Beware! DRG Company 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.
DRG Company is a fairly typical example of a fake broker trying to lure inexperienced people into a financial trap. In this review, we will detail the clues you can use to spot such scams.
DRG Company Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
The first and biggest red flag about DRG Company is that it is impossible to know who is behind this supposed broker. Even in the text of the General Terms and Conditions, no specific legal entity is mentioned.
When you visit the website of a legitimate broker you can expect to find clear and detailed information about the company that owns and operates it, where it is based and what regulatory regimes it is subject to.
DRG Company claims that the unknown owner company is based both in the UK and the Cypriot city of Limassol.
On the website we see claims of licences from multiple financial regulators. However, a check of the databases of these institutions shows that there is no authorised broker using DRG Company’s domain and brand.
The General Terms and Conditions specify Vanuatu as the applicable offshore jurisdiction:
Whoever is behind DRG Company is obviously not an authorised broker and is trying to deceive us.
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.
DRG Company Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|cTrader||40+ indicators||✅||✅||Android and iOS|
DRG Company uses a pretty basic web trading platform, as we’ve seen with many shady brokers we’ve 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).
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 rigged trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.
DRG Company Trading instruments
The asset classes offered by DRG Company include cryptocurrencies, which would not be possible if it were truly a broker licensed by the UK FCA. This regulator prohibits the trading of crypto derivatives.
DRG Company Spreads and cost of trading
In the trading platform we see very low spreads, close to zero. Such spreads come with commissions per lot traded, but DRG Company does not provide any information on these commissions.
DRG Company Maximum leverage
|DRG Company||500:1||Not specified||Not specified||Not specified||Not specified|
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
According to the descriptions of the trading account types, the maximum leverage reaches 1:500.
Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
DRG Company Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Crypto||24 hours||24 hours||Fee depends on crypto|
DRG Company only allows deposits via the cryptocurrencies Bitcoin and Tether.
This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.
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.
If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
DRG Company Minimum deposit
DRG Company requires a minimum deposit of 150 USD. For the same amount or less, you could open a starter account with almost any licensed forex broker in the world.
DRG Company Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|DRG Company||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The DRG Company does not allow withdrawals to be made 15 or 30 days after deposit depending on the payment method. But this clause talks about credit cards and wire transfer, while DRG Company actually uses only cryptocurrencies. Therefore, it is not clear what DRG Company’s withdrawal terms actually are.