So, we have ourselves another scam broker, DirectFX. See, these guys actually didn’t put in that much effort to try and overcome their many issues or seem more legitimate. In fact, there is very little that makes them different from the many other scam brokers out there, including, the fact that they have numerous complaints from traders for their lack of customer support, refusal of withdrawals, and issues with their platform.
Regulated: ASIC (Australian Securities and Investment Commission ACN 120 189 424
Minimum Deposit: $100
US Traders: No
Web Based Trading: Yes
Free Demo Account: Yes
Though they do seem legitimate and at first glance, like many other scam brokers, look like a good choice, they are far from it. Though I am sure there are some happy traders out there that work with them, I have yet to actually see any real comments, posts, or articles of them actually sharing their experience. Of everything that I read about this broker, the only real discussions on them are negative.
Who are DirectFX?
This scam broker is based out of Sydney, Australia. Working under the name of DirectFX Trading Pty. Ltd., they are located at 10 Bridge Street, level 11, Suite 2, Sydney, NSW 2000 Australia. They can either be contacted direct in their online chat platform or via phone (+61 2 8038 5093) or email (email@example.com, firstname.lastname@example.org, email@example.com). If you are a new trader and are interested in investing with them, then you will find that customer support is prompt and very friendly. The problem is the moment you actually become a trader with them and they’ve got your money. It is at that time that unless you are interested in re-investing more money, they will basically ignore you. It seems their customer support is only interested in you when they are trying to get you to start trading with them and have no interested in actually keeping traders satisfied.
I do have to give it to them, though not a very popular broker they have managed to actually stay under the radar since 2006, when founded, until about 1-2 years ago. There is very little information or history on them prior to 2012 that I found though. It seems that traders were not very interested in trading with them until then as that is when their marketing seems to take off and traders start to discuss them as a broker. So, although the company was founded in 2006, they have not been very active until the end of 2012. Though I did find some rather fake looking positive reviews, there are plenty of very real negative discussions going on. It seems perhaps that they didn’t market so much online as they did locally at the time.
Cases Against DirectFX Scam Broker
The moment that you look at the history of a broker and see that they have lost cases and have warnings up against them, is the important moment that you need to decide whether you really want to invest with them. What’s worse is that even after these warnings and being found guilty of wrongdoing, they continue with the same approach with their traders as more and more complaints are being filed.
In April of 2012 the first warning was sent out by the FPA. There were many suspicious and fake reviews being written about DirectFX. They claim that an intern had asked friends to leave fake comments and write fake reviews. This was the first warning to use caution when dealing with this broker.
Since then, more recently, in January of 2017, the FPA Traders Court found DirectFX guilty presenting different chart prices than market prices, delayed or impossible withdrawals, unsupportive customer service, and a number of other complaints.
I am well aware that the Forex Peace Army is in no way an actual legal court, but when you have 98.8% to 1.2% guilty verdict that they are a scam company that simply does not want you to win, it’s pretty clear.
What Traders are Saying about DirectFX
I have found a number of issues collected from many discussions among brokers, complaints in reviews, and trading forums that share their experience. It seems that this broker has the habit of disabling your account the moment you start winning or your profits grow. With nasty attitude from customer support when you try and get this resolved does not make it any better. Other tactics were also used in order to prevent traders from winning if the broker noticed that their funds were growing. Their inaccurate charts that don’t match market prices, trades closing early or too late causing losses, trades are physically manipulated by the broker to cause losses, and many more. All in all, each of these complaints I found not just by one trader, but compiled from a number of traders underlining these problems as the reason why they feel that DirectFX is a scam broker.
Though I found no official evidence of real complaints being filed against DirectFX, I did find more than enough complaints from traders to see that there are plenty of other brokers you can choose from.
With binary option scams being released and marketed every day, many brokers are seeing them as a great opportunity to gain more traders, regardless of the fact that they are scams. Unfortunately, even long-standing brokers as old as this one get lured into the opportunities that lying to their traders give. Remember, when you win, the broker loses, so they trade against you, and some brokers, such as this one, take it even further and manipulate trades and have set up their platform so you have no chance of winning except for by accident perhaps.
With many traders having trouble withdrawing their money, losing all of their profits the moment they are in the money, and simply not getting the kind of service that they expect from a legitimate broker, it’s pretty clear that DirectFX are just another scam broker just like the many others out there.