Defx, officially known as Difx Limited, was established in 2017. The company is headquartered in Singapore and operates as a private entity. The broker primarily serves retail clients looking to engage in forex trading, as well as institutional clients seeking diversified investment opportunities.
Since its inception, Defx has aimed to provide a comprehensive trading platform that caters to a variety of financial markets, including forex, stocks, commodities, and cryptocurrencies. Over the years, the company has experienced several milestones, including the launch of its trading platform and the introduction of various trading instruments. However, it has faced scrutiny regarding its regulatory status and operational practices, which have raised concerns among traders.
Defx operates under a business model that focuses on retail forex trading, providing clients with access to a wide range of trading instruments. The broker also emphasizes the use of advanced trading technology to enhance the trading experience for its users.
Defx currently operates without valid regulation from recognized financial authorities. The broker claims to be regulated by the NFA (National Futures Association); however, this license is classified as unauthorized, and there is no valid regulatory information available. This lack of oversight poses significant risks for potential investors.
The absence of a regulatory framework means that Defx does not participate in investor compensation schemes, which could protect clients in the event of the broker's insolvency. Additionally, the broker has not provided specific details regarding its policies on customer fund segregation, which is a critical aspect of ensuring client safety.
Defx has outlined some KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance measures, but the effectiveness and enforcement of these policies remain questionable given the lack of regulatory oversight.
Defx offers a diverse array of trading products to meet the needs of its clients. The broker provides access to over 140 forex currency pairs, including major, minor, and exotic pairs. In addition to forex, Defx offers CFDs (Contracts for Difference) across various asset classes, including:
The broker continuously updates its product offerings, although specific details regarding the frequency of updates and new product introductions are not disclosed. Defx also provides retail trading services, catering primarily to individual traders, while it may offer institutional services as well.
Defx supports the MetaTrader 5 (MT5) trading platform, known for its advanced features and user-friendly interface. This platform allows traders to utilize various analytical tools and trading strategies effectively. Additionally, Defx may offer a web-based trading platform, enabling clients to trade directly from their browsers without the need for software installation.
For mobile trading, Defx provides applications compatible with both iOS and Android devices, allowing traders to manage their accounts and execute trades on the go.
The broker operates on an ECN (Electronic Communication Network) model, which facilitates direct market access and potentially tighter spreads. Defx's servers are located in secure data centers, ensuring reliable performance and minimal downtime.
Furthermore, Defx supports API access for automated trading, enabling clients to connect their trading algorithms and strategies to the platform seamlessly.
Defx offers two primary types of trading accounts: Professional and Standard accounts. Although specific details regarding minimum deposit requirements are not disclosed, the following trading conditions apply:
Standard Account:
Minimum Spread: Starting from 0.4 pips.
Commission: None.
Professional Account:
Commission: $12 per lot traded.
Spreads: Variable, depending on market conditions.
Defx also provides demo accounts for traders who wish to practice and familiarize themselves with the platform before trading with real funds. The maximum leverage offered by Defx is 1:500, allowing traders to control larger positions with a smaller capital outlay. The minimum trade size is set at 0.01 lots.
Overnight financing fees apply, but specific details regarding these fees are not provided.
Defx supports various deposit methods, including credit cards and bank transfers. The broker has not disclosed specific minimum deposit requirements for different account types, which may be an essential consideration for potential clients.
Deposit processing times are generally quick, although exact timelines are not specified. Defx does not appear to charge deposit fees, making it relatively cost-effective for clients looking to fund their accounts.
For withdrawals, Defx offers several methods, but the specifics regarding withdrawal processing times and any associated fees remain unclear. Clients have reported challenges with withdrawal requests, raising concerns about the broker's reliability in processing withdrawals.
Defx provides customer support through various channels, including email, live chat, and social media platforms. The support team is available 24/7, ensuring that clients can receive assistance at any time. However, detailed information about the languages supported by the customer service team is not available.
In terms of educational resources, Defx offers a range of materials to assist traders in enhancing their knowledge and skills. This includes webinars, tutorials, and market analysis services, such as daily market reports and research insights. Traders can also access various trading tools, including calculators and economic calendars, to aid their trading decisions.
Defx primarily serves clients in Singapore and other regions, although specific details regarding its operational reach are not fully disclosed. The broker does not accept clients from certain countries, but the exact list of restricted regions is not provided.
While Defx aims to cater to a global audience, potential clients are advised to check the broker's terms and conditions to confirm their eligibility based on their country of residence.
In summary, while Defx offers a variety of trading products and services, the lack of regulatory oversight and the reported issues with withdrawals raise significant concerns for potential investors. As always, it is crucial for traders to conduct thorough research and consider the risks associated with trading on unregulated platforms.