SM Capital Markets Review Is It A Legit Forex Broker

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SM Capital Markets Review – is it scam or safe?

SM Capital Markets is a brokerage supposedly located in Cyprus. We have serious concerns regarding the legitimacy of the brokerage. Read the whole review to find out the benefits and disadvantages in dealing with the brokerage!

Disadvantages

Lack of regulation

The corporate information presented on the website on first glance is quite straightforward. We read that the company behind brokerage is supposedly regulated by the Cyprus Securities and Exchange Commission under the name SM Capital Markets Ltd with a reference number 339/17. However, pon running a check on the online registry of CySEC we can quickly conclude that the broker does not fall under any regulatory oversight whatsoever. A search of both the reference number and the company name did not yield any relevant results. This means that the website is purposefully presenting false information to potential clients thereby ruining any pretense of legitimacy on their part. We have good reason to believe that SM Capital Markets is nothing more than a clone website.

Furthermore, we must emphasize, as we have countless times, that missing regulation brings together with it uncertainty regarding the most crucial aspect of a brokerage – the safety of the clients funds. We have no guarantee of the segregation of accounts i.e. we do not know whether the brokerage handles the money of their clients separately from their own, which greatly increases the chance for fraud. Clients also do not participate in a compensatory mechanism, such as the Investor Compensation Fund of the Cysec authorities, where by the traders losses may be covered in the unlikely case of the brokerage’s bankruptcy. All this, and much more, impels us to advise interested traders search for better and safer trading conditions. Here is a list of our top Cysec-regulated forex brokers:

No fees or commissions

Due diligence always requires us to go through the lengthy terms and conditions of the brokerage in search of potential fees or commission that may be hidden there. Such fees should be taken seriously, because they do not show up on the home page of the brokerage, but may significantly drive up the cost of trading. After a thorough research on our part, we can confirm that YvesKapital does not have such surprises in store for potential clients. However, we do point out that having in mind the staggering lack of clarity regarding the product the website offers, such an advantage isn’t all that important.

Conclusion

Going through the brokers website and its trading platform – we found many disconcerting things. There is a serious lack of information on crucial aspects of a brokerage, as well a lack of clarity as to precisely what the brokerage is offering. However, what we must most emphasize is that SM Capital Markets is probably an anonymous website and it operates under no regulatory oversight whatsoever which means the safey of the client’s funds is in serious jeopardy.

SMFX Review

Leverage: 1:30 | 1:500

Regulation: CySEC

Min. Deposit: 100 US$

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HQ: Cyprus

Platforms: MT4

Found in: 1997

SMFX Licenses

  • SM CAPITAL MARKETS Ltd – authorized by CySEC (Cyprus) registration no. 339/17
  • Scope Markets Ltd. authorized by IFSC (Belize) registration IFSC/60/373/TS/19.

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  • Our Review
  • SMFX User Reviews
  • SMFX News
  1. Is SMFX safe or a scam?
  2. Trading Platform
  3. Trading Fees
  4. Spread
  5. Leverage
  6. Deposits and Withdrawals conditions with a minimum deposit and withdrawal fee
  7. Conclusion

What is SMFX?

SMFX is a trading name used by the company, which operates through two locations while one of them is offshore entity Scope Markets Ltd based in Belize and another one is SM Capital Markets Ltd authorized brokerage in Cyprus. Also, the Cyprus entity operates several domains alike scopemarkets.com/eu and sminvest.com/eu while all more or less offer similar services.

For our better understanding, we will have a closer look at a general SMFX offering, but of course, note conditions may vary due to company offering, also according to your residency.

Eventually, SMFX maintains its dealer’s service since 1997 so since then gains and deliver valuable trading conditions while understanding deeply the necessary requirements for traders are good. SMFX operates No Dealing Desk or STP execution model simple, yet sophisticated enough trading environment suitable either for beginning or professional traders.

Through a low-latency solution, SMFX provides developed service with tight spreads and access to FX, Metals, Energy and Indices assets. Alongside competitive trading conditions, SMFX also supports traders through customer service and market updates together with an economic calendar, free education and other tools.

Is SMFX safe or a scam?

As we mentioned above, SMFX is a brand operated through two locations including offshore Belize and Cyprus. While Belize registration does not really provide sharp conditions that are necessary to guarantee a safe trading environment, CySEC being a European authority sets numerous standards. That is, all in all, will bring you a clear state of mind since SMFX is constantly overseen broker, as well as the one that set its business model together with safety measures verified by MiFID also.

Therefore, being compliant with EU ESMA regulations, SMFX brings you assurance about its security conditions and applied measures on how your orders are managed, as well as money operated. Alongside the professional service, SMFX customer support also ensures the highest rate assuring you of the safety measures. Besides, CySEC regulated broker assures funds are segregated at all times, as well as covered by the compensation funds in case of the company insolvency.

Trading Platforms

As a majority of brokers SMFX mainstays at industry leader MetaTrader4. MT4 is indeed the most popular platform used by both beginners and professionals due to its user-friendly but great possibility of powerful capabilities, numerous add-ons and great charting packages. Also, MT4 offers one of the best automatic trading systems knows as EAs, allowing even better control over the strategy. There are different versions of the platform suited for desktop or web versions, along with mobile applications.

