Sengela Trding Limited – Is It a Scam?

| Publish date: 02/07/2020 (Last updated: March 24, 2020 08:02 AM)
Share

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Sengela Trding Limited - DO NOT TRADE WITH THIS PROVIDER
2.7/10
$100
Minimum Deposit
X

updated 2020

We don’t really know the account types offered by Sengela Trding Limited, however, through the demo account that we logged into, we were able to find out that the broker offers its clients a leverage of 1:100 and a spread of 2.7 pips, along with lots of $30 each.

We were unable to find out what the minimum deposit requirement is for this broker.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker
Europe's #1 CFD Trading Platform

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

Website URL: https://www.sengela.com/

Founded: 2019

Regulations: Unregulated

Languages: English

Deposit Methods: Unknown

Minimum Deposit: Unknown

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: CFDs on Cryptocurrencies, Metals, Indices / Forex

Trading Accounts and Conditions

We don’t really know the account types offered by Sengela Trding Limited, however, through the demo account that we logged into, we were able to find out that the broker offers its clients a leverage of 1:100 and a spread of 2.7 pips, along with lots of $30 each.

We were unable to find out what the minimum deposit requirement is for this broker.

Sengela Trding Limited – Advantages

When we assess a broker, we try to find both positives as well as negatives about the broker. Thus, after going through Sengela Trding Limited’s website, here are the few advantages we could find about it:

  • MT4 Trading Platform Offered

We always consider support for the MT4 (MetaTrader 4) trading platform an advantage. This software, which is used by more than 80% of the traders across the world, is known for its ease of use and numerous analytics tools. Traders can take advantage of the many charting options available, the market indicators, as well as the Executive Assistants (trading bots that are used for automated trading), just to name a few of the features.

  • Availability of a Demo Account

We always consider the availability of demo account an advantage. This way, traders are able to get an idea about the trading costs and conditions. So, we have to give credit to Sengela Trding Limited for having offered its clients a demo account.

Sengela Trding Limited – Disadvantages

There were unfortunately only two reasons we could find that would make it advantageous to trade with Sengela Trding Limited. We found a lot more reasons why it would be dangerous for traders to use this broker to carry out trades:

  • Lies About Regulatory Status

The company that owns and operates this brokerage is called Sengela Trding Limited, is based in Hong Kong.

All brokers that are based in Hong Kong have to be registered with the territory’s SFC (Securities and Futures Commission). However, when we went through the online registry of the SFC, we could not find this company listed there.

The broker further claims to be a member of the United States’ NFA (National Futures Association), which is another fact that we checked and found to be a lie. The NFA requires its members to stick to very stringent rules, one of which is having a minimum capital of $20 million. Sengela Trding Limited neither has those kinds of funds, nor is a member of the NFA.

No legitimate broker lies about its regulatory status, so the fact that Sengela Trding Limited has done so clearly points to this broker not being an honest one.

Plus500
$100
Minimum Deposit

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

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.

 

  • Blacklisted by Hong Kong’s SFC

During our investigation into Sengela Trding Limited’s regulatory status, we found something even more disturbing. It turns out that the SFC in Hong Kong has blacklisted this broker for offering illegal services and the regulator has warned traders against using Sengela Trding Limited’s services.

  • Extremely High Trading Costs

Sengela Trding Limited has not mentioned its trading costs for a reason – they are absurdly high by any standards. We were able to find out about this broker’s trading costs because of the free demo account it offered.

When we access the MT4 trading platform offered by Sengela Trding Limited, we found out that the spread was at 2.7 pips, which is much higher than the 1.5 pip industry standard.

Added to the high spread, this broker also charges a $30 commission on every trade executed per lot. What this means is that Sengela Trding Limited is charging $5.7 per lot.

  • Trading Platform Provided by a Third Party

While it is a good thing that this broker provides its clients with the MT4 trading software, it also a negative that this platform has been provided by a third party. The name of the company that has provided this platform is Sunroc Industrial Limited.

  • No Information on Payment Methods and Fees

Another huge red flag for us was the fact that this trader did not have any information on its website about the payment methods. A forex broker will usually offer at least the traditional payment options – credit/debit cards, bank wire and even e-wallets such as Neteller or Skrill.

However, in Sengela Trding Limited’s case, there is no information about how you can deposit or withdraw money. There is also no information about the withdrawal fees. So, you may get surprise charges when you try to withdraw your funds from your account.

  • Limited Trading Instruments

Considering the fact that this broker styles itself as a forex and CFD broker, it has a very limited range of trading instruments on offer. Once we logged onto its MT4 third-party trading platform, we found out that Sengela Trding Limited offered just 11 currency pairs.

With regard to CFDs, traders only get to choose from silver and gold in metals, Brent spot oil (UK) and WTI spot oil in commodities, the HK50 in indices, and only Bitcoin in cryptocurrencies.

Most other brokers offer a much larger number of currencies, and a wider range of CFDs to their clients.

Conclusion 

All in all, everything we have researched about this broker clearly shows that Sengela Trding Limited is a scammer and that your money is not safe with them. We would recommend that you steer clear of this broker and invest your money with another online broker – on that is regulated and reputed.

Sengela Trding Limited

2.7

User Experience

3.2/10

Payment Options

2.5/10

Security

2.3/10

Support

2.7/10

Reputation

2.6/10

Pros

  • MT4 Trading Platform Offered
  • Availability of a Demo Account

Cons

  • Lies About Regulatory Status
  • Blacklisted by Hong Kong’s SFC
  • Extremely High Trading Costs
  • Trading Platform Provided by a Third Party
  • Limited Trading Instruments

Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:

Plus500
$100
Minimum Deposit

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

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.

eToro
$200
Minimum Deposit

eToro is a multi-asset platform which offers CFD and non CFD products. 66% 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.

Share

Related Posts

IGF Investment – Is It a Safe...
Website URL: https://www.igfinvestment.com/ Founded: 2018 Regulations: Unregulated Languages: English,…
RoyalFunds – Is it a Safe Forex...
Website URL: https://www.royalfunds.co/ Founded: N/A Regulations: Unregulated Languages: English…
RBCTrade – Is it Safe or a...
Website URL:  https://rbctrade.io/ Founded: 2019 Regulations: Unregulated Languages: English,…

Leave a Comment