DF Markets Review – A Customer Centric Broker
DF Markets started its FX trading service in 2010 by launching their financial products out of a brokerage situated in the heart of London’s capital markets. DF Markets is regulated by the Financial Conduct Authority (FCA) of the UK, which seems to be one of the most trusted and highly popular regulatory organizations in the world. DF Markets appears to be more oriented towards advertising itself as a spread betting brokerage that also offers access to Forex and CFD trading. Therefore, UK traders have the option of enjoying tax-free profits due to the unique tax status of spread betting in the UK. All profits and proceeds from spread betting are excluded from any taxes or stamp duties, which in turn help traders to concentrate on their trading success without worrying about the implications of taxes on their bottom line. FCA regulated brokers are audited and monitored according to the most stringent regulatory guidelines.
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- Website: www.dfmarkets.co.uk
- Support: +44 (0) 20 3866 9652
- 5 Harbour
- Exchange Square
- London E14 9GE
DF Markets, registered under the name of Delta Financial Markets Ltd., should abide by all the laws and regulations implemented by the FCA and the European MiFID. Since FCA regulated brokers are free to do business in the entire European Union under the European Economic Area (EEA) agreement, Forex brokers in the UK are also expected to adhere to the EU guidelines on Forex broker regulation. To make matters easy for investors while dealing with FX brokers against insolvency or liquidation procedures, clients that are part of the FCA regulated are protected by the Financial Services Compensation Scheme (FSCS). FSCS is an insurance scheme that provides traders up to £50,000 in compensation if a broker fails. The FSCS compensation is provided to all traders under a common insurance fund, which not only protects a trader’s capital but also helps in ensuring a fair and transparent trading environment.
DF Markets Platforms & Account Options
DF Markets has their trading interface known as the DFTrader for the PC, DF WebTrader for browser access, and the DF Mobile apps for DF Markets mobile trading. The broker does not provide access to the MT4 terminal (although the company had initially offered an interface under the MT4 license) since it aims to incorporate all of its trading products under a single platform. The DF Markets platform can be used to trade a wide range of financial instruments that include Forex, stocks, indices, commodities, ETFs, and futures under a single interface. The proprietary trading platform should provide all the essential tools and features that one would expect from a leading trading platform, and existing MT4 traders will not find it too hard to make the transition to the DF Trader platform. DF Markets is a market maker that does not offer an ECN account. All traders are provided the option of a single trading account that starts with a minimum deposit of $1 and a maximum DF Markets leverage of 1:200. The minimum deposit should primarily help in catering to smaller retail traders; however, the lower leverage may prove to a problem for a significant majority of traders that are looking to increase their exposure in the market. Nevertheless, the $1 minimum deposit should provide a great reason for both new as well as professional traders to try out DF Markets with a small trading capital before moving on to larger investments. Being a market maker broker, the DF Markets spreads start from 2 pips and changes according to market conditions. The broker does promise to offer spreads as low as 0.8 pips, but under live market conditions, the platform consistently displays spreads in the range of 2 to 4 pips on major currency pairs. The higher than average spreads are bound to be an alienating factor in the highly competitive retail trading market, where regular market maker brokers are known to offer spreads starting from 0.5 pips. Several ECN brokers also promise 0 pips on major currency pairs at the expense or a small commission per trade, which is another factor to consider while choosing DF Markets. DF Markets withdrawal and deposit options are also severely limited, as traders can only make payments through a credit card or via bank transfer. Making small payments through either means can incur hefty charges, which can also limit the freedom of making payments through online payment processors. DF Markets has to concentrate its efforts on improving on a lot of different areas, which should be vital in establishing the broker’s presence in the market.
Is There Any Reason To Choose DF Markets?
DF Markets, as a Forex brokerage, makes sense for UK traders who are looking for the most cost-effective investment vessels that promise the lowest taxes in the industry. A zero tax structure for spread betting is certainly an advantage for UK-based traders, especially considering the lower than average trading capital required to open an account. FCA regulation is also another aspect of the broker that enhances security and confidence that the broker will not indulge in any financial malpractices. There is a DF Markets bonus available for traders, although the exact percentage of bonus and terms and conditions are specifically tailored to individual clients. The VIP account option is reserved for large traders with substantial deposits, but it is impossible for the broker to attract large traders without offering an ECN account as standard. ECN accounts can absorb larger orders due to the liquidity available in the global markets through established liquidity providers, while market maker brokers have to pass on orders between their traders or absorb them internally. If you are not impressed by the broker’s service offerings, countless other options in the market can offer better trading conditions and an amazing list of features that are suited to your trading requirements. Always do your research before committing to a broker with your life savings.