Beware! DBFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
DBFX proposes a steady and sufficient forex broker experience, one that relies on fluidity and good market practices. The website is on the average side of the spectrum, but judging by the regulation of the broker we should not be so surprised. By that we mean that there are obvious elements of DBFX’s interface and overall quality that are not too well though of. Let’s see if this broker has what it takes to be traded with. Read the review to learn all about it.
The registration process was simple enough, even giving us the opportunity to open a demo account. We chose a live account, and were surprised at how effective and fast we opened such an account. With the live account we were able to access two trading platforms. The Activ8 platform produced a EUR/USD spread of 0.4 pips, while Sirix gave us 0.3 pips for the same currency pair. These spreads are superb in the entire sense of the word. However, the Spreads document take from the website claims that EUR/USD spreads are fixed to 3 pips. Why would anyone offer such a spread, and reveal it in an official document is a question that only the broker can answer. We assume it lacks professionalism.
Nevertheless, the leverage is 1:50 for retail users, according to the website, and 1:200 for Professional clients. Readers should expect to trade with Equities, Indices, Commodities, Crypto, Forex Pairs, and Stocks. Equities are only tradeable via Sirix, while stocks can only be utilised in the Activ8.
The website and client dashboard come in English, Arabic, Swedish, Spanish and Italian.
DBFX REGULATION AND SAFETY OF FUNDS
The broker is owned by DBFX Limited, and is regulated by the Vanuatu Financial Services Commission. It is also alleged that DBFX is a subsidiary of Belight Capital Group Ltd which is a Cypriot investment firm under the strict gaze of CySEC. Let’s break these down.
The Vanuatu regulation checks out, as the official database shows. However, Vanuatu remains an offshore brokerage destination. The minimum capital requirement for brokers in Vanuatu is $50 000, and all such firms must be physically located in the country in order to be livened. However, the fact of the matter remains, and Vanuatu is an offshore location, that is home to one a many shady brokers, but that is not to say that the nation has not been endeavouring to promote itself as a cleaner forex broker environment over the last year or so.
Next, we have the CySEC subsidiary. We found Belight Capital Group Ltd in the CySEC records, but company has been suspended.
The reasons for its suspension are unclear, yet traders cannot trust suspended firms especially with their deposits. Furthermore, there is no sign that DBFX is a subsidiary of Belight Capital Group. What ever the case is, it is clear that DBFX should not be trusted; it does hold a regulation, but there are too many dubious aspects (as we shall soon see) to recommend this one.
DBFX TRADING SOFTWARE
The trading software situation is baffling to say the least. The website promotes the following Sirix Webtrader, Activ8, Sirix Station, the MT4 and its mobile counterparts.
What’s interesting is that while we were opening an account, the choice of trading platform was limited to only an alleged proprietary trading terminal. However, once verifying our account DBFX gave us download link to a MT5, which is different from what we expected as the website clearly advertises the MT4. This isn’t that big of an issue, but still foreshadows DBFX’s offshore status.
However, the MT5 link turned out to be a simple MT5 demo, which the official MetaQuotes website offers to unregistered users to try out the platform. In other words, DBFX does not have the MT5 as its main attraction. So we are left with the Sirix Webtrader, Sirix Station and Activ8.
The Sirix Web and Station are have basically the same features and interface, with the only difference being that one is a desktop platform and the other is a web-based one.
Sirix is one of those softwares that looks impressive, but after a while, once you familiarise yourself, it turns out that it’s very limited in quality and quantity. The only real appeal rests in its ability to offer pending orders, one point clicking, options for chart customisation, and copy trading.
The Activ8 cuts down on these, and has two main offers: copy trading and pending orders. Aside from that (but/sell included, of course), this trading terminal has nothing to keep you satisfied for long.
What’s more is that both platforms are very common with unregulated and scammer brokers. In fact, we have reviewed many ridiculous brokerages like BlackStone 500 or FXDirects.
Furthermore, the legal doc mention that there are commissions on spreads. however they are undisclosed.
There is also the following table found at the Spreads & Conditions, indicating so percentages that we are not entirely sure of their meaning.
DBFX DEPOSIT/WITHDRAW METHODS AND FEES
According to the client area, the funding methods are Credit / Debit Cards, Bank Transfer, Pay R, SafetyPay, PayPal. Skrill, Neteller, PaysafeCard, Vload, and JetonJeton. The minimum deposit is $100 by Credit and Debit cards.
We were able to open an account only with the EUR base currency.
The client area did not have any withdrawal option anywhere! We went through it on multiple occasions and found nothing.
The T/C claim that withdrawals are processed within 2 days, and that the minimum is $100. There is also a mention of a $20 fee when withdrawing during a start up. All these a irrelevant if the broker does not allow for withdrawals… What kind of a regulated broker does not have a withdrawal section… How can it hold a license, and how did it acquire it in the first place? This is the most obvious sing that users should not trade with DBFX.
The broker explicitly states that it does not charge any fees, however we dd find on some occasions on the website mentions of bank fees.
Bonuses plus deposit have to be traded with 5000 times before being able to withdraw any bonus amount.
If the user complains about seemingly anything, the broker has the right to debit the bonus amount from the user, while the negative balance protection policy will no longer apply.
The user has to pay any applicable tax required by local authority, including governmental fees and levies, associated with account activities. This clause is ambiguous at best, and the only thing we gathered is that these fees are not imposed by the broker.
There is a very confusing paragraph that tackles collateral, a term not explained by DBFX. We assume it has something to do with an undisclosed trading volume, although we are uncertain. Please read it carefully, and try to understand it as best you can.
The broker has he right to make changes to the legal documents, as well as the collateral without telling the client, which is very dangerous.
Finally, we have the indemnification clause that expertly absolves the broker from any damage it causes the user.
The only thing holding this poor broker is its regulation. If it did not have that, we would, without second though, deem it a complete scam. Even so, we do not recommend anyone from depositing here!
