Daw Fin Review – Scam or Legitimate Broker?

Daw Fin Review

The choice of a reliable and professional brokerage is one of the most important decisions that every trader makes during their journey. It is because this choice can have major repercussions in the long run and unless you want to suffer, it is best for you to make this decision after careful consideration.

It is true that trading can result in both profits and losses, but the wrong brokerage can also cause you losses that are unrelated to trading. How? You can find the answer in this Daw Fin review.

Even if you are a complete newbie, it will not take you long to discover the existence of scam and fraudulent brokerages in the market. Considering the massive amounts of money that are involved in online trading, it is not really surprising to know that criminals are looking for ways to con people and setting up a fake brokerage is the easiest way to go about it.

After all, thanks to technological advancement, you no longer need to be a coding expert to set up a website; there are plenty of software that you can use for creating a decent and professional website and this is exactly what these scammers do.

They create good websites to attract people and deliberately add features and offerings that can tempt people to sign up. They go to great lengths to convince people that they are legitimate and reliable.

Your priority should be to avoid such unlicensed entities and opt for a brokerage that is truly genuine and this means going through the offerings of a company with a fine-toothed comb. You should use the same approach when you come across Daw Fin, one of the brokers that are offering their services online.

It is best not to take anything for granted and get your research done to know if you are dealing with a scam, or a legitimate brokerage.

In the case of Daw Fin, you will be in for a number of surprises. Let’s go through them.

Licensing and regulation

When you have to find an online broker, your priority should be to choose a licensed and regulated one because these can be trusted. They are monitored by a regulatory authority, which means they have to provide quality services, maintain their standards, remain transparent and fair and also offer security. You can trade with peace of mind when you opt for a licensed entity, as opposed to an unlicensed one because the former are unlikely to be a scam.

A look at Daw Fin shows that the broker claims to be licensed by several regulatory bodies, which sounds impressive. But, you should verify these claims and doing so shows that the broker is not what it seems to be. First off, you will find an address that puts Daw Fin in Harz, Germany. In order to operate from there, the broker needs to have a license from BaFIN, as it is the regulatory body for the market.

But, you will not find Daw Fin listed in the online register of the authority. Plus, it is also breaking the rules of BaFIN in terms of the leverage ratios it is offering. Next, the broker claims to be licensed by the Financial Conduct Authority (FCA) of the United Kingdom. But, it is not listed there either and breaks its leverage rules as well.

DawFin also claims to have a license from the International Financial Services Commission (IFSC) in Belize, which is also untrue, as is the claim of a license from the Financial Services Commission (FSC) in Mauritius. Does this sound like a legitimate brokerage? Of course it doesn’t.

Trading platform

You should never select a brokerage for trading without knowing what kind of platform it offers because this software is what you use for doing the actual trading. Therefore, it has to be advanced and integrated with the best tools to ensure you can have a smooth and hassle-free trading experience. Every brokerage will promise you the top platform, but not all can deliver, as is the case with Daw Fin that has a lacking web trading platform.

This is a very basic and oversimplified platform that does not have any such advanced tools, or unique features that can help it stand out. The platform at Daw Fin is quite a common one that lots of scam brokers offer to create the illusion of legitimacy. Genuine and professional brokers usually offer the MT4, or the MT5 trading platforms that have sophisticated tools to offer a good trading experience.

Trading conditions

The trading conditions offered by a broker are also worth checking out because they determine what kind of costs you will incur and the profits you will make. This is another area where Daw Fin is severely lacking because the conditions you find are downright dangerous. The brokerage claims to offer leverage as high as 1:100.

Many traders may find this attractive because it gives you more flexibility during trading, but you have to remember that while leverage can give you high profits, it can also lead to equally high losses.

Therefore, regulatory bodies in many jurisdictions have imposed a cap on leverage and this also applies to the UK and the EU. The maximum leverage that can be offered is 1:30 to retail traders, yet Daw Fin is offering 1:100, even though it claims to be operating in both the UK and Germany, which is part of the EU.

Payment options

The deposit policies of an online broker can reveal a lot about the kind of company they are and this is exactly what you find with Daw Fin as well. As it turns out, it only takes deposits in crypto assets, which are final payments that do not give you the option of a chargeback. Once you have paid, your money will be gone and you will not be able to get it back if the broker was to disappear.

Conclusion

All the signs that you discover at Daw Fin point to one fact; this is not a legitimate broker and cannot be trusted.