NDDFX Review – 5 things you should know about nddfx.com

NDDFX Review – 5 things you should know about nddfx.com

Beware! NDDFX is an offshore broker! Your investment may be at risk.

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A lot of happy and smiling people greet us from NDDFX interface. Would you be happy and smiling if you choose to trade with this broker or would you be crying in your cornflakes? We find the answers for you by looking at some key features.

NDDFX Regulation and safety of funds

From the information provided on this broker website, we find out that NDDFX Technology LTD that owns the website claims to be registered in Belize and is also fully licensed and regulated broker in St. Vincent and the Grenadines.

First of all, the information about the registration of the company is a big fat lie. Our search in the International Financial Services Commission of Belize proved that this company is not registered in Belize (image below). Secondly, the Financial Services Authority in St. Vincent and the Grenadines does not regulate forex and CFD brokers. Therefore, this broker is not registered in St. Vincent and the Grenadines either.

This is proof that this broker is a scammer out there to fleece you not to put a smile on your face and trading with it will put at risk your hard-earned money.

 

IFSC Belize register

 

We strongly advise you to avoid entering into any trading activities with brokers from offshore zones as the protections against scammers and guaranteeing the safety of clients’ funds is not set in place. Instead, you can research forex brokers from jurisdictions where there are strict regulations for forex brokers and the protection of clients’ funds is guaranteed. For example, forex brokers in the EU and the UK offer excellent conditions for trade. To ward off scammers, forex brokers in these two jurisdictions must invest no less than 730,000 EUR in the form of initial capital. Also, they must keep clients’ funds separately from the company’s with tier-1 bank establishments, report transactions on regular basis and provide protection against negative balance. In addition to that, licensed brokers must participate in compensation funds or schemes from which their clients can be reimbursed in case of bankruptcy. If the broker is regulated by FCA in the UK and deducts funds towards the local Financial Services Compensation Scheme, then its clients can be reimbursed up to 85,000 GBP per client if the broker becomes insolvent. Brokers regulated by CySec can provide compensation of up to 20,000 EUR per client if they participate in the local Investor Compensation Fund.

NDDFX Trading software

NDDFX claims to have a strong team of IT engineers who “are working to roll up their sleeves to solve your problems”.  Ironically enough this team of IT engineers is probably not doing much to earn their wages as the sign up for registering an account is not working. We were not able to open a trading account due to problems in the system.

What little information we could gather from NDDFX website is that the trading software offered to the clients consists of the MetaTrader 5 trading platform. Normally, this would be an excellent choice as the MT5 is well-reputed and very popular with forex brokers thanks to the excellent package of trading tools and instruments that it offers, including an auto trading option, trading signals that can be obtained for a subscription fee, code base with customs scripts, VPS, a financial calendar, an app market, etc. It has also inherited the same great charting options its ‘older brother’ MetaTrader 4 is famous for as well as the array of technical analysis indicators that help traders predict the future direction of exchange rates and make a profit. When in 2016 the hedging option was added to MT5 it became even more popular with brokers and traders alike.

From the company’s website, we could see that the spread starts from 0.4 pips. For your information low spread is beneficial for traders as it keeps the cost of transactions low and traders are able to make a sustainable profit. However, we could not verify how high the spread goes in the real account.

NDDFX boasts that it offers leverage of up to 1:500. Some traders may find this attractive as it seems that high leverage can increase the potential for making a big win. However, this assumption is misleading as in reality, 70% of traders lose in transactions which means that the chances of making a big win are insignificant compared to the chances of suffering financial loss amplified by the high leverage.

The licensed forex brokers in the EU and the UK which we discussed in the previous section have capped leverage and it cannot exceed 1:30. This is another measure of protecting clients’ funds by preventing traders from engaging in reckless and risky transactions.

NDDFX Deposit/Withdrawal methods and fees

NDDFX offers 3 trading accounts to its clients – DMA NDD, FIX Api and ECN NDD. The minimum initial deposit for the ECN NDD account is $500. This amount is high compared to what licensed brokers would ask for, i.e., as little as $1-5. The DMA NDD account starts at $10,000 and the FIX Api at $50,000 which are substantial amounts for an initial deposit.

We noticed that the Terms and Conditions document is visible only when trying to register an account. However, the link does not work, so we have no information regarding the deposit and withdrawal methods and fees. Needless to say, licensed brokers will have such crucial information visible and readily accessible on their website. Yet another proof that trading with this broker won’t put a smile on your face.

How does scam work?

A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.

What to do if scammed?

Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.

Rich Snippet Data
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Reviewed Broker
NDDFX
Broker Rating
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