Beware! DACFX 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.
DACFX is one of those brokers who claim to have offices on multiple continents but eventually fail to provide proof of legitimacy. What’s more, the website is available only in English and Chinese, which is a treacherous sign indicating the potential location of these people. Not to mention that the English version is somewhat incomprehensible – they use some weird terminology such as “capital injection”, “citizens opening accounts”, “liquidity bidders (they probably mean providers), “common problem” (the FAQ section) and “quotation experience”. It’s evident that DACFX is an Asian broker, which isn’t something bad in general, don’t get us wrong! The problem is that DACFX’s trading service is illegal and risky – the brokerage is a suspected scam, and we’ll prove it in the following review.
DACFX Regulation And Safety Of Funds
DACFX claims to have offices in Europe, the United States and the Asia Pacific region, but they fail to prove it. In fact, if their claims were valid, they would need licenses issued in both the EU and the US. Well, guess what? They have no license whatsoever – DACFX is NOT REGULATED, so it’s risky, and your funds will be in danger if you deposit! Indeed, there is evidence that DACFX is associated with some British companies, none of which is licensed, too, so the scheme remains unregulated and basically illegal! Beware!
The lack of regulation is a severe problem, implying that the unregulated brokerage is not monitored while working. With no active supervision, these entities are left to do whatever they want, and more often than not, they are complicit in fraudulent or other criminal activities (identity theft, blackmail and so on). For that reason, we recommend regulated brokers only! For example, both CySEC (Cyprus) licensed brokers, and FCA (Britain) brokers are proven safe as both authorities force strict regulations to guarantee safety for clients’ funds. The compulsory rules include client account segregation, risk-reducing measures like leverage restrictions and negative balance protection, and increased capital requirements to license a broker (€730 000). Most importantly, though, both authorities maintain deposit insurance funds – clients of CySEC brokers can claim up to €20 00o in compensation, while the UK protections are even higher at £85 000 per person! It goes without saying that if you trade with unregulated brokers, you’ll remain unprotected and exposed to fraud risks!
DACFX Trading Software
DACFX has a fantastic platform, actually. They provide MetaTrader 5, which is a market leader preferred by brokers, and it’s expected to become the most popular trading platform among traders, as well – currently, the front runner in terms of volumes traded is MetaTrader 4. Both MTs dominate the retail Forex market for a reason – they provide all essential tools and numerous advanced features such as expert advisors, automated trading, complex indicator and a marketplace with thousands of apps. However, the trading software itself doesn’t define whether a brokerage is good or not; regulation does it. Hence, DACFX remains an unregulated suspected scam, notwithstanding the excellent software they provide.
Below, you can see the platform and notice that once you access your account, you’ll see it’s operated by IntervateCapitalMNGMT. There is evidence that the latter is a British company, but that doesn’t affect anything at all – the company is unlicensed, so the brokerage under review is still unregulated.
DACFX Trading Conditions
The trading conditions are overall fair. The EUR/USD spread is floating around 1 pip, which is pretty much the industry standard – customers pay $10 on average per lot traded, so the trading costs are acceptable.
The trading risks are high – leverage is 1:100, and it can be increased to 1:500 upon request. 1:100 alone is a risky ratio considered inadequate for most traders, but most importantly, it’s prohibited in the EU and US – the maximum is 1:30 (EU) and 1:50 (US). Owing to that, we further disprove DACFX’s claims to be a legit broker with a presence in Europe and North America! Beware!
DACFX Deposit/Withdraw Methods And Fees
The minimum deposit requirements are unknown, which doesn’t mean that you can deposit as little as $1. On the contrary, the broker shares no information whatsoever, waving a red flag as critical provisions should always be explicitly specified – there is a lack of transparency!
The funding methods are cryptocurrencies only, which is yet another red flag – it’s always evidence of a scam if a broker refuses to accept standard methods like Credit/Debit cards and e-wallets.
How Does The Scam Work
Forex scams are different from one another, but in most cases, the fraudulent scheme is practically carried out in the same way. Scam brokers are always unregulated and usually registered somewhere offshore, which helps scammers remain anonymous and untraceable. If you open an account with such an entity, you should expect endless phone calls. Scammers will constantly try to approach you and make you deposit money as quickly as possible. Remember that urgency is always a treacherous sign, so it’s probably a scam if someone calls you twenty times per day, asking for money.
In the worst-case scenario, you’ll deposit, and scammers will persuade you to trade instead of you. You’ll soon see magnificent profits generated – false, of course, and you’ll get excited, asking to take your money back. As you probably guess, they won’t let you do so and will try to get another deposit from you, promising that much more lucrative gains are waiting. Or, they can ask for a false tax, saying that withdrawals are only possible if you cover the charge in advance. If you pay, you’ll increase the amount stolen from you, but if you keep asking for your money, you’ll soon realise it’s a scam!
What To Do If Scammed
You should first inform the authorities – call the police and contact your local regulators and other government bodies dealing with crime and fraud. Also, deactivate your cards ASAP and call your bank to inform them about what happened – they can provide essential information and help you reduce further financial damage.
If you deposited cryptocurrencies, there is not much you can do, but if you used your credit/debit cards, you could file a chargeback, hoping that all or some of the money invested can be retrieved. However, you shouldn’t go blindly looking to recover the loss because many fraudulent chargeback agencies are waiting to double-scam victims of fraud – be cautious about it!
And lastly, consider sharing your experience to help protect others!