Beware! DDreamTech is an offshore broker! Your investment may be at risk.
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DDreamTechis a Forex brokerage registered in the Ukraine. Traders are provided with the MetaTrader4 trading platform and a wide range of trading products. From the website we gather that potential clients are also extended an generous leverage of up to 1:100. At 0.3 pips on EUR/USD, the spread offered by DDreamTech is just about the industry average.
DDreamTech regulation & safety of funds
Best Swift is owned and operated by a company registered in Ukraine with an address 8th Floor IQ Business Centre, 13-15 Bolsunovska St., Kiev, Kyiv City, Ukraine, 01014. Ukraine is not a member of the EU and the ESMA guidelines do not hold water in the country. Furthermore, we aren’t sure if online Forex trading is in fact integrated into the country’s regulatory framework.
We also read in the website that the brokerage claims to fall under the regulatory oversight of the National Futures Association.
The NFA is the main regulatory body in USA overseeing online Forex trading. However, after doing a quick check with the help of the online registry of the NFA, we can safely conclude that DDreamTech is not licensed by the American regulator. The NFA has very strict rules for membership which is why only a handful brokerages are legally operating at the moment in the U.S. However, the brokerage does provide the MetaTrader4 trading platform which is the foremost trading terminal in Forex trading at the moment. Through a demo account we could see a spread of just 0.3 pips on EUR/USD which is quite below the industry average and very impressive. Furthermore, the leverage extended to clients – 1:100 – is quite balanced and in no way excessive. A very high leverage hides the risk of losing more than you have initially invested.
A problem we encountered with the brokerage is the lack of clarity regarding the trading conditions. We couldn’t learn the required minimum deposit which is crucial in a Forex brokerage. The lack of adequate information, coupled with the clear lack of regulatory oversight are all warning signs for traders and reviewers alike. Such irregularities make us suspect that clients will be open to a number of risks.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
DDreamTech deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via the standard VISA and MasterCard, as well as a variety of exclusively Chinese payment methods like China UnionPay. Here is a screenshot:
We did not come across any unusual withdrawal fees, nor does the brokerage give much clarity regarding its provisions, however, we always remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
One of the reasons regulation has such value in the trading world is because scamming is quite common and it acts as a sort of guarantee that such a thing would not happen. Nevertheless, here is how a typical scam would go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as CashlessPay Group or Crypto Revolt where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case of Axe invest – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
