Overview of DM
DM is a regulated offshore forex and CFD broker established in 2021, but the regulation information seems to be suspiciously cloned. The broker's website claims that it is headquartered in Australia. DM targets Chinese and English-speaking traders with a focus on the Asia-Pacific region.
The broker offers a variety of trading products, including forex, CFDs on stocks, indices, commodities, and cryptocurrencies. DM supports the MetaTrader 4 (MT4) trading platform and offers a variety of account types, including standard, mini, and ECN accounts. The broker's minimum deposit is $100 and the minimum trade size is 0.01 lots. DM offers leverage of up to 1:500 and a variety of spreads. The broker also offers a range of bonuses and promotions, including a welcome bonus of up to 100% of the deposit amount.
Regulatory Information
The regulatory information for DM, as overseen by the Australia Securities & Investment Commission, indicates a Straight Through Processing (STP) license type, under the license number 480291. This license, effective from February 18, 2016, signifies that the institution is authorized to operate in Australia.
However, there are significant concerns due to its current status being flagged as a “Suspicious Clone.” This status raises potential risks, as it suggests that there may be fraudulent entities mimicking the legitimate operations of DM. Such clones could mislead consumers and investors, posing risks of financial loss and damaging the reputation of the legitimately licensed institution. The absence of a shared website further complicates the ability to verify the authenticity and operations of this entity. As such, caution and thorough verification are advised when dealing with entities under this name.
Pros and Cons
Pros
High leverage: DM offers leverage of up to 1:500, which can be appealing to traders who are looking to maximize their profits. However, it is important to note that high leverage can also magnify losses, so it is important to use it wisely.
Low spreads: DM offers competitive spreads on a variety of trading products. This can be beneficial to traders who are looking to keep their trading costs low.
Diverse account and platform options: DM offers a variety of account types to suit different trading styles and needs. The broker also supports the popular MetaTrader 4 (MT4) trading platform, which is a user-friendly and versatile platform that is used by many traders around the world.
Fast execution: DM offers fast execution of trades, which is important for traders who are looking to take advantage of short-term market movements.
Range of bonuses and promotions: DM offers a range of bonuses and promotions, including a welcome bonus of up to 100% of the deposit amount. This can be helpful for new traders who are looking to get started with DM.
Cons
Limited trading products: DM offers a limited range of trading products compared to some other brokers. For example, the broker does not offer binary options or options trading.
Unregulated: DM is an unregulated offshore broker. This means that it is not subject to the same oversight as regulated brokers. This could put traders at risk if the broker goes out of business or engages in fraudulent activity.
High minimum deposit: DM's minimum deposit is $100, which is higher than the minimum deposit of some other brokers. This could be a barrier to entry for new traders who are looking to get started with a small amount of capital.
Limited customer support: DM's customer support is limited to live chat and email. The broker does not offer phone support.
Limited educational resources: DM offers limited educational resources compared to some other brokers. This could be a disadvantage for new traders who are looking to learn about forex and CFD trading.
Market Instruments
DM provides a diverse range of trading products tailored to meet the preferences of different traders, offering opportunities in various global markets. Here's a brief overview of each product type:
Forex:
Offers over 60 currency pairs including major, minor, and exotic pairs.
Enables speculation on the future direction of currency prices.
CFDs on Stocks:
Features over 1,500 stocks from global markets.
Allows trading on stock price movements without owning the actual stocks.
CFDs on Indices:
Includes over 15 major global indices like the S&P 500, Dow Jones, and NASDAQ 100.
Permits speculation on the overall direction of market indices.
CFDs on Commodities:
Covers a range of commodities such as gold, silver, oil, and natural gas.
Facilitates trading on future price movements of commodities.
Cryptocurrencies:
Offers trading on over 10 major cryptocurrencies including Bitcoin, Ethereum, and Ripple.
Provides access to the decentralized digital currency market.
Each of these products comes with its unique features and risks, catering to different trading styles and objectives.
Account Types
DM caters to a diverse range of traders by offering three distinct account types: Standard, Mini, and ECN. Each account type is designed to meet different trading needs and preferences.
The Standard Account, with a minimum deposit of $100, offers spreads from 1.5 pips and leverage up to 1:500. It includes products like Forex, CFDs on stocks, indices, commodities, and cryptocurrencies. The Mini Account, suitable for those starting with a lower capital, requires a minimum deposit of $50 and offers slightly higher spreads starting from 1.8 pips, with a leverage of up to 1:400. The ECN Account, designed for more experienced traders, comes with a higher minimum deposit of $1,000, offering raw spreads starting from 0.0 pips and a leverage of up to 1:200. All account types provide access to a range of financial products, including Forex and CFDs on various assets.
How to Open an Account？
Setting up an account with DM is designed to be an efficient and streamlined experience, enabling traders to quickly get started. The process is divided into three simple steps, ensuring that all necessary legal and security protocols are met.
Completing the Registration Form: Initially, prospective clients are required to fill in a registration form available on DM's website.
Identity Verification: DM adheres to regulatory requirements by mandating identity verification for all new clients. This step can be conveniently completed by uploading a government-issued ID, like a passport or a drivers license.
Funding Your Account: After your identity is confirmed, you can fund your account through various methods like bank transfers, credit cards, or e-wallets, depending on your preference.
Following these steps, your account will be set up, and you'll be ready to engage in trading activities with DM.
Leverage
DM provides traders with the opportunity to significantly amplify their trading potential through generous leverage options, reaching up to 1:500 for Forex trading. This high leverage allows for substantial profit amplification but equally increases the risk of losses.
