Warning! Discovery FX is an offshore company! Your deposit may be at risk.
RECOMMENDED FOREX BROKERS
Discovery FX confused us, and led us down a path that took some time to divert from. Read on to find out all there is to know about this one.
Discovery FX seems like a very sufficient and professional broker, but one thing stops it from stapling this as a fact. And that is the fact that it has not mentioned once a regulation. Its location is said to be in Samoa – a very unusual place for a forex broker- yet it does not indicate that it is regulated there, or anywhere. So we will be quick: Discovery FX is clearly UNREGULATED, and may pose risks to investments.
We strongly advise traders to trade only with regulated brokers that hold a license from renowned and severe institutions such as the FCA or CySEC. Not only do these agencies oversee operations and require regular reports from brokers registered with them, but those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC)
We opened a demo account that gave us the ability to use a leverage of 1:100. We got a spread of 0.2-0.7 pips which is a fantastic value. Note that the broker allegedly offers a maximum leverage of 1:1000.
The assets that are available for trading are Forex Pairs, Commodities, Crypto, and Indices which is not a bad repertoire.
The languages available are English, Japanese, and Chinese.
The platform here is the everlasting MT4.
The MT4 offers some great features: micro lots, automated trading bots, 500 individual orders per account, VPSs (Virtual Private Servers), customizable trading indicators, and much more.
We got a spread between 0.2-0.7 pips, and the leverage is capped at 1:1000.
Nano accounts are feed by $3 per lot. Whether the fee is per side ($6 in total) or round turn, we are not sure.
The platform for trading is only available as a desktop trader.
DISCOVERYFX MINIMUM DEPOSIT
The minimum deposit is $200.
The funding methods, according to the website, are bitwallet, and Bank Transfer.
This broker is not regulated, meaning that who knows what they will do with your investment. Traders should deal exclusively with brokers regulated by exemplary agencies such as the FCA or CySEC, for they oversee a brokers activities from head to toe with a severe case of diligence.
DON’T PROVIDE YOUR CREDIT CARD CVV CODE
The CVV code is the one thing that separates a buyer from a product. Without it, one cannot complete a purchase, even if him/her has given all other necessary information. By giving this detail to someone else, you are essentially inviting them to use your funds for their own means. And be warned that unregulated brokers most certainly plan to do so.
DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER
Be sure to never give AnyDesk or TeamViewer access to your PC to unverified agents. These 2 platforms allow for your PC to be taken over by a second party, often times for help or guidance, but in the case of these brokers for the sole purpose of looting your bank account(s) and personal information. However, in order to do so your consent is needed, and this is the only thing standing in the scammers’ way.
DISCOVERYFX WITHDRAWAL TIME AND FEES
We were not presented with a client dashboard because we opened a demo account. What’s more, the legal documents are lack luster and short. What we mean by these two elements, is that any proper withdrawal information is out of reach.
Needless to say, the broker claims to be commissioning a $35 fee on each withdrawal which is very big and not really worth it.
The minimum withdrawal is said to be $100.
The processing times have not been indicated.
ADDITONAL FEES AND TAXES
In the bonus segment, we learn that that the trader must complete a trading volume of 100 time the bonus in order to withdrawal.
There are no other fees: the terms and conditions are suspiciously short.
Unregulated brokers tend to deny any withdrawal request. Either the broker will find a loophole in the terms and conditions that is completely made up, will firmly advise you against withdrawing, or they will ask more deposits needed if one wished to withdrawal. Scammers come up with additional fees and taxes for the sole purpose of keeping you on stand-by, and to deplete as much money from you as is possible.
We strictly advise against giving away an ID and proof address to unregulated brokers: they can be literally anyone with enough time and skill to mask themselves as a broker. Usually, these individuals use the anti-money laundering legislation as front for when traders start to get suspicious. Once this suspicion is confirmed and you file for a charge back, they will use your details against you case.
We are positive that this so called broker will not return your funds; the evidence we have laid out before you work in sync against it. The sound thing to do is to direct your attention and investment to an FCA or CySEC licensed broker where the law is integrated in every aspect of their operations.
HOW TO RECOVER
Filing for a charge back is the best advice we could give you. Immediately contact your bank or credit card company and lay out the circumstances.
Cancel your credit card if you have shared any notable details with the fraudulent broker, especially if you have provided them with the card’s CVV code. If such is the case, annul your credit card ASAP.
Also, beware of self proclaimed “recovery” agencies or agents. These cheeky scammers promise to fix your problem and restore the lost funds. They offer their services in exchange of a small sum from your end, after which you won’t ever hear from them again.
The last line of defense for these indecent folk is more like a desperate cry: often times they will comment on reviews and cite the whole ordeal as a conspiracy initiated by competitive brokers against them; at times even claiming that reviewers are anything but objective, and that no one writes good reviews. The absurdities are limitless!
Discovery FX seems like a proper broker, and the fact is that it has potential, but the lack of regulation and the suspicious trading conditions seem to pull it down to the level of other unlicensed brokers.