DEFINANZ – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
DEFINANZ - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2024
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://di-finanz.de
Founded: 2015 – 2023
Regulations: Unlicensed
Languages: German, Swiss, Austrian
Deposit Methods: Neteller, Visa, MasterCard, American Express, Diners Club International, S€PA, Sofort Banking
Minimum Deposit: €10,000
Free Demo Account: Unavailable
Number of Assets: 250+ / 500+
Types of Assets: Commodities, Cryptocurrencies, Forex, Indices, Stocks
Trading Accounts and Conditions
DEFINANZ offers their clients the following types of trading accounts:
- Green Account: The deposit range is from €10,000 to €50,000. You are guaranteed a 2% return on your investment.
- Silver Account: The deposit range is from €50,000 to €100,000. You are guaranteed a 3% return on your investment.
- Gold Account: The deposit range is from €100,000 to €250,000. You are guaranteed a 4% return on your investment.
- VIP Account: The deposit range is €250,000 onwards. You are guaranteed a 4.5% return on your investment.
- 1 Million Club: The deposit requirement is a minimum of €1,000,000. You are guaranteed a return of 5% on your investment.
The broker also offers something they call their Premium Service, where you are supposedly offered tailored services. There is also a Professional Account package.
DEFINANZ does not tell us much about their trading conditions. We are told that the spreads are tight, starting from 2.0 pips, but we do not know what leverage options are available. The broker claims that there are no commissions.
DEFINANZ – Advantages
There are no advantages to trading with DEFINANZ.
DEFINANZ – Disadvantages
Here are all the disadvantages that clearly point out that DEFINANZ is a scammer:
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Lack of Regulation
The first thing that tells us that DEFINANZ is a scammer is their lack of regulation.
This broker does not tell us what their parent company’s name is, but they claim to be a legally authorized German broker. On their Contact Us page, the broker gives us 3 different addresses: one in Germany, one in Switzerland and the third in Austria. They give us one business phone number.
Beyond that, we do not know anything more about this company or broker.
We checked the BaFin’s online database to see if this broker is regulated by them. We did not find any broker by this name listed with the German financial authority. We got the same results when checking with the Swiss FINMA and the Austrian FMA.
This investigation has revealed to us that this broker is actually operating without a license. And makes DEFINANZ a scammer.
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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Poor Trading Platform
When you deal with a legitimate broker, you are offered a top-of-the-line trading platform, such as the MetaTrader 4 or MetaTrader 5 platforms. These platforms are the top two trading platforms in the world today. They are so easy to use that even novice traders will be able to use these platforms without a problem. For the more advanced traders, there is a vast array of functions, tools and third-party apps (in the marketplace) that allow them to customize their trading experience to a huge degree. This is something most other trading platforms cannot do.
DEFINANZ, on the other hand, promises that you will get a superior trading platform, but the broker does not specify which platform. There is no further information on their website about their trading platform.
Legitimate brokers also offer their clients the use of a demo account. This allows traders to practice trading in a safe environment and also to test the broker’s trading platform and trading conditions – without having to register for a trading account with the broker.
DEFINANZ does not offer their clients any such account. So, we will not really know what their trading platform looks like or how it functions until we register for an account with them.
We registered for an account with DEFINANZ to check what kind of a trading platform was on offer. We found out that this broker is offering their clients a very basic web-based trading platform that only allows you to buy and sell limited assets. There are no tools, functions or add-ons to make trading easier.
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Issues with Trading Conditions
We also find that we have serious issues with this broker’s trading conditions – they are incomplete and skewed.
DEFINANZ’s minimum deposit requirement is shocking. No broker demands a €10,000 first deposit. Regulated brokers ask for a minimum deposit of as little as $50, while the industry average ranges from $100 to $250. So, what this broker asks for is obscene.
Next, the spreads of 2.0 pips for the main currency pairs (EURUSD, GBPUSD and JYPUSD) are too high – even without commissions. Most legitimate brokers will have spreads that range from 0.5 pips to 1.5 pips.
There are no other trading conditions mentioned, which is definitely a serious problem.
This lack of transparency is simply another indication that we are dealing with a scammer here.
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Returns Guaranteed
DEFINANZ guarantees that their clients will get a return on their investments. This is a massive red flag that tells us that this broker is a scammer. No broker can promise profits; the forex market is so volatile that losses are much more common than profits. Therefore, when a broker promises that you will make money, they are out to scam you.
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Issues with Payments
The first issue we have with regard to payments is that there is no information on this broker’s withdrawal policy. We do not know if there is a minimum withdrawal condition, if there are fees for withdrawals or if there is a trading turnover target to be met.
Added to that, we could not check this broker’s payments section. While DEFINANZ offers multiple payment methods, we cannot verify the truth of these claims. With legitimate brokers, it is easy to access their payments sections and see what payment options are available.
Conclusion
DEFINANZ is a confirmed scammer. Dealing with them would be dangerous as you could lose all your funds.
DEFINANZ
Pros
- None
Cons
- Lack of Regulation
- Poor Trading Platform
- Issues with Trading Conditions
- Returns Guaranteed
- Issues with Payments
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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