SCM 2025 Review: Everything You Need to Know
Scandinavian Capital Markets (SCM) has garnered mixed reviews in the forex trading community, with many users expressing concerns over high minimum deposit requirements and withdrawal processes. While the broker offers popular platforms such as MetaTrader 4 (MT4) and cTrader, its overall reputation is marred by allegations of slow customer support and questionable regulatory practices.
Note: It is important to recognize that SCM operates under various entities across different jurisdictions, which may influence user experiences. This review aims to provide a balanced perspective based on multiple sources.
Ratings Overview
How We Rate Brokers: Our ratings are based on a comprehensive analysis of user reviews, expert opinions, and factual data regarding the broker's services.
Broker Overview
Founded in 2011, Scandinavian Capital Markets is headquartered in Stockholm, Sweden, and is registered with the Swedish Financial Supervisory Authority (Finansinspektionen). The broker primarily offers forex trading, with access to over 30 currency pairs and precious metals through its platforms. Notably, SCM supports the widely recognized MetaTrader 4 (MT4) and cTrader platforms, appealing to both novice and experienced traders. However, the lack of CFDs on indices and stocks limits trading options for clients.
Detailed Sections
Regulated Regions
SCM is regulated by the Swedish Financial Supervisory Authority, which ensures compliance with EU regulations. However, there are concerns regarding the regulatory scrutiny faced by the authority itself, which has raised questions about the broker's operational integrity.
Deposit/Withdrawal Currencies/Cryptocurrencies
SCM accepts deposits in various currencies, including USD, EUR, and SEK. However, the broker does not support popular e-wallets like Skrill or Neteller, limiting payment options to bank wires and credit/debit cards. Users have reported delays in withdrawal processing, often taking up to a week, which has led to dissatisfaction among clients.
Minimum Deposit
The minimum deposit requirement is notably high, with standard accounts starting at €10,000. This figure is significantly higher compared to many competitors, which often allow traders to start with deposits as low as $100.
SCM does not appear to offer any significant bonuses or promotions, which may deter potential clients looking for incentives to trade.
Tradable Asset Classes
The broker provides access to a limited range of tradable assets, primarily focusing on forex pairs and precious metals. There is a noticeable absence of CFDs on indices and stocks, which could limit trading strategies for some investors.
Costs (Spreads, Fees, Commissions)
SCM claims to offer competitive pricing with variable spreads starting from 0 pips, but users have reported average spreads around 1.2 pips for major pairs like EUR/USD. The commission structure varies, with some accounts incurring fees of up to $10 per lot. Additionally, withdrawal fees may apply, particularly for bank transfers.
Leverage
The maximum leverage offered by SCM is 1:100, which is relatively low compared to some competitors that offer leverage up to 1:500. While lower leverage can reduce risk, it may also limit profit potential for experienced traders.
SCM supports several trading platforms, including MT4 and cTrader. However, users have reported technical issues, particularly with cTrader during high traffic periods, which can hinder trading performance.
Restricted Areas
SCM does not accept clients from several countries, including the United States, North Korea, Iran, and Syria, among others. This restriction may limit the broker's appeal to a global audience.
Available Customer Service Languages
Customer support appears to be a significant area of concern for SCM, with many users reporting slow response times and inadequate assistance. The broker offers support primarily in English, but the quality of service has been criticized across various reviews.
Ratings Recap
Detailed Breakdown
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Account Conditions: The high minimum deposit required to open an account is a significant barrier for many potential users. According to ForexSQ, the basic account requires a minimum deposit of €10,000, which is higher than many competitors.
Tools and Resources: SCM provides access to popular trading platforms like MT4 and cTrader. However, the lack of comprehensive educational resources has been noted as a downside, particularly for novice traders.
Customer Service and Support: Multiple reviews indicate that customer support is a significant weakness for SCM, with slow response times and inadequate assistance being common complaints. As noted by Gripeo, many users have expressed frustration over the lack of technical support when needed.
Trading Experience: While the trading platforms are well-regarded, users have reported technical issues, particularly during peak trading times. This has led to a less-than-ideal trading experience for some clients.
Trust Level: The regulatory status of SCM has been a point of contention, especially given the scrutiny faced by the Swedish Financial Supervisory Authority. Users are advised to exercise caution, as highlighted in various reviews.
User Experience: Overall user experience appears mixed, with some traders appreciating the trading conditions while others express dissatisfaction with customer service and withdrawal processes.
In conclusion, the SCM review suggests that while the broker offers some appealing features, potential clients should carefully consider the high minimum deposit requirements, limited asset classes, and mixed reviews regarding customer support before making a commitment.
