SepaFX – Is This Broker Safe?

Website URL: https://sepafx.com/

Founded: 2020

Regulations: Is Not Regulated

Languages: English

Deposit Methods: Credit & Debit Card, Bank Wire, Sofort, Skrill, Giropay, TrustPay, iDeal, Paysafecard, Przelewy24, SafePay

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: 300+

Types of Assets: Indices, Stocks, Forex, Commodities, Precious Metals

Trading Accounts and Conditions

SepaFX offers you the following types of accounts:

• Basic: If you plan to open a Basic account for trading, then you first need to make a minimum deposit of $250.
• Bronze: To start trading using a Bronze account, you need to first make a minimum deposit of $25,000.
• Silver: To register for a Silver account, you first need to make a deposit of at least $75,000.
• Gold: To be able to open a Gold account and trade on it, you first will need to deposit at least $150,000.

We know that the Basic account comes with a leverage of 1:10 and a spread of 0.4 pips, plus commission. However, we do not have any information on the trading conditions for the rest of the account types.

SepaFX – Advantages

Let’s take a look at the advantages of trading with SepaFX first:

• Good Spreads on Trading Platform

When we logged onto SepaFX’s web-based trading platform, we found that the spreads offered were very low – starting at just 0.4 pips. However, considering the fact that this spread is much lower than even the market standards, we can only assume that there must be a commission fee attached, since there is no way a broker would remain profitable with such low spreads.

• Range of Trading Instruments

Another positive of trading with SepaFX is the range of trading instruments on offer. With more than 300 assets for trade, ranging from currency pairs to CFDs on stocks, precious metals, commodities, indices and cryptocurrencies, we were pleasantly surprised by this broker’s asset offerings.

SepaFX – Disadvantages

Since the advantages look so good, you may be tempted to contract with SepaFX. However, we strongly recommend you read through the long list of very serious disadvantages of trading with this broker before you invest your money with them.

• Little Corporate Information

There is much by the way of corporate information on SepaFX’s website. There is mention of offices in Cyprus, the UK and Estonia. However, there is no company name given anywhere on this broker’s website.

What this essentially means is that this broker’s services are being offered anonymously. What this means for you as a trader is that you do not know who is handling your money, where it’s going, or even how it is being handled.

Plus500

$100

Minimum Deposit

Start Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Unregulated Brokerage

Despite the fact that we did not have a company name to go by, we still decided to check the online registries of the financial authorities in the UK, Cyprus and Estonia using the broker’s name.

Unfortunately, as expected, we did not find the broker’s name registered with the FCA (Financial Conduct Authority of the UK), the CySEC (Cyprus Securities and Exchange Commission) or the FSA (Estonian Financial Supervision Authority).

We can therefore conclude that this anonymous broker is completely unregulated and offering its services illegally. Dealing with unregulated and anonymous brokers is a sure way to lose your money, so we would recommend not contracting with SepaFX at any time.

• Blacklisted by Swedish Financial Regulator

We are not the only ones to have noticed that this broker is operating outside legal boundaries. The Swedish financial regulator, the Finansinspektionen (FI), has blacklisted this broker.

In its public warning, the regulator states that SepaFX is not authorized to offer financial services neither in Sweden nor in the country that it claims to be based out of. The regulator further warns its citizens that contracting with such unregulated brokers is dangerous.

• Unproven, Web-Based Trading Platform

This broker does not offer its clients the MetaTrader 4 (MT4) trading platform. Instead, what you do get is an unproven, web-based trading platform.

This platform lacks most of the features that make the MT4 platform the most popular in the world. For example, there are no automated trading algorithms available, and charting options are limited. There are also no market indicators such as those you would find on the MT4 platform.

So, while this broker may have a decent selection of assets, we feel that the trading experience would be poor because of the weak platform it uses.

• Poor Leverage

SepaFX may not have a free demo account, but anyone can access its trading platform and take a look at the trading conditions offered. And when you do, you will find that this broker offers a leverage of only 1:10.

This is highly surprising because most unregulated brokers offer massively high leverages as a tactic to attract customers. In fact, not only is SepaFX’s leverage low in comparison to other unregulated brokers, it is also low in comparison to regulated brokers!

The maximum leverage that regulated brokers can offer is 1:30, but SepaFX’s is even lower than that.

• Bonuses Offered

In its terms and conditions, SepaFX has mentioned the provisos for those who have taken advantage of the bonuses this broker has offered. Traders will need to meet a minimum trading turnover to be able to withdraw their funds. The problem is that that minimum trading turnover is an almost unachievable number.

This way, the broker prevents traders from being able to withdraw their money since most of them cannot meet those targets. This is a tactic commonly used by scammers.

Conclusion 

To sum up our review of SepaFX, we can say with certainty that this broker cannot be trusted. There are legal issues, a lack of clarity about its terms and conditions, and it offers bonuses that are banned by most regulators.

SepaFX

2.7

User Experience

3.5/10

Payment Options

2.4/10

Security

2.3/10

Support

2.5/10

Reputation

2.6/10

Pros

• Good spreads on trading platform
• Range of Trading Instruments

Cons

• Little Corporate Information
• Unregulated Brokerage
• Blacklisted by Swedish Financial Regulator
• Unproven, Web-Based Trading Platform
• Poor Leverage