Daw Fin Review: Dawfin.com Another Scam

Daw Fin claims it has a secure and reliable platform, zero balance protection, and high-speed transaction processing. Forex is among the most popular investment strategy. This has seen it become the most regulated trade in the world. Despite the efforts to regulate it, unscrupulous forex brokers are still at large. The scam brokers aim to rip you off your money under the guise of helping you gain higher returns for small investment amounts. This description perfectly fits Dawfin.com.  

The company purports to be an innovative investment platform regulated by reputable bodies, such as FCA and FSC. According to this company, investors can trade over 234 instruments, including stocks, metals, currencies, commodities, indices, and cryptocurrencies. However, as we know, we should take everything a broker says with a pinch of salt. This is because most of the statements and claims brokers make aim to lure you into their evil schemes and then take all your money.

 In this article, we give a comprehensive review to expose the shady platform masquerading as a trustworthy forex broker. It will help if you use this review and your independent analysis to establish whether this company is worth it. Spoiler alert- it is just not worth it.

Dawfin.com Review

According to its website, the company is in Germany, has been around for four years, and enjoys a client base of 38890 traders. The company also brags about a daily turnover of $ 254 million. This truth is hard to establish because, as we shall soon show, this company does not shy from making false claims.

Also, the company is not entirely transparent, especially regarding legal documents. You only access the refund policy and client agreement through the account registration form. Ensure you choose a genuine crypto company that will give you real-time returns. 

Legitimate brokers are open about any information regarding charges, terms of engagement, and other information that offers more understanding of its operations/services. On the contrary, this company is holding back a lot of crucial information, which casts a shade on its credence.

Contact Details

Daw Fin’s location is 5c 61053 Blankenburg (Harz). The contact details given include a telephone number +4377462451 and an email address support@dawfin.com.

Domain Insight

The company was registered on 13 September 2018. This information corroborates what they have the company states on its website. But it does not mean Daw Fin is off the hook. Whois database indicates that the domain expires on 13 September 2023.

Deposit & Withdrawal Policy

Upon visiting the company’s deposit menu, we found that it only accepts cryptocurrency deposits- Bitcoin and Tether. Anytime a broker insists on paying through this method, consider it a red flag. Daw Fin is deliberately placing this condition because they know that if you use the method, you will not be able to press for a refund or chargeback. This is because transactions through such mediums are hard to trace.

Legitimate brokers usually offer t traders flexible paying options, such as e-wallets (Sofort, PayPal, Neteller, Skrill), credit cards, and bank transfers. The minimum deposit for the company is $150. However, the company is vague on the fees it will charge the traders. This makes it easy for the company to introduce hidden costs to defraud you.

Investment Plan of Daw Fin

Daw Fin has three investment plans based on the trader’s expertise. The starter plan has basic trading instruments, a minimum deposit of $150, and a 1:100 leverage. The next plan- experienced trader, has full access to the trading instruments, a $ 1000 minimum deposit, a leverage of 1: 500, and instant order executions.

Moreover, this plan allows a trader to deposit insurance to protect funds from loss/. The last plan-a major player- has a minimum deposit of $ 10 000, a 1:500 leverage, and a lower transaction fee. Moreover, this plan also affords deposit protection and allows traders to deposit insurance to protect their funds.

The high trading volumes are not in the interest of investors. Again, you can find genuine brokers accepting as little as $10 for a basic account. Thus, engaging with this broker does not make economic sense when you have many pocket-friendly options. 

Trading Conditions

The company offers a leverage of up to 1:500. The leverage level breaches the 1:30 recommendation by the majority of regulatory bodies such as FCA, CySEC, and ASIC. The leverage capping protects you from massive losses that can decimate your investment in seconds, especially during high volatility.

The company’s spread is 0.1 pips. These tight spreads are fair as this ensures that the broker earns only a reasonable commission. Nonetheless, you might want to explore brokers offering better (tighter) spreads than this company.   

Trading Software

The company offers a web trader platform. As much as this trading platform is functional, it is not the most reliable due to shortcomings. Genuine brokers mainly offer the MT4 and MT5 platforms to ensure that investors get a competitive trading experience from the platform.

Daw Fin Registration and Regulation Status

Daw Fin claims that it is registered and accredited by several oversight bodies. These bodies include CFTC, UBS Group, Ameriprise Financial, BlackRock Inc, Cyprus Securities and Exchange Commission(CySEC), FCA, Dubai Financial Regulation and Supervision Authority(DFSA), and Belize International Financial Service Commission(IFSC). We noticed that while the company mentions these regulators, it leaves out the most important one- Germany’s BaFin. BaFin is the forex licensing and regulating institution in Germany. Since the company is in Germany, it is logical to register under BaFin if it is legit. Daw Fin was, however, missing in BaFin’s register. Going by this, the company is unlikely to operate from the Harz.

We were also able to disapprove of the claim that IFSC regulates Daw Fin. The name is conspicuously missing from the IFSC register. Likewise, the company was missing from the CySEC register. Based on its leverage, it is clear that this company is not under FCA’s regulation. All brokers under FCA have to abide by 1:30 leverage capping. There was no need to confirm with the other regulators as we would get similar feedback given that this company is so intent on faking its legitimacy. In all likelihood, this is an offshore broker that you should avoid in all ways possible.

Also shocking was a discrepancy in the client user agreement. According to this document, the Republic of Vanuatu Laws governs this agreement. This begs the question, why would a company based in Germany be subjected to Republic of Vanuatu laws?    

Our Take

The fact that forex brokers are regulated does not mean that frauds are not there. Indeed, scammers are becoming more cunning and calculating to ensure you take their bait. Daw Fin is a perfect case of a cunning broker. Given that the company has been in the market for four years, you might not question its regulation status. However, fact-checking has revealed its manipulative lies, especially regarding accreditation.

Engaging yourself with Daw Fin is setting yourself up for disappointment and loss. You do not want to invest with an unregulated broker as they do not share your investment values or care about them. Also, a broker who lies about essential details is untrustworthy of your investment as they can lie about anything. To be safe, ensure that you only engage with reputable crypto brokers who can make your investment goals a reality. 

 

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