DERRECKFX review: 5 things you should know about derreckfx.com

DERRECKFX review: 5 things you should know about derreckfx.com

Rating: 1

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

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DERRECKFX is an offshore broker that offers its trading services without the permission of the local authorities. This firm clearly doesn’t have a forex license and the trading conditions that it provides are more than risky – leverage 1:300, very high minimum deposit and a lot more. DERRECKFX is certainly not to be trusted. Keep reading for more details on why we think this broker is a scam.

Regulation and Safety of Funds

On its website DERRECKFX claims to be established in the United Kingdom and points out its address to be in London, UK. However it doesn’t mention anything about having a license or being regulated at all. This is very essential information that every reputable broker would normally display on its website. In the case of DERRECKFX the fact that it doesn’t say anything about its regulation seems very very suspicious. In addition every broker based in the UK must be authorized by the Financial Conduct Authority. This information is very easy to be verified on FCA’s website – as you may have guessed DERRECKFX is not present in their register. See for yourself:

Furthermore DERRECKFX also claims to have some branch offices around the world as it specifies only two of them – in New York and Hong Kong.

In order to get permission to operate on the forex market in the US every broker must be a member of the National Futures Association (NFA) and be regulated by the Commodity Futures Trading Commission (CFTC). As you may have already guessed, we carefully checked the registers of NFA and the CFTC – DERRECKFX wasn’t on them.

On the other hand, we also weren’t able to find DERRECKFX in the registers of Securities and Futures Commission (SFC) – the local regulator in Hong Kong.

Clearly DERRECKFX is not supervised by any authority and offers its services against the law.

If you have the desire to trade FX pairs, crypto currencies, stocks, commodities or precious metals we advise you to choose a reputable broker with proven reputation. Firms that have a legit license certainly meet all the requirements that are set by the local authorities.

First of all every regulated broker must have an initial net capital. In different countries the amount varies – for example for the EU and the UK it’s 730 000 EUR, whereas in the US it’s 20 000 000 USD.

Another requirement states that every licensed broker in Europe must participate in a compensation scheme. In the unlikely case of insolvency the customer can be issued a certain amount by the relevant authority. For example in the UK the amount payable by the Financial Services Compensation Scheme (FSCS) is up to 85 000 GBP, while in the EU it’s up to 20 000 EUR.

Moreover regulated brokers must keep its clients’ funds in segregated accounts, apart from its own capital. This serves as a guarantee that your money won`t be stolen or misused.

Trading Software

On its website DERRECKFX claims to offer MetaTrader 5 as its trading platform. However the “Sign up” link on their page doesn’t work properly and because of this we just couldn’t register.

Unfortunately we don’t know for sure what piece of software DERRECKFX uses, but bear in mind that most scam firms tend to lie about offering MT4 or MT5 for a reason. These platforms are proven to be safe and reliable and are preferred by the majority of traders around the world.

Nonetheless, if you decide to give DERRECKFX a chance and open an account with them, you probably will realize that no MetaTrader is to be found on their website. Since this broker clearly hides that it’s not regulated, there’s no doubt that it will try to mislead you about everything else related.

Better start trading with an authorized broker that offers MetaTrader for real. This way you can benefit from all the great features MetaTrader 4 and MetaTrader 5 have.

First of all, both of them are free of charge multi-asset platforms that give you the opportunity to trade forex pairs, commodities, precious metals, cryptocurrencies and a lot more.

With a 4,6 star rating, over 10 million downloads, and 371 000 reviews at Google Play, MetaTrader 5 is one of the most frequently downloaded trading platforms in the world. Most of the traders describe it as trust-worthy, advanced and easy to use.

What makes it perfect for novices however are the unlimited educational resources and daily forex news – in case you need to expand your knowledge a bit. It can also offer a lot to all of you who are more experienced in the field. With its cutting-edge technical and analytical capabilities you can upgrade your trading even more.

You can be completely sure that your personal information is secure as all transactions are encrypted. This refers to your IP address as well. This is yet another fantastic aspect of MT4 and MT5.

What makes them stand out however are the endless tools, indicators and features to choose from. The top one has to be the Expert Advisors or at least this is what most of the customers say. The Expert Advisors, also called trading bots, do the tough job for you – they search for certain conditions and automatically start trading when they find them.

MetaTrader 4 and MetaTrader 5 can also be used anywhere and anytime as soon as you have access to the internet. They can be downloaded on multiple devices like computers, smartphones and tablets.

Unfortunately MT4 and MT5 can’t be downloaded to Android devices anymore, since Apple has removed both of them from its AppStore. Apple didn’t give any specific reason for its actions, but we sincerely hope that they will bring MT4 and MT5 back very soon. Those of you who have already installed the apps – no need to panic! You can still use them but without any future updates. MetaTrader 4 and MetaTrader 5 can yet be downloaded from Google Play Store.

