Last update: 22 July 2020
6 min read
Non-recommended broker
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SONAFX review

22 July 2020

This broker was not featured in our 2023 Broker Review Audit. This is because, in the past 12 months, it has failed to pass our initial screening process and is not recommended by our team of experts. As such some of the information found here may be out of date.

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Sonaf, or SONAFX, is a Forex and CFD trading company that solely relies on the ECN protocol to offer its different Forex services through the popular MT4 trading platform. SONAFX is a Cyprus Investment Firm (CIF) that has its base of operations in Cyprus, which makes the company a part of the highly efficient and reliable European Markets in Financial Instruments Derivatives (MiFID). SONAFX is regulated by the Cyprus Securities and Exchange Commission (CySEC) under the business name of Sonaf Business Ltd., which has the necessary regulatory clearances to offer cross-border services to all members of the European Union. SONAFX is also authorized by the CySEC to provide its services to an international audience, provided that the company adheres to all international and domestic laws that apply to a particular geographic location. In this Sonaf broker review, you will receive all the essential information about the company to make the best decision for your investments.








Forex, Precious Metals, Equity Indices, Energies

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How Does SONAFX Conform To CySEC Regulatory Policies?

The CySEC officially became a part of the MiFID and the European regulatory organizations after Cyprus was formally inducted into the European Union in 2004. The Cyprus had initially been famous as a tax haven that allowed companies to take advantage of a relatively lenient regulatory framework and a business-friendly environment. Cyprus had many business-friendly laws that made it difficult for investors and traders to receive the best protection for their investments. Therefore, Cyprus and CySEC witnessed a multitude of broker scams and financial malpractices that tarnished the image of the country among global investors. Nevertheless, the country continued to push forward by adopting various regulatory guidelines and by creating an investor-friendly business environment, which helped Cyprus to become one of the most favored Forex broker locations in the entire world. Today, CySEC has evolved into a leading regulatory organization that has some of the best rules and policies for the protection and welfare of both Forex brokers, as well as their clients. CySEC now pays special attention towards protecting a trader’s investment by issuing new laws that require Forex brokers operating in the country to safeguard the integrity of their clients. CySEC has made it mandatory for brokers to hold their client funds in segregated accounts, protect such funds under the Investor Compensation Fund (ICF) program, submit regular audit reports to the CySEC, offer the best platforms for trader complaint resolutions, and avoid trading against their clients’ positions. The CySEC always ensures that their regulated member firms adhere to the existing and new policies, failing which; the organization may enforce sanctions and hefty fines for lack of compliance. Under the European Economic Area agreement and the European MiFID derivatives, cross-border sharing of services also mean that a company is answerable to all Federal institutions and regulatory authorities that are located in different parts of the European Union. Under this agreement, companies are liable for lawsuits and prosecutions if a broker fails to adhere to the rules imposed by any particular country that is a part of the EU. Therefore, SONAFX is indeed accountable for its actions and may be held responsible for all services rendered to European investors.

Is It Expensive To Open A SONAFX Trading Account?

sonafxSONAFX offers an ECN account that offers direct market access trading, which provides access to 30 different currency pairs and CFDs. Under ECN conditions, traders are guaranteed of the tightest interbank spreads at the expense of a commission per traded lot, but it does enable traders to avoid the conflict of interest that are a familiar sight with regular market maker brokers. The Non-Dealing Desk (NDD) aspect of ECN trading is certainly the best option for Forex traders, in particular for receiving the best market quotes, tight spreads, and super-fast trade executions. SONAFX does not provide any information about the minimum deposit requirements or the types of trading accounts, but the broker provides a maximum SONAFX leverage of 1:500. In most cases, ECN accounts are offered for a small initial deposit of $100, although some brokers go even further with a reduced trading capital requirement of $5. However, we do expect the company to offer a trading account for $100 as an initial deposit. The primary concern for traders is the payment option, as SONAFX only accepts bank wire as a valid form of payment for either deposit or withdrawal. Bank wire transfers do take a longer period of time for processing payments and involves significant costs, which should prevent traders from making instant deposits or withdrawals. It is also difficult to track bank wires, especially for international transfers, which could take days or weeks for the funds to reach your account. On the contrary, credit card payments or e-wallets such as Skrill and PayPal offer safe, easy, secure, and convenient payment options, which should have been a default payment option for SONAFX. Most leading brokers offer multiple payment options, which do pose a significant threat for Sonaf in their attempt to cater to the highly lucrative retail trading community.

MT4 Trading Platform & ECN Access

sonafx mobileIt is a relatively safe option for the broker to offer the MT4 as the standard SONAFX trading platform, considering the immense popularity of the interface in the FX market. SONAFX offers ECN access through dedicated ECN bridges, which are then used to connect the MT4 directly to the liquidity providers. To prevent issues of latency and connectivity, SONAFX employs the latest ECN technologies and protocols for reliable platform performance, without affecting the trader experience in any manner. SONAFX mobile trading users can download the MT4 mobile apps for iOS, Android, and Windows smartphones or tablets through their corresponding app stores. These MT4 mobile apps do provide an incredible opportunity for mobile users to trade on the move, without facing any serious compromises on their trading accounts. Furthermore, mobile traders can also access the MT4 WebTrader on any device by simply accessing their account through the MT4’s excellent browser-based trading platform. A single SONAFX trading account gives access to all the different versions of the MT4 trading platform. If you are not familiar with the MT4 trading terminal, you may open a SONAFX demo account for a realistic trading experience that resembles live trading conditions using a virtual balance. Demo trading can provide you with all the vital information of trading with a real account, which should enable you to choose a trading account after careful consideration. In our opinion, there are several better alternatives to SONAFX, but that being said, SONAFX is certainly a reliable broker that does not have any serious concerns as far as regulation and safety of funds are concerned.
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