Leverage varies across trading products, with CFDs on stocks, indices, and commodities offering up to 1:400, and cryptocurrencies up to 1:200. Traders should exercise caution and consider their risk tolerance, as leverage can dramatically impact both gains and losses. It's vital to trade responsibly, keeping in mind the high risk associated with leveraged trading.
Spreads and Commissions
DM stands out in the trading industry by offering competitive spreads across a wide range of products. Spreads begin at 1.5 pips for Forex, 1.8 pips for CFDs on stocks and indices, and go up to 2.5 pips for CFDs on commodities and cryptocurrencies, catering to various trading preferences. Particularly notable is their ECN account, which features raw spreads starting from as low as 0.0 pips.
While DM does not impose additional commissions on trades, traders should be aware of possible fees related to deposits, withdrawals, and periods of inactivity, which are important factors to consider when engaging in trading activities.
Trading Platform
DM utilizes the widely acclaimed MetaTrader 4 (MT4) trading platform, renowned for its user-friendly interface and versatile features. MT4 is embraced by a global community of traders, offering a suite of tools and functionalities that cater to both novice and experienced market participants.
Technical Analysis Tools: MT4 is equipped with an array of technical analysis tools, including advanced charting capabilities, a range of indicators, and oscillators, enabling traders to conduct thorough market analysis and make informed decisions.
Order Management Tools: The platform provides comprehensive order management options, such as stop loss orders, take profit orders, and trailing stops, allowing for efficient and flexible order placement and modification.
Automated Trading: MT4 supports automated trading through Expert Advisors (EAs), which are programs capable of executing trades automatically, based on predefined criteria.
Comprehensive Charting: MT4's charting system offers multiple chart types, indicators, and drawing tools for detailed market visualization and opportunity identification.
Advanced Order Management: The platform includes various order types and management tools, enabling precise execution of trading strategies.
Backtesting and Optimization: Traders can backtest and optimize their strategies using historical data on MT4, allowing for strategy refinement before live trading.
Multilingual Support: MT4's accessibility is enhanced by its availability in over 30 languages, catering to a diverse international trading community.
Overall, MetaTrader 4 stands out as a powerful and adaptable platform, offering a comprehensive range of features that meet the diverse needs of traders globally.
Deposit and Withdrawal
DM offers several convenient options for depositing and withdrawing funds, each with its own set of conditions. Bank transfers, while free of charge, have a processing time of 1-5 business days, making them the most cost-effective yet slower option. In contrast, credit and debit card transactions are subject to a 2.5% fee but offer the advantage of instant processing. E-wallets, with fees varying according to the specific provider, also provide instant transaction processing.
All methods maintain a uniform minimum deposit and withdrawal limit of $100, catering to a range of financial preferences and requirements of traders.
Customer Support
DM is committed to providing exceptional customer support, offering a variety of channels to ensure traders receive timely and efficient assistance. These options are designed to cater to different preferences and needs, ranging from quick queries to in-depth support on various aspects of trading.
Live Chat: Available 24/7, live chat is the quickest way to connect with DMs customer support team for immediate assistance.
Email: Traders can reach out to the support team via email for more detailed queries and support.
Phone Support: For those who prefer verbal communication, DM provides phone support in English (+44 161 828 1313) and Chinese (+86 21 8011 8022).
FAQ Section: The website features a comprehensive FAQ section, addressing a wide range of common questions.
Educational Resources
DM, while offering a diverse range of trading products and platforms, falls short in providing extensive educational resources for its clients. This aspect is particularly significant for novice traders who seek comprehensive learning materials to understand the intricacies of forex and CFD trading.
Basic Trading Guides: DM provides basic trading guides that cover fundamental aspects of trading, suitable for getting a general understanding of the markets.
Educational Videos: A selection of videos is available, offering visual learning aids to explain various trading concepts and strategies.
However, DM lacks a more elaborate educational portal or a dedicated team of trading educators, which can be a notable limitation for those who require in-depth training and guidance in trading.
Comparison with Similar Brokers
When comparing DM, XTB, and AvaTrade, each broker offers unique strengths. AvaTrade features the tightest spreads and a diverse range of educational resources, making it suitable for cost-conscious and learning-oriented traders. XTB, with its variety of platforms and comprehensive educational portal, caters to tech-savvy traders and beginners seeking in-depth knowledge. DM, offering high leverage and a simplified account structure, appeals to those prioritizing trading flexibility.
Conclusion
DM is a forex and CFD broker based offshore, presenting a diverse selection of trading options, platforms, and account types. The broker stands out with its competitive spreads, substantial leverage options, and various bonuses, catering to traders with different levels of experience. Despite the limited educational materials, DM compensates with its efficient and supportive customer service. All in all, DM provides a comprehensive trading experience that offers excellent value for its cost.
FAQs
Q: What is the difference between a market order and a limit order？
A: A market order executes at the best current market price, while a limit order is set for a specific price or better.
Q: What is the margin requirement for trading with DM？
A: DM's margin requirement is a percentage of the total value of the position, like a 1% margin for forex trading.
Q: How are profits and losses calculated for trading with DM？
A: Profits and losses are calculated based on the difference between the opening and closing prices of a trade.
Q: What is the difference between a standard account and an ECN account？
A: A standard account is a basic type for most traders, while an ECN account offers direct interbank market access and typically requires a higher deposit.
Q: How can I withdraw my funds from DM？
A: Withdrawals at DM can be made via bank transfer, credit/debit card, or e-wallet, usually processed within 1-5 business days.
