Note: DIRECT FXs official site - https://directfx.com/en is currently not functional. Therefore, we could only gather relevant information from the Internet to present a rough picture of this broker.
DIRECT FX Information
DIRECT FX is an Australian broker which offers a range of trading instruments, including currencies, metals, and commodities, providing traders with diverse opportunities to participate in the global financial markets. It offers a web trading platform and mobile trading apps available for both Android and iOS devices. However, it currently only has a suspicious clone ASIC license.
Pros & Cons
Pros
High Leverage: DIRECT FX offers a high leverage ratio of up to 1:400, allowing traders to enter trades of significantly larger value than the capital they possess. Although this can lead to increased profits, it can also amplify potential losses.
Demo accounts available: DIRECT FX offers demo accounts, allowing users to practice trading without risking real money. This can be beneficial for beginners or those who want to test the platform.
Multiple Market Instruments: DIRECT FX provides a wide range of instruments, such as Forex, Metals, Crude oil, and CFD.
Cons
Suspicious clone ASIC license: DIRECT FX operates with a suspicious clone ASIC license, raising concerns about its regulatory authenticity and investor safety.
Official Website Unavailable: DIRECT FX's official website is currently unavailable and is unable to provide any further information.
Is DIRECT FX Legit？
DIRECT FX's legitimacy is highly questionable due to its suspicious clone Market Making (MM) license purportedly issued by the Australian Securities & Investment Commission (ASIC, No. 305539). Cloned licenses are a known tactic used by fraudulent entities to deceive investors by mimicking legitimate regulatory credentials. This practice undermines trust and raises serious concerns about the firm's authenticity and adherence to regulatory standards.
Investors should exercise extreme caution and conduct thorough due diligence before engaging with DIRECT FX, as operating under a cloned license suggests potential fraudulent activities and a lack of genuine oversight, putting clients' investments at significant risk.
- User Feedback: Users should check the reviews and feedback from other clients to gain a more comprehensive sight of the broker, or look for reviews on reputable websites and forums.
- Security Measures: So far we haven't found any information about the security measures for this broker.
Market Instruments
DIRECT FX provides a range of market instruments for trading purposes, including various options such as Forex, Metals, Crude oil, and CFDs.
Foreign Exchange (Forex) is a decentralized global market for the trading of currencies, with exchange rates constantly fluctuating based on numerous economic and geopolitical factors.
Metals, such as gold, silver, and platinum, are commonly traded commodities due to their intrinsic value and use in various industries.
Crude oil, a vital commodity in the global economy, represents a significant trading opportunity for investors seeking to profit from fluctuations in supply and demand dynamics.
Contracts for Difference (CFDs) allow traders to speculate on price movements of various financial instruments without actually owning the underlying asset, offering flexibility and opportunities for leverage.
Account Types
DirectFX provides demo accounts that enable traders to simulate buying and selling DirectFX financial instruments using virtual DirectFX digital money and real market conditions and data. These demo accounts offer the advantage of familiarizing traders with the technical aspects of the DirectFX platform. Traders can explore various market charts, DirectFX trading indicators, and trading strategies through the demo accounts.
In addition to demo accounts, DirectFX offers standard trading accounts that allow traders to engage in trading a diverse range of financial instruments. With competitive spreads, traders can utilize the feature-rich DirectFX trading platform to execute their trades effectively.
Leverage
At DIRECT FX, the maximum leverage offered is set at 400:1, allowing clients to potentially amplify their trading positions with a relatively small amount of capital. Leverage in trading involves borrowing funds to increase the size of one's position, which can result in higher profits but also entails higher risks.
A leverage ratio of 400:1 means that for every $1 of the trader's capital, they can control a position worth $400 in the market. While high leverage can magnify returns, it also heightens the exposure to potential losses, as even small price movements can lead to significant financial implications.
Spreads
DIRECT FX offers a spread of 1.8-2.0 pips for trading the EUR/USD currency pair, reflecting the difference between the buying (ask) and selling (bid) prices. The spread represents the cost of executing a trade, with a narrower spread typically indicating lower transaction costs for traders. In this case, the specified spread range of 1.8-2.0 pips implies the varying levels of pricing applied by DIRECT FX for conducting trades on the EUR/USD pair.
Trading Platforms
DIRECT FX offers a web trading platform that allows traders to open, close, and manage market positions online without the need for software downloads. Through this platform, users can track Bid-Ask spreads, set Stop Loss and Take Profit orders, and monitor their trading history.
Additionally, DIRECT FX provides mobile trading platforms for both Android and iOS devices, enabling traders to place trades and monitor accounts on-the-go. The iOS trading platform is specifically designed for Apple devices like iPhones, while the Google Play trading platform caters to Android devices, providing investors with the flexibility to trade and manage their accounts using their preferred mobile operating system.
Trading Tools
DirectFX offers a range of trading research tools to assist traders in analyzing potential investments on their trading platform. These tools include charts, technical analysis indicators, and trading indicators specific to DirectFX.
Traders can utilize DirectFX's news section to stay updated with market developments and make informed investment decisions. The news serves as a valuable resource for forming trading strategies based on market expectations and reacting quickly to news releases.
DirectFX provides an economic calendar that allows traders to monitor important market-moving events, such as economic indicators and monetary policy decisions. This calendar helps traders stay informed about key economic information scheduled to be released across major economies.
For fundamental analysis, DirectFX offers research data on financial instruments and companies. Traders can analyze price movements and attempt to predict future trends based on this data. Additionally, fundamental analysis focuses on evaluating securities by considering economic and financial factors that impact businesses.
DirectFX supports various charting options, including Candlestick, Line, Point and Figure, and Renko charts. Technical analysis indicators such as MACD, RSI, Stochastics, OBV, and Fibonacci can be applied to these charts to aid traders in making trading decisions.
Traders can create trading portfolios on DirectFX, which consist of a collection of investments, including a variety of DirectFX financial instruments. These portfolios can be customized to align with different investing strategies.
Customer Support
DIRECT FX offers multiple ways to connect to them.
- Phone of the company: 4006001129 (Chinese)
- Email: cncs@directfx.com or support@directfx.com
- Social Media: Facebook, Twitter, QQ, WeChat
Conclusion
In conclusion, while DIRECT FX provides a variety of trading instruments and convenient platforms for clients, it is important to note that the firm currently doesn't have a valid regulation. Their ASIC license is a suspicious clone.
Frequently Asked Questions (FAQs)
Is DIRECT FX regulated？
It only holds a suspicious clone ASIC license.
What is the maximum leverage offered by DIRECT FX？
400:1.
What account types does DIRECT FX offer？
DIRECT FX mainly offers a demo account and a standard trading account.
What market instrument does DIRECT FX provide？
Forex, Metals, Crude oil, and CFDs.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
