Beware! Damac Investment 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.
The Damac Investment website gives us many reasons to be suspicious. For example, on the home page, instead of the standard risk disclaimer, we see standard Latin placeholder text.
In this review, we will look in detail at the other reasons why you would be wise to avoid Damac Investment.
Damac Investment 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 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.
Damac Investment does not provide such information on the homepage of the website. The Terms and Conditions state that the company behind this broker is Aig Titan Holdings Limited, based in the Marshall Islands, an offshore zone that does not even have a financial regulator. The same company is behind another shady broker we have reviewed, Bank ADS.
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
Damac Investment Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
Damac Investment uses a pretty basic web trader.
While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. 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.
Damac Investment Trading instruments
Damac Investment theoretically offers trading in financial instruments of all major asset classes. But in practice we have no guarantees that this trading is real and not fictitious.
Damac Investment Spreads and cost of trading
In the trading platform we see standard spread levels around 1 pip. But in the descriptions of the account types we see unspecified commissions and fees as high as 7%. Genuine brokers do not charge such fees.
Damac Investment Maximum leverage
|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||❌||❌||❌||❌|
Damac Investment promises leverage up to 1:100. 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.
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.
Damac Investment Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Bank wire||2-5 business days||2-5 business days||$25+|
|Credit card||Instant||24 hours||Free|
|PayPal||1 hour||24 hours||2%|
|Skrill||1 hour||24 hours||2%|
|Neteller||1 hour||24 hours||2%|
|Crypto||24 hours||24 hours||Fee depends on crypto|
Damac Investment advertises a large number of popular payment methods, but in practice the only option on the dashboard is to provide credit card details.
Experience has shown that fake brokers routinely advertise conventional payment methods, but actually steer their potential victims towards cryptocurrency transactions. This not only guarantees them anonymity, but also deprives the defrauded of the option to request a refund or chargeback.
Damac Investment Minimum deposit
The minimum deposit required by Damac Investment is 500 USD. For a much lower amount you could open a starter account with an established and regulated broker.
Damac Investment Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Damac Investment||bonus x 10,000||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|
If the account has received a bonus, it can only withdraw funds after it has traded 10,000 USD for a dollar bonus. These are typical scam clauses designed to block any withdrawal requests.