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

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The DAV Invest website tries to convince us that it is a regulated forex broker that offers traders favourable terms and a high level of security and transparency. But fact checking reveals a very different truth. DAV Invest is an anonymous website whose sole purpose is to scam you out of your money. Let’s take a detailed look at the reasons why it is in your best interest to stay away from DAV Invest.

DAV INVEST REGULATION AND SAFETY OF FUNDS

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

The first red flag about the DAV Invest is the lack of information about which company is behind this website. Even the text of the Client Agreement does not mention the name of a legal entity. Such anonymity is unacceptable for any legitimate business, let alone an investment intermediary.

DAV Invest gives an incomplete contact address which is located in Australia.

But at the same time DAV Invest claims to be regulated by the UK’s Financial Conduct Authority (FCA). But in the regulator’s database we find no licence, but a warning that this website is not authorised to offer financial services and products.

DAV Invest claims that it also has licences in two offshore areas, Belize and Mauritius, but this is also untrue.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the Commodity Futures Trading Commission (CFTC) in US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

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.

DAV INVEST TRADING SOFTWARE

After registering an account with DAV Invest, we gain access to a basic web trading platform. We have seen the exact same platform at many fake brokers we have reviewed.

While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use trading platforms to fool their victims that their money is actually being invested.

DAV INVEST TRADING CONDITIONS

DAV Invest claims to offer three types of trading accounts, Beginner, Amateur and Professional. The parameters described give us further evidence that DAV Invest could not really be a licensed broker based in a regulated jurisdiction such as the UK or Australia.

The main proof is the promised leverage up to 1:500. This is not a level that you see with regulated brokers. 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.

DAV Invest also promises bonuses. Regulated brokers are prohibited from offering bonuses and promotions. Fraudsters often use supposedly generous bonuses to tie potential victims to hidden fees and extortionate terms.

DAV Invest  promises low commissions, but does not provide any specific information about the price the trader pays. The minimum deposit is 150 USD. For the same amount or less, you could open a starter account with a licensed broker, including many of the world’s leading brands.

DAV INVEST DEPOSIT/WITHDRAW METHODS AND FEES

DAV Invest only allows deposits through cryptocurrencies.

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill, Neteller or POLi.

The website and legal documentation do not provide information on fees and withdrawal conditions. But you can rest assured that if you make the mistake of depositing money into DAV Invest, you will not be able to withdraw it back.

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.

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