Beware! DeltaFxMarkets 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.
DeltaFxMarkets is a forex broker about which there is recent warning issued by the Italian Commissione Nazionale per le Società e la Borsa (CONSOB).
The broker is not regulated, and is owned by an offshore company, based on the Marshall Islands.
As far as the trading conditions are concerned, they offer 59 currency pairs, some of which exotic like USDCNH, USDRUB, USDSEK, USDHKD, USDSGD, USDMXN, USDNOK, USDDKK, USDTRY, USDZAR, USDCZK, USDHUF and USDPLN, with 5 account types, leverage of up to 400:1 and the MetaTrader5 platform.
Spreads with the opening Mini Account are advertised to start at 2 pips, fixed, which is higher than what traders would usually expect. Have in mind that starting spreads are considered attractive only below 1,5 pips.
Also, the broker says to be offering CFDs on indices, commodities and shares, but when we tested their platform with a demo account, the only available instruments were the forex pairs.
Still our main concern with the broker is their regulatory status, which we will discuss at length in the following paragraphs.
DeltaFxMarkets regulation & safety of funds
As we noted DeltaFxMarkets and the company behind it – the Marshall Islands based Silver Wolf Limited are blacklisted by CONSOB in Italy, because they have been targeting customers in Italy and EU without a license. Have in mind that only properly licensed brokers are allowed to offer their services on heavily regulated markets like the EU, the USA, Japan and Australia. And besides, you can feel safe about your money only with licensed brokers, because of the strict regulatory regime they are subject to.
On top of that if your trade with an EU regulated broker, your funds will be insured for at least 20 000 EUR, like for example with the Cyprus Securities and Exchange Commission (CySEC).
With the Financial Conduct Authority (FCA) in the UK the insurance on your account will be even higher – up to 50 000 GBP, which you will be entitled to in case your broker files for bankruptcy.
DeltaFxMarkets deposit/withdrawal methods and fees
DeltaFxMarkets accepts payments with credit cards like VISA and MasterCard, bank wire and various e-wallets like OK Pay, Payeer, Klarna, QIWI, PayPal, Neteller, WebMoney and Skrill. The minimum deposit requirement is 500 USD – twice higher than what most other brokers would ask for, but that is not the main problem here.
The broker offers managed accounts – “MAM TRADING ACCOUNTS”, which come with the rather unusual condition that you will not be able to withdraw any of your funds for a period of 6 months.
Have in mind that no legit broker will ever offer a managed account, because with a few exceptions most brokers act as market makers, meaning that they make money when traders lose. That is why if a market maker offers you to manage your account, they will have an incentive to lose your money.
Also be aware of any trading bonuses that DeltaFxMarkets might offer you as they are always linked to special withdraw condition, like for example you will have to trade 3 standard lots or 300 000 USD for every 10 USD bonus granted by DeltaFxMarkets.
Finally, we should also note that DeltaFxMarkets reserves the right to impose withdraw limits on their sole discretion, which is also unusual. On top of that there is a withdraw fee of 1,5% of the requested amount.
How does the scam work?
Among the many ways a retail investor may fall in to the hands of scammers, it is worth noting the so called robo scam websites like CryptoContractsApp or Crypto Revolt where if you happen to browse one of those, you will be greeted with some “irresistible” offer for fast and easy returns in exchange of a small investment and no risk at all. And at first all you will be asked for will be your e-mail and phone.
Now, if you do register with the robo scam website, most probably you will be automatically transferred to the web page of a unregulated scam broker, where you will be offered a trading account in exchange of about 250 USD. And do not be surprised, how successful your initial trades will be- they will not be real. Scammers just want to make sure you will invest a larger amount, once you see how “profitable” trading with them is.
And surely you will get a phone call as well. It will be your “senior account manager”, who will basically try to convince you, that if you want to make some real cash you will definitely have to invest more – at least 10 000 USD or so.
And afterwards you may never realize you have been scammed until the very moment you decide to withdraw some of your funds. Than all of a sudden it will turn out you can not withdraw, because of some minimum trade volume requirement linked to your welcoming bonus. Certainly it could be something else, but in the end it will all come to the same. Your withdraw requests will be canceled.
What to do if scammed?
Do not hesitate, but immediately file for a charge back with your credit card provider. This is your only chance to get your deposit back. Fortunately, both VISA and MasterCard recently extended the maximum period in which you will be allowed to do that to 540 days.
And if by any means scammers have managed to get to your banking details like credit card number or online banking password, immediately change your password and block your credit card.
And finally, do not accept the offers of the so called recovery agencies. Some of them even work with the con artists, that have just scammed you.
In any case a recovery agency will not help you recover your money, but will simply charge you some fees in advance and basically that will be the end of the story.