Beware! Digital First Markets 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.

 

Digital First Markets wants us to believe that it would be a good idea to invest in the financial markets through this forex broker. But in preparing this review, we were unable to find evidence that this is a legitimate financial services provider. Let’s take a detailed look at why it is in your best interest to stay away from Digital First Markets.

Digital First Markets Regulation and safety of funds

Guaranteed FundsSegregated AccountsNegative balance protection
Digital First Markets
UK regulated brokers£85 000YesYes
EU regulated brokers€20 000YesYes
AU regulated brokersNoYesYes
US regulted brokersYesYesNo

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.

No company name or regulatory licence details are listed on the website home page. This is a big red flag that we are dealing with a scam.

The Client Agreement alleges that the brokerage is operated by a company named TCM Trading Markets Incorporated, which is based in a notorious offshore zone –  St. Vincent & Grenadines.(SVG).

SVG is an offshore zone with no broker regulations in place. As soon as you open the website of the local Financial Services Authority you see a warning that the institution does not licence forex and other types of brokers and does not supervise the activities of International Business Companies engaged in such activities.

However, the homepage claims that Digital First Markets also has a UK office.

But that jurisdiction’s financial regulator has issued a warning that Digital First Markets is not authorised.

Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.

Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the 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.

Digital First Markets Trading software

Analytical toolsAuto tradingCustom indicatorsMobile apps
Digital First Markets platform
MT430+ indicatorsAndroid and iOS
MT550+ indicatorsAndroid and iOS
cTrader40+ indicatorsAndroid and iOS

Digital First Markets promises the two most popular platforms in the industry, MetaTrader 4 and 5 (MT4 and MT5). But there are no download links for these platforms on the website. Digital First Markets does not allow free account registration, so we were unable to determine if any trading software was available.

Financial scammers sometimes prefer to handpick their potential victims through social networks and online forums, which is why they do not allow free registration. Genuine brokers allow easy Demo account creation.

There are plenty of legitimate, regulated brokers who enable their clients to take advantage of MT4 and MT5‘s capabilities. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

Digital First Markets Trading instruments

CurrencyStocksIndicesCryptoCommodities
Digital First Markets
XMYesYesYesNoYes
FBSYesYesYesYesYes
FXTMYesYesYesYesYes

Digital First Markets claims to offer trading in all major asset classes, including cryptocurrencies. The latter is banned by UK financial regulators.

Digital First Markets Spreads and cost of trading

Digital First MarketsXMFBSFXTM
Spread EURUSD50.611.1
Spread GBPUSD51.31.21.4
Spread USDJPY51.31.21.4

The descriptions of the account types offered by Digital First Markets specify a very high spread of 5 pips. In the industry, even a spread of 2 pips is considered too high and disadvantageous to the trader.

Digital First Markets Maximum leverage

ForexStocksCryptoGoldIndices
Digital First Markets 400:1100:110:1100:1100:1
UK regulated brokers30:15:110:110:1
EU regulated brokers30:15:12:110:110:1
AU regulated brokers30:15:12:110:110:1
US regulated brokers50:1

Leverage for all account types reaches 1:400. 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.

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.

Digital First Markets Deposit and withdrawal methods

Deposit timeWithdrawal timePrice
Bank wire2-5 business days2-5 business days$25+
Credit cardInstant24 hoursFree
PayPal1 hour24 hours2%
Skrill1 hour24 hours2%
Neteller1 hour24 hours2%
Crypto24 hours24 hoursFee depends on crypto

Due to our inability to register an account, we were unable to ascertain what payment methods Digital First Markets uses. Experience has shown that fraudsters direct their potential victims to cryptocurrency transactions that do not allow refunds to be requested.

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.

Digital First Markets Minimum deposit

Digital First MarketsXMFBSFXTM
Minimum deposit$100$5$10$5

Digital First Markets specifies a minimum deposit of 100 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

Digital First Markets Withdrawal requirements

Trading volumeFee/Tax on withdrawalMinimum withdrawal
Digital First Markets Not specifiedNot specifiedNot specified
UK regulated brokersNoNoNo
EU regulated brokersNoNoNo
AU regulated brokersNoNoNo
US regulated brokersNoNoNo

Digital First Markets does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US4.99/5$50 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *