Discover all you need to know about Sheer Markets in this comprehensive Sheer Markets review. Learn about the broker’s regulations and features.
Sheer Markets (Cyprus) Ltd. is a registered forex and CFD broker that operates under the supervision of the Cyprus Securities and Exchange Commission (CySEC) and the Labuan Financial Services Authority (LFSA).
The company provides several financial instruments and market options for traders to engage in speculative trading. In this Sheer Markets review, we will discuss the main features of the platform and assess its regulatory status to know if it is reliable.
Sheer Markets Overview
Established in 2019, Sheer Markets is a forex brokerage firm based in Cyprus. It specializes in NDF CFDs and forex CFDs and provides a wide range of trading options on the MetaTrader 5 platform.
The company is regulated by CySEC, ensuring a trustworthy environment for traders.
Sheer Markets stands out with its extensive selection of assets, offering over 1,900 CFDs that cover forex, commodities, indices, and cryptocurrencies. Initially catering to European traders, the company has expanded its services to traders beyond the European jurisdiction.
Traders using Sheer Markets have the advantage of accessing the popular MetaTrader 5 trading platform. This platform is renowned for its comprehensive features, including a diverse range of technical indicators, graphing tools, and charts.
Both seasoned traders and beginners find it appealing. In addition, the availability of thousands of bots on the MT5 CodeBase enhances the overall trading experience for those interested in automated trading.
Regulation and Safety of Funds
The broker is operated by a legal entity known as Sheer Markets Limited, located in Cyprus, and is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 395/20.
Being registered in Cyprus allows Sheer Markets to provide services in all European Union member states. Following Brexit, Cyprus has become a significant hub for European brokers.
Working with Cyprus-based brokers comes with several benefits due to their compliance with the European Securities and Markets Authority (ESMA) requirements. These brokers are obligated to maintain a minimum net capital of at least EUR 730,000, ensuring financial stability and a serious long-term approach.
When clients deposit money into their trading accounts, it is kept separate from the broker’s operational funds in different bank accounts. This safeguards clients’ funds in case there are any unforeseen circumstances such as the broker’s bankruptcy. Retail traders are also provided with negative balance protection.
All Cyprus-licensed brokers are members of the Investor Compensation Fund, which offers coverage of up to EUR 20,000 per person in case of broker insolvency.
Furthermore, Cypriot forex brokers are required to regularly report their clients’ transactions, thereby enhancing investor protection while promoting market integrity and transparency.
Sheer Markets uses the widely recognized MetaTrader trading platform, specifically the latest version known as MetaTrader 5 (MT5). This software is accessible on Windows, Android, and iOS devices, and a browser-based version is also available for compatibility with any operating system.
MT5, along with its well-established predecessor MT4, has become the industry standard for various reasons. Offering extensive customization options and features like one-click trading, both platforms support the use of Expert Advisor bots for automated trading.
In addition, users can create and implement custom scripts for backtesting trade strategies.
While MT5 has recently surpassed MT4 in active users, it introduces unique features that are not found on MT4. These include the Market Depth option, displaying the volume of bids and offers for financial security at different prices, as well as a built-in economic calendar.
MT5 also provides more technical indicators, graphic objects, and time frames. Sheer Markets differs from some industry standards by not offering social trading, a service allowing users to replicate the trades of chosen traders.
Furthermore, the Sheer Markets website does not have many educational materials typically found at more traditional brokers, indicating a focus on catering to experienced traders.
Sheer Markets adopts a diligent approach, as seen in its thorough account registration process. This involves a detailed questionnaire to assess the potential trader’s knowledge level and requires proof of identity.
To distinguish itself from other established brands in the industry, Sheer Markets offers a wide range of financial instruments to its clients. The broker emphasizes its main advantage as providing not only forex, commodities, indices, and CFDs but also enabling trading with Non-Deliverable Forward (NDF) products.
The brokerage provides two types of accounts: Classic and Prime, each further divided into standard and “Plus” versions.
Plus accounts, besides having slightly more favorable commissions, come with the added benefit of free Virtual Private Server (VPS) hosting. The VPS allows automated trading scripts to operate independently of the trader’s personal hardware and internet connection.
For Sheer Classic and Sheer Prime accounts, the minimum deposit is 200 USD/EUR, while for Plus accounts, it is 2,500 USD/EUR. Although this aligns with industry norms, it’s worth noting that some brokers offer even lower minimum deposits for beginners.
Classic accounts feature a variable spread, starting from 1.2 pips for the standard version and 1 pip for the Plus version. On the other hand, Premium accounts use a Raw spread starting from 0.0 pips and involve a fixed commission. For CFD trading, this commission is 4 USD per lot per side for a Prime Account and 3.5 USD for a Prime Plus Account.
