Is DaxBase legit Forex broker or a scam?

DaxBase is a relatively newly established brokerage that provides currency pairs and CFDs on various trading assets such as cryptocurrencies, commodities, indices and precious metals. DaxBase Forex broker offers its service worldwide but does not accept the traders from the United States. The information about the broker cannot be attained easily. DaxBase itself does not display much information about the brokerage which is already a sign for the concern. The broker mostly focuses on the bonus offerings and high leverage up to 1:1oo. the minimum deposit that is required for opening an account with DaxBase is 250 USD.  The broker markets itself as a regulated and trusted brokerage but there is a possibility of DaxBase scam. The company that is operating the brokerage is the first sign that that DaxBase is leading some kind of a fraud scheme.

Company overview

DaxBase is operated by the Finance Group Corp. a company that is having a very bad reputation among the various financial authorities. The company was operating several binary options brokerages in the past. Most of them have been warned or closed eventually after Binary options were prohibited in the European Union. The list of the brands that were operated by FGC or were connected to it in some ways includes BinaryCent, LiteOptions, RaceOption and some others. The financial regulator of New Zealand has warned against the Finance Group Corp in past. The Franch regulator has issued warnings and blacklisted BinaryCent, CySEC also flagged several FGC brokerages. After knowing this, there must be a question is DaxBase legal? Since the broker is operated by the company with this kind of shady history the answer is clearly no. Moreover, there have been court cases for some of the brands mentioned above as their customers have lost a lot of money in the fraud and were not able to withdraw any profits they were making. It will not be surprising if the customers of DaxBase will have to face the same issues. Unfortunately, there are no DaxBase opinions made by the traders yet that would give us the possibility to look at the broker from the trader’s position. However, with this kind of background, there is not much hope.

DaxBase Regulation

Even if the DaxBase was run by a more legitimate company there would still be the possibility of the broker being scam. DaxBase claims to have approval from a regulator. However, the broker does not provide the number of the license, or the number of the registration with any of the regulators like normal brokerages do. It is impossible to check where is the broker registered or where does it have headquarters. Fortunately for us, we have found the hint about where the DaxBase is registered while making this DaxBase.com review. In the legal documents, the broker mentions the laws of Seychelles that indicate where the broker is registered. This is not good news, as Seychelles is known as a haven for scam brokerages. Moreover, DaxBase is not even licensed from the Financial authority of Seychelles, which is even worse. As expected DaxBase is not regulated and provides unauthorized services. At the same time, as the website shows the broker mostly targets traders from Europe, where it does not have a legal right to operate.

Minimum Deposit, spread, leverage

Not let’s take a closer look at the broker’s services. The minimum deposit with DaxBase is 250 USD for the standard account named Bronze Account. There are two other accounts available – a Silver account that requires 1000 USD minimum deposit and Gold account with 3000 USD minimum deposit. However, if you decide to use wire transfer for depositing your funds you are obliged to deposit 5000 USD or EUR for some unknown reason. The broker does not provide information about it directly on the website and this information can only be found in the terms and conditions document.

The maximum leverage one can have with DaxBase is 1:100. Some of the scam brokers offer higher leverages, but considering that the leverage restriction is 1:30 in the EU where the broker targets its customers, the leverage is too high. There is no information provided about spreads that decrease DaxBase rating even more. The traders should be aware of how spreads look like before they decide if they want to trade with a certain broker or not.

DaxBase deposit bonus review

Bonuses are one of the best ways for scam brokers to lure inexperienced traders. DaxBase also uses the same strategy. It offers 20%, 50%, and 100$ bonuses on deposits. It is possible to get a 20 % bonus when depositing the minimum amount of 250 USD,  50% bonus for depositing 1000 USD, and 100% on depositing 3000 USD. The requirements for DaxBase withdrawal is not defined well, the information is given in Doc file rather than as a PDF or a page of the website. That gives an idea that this part of the offer is not finished completely.

DaxBase withdrawal

DaxBase showcases a lot of payment methods on the front page but shows only several of them in the information of deposits and withdrawals. The broker shows a Credit/debit card, Perfect Money, Bitcoin payments and altcoins. The broker claims there are no withdrawal fees for any of them except Credit/debit card. DaxBase withdrawal fee is 5% of the money. However, in the legal documents, the broker states that withdrawal fee for Wire transfer is 50 USD. Again, this information is not well disclosed on the website, meaning that there can be different fees for the other payment methods as well. The broker also showcases that withdrawals take up to 1 hour. It looks very good on paper, as almost none of the brokers can offer such fast withdrawals especially for every payment methods. However, the broker points out in the withdrawal information that one hour is only after the withdrawal request is processed and confirmed. DaxBase does not state how long does it take for the broker to process withdrawal request or what kind of documents should traders provide for it. Considering that all of the brokers operated by Financial Group Corp. had withdrawal issues we can assume that the same problem will be with DaxBase and “1-hour withdrawal” is just an empty promise which is part of DaxBase scam scheme.

Can DaxBase be trusted?

The broker is far from being legit. It is operated by the company that had a lot of legal issues with the regulators and have been blacklisted and warned multiple times. The brokerage is registered in Seychelles and tries to hide this information from the visitors of the website. Even though it is very easy to get regulatory approval by the FSA of Seychelles the broker does not have a license. The DaxBase review reveals that the broker tries to lure the customers with the empty promises, high leverage and bonuses. However, it takes some time to understand DaxBase is not legit and could potentially be running a scam scheme. It is not adviced to anyone to trade with the broker that hides information about itself, is run by the company with a bad reputation and does not provide sufficient information about the services, features and fees.