Beware! DubaiCFD 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.
If the name of this forex broker sounds exotic with a promise of riches to equal those of 1001 nights, don’t be duped. Not everything that shines is gold.
DubaiCFD Regulation and safety of funds
From the company’s website, we find out that this broker has offices in Dubai, UAE and in London, UK. However, after checking the registers of the regulatory bodies in both jurisdictions, the name of this company did not seem to exist in either of them. We have sufficient proof to think that this broker is non-legit, non-licensed and possibly a scammer. We do not advise you to trade with it.
If you are a potential trader looking for a reliable forex broker, we recommend that you look into the well-established jurisdictions, such as the EU, the UK, the US and Australia where there is legislation in place that prevents scammers from sneaking in and a guarantee for traders’ safety of funds. To be licensed in the US and Australia, forex brokers must be well capitalised and they must have an initial capital of $20 million in the US and 1 million AUD in Australia. You can’t imagine scammers investing so much money so that they look legit! In the jurisdictions of the EU and the UK, the initial capital is not so high. It’s 730,000 EUR. However, forex brokers there must contribute to compensation funds or schemes from which in case of bankruptcy the traders get compensated. If the broker is regulated by the FCA and contributes to the local Financial Services Compensation Scheme, then the traders will get compensated by up to 85,000 GBP per person if the broker goes bankrupt. If the broker is regulated by CySec and contributes to the Investor Compensation Fund, then the traders will get a refund of up to 20,000 EUR per person.
As you can see, the conditions offered by the brokers in these jurisdictions are the best as they offer reliability and protection from scammers and bankruptcy. You won’t find better conditions than those and we strongly encourage you to look up the brokers from the links that we provided above and select one that suits your trading needs.
DubaiCFD Trading software
DubaiCFD is a forex broker trading in stocks, indices, cryptocurrencies, forex and commodities. It offers 2 web traders – one is for CFD trade and the other one is for ETF. In the screenshot below, you can see the interface of the CFD web trading platform. On the left-hand side menu, traders can select the trading products. In this case, the menu is open on the forex trade and you can see the currency pairs with their bid/ask price. In the middle of the screen, you see displayed the chart of one of the major currency pairs, EUR/USD, and the fluctuation of its price in a given time frame. From the bid/ask price, we can calculate the spread to be 22.8 pips. We are gobsmacked! This spread is way above the industry average which is around 1.5 pips. The implications of having such a high spread are that it increases the cost of trade and it will be impossible for the traders to make any sustainable profit. In addition to that, if you look in the last screenshot with the account types information, you will notice that the leverage can reach up to 1:400. Such high leverage can signify only 2 things – a big win or a big loss. If we keep in mind that statistically, 70% of the traders experience financial loss in transactions, the chances of the latter happening are bigger. And if you are still imagining that you’ll get rich trading via this broker, you better wake up quickly and run away from it.
We want to reiterate, that only trading with licensed brokers can guarantee you the safety of your funds. Licensed brokers will never put you at such risk using high spreads and high leverage. Au contraire, licensed brokers in the EU cannot exceed the leverage of 1:30 and in the US – 1:50. These are measures to prevent traders from engaging recklessly in transactions and risking their funds. The good news is that Australia will soon introduce a cap on leverage as well (March 2021) and for the major currency, it will be the same as in the EU – 1:30.
From looking at the web trader offered by DubaiCFD, you may have noticed that it is a rather basic trading platform. If you want a platform that can enhance your trading experience and has an excellent package of trading tools and instruments, you should choose the MetaTrader 4 or the MetaTrader 5 platform. They are the best in the forex trading world and are choice number one for around 80% of the brokers. Both platforms offer an auto trading option, VPS, an app market, a financial calendar, trading signals that can be obtained for a fee and a code base with customs scripts. These platforms are also famous for their charting options that have an excellent package of technical analysis indicators to predict the future direction of exchange rates and help make a profit.
Please consider one of these platforms when selecting your licensed broker.
DubaiCFD Deposit/Withdrawal methods and fees
DubaiCFD offers 4 different trading accounts (image below) – Basic, Silver, Gold and Platinum. This broker apparently does not like small players! The minimum initial deposit for the Basic account is $5,000! Compare this to the minimum initial deposit that licensed brokers ask for and that can be as little as $1-5. The other accounts start at $10,000, $25,000 and $100,000+ respectively. The payment options are reduced to payments via credit card or wire transfer.
Withdrawal processing time may vary from 1 business day to 4 business days.
Trading accounts that stay inactive for 12 months will be considered dormant and an annual fee of $30 will be charged.
If you look again at the image with the account types information, you will notice that this company offers bonuses depending on the account type. It may look attractive, indeed, but what you should know that bonuses are not free gifts and in fact, these are funds that belong to the broker, not the client. It’s an excellent way to trap you and it’s used by scammers and non-legit brokers. Bonuses and other incentives usually come with heavy to fulfil requirements attached to them. In this case, as per the bonus policy, clients who accept a bonus must execute a trading volume that equals 30 times the amount of the deposit plus the bonus amount before they can withdraw any funds from their accounts. Imagine the mess this will create should you choose to accept a bonus. And in case you decide to withdraw your funds and get out of the scammers’ clutches, do you think it will be possible? Think again, and compare with licensed brokers who never offer bonuses or incentives. Bonuses are the demarcation line between legit and non-legit brokers.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.
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