Sonaf is a trade name of Sonaf Business Limited that is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 174/12.
Sonaf offers over 55 currency pairs, commodities, some global indices and shares.
There are several types of accounts depending on the funds invested. If you want to invest up to USD10,000, you will open a Regular account. The spread for the EUR/USD pair is 2 pips and the commission is USD20 per lot. The Silver account requires an investment within USD10,000 and USD25,000. The spread of the EUR/USD starts at 1.5 pips and the commission is USD16 per lot. The Gold account is for sums within USD25,000 and USD50,000. In return you receive a spread starting at 1 pip and a fee of USD10 per lot. If the deposited sum is above USD50,000 the Platinum account offers raw spreads and a fee of USD6 per lot.
You can make trades through the MetaTrader 5 (MT5) terminal. The platform is available as a desktop version for Windows computers or as a mobile app for iOS and Android devices.
The Order Execution Policy document informs that market orders are subject to slippage if the market execution model is activated. If the instant execution model is enabled, you may be requoted. Stop loss orders are not guaranteed and in the event of market volatility, they will be filled at the first available price. The Client agreement indicates that the company provides negative balance protection and the maximum loss will never exceed the client’s available funds. The same document reveals that the company deals with the client as the main counterparty and not as an agent, even though the company may transmit orders to liquidity providers/brokers for execution. That means the company acts more as a market maker rather than as a Straight Through Processing (STP) broker. It may choose not to hedge all customer orders and will take advantage when the customer loses. Thus, a conflict of interest arises.
Overall, the company obviously does not provide enough information on its website. Although Sonaf is regulated by CySEC and you can use one of the most popular platforms, trading conditions are not competitive, and the required deposits are relatively high. There is negative balance protection, but you cannot be sure what type of brokerage company Sonaf is.