Trading Conditions

DERRECKFX doesn’t give clear information about what its trading conditions are. It seems to offer two types of accounts however – Standard and Professional. In fact, there’s no difference between the two of them at all. They both offer a leverage of 1:300 and minimum investment of 1000 USD. Take a look:

The leverage that DERRECKFX offers is too high and too risky – something that every experienced trader will tell you. Moreover, given the fact that this broker doesn’t have a license and is absolutely unlawful, it is just not worth the risk investing with them. What’s more, the leverage is limited for all brokers in the EU – the European Securities and Markets Authority (ESMA) suggests a leverage of 1:30. Whereas in the US the leverage levels are limited to 1:50. One more proof that this broker just couldn’t be granted a license by any official authority!

Still, if you want to trade with high levels of leverage, we advise you to choose some of the offshore subsidiaries of reputable forex brokers here.

As for the minimum deposit that DERRECKFX requires, note that 1000 USD is just too much. There are reputable brokers that accept a minimum deposit of 250 USD or even less – sometimes you can open an account with 10 USD!

We barely managed to find any data on the website about the spread they offer. Finally, in the FAQ it’s stated that DERRECKFX offers a spread of 1.2 pips but further clarifies that “trading spreads may vary in an actual situation”. However we just don’t trust what this broker claims at all, since it’s obviously an outright scam.

Remember that the spread is very important for all traders, no matter if they are experienced or not. The reason being that spread directly affects trading costs. For example any spread less than 1 pip comes with lower trading costs, spread between 1 and 2 pips is also advantageous. Be careful if you come across any spread higher than 2 pips, as it will certainly be more costly.

Deposit/Withdrawal methods and fees

On its website DERRECKFX claims to accept several different payment methods – one crypto currency – Tether, bank transfer and Unionpay Deposit. It also says to offer credit/ debit cards like Visa, Mastercard, JCB and Unionpay as one more alternative for payment.

Given the fact that we couldn’t register however, we can’t guarantee that all of the above-mentioned is true. With a scam broker like DERRECKFX it’s very likely the only payment option to be a crypto transaction.

The problem with crypto payments is only one – that they are completely anonymous as you don’t know for sure to whom the wallet actually belongs to. They are also proven to be absolutely irreversible, so you can’t overturn the process once it’s complete. We advise you to stay away from any broker that requires crypto coins as the only possible payment method as this is a clear sign of a scam.

How does the scam work

There are some ways in which you can tell apart a reputable broker from a scammer. Always look for certain details on a broker’s website. First look for some data about the broker’s regulation – there should be a license number and a name of a certain authority that oversees the broker’s actions. Moreover if the firm isn’t transparent and doesn’t display all the important information like trading conditions, platform and payment methods right away, it is a red flag already.

Apart from that there are some other techniques that scammers use in order to trick you. Let’s see some of them.

First of all, scammers always try to reach out to you via phone/email if possible. In this way they have the opportunity to directly talk to you and convince you to invest as soon as possible.

Usually fraudsters promise to help you return your investment very soon and without any hard work. If you hear the phrase “risk-free” just turn around and never deal with these people ever again! Any investment on the forex market hides some risk and there are no guaranteed results. Not only that but regulated brokers are obligated to post on their website a warning about the inevitable risk that every customer takes while trading.

After that scammers will try to manipulate their trading software and make it look as if your money is being invested and your trading results are outstanding. In fact offshore brokers don’t care about your prosperity at all and everything is a lie.

Be careful with any types of bonuses, as they usually come with strings attached – a very high volume requirement that is almost unattainable. Also note that bonuses are forbidden in the EU and any broker that claims to be registered there, but offers bonus schemes at the same time, is clearly lying about its credibility.

Yet, if you want to benefit from a starting bonus, you better turn to one of the offshore subsidiaries of reputable forex brokers.

And finally scammers will do anything in order to prevent any withdrawals. They will ask for a fee upon every withdrawal request and it may even exceed 20%. But even if you pay the fee, you still won’t be able to withdraw even a cent.

What to do when scammed

There are some measures you can take in case of being scammed and some things that you shouldn’t do no matter what.

You can always turn to your bank and file for a chargeback in 540 days if you paid with your Visa/Mastercard. On the other hand, if you have used payment methods like Skrill, Neteller or PayPal the best option would be to open a dispute. As we already mentioned, crypto currency transactions can’t be overturned so there’s not much you can do in this situation.

Losing your money because of online fraud is something that a lot of people experience nowadays unfortunately. A lot of them make a double mistake – after being scammed they turn to people on the internet who promise to return their money in exchange for a certain fee. This is also a lie as these people can’t actually overturn the process. So simply don’t trust such suspicious people and don’t risk even more of your funds!

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