SMFX combines trading functionality also with a wide suit of products and quite competitive pricing, along with options between three account types. These accounts are Standard, VIP and ECN one where the conditions vary as feature better cost-wise as long as the account is high grade.

SMFX Spread

SMFX spreads obviously defined by the account type you use, therefore the Standard account spreads starting from 1.8 pips, VIP already lowers it to 1.3 pips and ECN spreads starting from 0 pips while charges are combines into the commission of 3.5$ per side. Some more examples of typical spread you may see below, also compare SMFX fees to another popular broker Synergy FX.

Leverage

While trading with SMFX as a European broker you automatically comply with ESMA restrictions towards leverage. You won’t be able to access high leverage since regulator lowered leverage ratios to a maximum of 1:30 for major currency pairs and even lower for other instruments.

Nevertheless, since SMFX runs also an entity in the offshore zone in case you open an account under this jurisdiction higher leverage will be available to you as well. Yet, always be cautious about leverage use, as with its magnifying possibilities the risks are increased as well.

Deposits and Withdrawals

Lastly, to deposit or withdraw funds you may use proven methods so the transfer will be convenient and safe as well. These including Credit/debit cards and Bank Transfers, also you need to check with customer service in case alternative options available according to your region or residency. Also, conditions and payment methods may vary according to the entity of SMFX you are opening an account with.

SMFX minimum deposit

The minimum deposit amount defined by the account type you will use, while the very minimum for the first grade account is set to a 100$.

SMFX withdrawal fee

Generally, SMFX does not charge funding fees, however, payment providers may add on some fees again according to jurisdiction or international rules, so you better check for them as well. For withdrawals, SMFX allows 2 requests per month free of charge, while further requests will charge 35$ or equivalent.

Conclusion

Overall, SMFX Review shows us a broker with flexibility over the trading conditions, options between account types and execution models which all in all bring you comfort through overall trading experience. A quite low spread is another great option from SMFX, also despite its entity in offshore broker complies with European standards of running forex business due to its CySEC license. So overall, we would recommend trading with SMFX as a balanced option for either beginners or seasoned traders.

Nevertheless, we would be glad to know your personal opinion about SMFX, so share your experience in the comment area below, or ask us for some additional information.

MarketsX Review

Markets.com (MarketsX) is a licensed and regulated Forex broker, that is owned and operated by Safecap Investments Limited.

Their main branch is located at: 148 Strovolos Avenue, 2048 Strovolos, P.O. Box 28132, Nicosia, Cyprus. Their trading desk can be reached at: +357-2-203-0583, and customer support phone is: +442031500380. Contact email address for general inquiries is: [email protected], and the official website is: Markets.com.

For investor complaints and withdrawal problems, read this.

MarketsX Platform Review

Their list of available assets for CFD trading includes many Forex Pairs, Bitcoin, Commodities (oil, gold silver), Indices (majors and minors including: Spain35, Sweden30, Amsterdam25, MICEX, FTSE Italy, STOXX50 and more) and stocks. See complete list here.

Traders can use the MarketsX Web Trader, or their proprietary Markets trading app. They have a nice HTML5, mobile optimized site that works on all mobile devices. Leverage is up to 300 times, depending on which jurisdiction you are a resident of. Many Forex investors and day traders are looking for high margin rates, but remember, using leverage while trading is very risky.

New traders looking to get started will find, their minimum deposit requirement for a new trading account is only $100. Read more

MarketsX Trading Review

MarketsX Licenses & Regulations

When reviewing a new Forex / CFD Broker, it is very important you verify that they are a legal regulated company. There are many online scams that look like real brokers. During our review we see that Markets is a licensed and regulated broker in multiple countries.

  • TradeTech Alpha Limited (“TTA”) is licensed by the FCA, reg number 607305. United Kingdom location is: 20 Primrose Street, 11th Floor, Broadgate Tower, London, England, EC2A 2EW.
  • Tradetech Markets (Australia) Pty Ltd is licensed and regulated by ASIC license number 424008. Address is: Level 32, 200 George Street, Sydney NSW 2000, Australia.
  • In Europe they are operated by Safecap Investments Limited, which is a regulated investment services firm, authorized by the Cyprus Securities and Exchange Commission (“CySEC”) under license number 092/08.
  • Tradetech Markets (South Africa) Pty Ltd. is licensed by the Financial Sector Conduct Authority (“FSCA”) in South Africa, under license number 46860.

The main reason why Forex Traders choose to open an account with a licensed & regulated broker, instead of a scam Forex broker is this quote from their website. “Retail client funds are insured by the Investor Compensation Fund for Customers of Cypriot Investment Firms (up to €20,000 per client)”.

Are you currently an investor with MarketsX? Please leave your experience in the comments below.

*Trading CFDs carries considerable risk of capital loss

Traders should always compare their broker, with the popular brokers listed here.

ForTrade is a popular Forex CFD broker that is licensed in England by the FCA, read more. You should try their unique, easy to use trading app, which is quite popular, signup here.

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