Beware! Dacland 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.
Dacland wants us to believe it is “an internationally renowned financial trading service provider” with more than a decade of experience. But this website lacks the necessary requisites and functionality to convince us that these claims are true. At the time of writing this review the website, which is available in Chinese and a poor English translation, appears unfinished, it is not even possible to register a new account. But the available information is sufficient to conclude that the intent behind the Dacland is to cheat inexperienced people out of their money.
DACLAND REGULATION AND SAFETY OF FUNDS
Daclanddoes not provide access to any kind of legal documentation. The only means of contact is email. Dacland Capital Limited is listed as the owner of the website but it is not specified where this company is based. It is not clear whether such a company even exists, but we can be sure that whoever is behind Dacland does not have the proper legal authorisation to offer such financial services.
You should only trust legitimate brokers operating in one of the established financial centres like the UK, EU, USA or Australia. There, the activities of brokers are controlled by powerful regulatory bodies such as UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Commodity Futures Trading Commission (CFTC) in US or Australian Securities and Exchanges Commission (ASIC). Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.
In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK. However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.
DACLAND TRADING SOFTWARE
Dacland claims to offer what is currently the most popular trading platform among brokers – MetaTrader 5 (MT5). But the installation file, which can be downloaded from the website, is not registered to Dacland, but to Admiral Markets. This is a legitimate broker operating in Europe that has nothing to do with Dacland. We have come across fake brokers illegally using the demo version of Admiral Markets’ software before – for example CMV Capitals.
It is advisable to contact one of the many legitimate brokers that offer MT5 or the still very popular MT4. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
DACLAND TRADING CONDITIONS
Dacland claims to offer trade with currencies, metals, commodities and other assets, but does not provide any information on the terms of this trade. Legitimate brokers usually offer different trading account types tailored to the needs of traders with different experience, capital and investment intentions. Many leading brands in the industry allow you to start trading with token amounts under 100 USD.
On Dacland’s website, we find only a statement that it offers a spread of 2.4 pips for major currency pairs and a leverage of 1:100. Since Dacland has neither license nor trading software, these parameters have no real meaning. But it should be noted that a spread of 2.4 pips is too uncompetitive because most legitimate brokers offer half that price.
It is also important that regulated brokers do not offer such risky levels of leverage. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders. In the EU, UK and Australia the maximum permitted level is 1:30 and in the US it is 1:50. This maximum level only applies to trading major currency pairs, with even more limited leverage for more volatile assets.
DACLAND DEPOSIT/WITHDRAW METHODS AND FEES
The Dacland website does not provide any indication of what payment methods are available and what the deposit and withdrawal terms and fees are.
Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill, or Neteller. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.
HOW DOES THE SCAM WORK
Stories of people getting rich from cryptocurrencies tempt many to try their luck in the financial markets. But you have to be very careful not to fall into the clutches of the many scammers lurking in the online space. These scammers only pose as brokers and lure you in with promises to take on the confusing aspects of investing for you.
If you make contact with such scammers they will first convince you to give them a small initial sum of a few hundred dollars. They may even fool you for a while that your investment is generating incredible profits to convince you to give them a larger amount. But your money won’t really be invested. And when you try to withdraw your supposed profits or even your deposit, you will find that it is impossible.
The scammers may tell you that all your investments have been lost by a sudden change in the market. Or they’ll point you to clauses hidden in their Terms and Conditions that say withdrawing your money is only possible after you meet impossibly high minimum trading volume requirements. And they can simply disappear because these scam sites hide behind fake names and offshore companies that are not subject to rules and regulations.
WHAT TO DO WHEN SCAMMED
If you find yourself a victim of scammers, you should inform the relevant authorities in your country and spread the word online to warn other potential victims. However, the chances of getting your money back are not high.
If you used a credit/debit card for the transactions, you could ask for a chargeback. However, such requests can be disputed if you have provided the fraudsters with proof of identity such as a copy of an ID. Under no circumstances should you trust people on the internet who claim they can recover your money for an upfront fee. These too are certainly scammers.