a lot of time to find information there. This is not the only thing that reduces the SinoSoft FX rating. Contentwise, the website is bad as well, the broker does not provide important information. One cannot learn what trading instruments he or she can trade with the broker until opening an account.
There is no FAQ section as well, hence website visitors cannot see the answers on the questions they might be interested in. Last but not least, the content is full of grammar mistakes. The mistakes are so bad that in some cases it is almost impossible to understand what is written. Generally, the bad website indicates that the broker did not put much effort, energy, and money into making it. It is a characteristic of scam brokers, as they know that after some time when their scam is revealed they need to change the domain of the website anyway. Therefore, they do not spend much time or money into making it look good.
The minimum deposit, leverage, and spreads
As mentioned above, the broker offers trading currency pairs, CFDs on commodities, cryptocurrencies an indices. However, there is no list of trading instruments. Those who want to open an account with SinoSoft FX need to deposit the minimum deposit of 100 USD.
Traders can use 1:300 leverage for their trades which is ten times higher than the allowed leverage in the European Union, where the broker also offers its financial services illegally. Another thing that causes negative SinoSoft FX opinions is spreads. The lowest spread offered by the broker is 1.6, which is higher than the avarage.
SinoSoft FX withdrawal policy
On the front page of the website the withdrawal policy looks just perfect – no limitations, no commissions, and one-day withdrawals. Not many brokers can offer such withdrawal conditions, and neither can SinoSoft FX. The page dedicated to the withdrawal policy shows a different picture.
According to the SinoSoft FX withdrawal policy, one can use several payment methods for making deposits and withdrawing the money from the trading account: electronic payment systems such as Skrill, Neteller, WebMoney, and Perfectmoney. Also bank wire transfer and credit/debit cards. The withdrawal conditions are different for each of them. The withdrawal may take six business days.
- For the electronic payment systems the withdrawal commission can be from 0.5 percent to 2 percents and maximum withdrawal is 2500 USD.
- Credit/Debit card withdrawals cost 2.5 USD/EUR + 2.5 percent of the money withdrawn. The maximum amount that can be withdrawn is 2000 USD/EUR.
- Bank wire transfer withdrawal fee is 40 USD or 20 USD and there are no limits of withdrawal.
SinoSoft FX account types
The details about SinoSoft FX account types are somewhat confusing. On the front page, the broker has different information, and on the page for the account types, the details are different. There are three types of accounts – Silver, Gold, and standard. These accounts have basic trading conditions and mostly differ with the spreads, commission, and minimum deposit. As you can see below, the broker states that the minimum deposit of for the Silver, Gold, and Platinum accounts are 100 USD, 5000 USD, and 15000 USD respectively.
On the page dedicates to the account types, the broker shows that the minimum deposit for the Gold account is 2000 USD, and for the Platinum, the account is 20000 USD. The spreads from the Gold account start from 1.2 pips and for the Platinum account from 0.4 pips. The platinum account has a trading commission which is 4 USD per lot traded. The inconsistency between the information creates a very negative SinoSoft FX opinion, as the broker should provide correct information about trading conditions.
Can SinoSoft be trusted?
As you can see you cannot even trust the information on the website, let alone the SinoSoft FX itself. The broker’s website is full of misleading and false information that makes us confident that SinoSoft FX fraud is possible and traders should keep their funds away from the broker. SinoSoft FX does not have a license and is operating without any authorization. Even if it was licensed it would not change much since the broker’s service is not designed well and is very poor. Our final thoughts about the broker are that it cannot be trusted, if you were considering to open an account with SinoSoft FX it would be better for you to keep searching for a legit and good broker.