Please note SFTP is only availaible to cpanel users and not to virtual ftp users for secure connection you can use FTP over SSL/TLS

Please enable TLS Encryption Support from WHM

Main >> Service Configuration >> FTP Server Configuration

TLS Encryption Support >> optional

On the FTP client use server type as

Host: domain or Ip

Port : 21

Server Type : FTPES -FTP over explicit TLS/SSL

For more information on this refer

http://forums.cpanel.net/f5/sftp-instructions-inside-cpanel-121025.html

http://docs.cpanel.net/twiki/bin/view/11_24/WHMDocs/FtpConfig

http://docs.cpanel.net/twiki/bin/view/AllDocumentation/CpanelDocs/FTPAccounts#Configure_an_FTP_Client

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