In today’s forex market, where scam brokers abound, players must walk carefully with each online financial trading organization. You should be especially wary of dodgy brokerage organizations like SevenSeasFX, which are nameless, lack trading qualifications, and provide subpar services based on fraudulent activity.
If you come across the SevenSeasFX broker, you will quickly understand how deceptive this firm is. Continue reading our analysis of SevenSeasFX to learn more about this investing fraud.
- Broker status: Unregulated Broker
- Regulated by: Unlicensed Scam Brokerage
- Scammers Websites: 7seasfx.com
- Blacklisted as a Scam by: N/A
- Owned by: N/A
- Headquarters Country: Australia
- Foundation year: 2022
- Supported Platforms: Web Trader
- Minimum Deposit: 2,500 USD
- Cryptocurrencies: Yes (Bitcoin, Litecoin, Ripple)
- Types of Assets: Cryptocurrencies, Forex
- Maximum Leverage: 1:100
- Free Demo Account: No
- Accepts US clients: No
License and Security
Forex trading is a tightly regulated sector governed by financial regulatory bodies that work closely with governments to ensure that all brokers follow appropriate regulations.
It is difficult to establish a bogus broker’s jurisdiction when it does not mention its headquarters or any information regarding the company’s registration. This is done to conceal the fact that the firm is unregistered and uncontrolled.
- The only information about SevenSeasFX provided on its website is a phone number, which according to the dialing code is an Australian phone number. This leads us to believe that this broker is headquartered in Australia, which is one of the most strict nations.
If this is the case, it is difficult to be a reputable broker unless you are licensed by the Australian Securities and Investment Commission, or ASIC. Not surprisingly, SevenSeasFX is not licensed by this or any other financial market regulatory authority.
Why Is Trading On a Licensed Broker’s Platform Preferable?
Certified institutions may be trusted with funds since they follow a tight code of conduct – particularly forex suppliers authorized by top-level regulatory authorities such as ASIC, FCA, and BaFin. ASIC’s qualifying standards, for example, require a broker to maintain a minimum operating budget of $1 million AUD and to keep its and traders’ money separate.
Traders of regulated brokers are also covered by indemnity schemes administered by regulatory organizations. ASIC, for example, provides traders with a $100,000 AUD indemnity in the case of a broker’s insolvency. Furthermore, authorized businesses adopt a variety of risk management strategies to limit trading risks, such as providing negative balance protection, collaborating with reputable banks, providing dependable trading platforms, and assuring favorable trading circumstances.
SevenSeasFX is an unlicensed and anonymous broker that operates online trading scams and defrauds traders from the United Kingdom, Canada, Australia, the United States, and Sweden.
Trading Software
The SevenSeasFX portal, which is a trading platform offered here, is an online trader with limited capabilities. This shady broker boasts that their web trader caters to both novice and expert traders. However, we are skeptical because it contains general functions that cannot guarantee profitable trading.
In that regard, the most recent trading platforms – MetaTrader 4, MetaTrader 5, cTrader, and Sirix – provide advanced capabilities like as expert advisers, stop loss, quick execution, unlimited pending orders, copy trading, and more.
SevenSeasFX Accounts
SevenSeasFX offers multiple account options, summarized as follows:
- Basic: $2,500 deposit, 5% commissions, 1.5% swap, 1:2 (crypto) / 1:50 (forex) leverage, 2.4 pips spreads.
- Silver: $2,500–$9,999 deposit, 4% commissions, 1% swap, 1:5 (crypto) / 1:100 (forex) leverage, 2.1 pips spreads.
- Gold: $10,000–$74,999 deposit, 3% commissions, 1% swap, 1:10 (crypto) / 1:100 (forex) leverage, 1.8 pips spreads.
- Platinum: $75,000–$149,999 deposit, 2.5% commissions, 0.85% swap, 1:20 (crypto) / 1:100 (forex) leverage, 0.6 pips spreads.
