DiamondFX – Is It a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
DiamondFX - DO NOT TRADE WITH THIS PROVIDER
2.7/10
$100
Minimum Depositupdated 2020
DiamondFX offers its clients 5 different account types for trading: Bonze, Silver, Gold, Platinum, Diamond. The broker states that to start trading on a Bronze account, you only need to make a minimum deposit of $10. There is no information about how much you need to deposit for the other account types.
The leverage this broker offers is 1:500, however, we do not have any information about its spreads. DiamondFX, on its home page, states that it has lots that start at a minimum of 0.01.
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://www.diamondfx.com/
Founded: 2019
Regulations: Unregulated
Languages: English
Deposit Methods: Bitcoin, Bank Wire
Minimum Deposit: $10
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Currencies, Stocks, Indices, Cryptocurrencies
Trading Accounts and Conditions
DiamondFX offers its clients 5 different account types for trading: Bonze, Silver, Gold, Platinum, Diamond. The broker states that to start trading on a Bronze account, you only need to make a minimum deposit of $10. There is no information about how much you need to deposit for the other account types.
The leverage this broker offers is 1:500, however, we do not have any information about its spreads. DiamondFX, on its home page, states that it has lots that start at a minimum of 0.01.
DiamondFX – Advantages
Here is the list of advantages you may have if you trade with DiamondFX:
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MetaTrader 4 Platform Offered
DiamondFX offers its customers the use of the MetaTrader 4 (MT4) trading platform, which, for us, is a great plus point.
This is because the MT4 platform is currently the best trading interface in the world, with more than 80% of traders using it for executing trades. This platform offers users a lot of added features such as EAs (Executive Assistants – automated trading bots), customizable charting options, almost 100 different market indicators, and so much more.
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Very Low Minimum Deposit Requirement
DiamondFX has one of the lowest minimum deposit requirements in the industry. This broker only asks for a $10 initial deposit for you to start trading on its platform. The industry standard is between $100 to $250, so this kind of a deposit requirement is really a huge plus.
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High Leverage
This broker also offers its customers a leverage that is twice the industry average – 1:500. This kind of a leverage, along with the low minimum deposit requirement makes this broker a very attractive option for many.
However, traders need to remember that a high leverage also comes with high levels of risk. And what is why most financial regulators enforce limits on how much of a leverage brokers can offer their customers.
DiamondFX – Disadvantages
Here are the many reasons why DiamondFX is a broker that you should not trust with your money:
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Not Regulated
When you see DiamonFX’s home page, you will notice that this broker claims to be licensed. However, when we investigated its regulation status, here is what we found.
This broker is owned and operated by a company called DiamondFX Ltd., which is registered in St. Vincent and the Grenadines (SVG), which basically makes it an offshore broker.
The Financial Services Authority (FSA) of SVG has clearly that it does not have regulatory oversight for Forex brokers, which means that DiamondFX is not regulated and that its claim of being licensed is bogus.
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 Demo Account
Even though this broker offers its clients the MT4 Platform with which to trade, it is not a downloadable version of the software, which means that you do not get a demo account on which you can practice trading before you invest real money.
A demo account is a facility that if offered by most legitimate traders, because it gives traders a chance to assess whether the trading conditions are as advertised and how well the platform works.
When a broker does not provide its customers a demo account, it means that the trader is basically going in blind and may be hit with unexpected transaction fees. This is a tactic that is usually used by scammers.
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Unknown Spreads
Another red flag that we see is the fact that DiamondFX has not disclosed its spreads. This is one of the most critical aspects of trading, since it lets you know the cost of each trade that you are going to make.
A broker is compensated for each transaction a trader makes from the spread it offers. So, a higher spread means that broker makes more money, and a lower spread means its compensation is lower.
Not knowing the spread means you don’t know what the cost of each trading transaction you make will be.
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Sign-Up by Invitation
Due to the fact that this broker does not offer a demo account, we decided to open a live account to test the trading conditions. However, we were unable to do so because we found out that the only way to open an account with DiamondFX was if they invited you to do so.
This is an extremely unusual practice as most brokers allow all traders – as long as they meet their entry requirements. Thus, this factor also raises a serious concern for us.
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Limited Payment Options
The only way you can make payments on DiamondFX is through bank wires or by Bitcoin. While this is not as serious an issue as the other points we have mentioned, it does cause some concern that there are such limited options for making payments.
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Trading Bonuses
Another troubling factor about this broker is that it offers trading bonuses that have seriously high trading volume requirements before a trader is eligible to withdraw their funds.
This is an extremely controversial practice that has been adopted by scammers. So, that DiamondFX offers its clients this promotion is another reason why we feel that this broker is not one that any trader should use.
Conclusion
We investigated DiamondFX thoroughly. And after doing so, we have come to the conclusion that this a broker that is out for your money. It would be best if you avoid trading with this broker.
If you are looking to trade online, then we recommend that you trade with a broker that is regulated strongly so that you are offered protection against losses due broker fraud or bankruptcy.
DiamondFX
Pros
- MT4 Trading Platform Offered
- Very Low Minimum Deposit Requirement
- High Leverage
Cons
- No Regulated
- No Demo Account
- Unknown Spreads
- Sign-Up by Invitation Only
- Limited Payment Options
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.
eToro is a multi-asset platform which offers CFD and non CFD products. 74% 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.