In practical terms, this means that a trader with a Prime account would pay the brokerage 8 USD per lot traded, while a Classic account holder would need to pay 12 USD. Therefore, for trading low-volatility assets with a raw spread close to 0, the Prime account appears to be more profitable.
It’s important to note that NDF trading commissions are higher, amounting to 5 USD and 4.5 USD for Prime and Prime Plus accounts, respectively.
To open Classic and Prime accounts, Sheer Markets requires a minimum initial deposit of EUR/USD 200. For Classic Plus and Prime Plus accounts, the required deposit is EUR/USD 10,000.
Various payment methods are accepted, including Visa, Mastercard, bank wire transfer, Neteller, and Skrill. Sheer Markets does not charge any fees for deposits.
Processing times vary:
- Neteller and Skrill: Instant
- Visa and Mastercard: 2 hours
- Bank wire transfer: 2-5 working days
Clients can initiate withdrawal requests through the “Transfers” section in the client portal. Sheer Markets processes withdrawal requests within 24 hours on weekdays, excluding public holidays. Additional processing time depends on the chosen payment option.
- Visa, Mastercard, and wire transfer withdrawals take 2-5 business days.
- Skrill and Neteller withdrawals are instant.
Similar to deposits, Sheer Markets does not charge withdrawal fees, but payment processors may impose their fees.
Sheer Markets provides a demo account for both current and potential clients, with availability subject to the user’s jurisdiction.
Demo accounts offer a risk-free way to evaluate the broker, explore different markets, and practice diverse strategies in a realistic environment without using real funds.
Sheer Markets Pros and Cons
- The pricing model is competitive, featuring commission-free trading on ‘Classic’ accounts with an average spread of 1 pip.
- Supports end-of-month or spot CFDs on Non-Deliverable Forwards (NDFs), such as USD/BRL and USD/TWD.
- Retail traders with a minimum deposit of €3000 can access automated portfolio diversification.
- Sheer Classic Plus and Sheer Prime Plus profiles offer free VPS hosting.
- It is regulated by CySEC and compliant with the EU’s MiFID, ensuring a high level of accountability.
- Dedicated account managers are available for personalized assistance.
- Market research and additional tools provided are below par.
- Educational resources are weaker compared to alternative platforms.
- It supports only USD or EUR accounts.
- It has a limited range of cryptocurrencies.
What Options Exist for Leveraging Trades on Sheer Markets?
Sheer Markets limits the leverage for retail clients to 1:30 by EU regulations. However, professional clients have the opportunity to use leverage up to 1:100.
The reason behind this regulation is to protect retail traders from the significant risks associated with high-leverage trading, which could lead to the loss of their savings in just a couple of unsuccessful trades.
Clients interested in accessing higher leverage must meet certain qualifications. They are required to demonstrate their readiness by having traded at least 10 lots worth of assets in the previous year.
In addition, they should either possess a year of experience in the financial sector or have a net worth exceeding 500,000 euros. This policy aims to ensure that clients opting for higher leverage have the necessary skills and financial stability to handle the associated risks.
Is It Possible to Make Money with Sheer Markets?
Whether or not you can make money largely depends on your trading skills. The good news is that Sheer Markets is a legitimate and licensed company.
Also, the broker doesn’t impose any deposit fees, and the withdrawal fees are kept minimal, covering only the essential transaction costs with third parties like banks and e-wallets. This ensures that trading with Sheer Markets remains cost-effective, allowing you to maximize your profits without unnecessary financial burdens.
Conclusion: Is Sheer Markets Legit?
Sheer Markets has expanded its presence in the global trading arena by obtaining regulatory approval from the Labuan Financial Services Authority (LFSA).
Although the broker is already regulated by the Cyprus Securities and Exchange Commission (CySEC) for traders in the European Union, it was previously unable to offer its services to a worldwide audience. This development now allows traders from Asia, Latin America, Oceania, and Africa to access Sheer Markets.
Sheer Markets (Cyprus) Ltd provides a diverse range of financial instruments across various capital markets. This includes mainstream stocks, exotic currency pairs, DNFs, and emerging markets forex.
While the broker’s extensive product offerings present exciting opportunities for traders, it’s important to note that certain products may be more suitable for experienced professionals rather than beginners.
In addition, some deposit requirements might be discouraging for casual traders.
Considering the regulatory status of the broker and the diverse assets it offers, we may conclude that Sheer Markets is legit. However, it is advisable to be cautious when getting involved with any online trading platform. Do your research and make an informed decision.
If you have any information about Sheer Markets, its administrators, or its facilitators, please reach out to us.