DAFEX – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
DAFEX - DO NOT TRADE WITH THIS PROVIDER
2.3/10
$100
Minimum Depositupdated 2022
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://dfxmanagement.com
Founded: 2022
Regulations: None
Languages: English, Chinese
Deposit Methods: Unknown
Minimum Deposit: Unknown
Free Demo Account: No
Number of Assets: Unknown
Types of Assets: Forex, Cryptocurrencies
Trading Accounts and Conditions
DAFEX does not mention anything about their trading accounts or their trading conditions. We had to check their trading platform to get that information.
On their trading platform, the broker has a spread for the EURUSD for 0.6 pips, which is within industry standards. However, their leverage ratios, which define the trading risks, are too high at a maximum of 1:1000.
There is no mention of any other trading conditions such as commissions, fees, order execution methods and so on.
DAFEX – Advantages
Surprisingly, DAFEX actually does have a real MetaTrader 5 platform that they offer their clients.
The MT5 platform recently overtook its predecessor, the MT4, as the world’s most popular trading software. This is one platform that offers traders pretty much everything they need to carry out trades: strong market indicators, charting tools, analytics tools, automatic trading, a massive 3rd-party app market and so much more.
Unfortunately for this broker, one good thing does not cover up for all the other issues DAFEX has. Read on to find out more.
DAFEX – Disadvantages
Here are the many reasons why we would still call DAFEX a scammer:
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Lies About Multiple Regulations
DAFEX goes out of their way to prove that they are a high-class operation that is regulated by some of the top financial authorities across the world.
The broker claims to be owned and operated by DAFEX GROUP. The broker also claims to be registered with, authorized by and regulated by the following financial authorities:
- ASIC – Australian Securities and Investments Commission (AFSR No. 001284040)
- IFMRCC – International Financial Market Relations Regulation Center
- SVGFSA – Saint Vincent and the Grenadines Financial Services Authority (BC No. 25882)
- Money Service Business – MBS
Now, here’s the interesting part of all these claims. There is no record of DAFEX being registered with the ASIC.
The IFMRCC is a fictious regulator, and we have seen multiple scammers use this non-existent authority as proof that they are regulated.
The SVGFSA has no record of this company or broker.
And MSB is just another acronym used by financial regulators to describe forex and other such brokerages.
This broker has tried to con traders into thinking that they are legit by throwing around a whole bunch of acronyms and a whole bunch of really legal-sounding names of regulators.
The reality is that we are dealing with a scammer that is not even regulated at all!
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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No Legal Documents
We checked this broker’s entire website and could not find any legal documents at all.
All legitimate brokers are required to have detailed legal documents. It is these documents that define the relationship between them and their clients. They explain exactly what kind of services the broker offers, at what cost and with what conditions. These documents also tell us what policies the broker has in place that you need to adhere to when you use their services.
This broker is hoping to get away with a simple check box that says I Agree (to the Terms and Conditions), banking on the fact that most of us don’t even look at the legal documents. It is that trust that scammers such as DAFEX attempt to exploit. Once you have signed up without going through a broker’s legal documents, you don’t have much of a leg to stand on once you have been scammed; and that it what scam brokers take advantage of.
This is the reason why we strongly suggest that you take the time to read through the terms and conditions offered by a broker before you sign up with them. This simple step could save you from being scammed.
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Issues with Trading Conditions
Here is the first issue we have about DAFEX’s trading conditions – there are none!
Brokers usually give all the details about their trading conditions very clearly on their websites, since this (and their trading platform) is their service offering.
With scammers like DAFEX, we find no details given at all.
We had to access their trading platform to find out some of the details.
We found out that the spreads for the EURUSD pair were at 0.6 pips, which is quite decent. But we don’t know if this broker has any commissions along with those spreads. All we can say is that the spreads are at $6 per lot, but with unknown commissions. So, at the end of the day, we don’t know the real cost of trading.
The trading risks are much too high at 1:1000 leverage ratios. The ASIC has capped all leverage offers at 1:30, so this ratio offered by DAFEX is illegal – besides being extremely dangerous.
And then let’s talk about the minimum deposit requirement. There is no information on that at all!
All in all, this kind of incomplete and rather suspicious information with regard to trading conditions is typical of scammers.
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Issues with Payments and Withdrawals
Most brokers offer their clients a wide range of payment options. They also clearly state what their withdrawal policies are – what fees they charge for various withdrawal methods, how long withdrawals take and if there is a minimum withdrawal limit or not.
With DAFEX, we don’t get any of this information – a complete blank. So, we don’t know how you can make deposits, how much you can deposit, how long it takes to deposit, and how much it costs. It’s the same case for withdrawals!
This is so typical of scammers!
Conclusion
DAFEX is yet another wannabe scammer. This broker polishes up their website with so many lies in an effort to dazzle the customer into thinking they are legitimate. Avoid this broker.
DAFEX
Pros
- MetaTrader 5 Platform Available
Cons
- Lies About Multiple Regulations
- No Legal Documents
- Issues with Trading Conditions
- Issues with Payments and Withdrawals
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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