Finding online scams targeting individuals interested in investing and trading in financial markets is far from a difficult task. According to a report by the U.S. Commodity Futures Trading Commission, over $600 million was lost to fraudulent prop trading operations in the first half of 2023. This scenario explains why traders seek to understand whether a prop firm they’re interested in is real or fake before engaging.
Any trader who wishes to partner with a Prop Trading Firm must be aware of the risks of engaging with illegitimate parties and, most importantly, how to identify firms that are in fact legitimate. In this article, we will walk through the landscape of prop trading, understand the anatomy of a fraudulent prop firm and last, but not least, answer whether SabioTrade is a legitimate prop trading firm.
Proprietary trading is based on a very simple premise: A firm hands part of its capital to talented traders, who use this money to engage in financial trading on the firm’s behalf. The main goal is to generate profits for the firm from market activities across different instruments. In turn, the trader gets a share of all profits they generate. Feel free to read our blog post The Essentials of Proprietary Trading: Understanding How It Works to know more about the intricacies of this trading methodology.
While traditional brokers handle clients’ funds, prop firms trade with their own money. This is important, because this distinction means that prop firms are not governed by the same regulatory frameworks that oversee other financial institutions. Although this lack of strict regulation offers flexibility and growth, it also brings an increased risk of fraudulent ventures.
Fraudulent prop firms usually employ a set of recognizable tactics designed to exploit prop traders, such as the following:
Besides the aforementioned, poorly constructed websites with grammatical mistakes, undisclosed fees, unresponsive customer support, and fake online reviews are all additional red flags to look for when partnering with a prop firm.
SabioTrade is a proprietary trading firm based in Ireland that offers funded trading accounts to traders who pass the firm’s evaluation challenge, aimed at assessing the trading skills of aspiring traders.
People interested in joining SabioTrade as funded traders have to pay a one-time assessment fee and trade on a demo account under a set of risk management rules. If they manage to hit the profit target, they receive a live funded account with up to $200,000 of capital provided by SabioTrade, which allows the trader to keep 90% of their profits.
To assess the legitimacy of SabioTrade, we can explore some relevant factors. For example:
User and expert reviews provide even further assurance:
Before engaging, it is always wise to perform due diligence. You can start by checking official records, looking up Codevil IT Engineering Limited or its registration number 680139 on The Companies Registration Office (CRO) official website. You can also confirm media mentions such as the one published on the GlobeNewswire press release and sponsorships. I also highly suggest you read the SabioTrade Review by Investing.com, which provides a complete and comprehensive review on the firm.
You can also feel free to browse Trustpilot, Reddit, and trading forums for SabioTrade experiences. Trustpilot offers over 700 reviews on SabioTrade by those who have had experience with the firm. You can see what reviewers are saying, highlighting their positive experiences and praises, but also complaints and how the company responded to them.
Furthermore, don’t hesitate to engage with the firm directly. You can contact SabioTrade’s support team via official channels (email, chat, social media) to ask questions and assess responsiveness. The firm also offers a 7-day free trial, where you can test the platform’s functionality and withdrawal process.
In this article, we have explored how the prop trading environment, due to its lack of strict regulation, can offer flexibility and growth, but also attracts the attention of ill-intentioned parties. We explored deeper to understand whether SabioTrade is a legit prop trading firm and if traders can trust the company. We have discovered that SabioTrade is the public-facing brand of CODEVIL IT ENGINEERING LIMITED, a legally registered, active, and compliant company incorporated in Dublin, Ireland, within the European Union.
We have also noted that evidence strongly suggests that SabioTrade is indeed a legit prop firm, with a business model that aligns with the best practices of legitimate proprietary trading firms and actively counters the primary red flags associated with scams. SabioTrade has a transparent and fair one-step evaluation process with no time limits, a policy of refunding the assessment fee to successful traders, a high profit-sharing model reaching up to 90%, and a clear fee structure with no hidden charges. These are all positive indicators.
Based on all the evidence we walked through, we can say that SabioTrade’s verifiable corporate status, transparent business practices, and operational model are inconsistent with the characteristics of a fraudulent operation. The final verdict is that SabioTrade is a real and legitimate proprietary trading firm, with positive reviews from well-established and reputable market players, such as Investing.com, and high ratings from user reviews on websites like Trustpilot.
