SabioTrade: Real or Fake?

Introduction

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.

Understanding Proprietary Trading

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.

The Anatomy of a Prop Firm Scam

Fraudulent prop firms usually employ a set of recognizable tactics designed to exploit prop traders, such as the following:

• Unrealistic Promises & Deceptive Practices: They usually try to convey the idea of profits that are guaranteed, quick, and risk-free. They can also manipulate trades via proprietary software and employ other deceptive practices at the expense of the trader’s profitability and for the firm’s benefit.

• Business Model Centered on Evaluation Fees: Some firms are more interested in collecting evaluation fees rather than really partnering up with talented traders to make money in financial markets. These firms will often employ challenges that are impossible to complete or create an environment where aspiring traders are forced to pay for repeated evaluation attempts due to unclear rules or unfair practices.

• Withdrawal Obstruction: One of the most definite signs of a scam is when a prop firm employs several obstacles or delays when a trader tries to withdraw their earned profits 

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. 

What is SabioTrade?

SabioTrade is a proprietary trading firm based in Ireland that offers simulated trading accounts to traders who pass the firm’s evaluation challenge, designed to assess the trading skills and discipline of aspiring traders. 

Participants who meet the profit target on the demo account under the risk management rules can gain access to a simulated funded account, where they continue trading in a virtual environment under live-like market conditions. Based on performance, traders can earn real cash payouts, while keeping 90% of the virtual profits they generate, as long as they follow the risk management rules.

Is SabioTrade Legit?

To assess the legitimacy of SabioTrade, we can explore some relevant factors. For example:

• The Parent Company: SabioTrade is the trading name for its parent company, CODEVIL IT ENGINEERING LIMITED, registered in 2020 and based in Dublin, Ireland. 

• Verifiable Registration in the European Union: CODEVIL IT ENGINEERING LIMITED is a company legally registered in the Republic of Ireland, a member of the European Union, registered with the Irish Companies Registration Office under number 680139. Official records from the CRO confirm the company’s status as “Normal” and that it has consistently filed its required financial statements and annual reports. 

• Transparent Terms: The firm clearly publishes its trading rules and profit-sharing schemes on its official website, offering transparent information with no hidden fees and profit splits are advertised upfront.

• Solid Technology: SabioTrade runs on a Quadcode platform used by other players in the market, with a rich dashboard that includes built-in tools such as charts, indicators, webinars, and support for many asset classes. Such a big investment in proprietary tech is consistent with a serious, sustainable operation.

• Press Coverage: SabioTrade has issued press releases through reputable channels, such as GlobeNewswire. Press activity and similar coverage on financial websites is consistent with an operating company promoting legitimate services. 

• Regulation Awareness & Good Practices: Although SabioTrade is not governed by the same regulatory framework that governs brokerage firms, it still enforces anti-fraud measures. Traders are required to verify their identity and address before accessing a simulated funded account, which helps prevent abuse and other illicit activities. The company also publishes terms and conditions, demonstrating compliance with basic financial regulations.

Reviews and Community Trust

User and expert reviews provide even further assurance:

• Trustpilot: SabioTrade’s Trustpilot profile shows several hundred reviews with an overall score around 4.1 out of 5, which labels it as Great. Many reviewers praise the user-friendly trading terminal, educational resources, and timely payouts. Trustpilot’s review summary shows that reviewers had a great experience with this company and that they appreciate the reasonable pricing for plans. It also highlights that the company has replied to 99% of negative reviews and that it typically replies within 48 hours, showing that the firm doesn’t shy away from criticisms and bad reviews. 

• Social Proof: On discussion forums and Discord channels, traders generally report being able to pass the challenge, meaning the company doesn’t show signs of having a fee-centric business model. Traders also report that they have received their cash rewards without any issues or delays. 

• Endorsements: Analysis websites recognize SabioTrade as legitimate. The DailyForex explicitly concluded that SabioTrade is a “legit and safe Forex prop trading firm”. Investing.com’s review also highlights SabioTrade’s legitimacy, robust technology, and strong customer support. Consistent endorsement from industry reviewers reinforces the firm’s credibility.

How to Verify Yourself

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 explore how the performance-based payout rewards work. 

Conclusion

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 that pays out up to 90% of the simulated profits as real cash rewards, 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.