Beware! Daxbase is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Daxbase is a Vanuatu-based brokerage which provides it’s own web-based trading platform. The brokerage requires a minimum deposit of $250, which is just about the industry average, and provides clients with a wide range of payment methods, including many e-wallets. Clients are also extended a generous leverage of 1:500. The spread on EUR/USD stands at 1 pip which is quite favorable for traders and half a pip below the standard for the industry.
Daxbase regulation & safety of funds
The brokerage chooses not to disclose any information about itself. The website does not inform us about neither the company behind the brokerage, nor its country of origin. However, in the terms and conditions of the brokerage we read that the company behind the brokerage is registered in Vanuatu. Here is a screenshot:
The government of Vanuatu does regulate Forex trading through its regulatory body Vanuatu Financial Services Commission, however, we find no mention of a license in the brokers website and after checking with the online registry of the Vanuatu authorities we may safely assume that the brokerage does not fall under any regulatory oversight.
Furthermore, the brokerage provides a web-based trading platform which we were able to access. Here is a screenshot:
As you can see – the spread on EUR/USD is just 1 pip which we view as an advantage for traders. Furthermore, the leverage the brokerage provides is 1:100 which is quite high and generous compared to the maximum of 1:30 which EU-regulated brokerages may provide. However, we remain unimpressed with such web-based platform and suggest traders take a look at the brokers that provide the MetaTrader 4 trading platform which is the foremost trading terminal at the moment, equipped with many unique features such as it’s easy and accessible programming language. All in all, we are inclined to suspect that potential clients of the brokerage may be open to substantial risk due to the lack of regulation.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the Financial Conduct Authority in the UK or CySEC in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy.
Daxbase deposit/withdrawal methods and fees
It seems as though there isn’t a payment method that Daxbase does not support since it has splattered its web page with all sorts of logos of payment service companies. We see the logos of popular e-wallets such as WebMoney, Neteller, QIWI, Yandex, Perfect Money, Dash, as well the standard Visa, MasterCard and Bank transfer. The brokerage also purports to support several crypto currencies including Bitcoin.
We could not find in the Terms and Conditions any nasty withdrawal conditions. However, we do read that there is a dormant account fee. Here is a screenshot:
10 dollars will be charged for every month the traders hasn’t executed at least one trade. This certainly isn’t excessive, however, the most worrisome provision in the terms of the brokerage is that “Daxbase reserves the right to charge any withdrawal fees it sees as necessary.”
Such ambiguous provisions induce us to remind readers that there is no guarantee that the brokerage may not charge some unexpected withdrawal fee once it has received the initial deposit. This is why we 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?
Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. That is why we believe all traders should be well-versed in the different ways of the scam. Here is the most popular one:
In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing. At some point, however, you’ll probably begin to consider closing the account and getting back your money.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.
What to do if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
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 change it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!