DefcoFX Forex broker review — Everything you need to know

DefcoFX is a Forex and CFDs broker that offers traders trading services. The broker is not regulated, which makes it very risky and unreliable. The broker is young and lacks experience in the Forex trading industry.

Safety of DefcoFX

DefcoFX is not regulated, which means no one oversees its activities to ensure high ethics. This is a major red flag for any broker, as unregulated brokers are mostly scams and frauds. Unregulated brokers are not recommended for traders as they tend to have high spreads and ensure traders lose money. If this happens, there is no authority to protect yourself and find justice.

There is a negative balance protection available, which is useful. The broker is not a member of an investor compensation fund as it is unregulated. Overall, DefcoFX’s safety is very questionable, and traders are not protected enough.

DefcoFX Overview of the Website

The website of DefcoFX is very well-organized, and traders can find all the important information about its services, such as trading accounts, platforms, assets, and more. There is a live chat built into the website, which is super useful to get quick help and contact the broker. Traders can access the client portal or open an account quickly.

DefcoFX Accounts Reviewed

DefcoFX offers several account types, including Silver account and Gold Account. The accounts differ slightly with their spreads and commission structure. Let’s briefly overview each account type and its trading conditions to see clearly.

DefcoFX Silver Account

The silver account has markup spreads, which means the broker adds its own markup on spreads provided by liquidity providers if it has liquidity providers and is not a market maker. Since it is unregulated, the chances are high that the broker acts as a market maker, which is not ethical. This makes spreads higher. The spreads start from 0.5 pips on major pairs, which is very competitive if true.

The account has no commissions, and the minimum deposit is 50 USD. The leverage is up to 1:2000, and the maximum number of positions per order is 2. The minimum lot size is 0.01 lots. The broker allows all trading types on this account, including scalping, swing trading, and trend trading. US stock trading is not allowed on this account.

DefcoFX Gold Account

The gold account requires traders to deposit at least 1000 USD, which is pretty high. The spreads are also 0.5 pips but are market spreads, meaning the broker should not be adding its own markup spreads. However, the commissions are zero for this account as well, which makes us think both accounts should be offering similar spreads. Commissions are usually charged for 0 pip spreads, and 0 USD fees indicate the account also has spreads. This account allows US stock trading. The leverage is up to 1:500.

DefcoFX Demo account

The broker also offers demo accounts for both of its account types, which allows traders to trade with virtual money.

Deposit and withdrawal options at DefcoFX

Both deposits and withdrawals are allowed through popular cryptos such as Bitcoin, Ripple, and Tether (USDT). The broker also allows Perfect Money payments.

The broker promises 3 hours of withdrawal processing, but we can not confirm if it really allows quick withdrawals.

DefcoFX Assets — What can you trade?

The broker allows access to a wide range of assets. There are Forex pairs, commodities, indices, Crypto CFDs, and US stocks. Most of these asset classes are CFDs, which allow for quick trade execution. However, CFDs are also very risky derivatives, and it is easy to blow up an account, especially with unregulated brokers.

Trading platforms of DefcoFX

When it comes to trading platforms, DefcoFX provides access to the popular advanced trading platform, MetaTrader 5 (MT5). The platform allows custom indicators and Expert Advisors (EAs). The broker also allows EAs, which is flexible. Mobile trading is available via the MT5 mobile app, accessible on both Android and iOS devices.

Education at DefcoFX

DefcoFX has a dedicated page on its website where it offers educational resources and tools. There is a Defco TV, which offers daily financial news, and there are many more tools available, such as market analysis (daily), economic calendar, and more. There is a trading blog as well. Despite these many resources, the broker does not provide learning materials for traders to start from zero and become financial traders. There are VPS services available as well as Forex tools, market heatmap, watchlist, and so on.

Overall, the broker is more focused on providing tools than learning materials.

DefcoFX Customer Support

Customer support is critical in financial trading. DefcoFX offers live chat and email support options. There is no phone support, which is a major red flag for the broker’s reliability. No reputable broker hides their phone number. The website at DefcoFX is provided in a multitude of different languages, which is flexible. There is also a Skype call available.

DefcoFX bonuses and promotions

From bonuses, there is only a deposit bonus available, which is a welcome bonus. With this bonus, traders can get 40% on their first deposit. However, traders have to deposit at least 1000 USD to be eligible for this bonus, which is a very high amount. There are multiple requirements for this bonus, and traders must read everything very carefully.

Is DefcoFX your broker? Final verdict

DefcoFX presents itself as a Forex and CFDs broker that offers several account types and high leverage, but its lack of regulation makes it a super risky choice for traders. While it provides competitive spreads and access to the MetaTrader 5 platform, the absence of oversight and unverified withdrawal claims raise major concerns. The broker does not offer a phone support option, which only adds to the list of red flags. Traders must exercise extreme caution when considering DefcoFX because unregulated brokers pose serious risks to their safety.

FAQs on DefcoFX broker

Where is DefcoFX based?

The broker is based in Saint Lucia and is only registered there, without regulations.

Can you withdraw from DefcoFX?

We can not confirm that traders can withdraw their profits from DefcoFX, as the broker is not regulated.