DefcoFX Scam Reviewed and explained

DefcoFX Broker review — Safety, assets, support, and many more!

DefcoFX is a Forex and CFDs broker that is not overseen by any authority, making it a very risky broker. Traders can access multiple asset classes at DefcoFX such as Forex pairs, commodities, indexes, cryptos, and even stocks on the Gold account. Since regulations are the number one factor of any financial broker’s safety, we consider DefcoFX very unreliable as an unregulated Forex broker. The broker presents itself as a forward-thinking business that protects its customers from strict KYC procedures and paperwork, which is a serious concern for its security and reliability. Regulations are crucial to protect against money laundering or other illegal activity through brokerage services. Reliable brokers are typically subject to strict regulations and adhere to rigorous ethical standards. DefcoFX is lacking in these areas. No regulator is in charge of the broker who is registered in Saint Lucia. One major drawback for the broker’s safety is that there is no protection against negative balance, which can easily occur as a result of 1:2000 leverage. This high leverage is concerning as it is extremely dangerous for beginners who might take excessive risks. Since the broker is not regulated and offers high leverage with only crypto payments, the risks of it being a fraud are too high to ignore.

The Safety and Security of DefcoFX

The broker is only registered in Saint Lucia and is not regulated. This creates serious threats as there is no authority to protect traders if the broker turns out to be a scam. Therefore, we give our readers strong advice to stay away from all unregulated brokers.

DefcoFX Fees and Spreads

The broker charges no commissions for trading. However, there are spreads from 0.5 pips which means they might be higher depending on the market conditions and the lowest spread starts at 0.5 pips. This spread is typically on major pairs, while minor and exotic pairs usually have much higher spreads. No fixed spread account type is available which is also a downside. Withdrawals are not charged by the broker itself, but traders will have to pay network fees for the blockchain when they deposit or withdraw funds, making it a costly endeavor to trade at DefcoFX.

DefcoFX Accounts, Deposits, and Withdrawals 

Regarding trading account types, DefcoFX provides two account choices: Silver and Gold. There is almost no difference between the two account types, and choosing one over the other is not convenient. For instance, the broker claims to have spreads of 0.5 pips, and both accounts have no trading commissions. There is no zero spreads account offered like ECN, which is a serious downside. Markup spreads are present in both accounts, and they are floating, meaning they change according to market conditions. The lack of a fixed spread account is yet another letdown from this broker. The Gold trading account has only 1:500 leverage, while the silver account permits up to 1:2000, which is very high. While the gold account requires a minimum investment of 1,000 USD, the silver account has a lesser minimum deposit requirement of just 50 bucks.

On both of the accounts, the minimum lot size is 0.01. While the gold account includes several US stocks, the silver account does not allow stock trading of any sort. Expert Advisors (EAs) can be deployed on both of the trading accounts and the language allowed is MQL5, which is a MetaTrader 5 (MT5) programming language.

Overall, the DefcoFX silver and gold trading accounts are nearly identical, which is a serious drawback. Surely, the lack of 0 pips accounts is also on this list of drawbacks when it comes to trading accounts offered by DefcoFX brokers.

Deposits and Withdrawals

Deposits and withdrawals are only available via popular cryptos BTC and ETH, which is a serious downside. This could also be considered as a red flag. The minimum lot size starts from 0.01 lots on both of them. The silver account does not allow stock trading, while the gold account offers several US stocks. Traders are allowed to deploy Expert Advisors (EAs) on both accounts, and the programming language is MQL5 (MT5).

Overall, there is almost no differencebetween the DefcoFX Silver and Gold trading accounts, which is a downside. There is no possibility of accessing 0 pip spread accounts.

DefcoFX Trading Platforms, Assets, and Features

DefcoFX allows access to the advanced MetaTrader 5 (MT5) trading platform. It is available on both desktop and mobile devices including iOS and Android. MT5 mobile app is an advanced platform that allows trading on the go and has many built-in indicators. EAs or Expert Advisors are allowed and available on the MT5 platform. The broker advertises itself as an EA-friendly broker and allows automated trading on both account types.

Assets

The broker allows traders to access a multitude of different asset classes such as stocks, FX pairs, commodities, indices, and digital currencies. Stock trading is only available on the Gold account type where the minimum deposit is 1000 dollars and the maximum leverage is capped at 1:500. On the Silver account all other assets are available except stocks.

Extra Features

DefcoFX offers multiple extra features, such as a deposit bonus, educational content, and market updates. There are also multiple trading tools and economic calendars offered. There is FX TV where the broker offers market updates and analysis as well.

DefcoFX Customer Support Review

The broker offers live chat and email options. There is no phone support option which is a major red flag. Regulated and reputable brokers are not afraid to show their phone numbers. In fact, phone support is critical if the internet connection is interrupted and a trader needs to close open positions. By not providing phone support when leverage is 1:2000, the broker is unreliable for experienced and serious traders.

Should you consider DefcoFX? 

FAQ on DefcoFX