What is SK markets？
SK markets is an online brokerage established in 2010, catering to investors of all experience levels. It offers a user-friendly trading experience through its WebTrader and Tradingweb Mobile App, accepting various payment methods including Visa, Mastercard, Skrill, Nasdaq, Cboe, and Cloudflare.
SK markets prioritizes client experience with features like direct exchange access for zero markups and 24/5 multilingual customer support. It also takes security seriously, keeping client funds in segregated bank accounts and being a member of an Investor Compensation Fund.
While it is regulated by FinCEN, the NFA regulation it holds is unauthorized.
Pros & Cons
Pros:
Diverse Asset Selection: SK markets offers a wide range of financial instruments including Forex, Indices, ETFs & ETNs, Options, Commodities, and Stock CFDs, providing traders with ample opportunities for diversification.
User-Friendly Platforms: SK markets provides access to trading through its WebTrader and Tradingweb Mobile App, making it convenient for traders to access the markets from anywhere.
Security Measures: SK markets prioritizes security by keeping client funds in segregated accounts, separate from their own company assets. Additionally, its membership in an Investor Compensation Fund provides a layer of protection in case of unexpected circumstances.
Cons:
Limited Regulation: While SK markets is regulated by FinCEN, it is unauthorized by the NFA. The NFA is a key regulatory body for futures and options trading, so its absence raises concerns about consumer protection and oversight.
Minimum Deposit Requirement: With a $500 minimum deposit to start trading, SK markets is less accessible to beginners who are just starting out with smaller investment amounts.
Is SK markets Legit or a Scam？
While SK markets presents itself as a legitimate company regulated by the Financial Crimes Enforcement Network (FinCEN, Crypto-Licence, No. 31000269824572), taking steps to secure client funds, the lack of authorization under National Futures Association (NFA, Common Financial Service License, No. 0563358) regulation is a significant cause for concerns. The NFA plays a vital role in ensuring consumer protection and oversight within the financial industry. So we can not define it as absolutely legitimate.
Market Instruments
SK markets caters to various investor preferences by offering over 11,000 financial instruments of various categories.
Forex: SK markets offers a wide range of currency pairs for trading, including major pairs like EUR/USD, GBP/USD, and USD/JPY, as well as minor and exotic pairs.
Indices: Traders can trade CFDs on major stock market indices such as the S&P 500, Dow Jones Industrial Average, NASDAQ, FTSE 100, DAX 30, and more, providing exposure to the overall performance of the stock market.
ETFs & ETNs: SK markets provides access to a variety of ETFs and ETNs, allowing traders to invest in a diversified portfolio of assets, including stocks, bonds, and commodities, through a single instrument.
Options: The platform offers options trading, allowing traders to buy or sell options contracts on various underlying assets, including stocks, indices, and commodities.
Commodities: SK markets enables trading in a range of commodities, including precious metals like gold and silver, energy commodities like oil and natural gas, and agricultural commodities like wheat and corn.
Stock CFDs: Traders can speculate on the price movements of individual stocks from major global exchanges such as the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE), Tokyo Stock Exchange (TSE), and more, without owning the underlying stocks.
Account Types
SK markets offers different account types to suit different needs, among which the multi-asset trading account is the most common, designed to enhance customers' trading experiences by enabling them to trade multiple assets through a single account. This account, accessed through the SK markets Platform, operates with the base currency of USD. In this account, there are five different plans for different levels of traders.
Bronze Plan: The Bronze plan is an entry-level account, requiring a minimum deposit of $500. It charges a fee of $0.01 per share traded, with a minimum fee of $1.50. This plan is suitable for traders who are starting and prefer to trade in smaller volumes.
Silver Plan: The Silver plan requires a minimum deposit of $5,000. It offers a lower fee per share of $0.008 compared to the Bronze plan, with the same minimum fee of $1.5. This plan is suitable for traders who trade in slightly higher volumes and want a lower per-share fee.
Gold Plan: The Gold plan requires a minimum deposit of $10,000. It offers a further reduced fee per share of $0.007, with the same minimum fee of $1.50. This plan is suitable for traders who trade more frequently and in higher volumes.
Platinum Plan: The Platinum plan requires a minimum deposit of $25,000. It offers a fee per share of $0.006, which is lower than the previous plans, with a reduced minimum fee of $1.25. This plan is suitable for experienced traders who trade in significant volumes.
Diamond Plan: The Diamond plan is the highest tier, requiring a minimum deposit of $50,000. It offers the lowest fee per share of $0.005, with a minimum fee of $1. This plan is suitable for professional traders and institutions who trade in large volumes and require the lowest possible fees.
Leverage
SK markets offers varying leverage rates depending on whether you are a retail trader or a professional trader. A retail investor who meets certain criteria may request to be treated as a professional client. This is a regulatory classification which defines investors that possess the experience and knowledge to make their own investment decisions and properly assess risks.