- VIP: $150,000+ deposit, 1.5% commissions, 0.65% swap, 1:20 (crypto) / 1:100 (forex) leverage, 0.4 pips spreads.
However, it’s worth noting that the trading instruments offered by this broker are unclear. Their website mentions trading forex pairs and crypto assets, which is a very limited selection. This lack of clarity raises concerns about the transparency and reliability of SevenSeasFX, giving traders a strong reason to consider other brokerage options.
Bonuses and Promotions
Scam brokers, including SevenSeasFX, often employ bonuses and promotions as bait to attract traders. However, it’s crucial to be aware that these bonuses typically come with unfavorable conditions. For instance, untrustworthy brokers might require traders to reach an exceedingly high trade volume to qualify for rewards.
In the case of SevenSeasFX, their current promotions remain undisclosed. Nevertheless, it’s likely that any promotions they offer could violate regulatory guidelines. It’s essential to remember that bonuses have been banned in many jurisdictions due to their potential for misuse. Be cautious when dealing with such offers.
Countries Of Service
Regarding the scope of operations of SevenSeasFX, this deceitful broker primarily targets traders from the following countries:
- United Kingdom (UK)
- Canada
- Australia
- United States (US)
- Sweden
Despite the presence of seemingly positive SevenSeasFX reviews online, it is important to note that these reviews are deceptive and fabricated with the intention of enticing individuals into trading. It is imperative to understand that all brokers operating within these markets must hold accreditation from their respective financial regulatory bodies, namely:
- Financial Conduct Authority (FCA) in the UK
- Financial Consumer Agency of Canada (FCAC) in Canada
- Australian Securities and Investments Commission (ASIC) in Australia
- Securities and Exchange Commission (SEC) in the US
- Finansinspektionen (FI) in Sweden
Regrettably, SevenSeasFX does not possess approval from any of these financial authorities, highlighting the need for caution when considering any involvement with this broker.
Leverage, Minimum Deposit, and Fees
Regarding the leverage ratio offered by SevenSeasFX, as evident in the account details, it extends up to 1:100 for forex trading. This ratio exceeds the limitations imposed on retail traders in specific jurisdictions, such as 1:30 in the UK/EU and 1:50 in the US. However, this deviation from regulatory norms is unsurprising, given that this broker operates without adherence to any established rules or regulations.
In terms of the minimum deposit requirement, SevenSeasFX sets it at a substantial $2,500 USD. This amount appears excessive, especially when considering the dubious nature of this company and its subpar services. In contrast, reputable brokerage firms allow traders to commence trading with less than $10 USD.
Turning to trading fees, SevenSeasFX imposes commissions based on the type of account held. For instance, standard account holders are subjected to a 5% fee, which is reduced to 1.5% for VIP accounts. These fees further underscore the questionable practices associated with this broker.
Trading Conditions
SevenSeasFX’s trading conditions are concerning and far from reasonable. The high deposit requirement, non-compliant leverage ratios, and costly trading commissions make it an unfavorable choice.
Additionally, SevenSeasFX imposes overnight fees, varying from 1.5% for standard accounts to 0.65% for VIP accounts. The floating spreads range from 2.4 pips for standard accounts to 0.4 pips for VIP accounts.
Furthermore, deposit and withdrawal procedures at SevenSeasFX lack transparency. While they claim to support various methods, including credit/debit cards and banks, the absence of clear instructions raises suspicions, particularly regarding potential cryptocurrency payments, as we will explore further in the next section.
Conclusion on SevenSeasFX
In conclusion, SevenSeasFX raises significant red flags and concerns for potential traders. Its trading conditions are marred by high deposit requirements, non-compliant leverage ratios, and costly trading commissions. The imposition of overnight fees and varying spreads adds to the unfavorable outlook.
Moreover, the lack of transparency in deposit and withdrawal procedures, including the potential ambiguity surrounding cryptocurrency payments, further erodes confidence in this brokerage. Considering these factors, caution is strongly advised when dealing with SevenSeasFX, and alternative, more reputable options should be explored for trading activities.
