Golden Sky Capital might seem like a reliable broker at start, itís actually a scam. They have received a warning from FINMA (Swiss FInancial Market Supervisory Authority) which is confirmation that this company is a scam. This company is now present in their warning list as you can see below:
You might say, ďIf they are already a proven scam, then why have you written this review?Ē
To that, I would say that Golden Sky Capital has stuffed the web with paid reviews that claim itís a trustworthy and reliable broker:
It prompted me to write a detailed review which explains why this broker is a scam and why you should stay away from it. Letís start my Golden Sky Capital review then:
Golden Sky Capital License and Regulation
The address of Golden Sky Capital is in Marshall Islands, which is an offshore region. Offshore regions donít have financial regulators and so they have become havens for scammers and fraudsters.†
Golden Sky Capital is an unlicensed broker, which means you donít have the safety and security of a financial regulator to back you up in case the broker defrauds you.
You should only trade with regulated brokers. Regulated and licensed brokers have to follow the strict rules and regulations of their license provider which ensures that they wonít act against your interests. Reputed regulators such as CySEC and FCA even have insurance provisions in case the broker turns out to be a fraudster. For example, a CySEC-regulated brokerís client can get up to 20,000 EUR as insurance compensation if the broker runs away with their funds.
You wonít get such benefits with an unregulated broker. Thatís why I donít recommend doing business with Golden Sky Capital.
However, the lack of a license isnít the only thing worrisome. Whatís more dangerous is the warning Golden Sky Capital has received from the Swiss regulator FINMA. It certifies that Golden Sky Capital is a scam and you should stay away from them.
Golden Sky Capital Trading Conditions
The trading conditions of a broker can tell you a lot of things about its trustworthiness. Letís see if the trading conditions of this broker are good for you or not:
Another sign that Golden Sky Capital is a scam is that it offers only a web-based custom platform. Such a custom platform is prone to price manipulation and contains a lot of technical errors. Thatís not all, the broker might use the platform for mischievous purposes, thatís why financial regulators donít let their brokers use such platforms.
In my opinion, itís best to trade with a broker that uses Metatrader 4 or 5. Metatrader has a very positive reputation in the industry because of its numerous features and benefits. This is the main reason why Metatrader is the most popular trading platform among forex brokers. With Metatrader, you wouldnít need to worry about such stuff.
The minimum deposit requirement for trading with Golden Sky Capital is $250. This is substantially higher than what regulated brokers demand.
Suspicious brokers tend to keep their minimum deposit requirements high so they can get a hold of as much funds as possible. Regulated brokers keep their minimum deposit requirements very low to let you test out their service-quality. On the other hand, shady brokers keep high deposit requirements so you are forced to make a big monetary commitment.
You should avoid trading with brokers that have high minimum deposit requirements. The industry standard in minimum deposits is around $50 and some even go as low as $10!
Leverage and Spreads
Golden Sky Capital offers different leverage ratios for different currency pairs. It seemed very odd to me as brokers tend to offer specific leverage ratios depending on the traderís trading volume and not their chosen trading instrument. They offer 1:10 leverage for the GBP/USD pair while they offer 1:100 for the EUR/USD pair. The highest they offer is 1:100 which is too high and very risky for your funds.
If youíre a beginner in forex trading then you should stay away from high leverage ratios. The Canadian and US financial regulators donít allow their brokers to offer more than 1:50 leverage ratios to their clients. Thatís because a high leverage ratio can wipe out all your deposited funds in an instant and put you in a lot of debt.
They offer floating spreads from 0.5 pips to 1 pip for the EUR/USD currency pair. So far, their offered spread has been the only thing that looked promising.
I donít recommend trading with this broker, however, I must specify the various claims it makes. So here are the different trading accounts Golden Sky Capital offers to its clients:
You can deposit Ä250 to Ä5,000 in this account. It offers 25% bonuses and a practice demo account along with a 1:10 leverage.
This account accepts Ä5,000 minimum and Ä25,000 maximum. Here, you get all the benefits of the Micro account along with 1:40 leverage, and a 50% welcome bonus.
Investment in this account ranges from Ä25,000 to Ä250,000. This account offers 1:60 leverage, free NFP trading signals, 75% welcome bonus and all the benefits the Gold account offers.
This account can accept any investments higher than Ä250,000. It offers 1:100 leverage, up to Ä10,000 in rewards and a 100% welcome bonus along with the previous benefits.
As you can see, Golden Sky Capital has made these accounts seem attractive so it can deceive novice traders into trusting it.
Golden Sky Capital Payment Methods and Charges
This broker accepts wire transfers, credit or debit cards and multiple third-pary service providers. However, they havenít specified which third-party providers they accept, which is very strange and seems like a lie to make people think they accept many payment options.
Note that wire transfers and bitcoin payments are non-refundable so shady brokers suggest using them.
Golden Sky Capital gives you free withdrawal request and charges a Ä30 fee for every other withdrawal request. This is quite a heavy fee and I havenít seen such a withdrawal fee anywhere so far.
They charge an inactivity fee of Ä55 if your account remains dormant for three months. This is another example of how greedy this broker is. Usually brokers give a longer duration and charge Ä5 or Ä10 as their inactivity fee.
The minimum amount you can withdraw from your trading account is $100. Regulated brokers donít keep such limits on their clients to keep things smooth but as we know already, Golden Sky Capital is a scam so it isnít surprising they have such an unfair condition.
You must have noticed in the ĎAccount Typesí section that Golden Sky Capital offers various welcome bonuses to its clients. The lowest welcome bonus is 25% which is a clear sign that this broker is a scam.
I donít recommend joining a forex broker because of their offered bonuses. These bonuses donít provide you with any monetary rewards. Instead, they impose additional restrictions on your withdrawal conditions so you canít get your funds easily. This is why the FCA (Financial Conduct Authority) doesnít allow its licensed brokers to offer bonuses to their clients.
Many shady brokers use bonuses to deceive new users.
Is Golden Sky Capital a Scam? Yes!
There are many kinds of scammers operating in the forex industry. Shady forex brokers tend to attract new users to their websites through promotional offers and ads. They focus on attracting inexperienced traders so they can deceive them easily.
Such brokers have unfair terms and conditions so when the person signs up on their site, they accept those conditions. These brokers then steal the funds their users deposit in their accounts through hidden fees and charges.
This is a big reason why I donít recommend trading with brokers based in offshore areas. These areas donít have proper financial regulators such as CySEC or FCA. Without proper regulation, the clients of such brokers face numerous financial and privacy risks. You should always do thorough research before signing up with a forex broker.
Golden Sky Capital Review: Conclusion
Golden Sky Capital doesnít have a license and has actually received a warning from FINMA, certifying it as a scam. They offer a terrible trading platform and try to deceive traders through welcome bonuses. You should stay away from them.
I hope you found my Golden Sky Capital review useful. If youíve had a bad experience with any forex broker, you can share your experience below.This review has been syndicated from The Skeptic Tank To read the full review, go to – www.skeptictank.org/golden-sky-capital/