For retail traders, the leverage rates are more conservative, with a maximum of 1:30 for major currency pairs and lower rates for other instruments like stocks and commodities. This means that for every dollar in your trading account, you can control up to $30 worth of a major currency pair.
On the other hand, professional traders are offered higher leverage rates, ranging from 1:5 to 1:200 depending on the instrument. This allows professional traders to control larger positions with a relatively smaller amount of capital. However, higher leverage also increases the potential for both profits and losses. Professional traders are expected to have the experience and knowledge to manage these risks effectively.
Spreads & Commissions
SK markets offers two types of trading accounts on the Tradingweb Platform: Spread-based plans and Commission-based plans. For details on real-time spreads and commissions, please visit the website: https://www.skmarketsfx.com/pricing1.html.
Spread-based plans: In these plans, the spread is incorporated into the quoted buy and sell prices. The spread is the difference between the Bid and Ask prices of a certain instrument. SK markets provides average spread information for different currency pairs under various account plans such as Bronze, Silver, Gold, and Platinum. For example, in the Bronze plan, the spread for the AUDUSD pair is 0.00042, and the long and short SWAP rates are also provided. The spread varies based on market conditions and the times of trading.
Commission-based plans: In these plans, traders pay a fee on the execution of a transaction in addition to the spread. These plans are structured with a tighter spread. SK markets offers commission-based plans like Basic, Standard, VIP, and Premium VIP. For example, in the Basic plan, the commission for the AUDUSD pair is $14.5 per lot, and the spread is 0.00013. The long and short SWAP rates are also provided for each instrument.
Trading Platforms
SK markets offers two trading platforms for its clients: WebTrader and Tradingweb Mobile App. Both offer a range of tools and features to cater to your needs, whether you are a beginner or an experienced professional.
WebTrader: This platform is accessible through web browsers, allowing traders to access their accounts from any device with an internet connection. WebTrader provides a user-friendly interface and a range of features to help traders analyze the markets and execute trades. It supports trading in a variety of instruments, including forex, indices, commodities, and cryptocurrencies.
Tradingweb Mobile App: The Tradingweb Mobile App is designed for traders who prefer to trade on the go. It is available on Google Play and Apple Store, offering powerful functionality for trading Forex anytime and anywhere in the world. The app provides complete control over a trading account, allowing traders to execute trades, view trade history, and access interactive charts with various timeframes and technical indicators. Tradingweb Mobile App supports all order types and execution modes, making it a comprehensive mobile trading solution.
Deposits & Withdrawals
Deposits and withdrawals with SK markets are straightforward processes, but they come with certain guidelines and fees. When making a deposit, you can do so through various payment methods, including Visa, Mastercard, Skrill, Nasdaq, Cboe, and Cloudflare.
There is no charge for incoming wire transfers, making it convenient for clients to fund their trading accounts without incurring additional fees. For withdrawals, the process is also simple but involves fees. The first withdrawal of the month, if it's less than $500, is free. However, subsequent withdrawals or withdrawals exceeding $500 incur a fee of $40 per wire (or 30 EUR for Euro-based accounts).
Customer Service
SK markets offers customer service to assist traders with any questions or issues they may have. The customer support team can be reached via phone and email. The phone number for customer support is +1 617 798 0330, and the email address is support@skmarketsfx.com.
Conclusion
SK markets presents itself as a well-equipped broker, offering a diverse selection of assets, user-friendly platforms, and security measures. Their account tiers cater to different trading styles and volumes, and the mobile app provides flexibility for on-the-go trading.
However, a significant concern lies in the lack of authorization by the National Futures Association (NFA). The NFA plays a vital role in ensuring consumer protection and oversight within the financial industry. This raises a question mark regarding the level of security and potential recourse for traders in case of any issues. Before considering SK markets, it's crucial to weigh the pros and cons carefully.
Frequently Asked Questions (FAQs)
Q: Is SK markets a legitimate broker？
A: The legitimacy of SK markets is uncertain due to the lack of authorization by the National Futures Association (NFA).
Q: What trading platforms does SK markets provide？
A: SK markets offers two user-friendly trading platforms: WebTrader and Tradingweb Mobile App.
Q: What is the minimum deposit required to start trading with SK markets？
A: The minimum deposit required to open an account with SK markets is $500.
Q: How can I fund my SK markets account？
A: SK markets offers deposit options like incoming wire transfers (free of charge) and potentially other methods such as Visa, Mastercard, and Skrill.
Q: Are there any fees associated with withdrawing funds from SK markets？
A: While the first withdrawal per month is free (under $500), subsequent withdrawals or those exceeding $500 incur a $40 fee (or €30 for Euro accounts).
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
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