SinoSoft FX – Is It a Scam Broker?

Website URL: https://sinosoftfx.com/

Founded: 2018

Regulations: Unregulated

Languages: English (and 40+ other)

Deposit Methods: Credit/Debit Cards, Bank Transfers, Skrill, Neteller, PerfectMoney, WebMoney

Minimum Deposit: $100

Free Demo Account: No

Number of Assets: Unknown

Types of Assets: CFDs on Indices, Commodities, Stocks, and Forex

Trading Accounts and Conditions

SinoSoft FX claims to be an award-winning broker based out of Dubai in the United Arab Emirates. The broker also claims to offer trading in Forex currency pairs, CFDs on stocks, indices as well as commodities.

The broker offers its clients 3 different account types:

• Silver Account: Which has a $100 minimum deposit requirement, and a spread of 1.6 pips.
• Gold Account: Which has a $2,000 minimum deposit requirement, and a spread of 1.2 pips.
• Platinum Account: Which has a $20,000 minimum deposit requirement, and a spread of 0.2 pips along with a $4 per lot.

The leverage ratio of all the three accounts stands at a maximum of 1:300, which is quite solid.

The trading conditions seems to be rather attractive, but do read on to find out what the advantages and disadvantages of this broker are.

SinoSoft FX – Advantages

Here are some of the advantages we found during our research into SinoSoft FX:

• Low Minimum Deposit Requirement

This broker offers a competitively low minimum deposit requirement, which is a great positive.

• Solid Leverage

SinoSoft FX offers a leverage ratio of 1:300, which is quite solid and would even appeal to traders with a higher risk appetite.

However, we need to also offer a word of caution here. Most regulated jurisdictions have placed a cap on how much leverage brokers can offer, since higher leverages also expose trader to higher risk.

So, if a broker offers really high leverage ratios, it may not always be a good thing.

• Decent Spreads

Spread determine the amount of money you stand to make from each trade. So, the higher the spread, the lower your returns. SinoSoft FX has slightly higher than average spreads, but are still within acceptable limits.

SinoSoft FX – Disadvantages

Looking at the trading conditions and the website, you would wonder whether there is any wrong at all with this broker. However, do read our list of disadvantages before you invest any money with SinoSoft FX.

• Not Regulated

SinoSoft FX says it is owned and operated by Sinosoft Global Company Limited. This company is supposed to be based out of the city of Dubai in the UAE.

The thing is, all financial services companies are supposed to be registered with and regulated by the DFSA (Dubai Financial Services Authority) if they are to operate within the bounds of the law.

However, when we investigated SinoSoft FX’s claims of being regulated, we looked through the DFSA register, but did not find the parent company (or even the broker) listed there.

Of course, the broker did not claim to be regulated by the DFSA – just that it was located in Dubai. Then, while through the broker’s Funds Protection page, we discovered that SinoSoft FX claimed to be regulated by The Financial Commission.

The Financial Commission does exist, but SinoSoft FX’s name in its register does not.

The misleading information posted by this broker on its website leads us to conclude that SinoSoft FX is not actually regulated at all.

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• Inability to Register an Account

SinoSoft FX claims to offer its clients 3 different account types. However, when we tried to register for them, we were unable to do so; the registration page seemed broken.

What this means is that we were unable to verify whether the trading conditions – which look very attractive – are true or not.

• Managed Accounts

Another cause for concern is that SinoSoft FX offers fund management services to its clients. Why this is a cause for concern is simple. Forex brokers are market makers. This means that they profit only when traders lose money.

So, if a market maker is in charge of your funds, there is actually a conflict of interest, since the broker could ensure that you would keep losing money, while it keeps profiting off your losses.

• Trading Bonuses

Trading bonuses have been prohibited in most regulated jurisdictions. This is because such bonuses come with ropes (not strings) attached. Traders are lured by unscrupulous brokers with seemingly attractive bonuses, and once they accept those bonus promotions they are trapped.

These brokers then reveal the almost impossible to achieve trading volume conditions. And if a trader does not meet those volumes, then he or she is not allowed to withdraw his or her funds. In essence, the money the trader put in with that broker through the bonus scheme is lost forever.

Thus, the fact that SinoSoft FX offers trading bonuses is just another indicator that this is not a broker you should trust.

• No Demo Account

A demo account is required for traders to be able to test the trading conditions put forward by brokers. It also allows them to familiarize themselves with a new trading platform.

Because of this, most shady brokers do not offer demo accounts – they don’t want their future victims to get a chance to see what could happen to them if they trade on their platform.

So, if SinoSoft FX doesn’t offer a demo account – that is a clear warning sign that you should stay away from this broker.

• Unbranded Trading Account

When we tried to download SinoSoft’s trading platform, we were redirected to the homepage of MetaQuotes, the developer of the MT5 software. Then, we were offered the option to download an unbranded trading platform that had no relation to SinoSoft FX.

This platform did not even represent the trading conditions advertised on the broker’s website.

Conclusion

After we investigated all of SinoSoft FX’s claims, we have come to the conclusion that this broker is a scammer and that it would in your best interests to stay clear of this scam operator.

SinoSoft FX

2.4

User Experience

2.5/10

Payment Options

2.3/10

Security

2.4/10

Support

2.2/10

Reputation

2.8/10

Pros

• Low Minimum Deposit
• Decent Spreads
• Solid Leverage

Cons

• Not Regulated
• Cannot Register an Account
• Managed Accounts
• Trading Bonuses
• No Demo Account