Sky Markets Review
Who hasn’t heard of the stock market or the forex market? Nowadays, it is the cryptocurrency market that’s making headlines. Regardless of which financial market has your interest, you will require the services of an online broker to jump in. As soon as you start your search, you will come to know that there is a substantial number of these operating online and one after the other, promises to be the right fit for you. But, are they? To find the answer, you need to do your homework and this is exactly what is needed in the case of Sky Markets. A Sky Markets review is just what you need to find out whether it is possible for you to trust the broker or not.
Doing this can save you from a great deal of headache and stress later on and prevent you from having to suffer losses as well. You want trading to be a smooth experience for you and that will only happen when you have a trustworthy brokerage. Sky Markets touts its excellent trading services, low trading costs and the availability of the MetaTrader5 (MT5) as its strong features, but you will find that their website is not well-structured or very informative and there are some other problems as well. The following Sky Markets review will help figure things out:
Regulation and Licensing
If you take a look at the Sky Markets website, you will find that they have listed two addresses; one is in the United Kingdom and the other one is in Hong Kong. However, there is no mention of the company that’s behind the brokerage, which means that they are virtually anonymous. Furthermore, if it is based in any of the two countries it has mentioned, then it should have gotten proper licensing there in order to provide its services.
This would mean getting authorization from the Financial Conduct Authority (FCA) in the UK and Securities and Futures Commission (SFC) in Hong Kong. Unfortunately, you will not find Sky Markets mentioned in the online registers of any of these organizations, thereby confirming that it is not a regulated and licensed broker, which means it is a risky option.
Terms & Conditions
After regulation and licensing, the next most important feature of a broker that you need to pay attention to is their Terms & Conditions. These can help decide if the platform you are considering is a scam or a legitimate one. Scams have vague, contradictory or exploitative conditions, whereas legitimate brokers use these to be transparent about their services. When you look for Sky Markets’ Terms & Conditions, you are in for a big shock.
There is no mention of any Terms & Conditions on the website, neither is there a Client Agreement given. This means that Sky Markets expect its clients to sign up with them blindly, without knowing what they are getting into, the fees and commissions they will be charged or any information about their policies. It is a clear indication of a scam broker because no authentic platform would ever do so.
Of course, you shouldn’t ignore the trading conditions of a broker because they have an impact on your bottom line. The profits you make will depend on the trading conditions of the platform you are using. A check of the spreads charged by Sky Markets give you another rude surprise because they have a spread of 5.2 pips for the EUR/USD pair. This is immensely high, given that most brokers charge spreads between 1 to 1.5 pips for the same pair and some go even lower.
Another issue with Sky Markets is that they haven’t bothered disclosing the minimum deposit they expect you to make on their website to start using their trading services. They have just mentioned the three currencies i.e. Hong Kong dollars, US dollars and RMB, available.
When you put all of this information together, you can arrive to one conclusion; Sky Markets is certainly not a broker to be trusted.