Beware! Dach Finanzen 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.
Dach Finanzen is a broker claiming to be amongst the leaders in Germany, Austria and Switzerland. At the same time, they offer leverage that’s no longer allowed in some of the countries, so we reasonably put this entity on the list of scam suspects. It’s a suspicious broker, and you can see why in the full Dach Finanzen review.
Dach Finanzen REGULATION AND SAFETY OF FUNDS
As already mentioned in the Intro, Dach Finanzen claims to be a leading broker in the German-speaking countries. However, the company running the broker is not even registered in Germany, Austria or Switzerland. The Client Agreement suggests it’s an offshore business registered in the Cook Islands because all the documents are construed in accordance with the mentioned country’s laws. Well, the Forex regulations there are pretty obscure, and the brokers are not bound to follow any rules whatsoever. The islands are well-known to us because they registered and financially licensed highly controversial brokers like 4XCube and 4XC. Actually, Dach Finanzen is not registered by the Cook Islands’ regulator FSC either, so the broker is probably a trading name of an anonymous offshore IBC.
Nevertheless, Dach Finanzen is not licensed in Germany, Austria or Switzerland, so it’s unregulated, and they shouldn’t provide Forex services in the EU. Conclusively, your funds won’t be safe if you deposit with this broker. In fact, the fake claims make us reasonably believe it’s a scam scheme, and you’d better avoid it.
Instead, check the EU brokers and British brokers topping both lists. The Europeans offer high-grade security and protection guaranteed by deposit insurance funds created to reimburse clients in case of insolvency or fraud. If things go wrong, CySEC brokers’ traders can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. If you are eligible to open an account with European FX companies, you can safely go for it.
Dach Finanzen TRADING SOFTWARE
Dach Finanzen’s trading software is web-based and can’t in any way compare with the leading MetaTrader distributions. However, the EUR/USD spread is good enough- 0.5 pips, but the poor platform and the fraudulent claims can’t prompt us to recommend Dach Finanzen. The tiny Buy/Sell difference indeed makes the broker’s services affordable, but it’s a suspected scam, so don’t even think about opening an account.
That said, the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists are safe and deliver upper-class software. The MT distributions are packed with sophisticated tools such as Expert Advisors, many complex indicators, sophisticated charting tools and a marketplace featuring more than 10 000 apps. MT is definitely the best choice for traders.
Now, we’ll reveal more evidence of a scam. The broker claims to offer a leverage of 1:400, a risky ratio, which is prohibited in Germany and Austria. The leverage provided further proves that Dach Finanzen has nothing to do with EU regulations.
In fact, leverage is so dangerous that it’s regulated by most of the respected financial authorities worldwide. For example, EU, British and Australian brokers‘ clients are limited to 1:30, while Canadian brokers and US brokers can’t provide more than 1:50. Most of the high-leverage FX companies are unlicensed, and we urge traders to be cautious when it comes to leverage.
Dach Finanzen DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Dach Finanzen is €250, which is more than twice more than the regulated brokers’ standards- $100 on average to let traders begin with real money. In fact, various regulated brokers offer Micro accounts starting from as low as $5, so there are plenty of better options than Dach Finanzen.
The single funding method is a direct transfer via Epayblock, a Lithuanian payment platform for online transactions. Dach Finanzen provides IBAN and Swift Codes, so it’s something similar to a Wire Transfer. Well, Epayblock is a licensed financial institution, but we urge traders to use only e-wallets and payment processors they can trust and are familiar with.
So we can offer our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred choice. The companies on top of both lists are adequately regulated, and you won’t face scammers.
Dach Finanzen doesn’t designate minimum withdrawal requirements or withdrawal fees but reserves the right to charge the trading accounts. Only inactivity fees are specified, and according to the clause, an account becomes dormant after only 30 days of inactivity. Such an account will be charged $30 per month, which is an unfair condition. If clients do not trade for a year, they need to pay Dach Finanzen $360 merely to handle the funds, which is unacceptable. In comparison, most regulated brokers do not charge more than 5 to 10 dollars per month for inactivity.
Trading incentives are possible in general, but Dach Finanzen fails to specify anything in detail about bonus campaigns, promotions or other contests.
Overall, Dach Finanzen is unregulated and a suspected scam, so you should avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s a process. In the typical scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich and would invent as many stories to get the craved deposits.
Unfortunately, the initial deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest repeatedly. For example, con artists may not allow people to trade themselves but would pretend to manage the trading accounts. Forged results would show victims massive profits, and scammers would ask for more money, promising to secure more gains.
However, the problem starts when people ask for withdrawals. Scammers would make excuses to refuse withdrawals and even require additional deposits to let people take their money out. Those criminals won’t stop asking for funds, no matter what. In the worst case, the victim would believe in the scammers’ falsehood and deposit again and again. However, sooner or later, the scam would become evident, the fraudsters would cut the communication and eventually disappear. They would drop the website, create a new one and carry on with their criminal business untouched, while people would be left with losses almost impossible to recover.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened so that they can give you instructions and help, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush to recover funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
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