Beware! DSFX99 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.
DSFX claims to be the best STP/ECN broker in the world but if you Google the name of DSFX99, you will notice that there are already quite a few negative reviews about this broker. In addition to that, we must point out that the website is not professionally done and people may experience difficulties perusing the information in English as some of it cannot be changed from Chinese to English.
DSFX99 Regulation and safety of funds
You won’t find a specific address or registration for MC Investment Limited Group that owns and operates DSFX99, although it claims to be serving investors all over the world, including the UK, Europe, Hong Kong, Australia, etc. We did a search in the registers of forex brokers regulators in these jurisdictions but the name of the company did not appear to be there. This means that DSFX99 is a non-registered and non-licensed broker and trading with it is not advisable.
Furthermore, if you read the legal documents on this broker’s website, you will see that there is no guarantee for the safety of clients’ funds and in case of insolvency, the clients’ claims for deposits and profits may not receive priority.
If you are looking for a licensed and reliable broker, we suggest that you research the lists of licensed and regulated brokers from the EU and the UK which we provide below and where the best conditions for forex trade exist. To be able to get their license, EU and UK brokers must deposit an initial capital of no less than 730,000 EUR which among other things serves to deter scammers from infiltrating the ranks of legit brokers. Other measures to guarantee the safety of clients’ money include keeping clients’ funds segregated from broker’s with tier-1 bank establishments, provide negative balance protection, leverage that is capped at 1:30 for forex currencies, regular reporting of transactions, etc. In addition to that, legit brokers are required to participate and deduct funds towards a local compensation fund or scheme from which clients can be compensated in case of bankruptcy. UK brokers are required to participate in the local Financial Services Compensation Scheme that can reimburse the clients with up to 85,000 GBP per client if the broker goes bankrupt. On the other hand, EU brokers participate in a local investor compensation fund which provides the means to repay up to 20,000 EUR per client if the broker becomes insolvent.
DSFX99 Trading sfotware
DSFX99 trades in forex, metals, CFDs and futures. The trading software consists of the MetaTrader 4 trading platform. We were unable to register a trading account with DSFX99 as it was impossible to convert the registration information from Chinese into English. However, we downloaded an unactivated version of the MT4 which gives a good idea about what the platform looks like (image below). On the left-hand side are located the trading products with their bid/ask price and the navigator for the accounts, indicators, expert advisors and scripts. In the middle are displayed the charts of the selected trading product. Thanks to the amazing charting options that MT4 provides the traders with, they can select among a variety of charts, time frames, colours or use the option of creating customised templates. In this case, you can see displayed 4 charts of 4 currency pairs but their number may vary as per the trader’s needs.
Other advantages offered by MT4 include an excellent package of trading tools and instruments, such as VPS, auto trading option, code base with customs scripts, an app market as well as an array of technical analysis indicators that help traders predict the future direction of exchange rates and make a profit.
We are not able to provide the parameters of the spread but what we can tell you about it is that when the spread is tight and below the industry average of 1.5 pips it is beneficial for the traders as the cost of transactions won’t be too high and they will be able to make a sustainable profit.
The information we found on the DSFX99 website about the leverage tells us that it may vary as per the type of trading account. For example, for STP/ECN accounts, the leverage is 1:100, for the Premium account, it is 1:200, for the Standard account, 1:500 and for the Micro account, 1:1000. We are worried that the parameters of the leverage are too high which by the way is typical for non-legit brokers and scammers. High leverage increases the exposure to risk for clients’ funds and when the transactions are unsuccessful which happens to 70% of traders, it amplifies the scope of financial loss. It is not by chance that EU and UK regulated brokers are not allowed to offer leverage higher than 1:30 for forex currencies. This is a measure to protect clients from entering risky and reckless trading.
DSFX99 Deposit/Withdrawal methods and fees
The information about the available trading accounts is confusing and contradictory. We already mentioned where leverage was concerned about the Micro, Standard, Premium and STP/ECN accounts. However, there is no further data regarding the minimum initial deposit for these accounts.
In other sections of the website, we found information about an EA account that offers from 20% to 40% discounts. However, it is subjected to some conditions and looks more like a bonus given by the broker. For example, for the 20% off Discount Account, the trader is not allowed to withdraw funds at least 30 days after opening a position and the transaction lot should reach 100 of the principle. If the trader fails to meet these requirements, a management fee of 20% of the deposit amount will be charged.
In the same section, we can also see information about Programmed Trading Account and beneath, there is a table for the Golden account showing a minimum initial deposit of $1,000.
On the interface of DSFX99, we also see in the account section a Gold and a Golden account but it is unclear what these accounts are as the clients is required to register for these accounts but the registering information is only in Chinese and cannot be converted into English.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.