Reason to avoid: Offshore license
Listed Date: January 14, 2019
Top 3 Regulated Forex Brokers
Beware Dax300 is a Non-Regulated broker. It is NOT SAFE to trade.
- Company name: Brown Fox Limited
- Registration/license: Marshall Island
- Registration/license requirement: USD 2,000
Dax300 is an offshore Forex and CFDs broker. The company is owned and operated by the Brown Fox Limited, based in the Marshall Island. Offshore destinations are known for its light regulation rules, if any, as well as their lax regulation and non-existent corporate taxes. The required capital for a license in an offshore zone like the Marshall Islands is around USD 2,000. By comparison, brokers regulated by UK’s FCA are required to maintain the capital of minimum 125000 EUR for STP license and also keep the client funds in segregated accounts.
Dax300 doesn’t provide any information about its regulation as well as its location or contact numbers. The lack of this kind of information is a red flag for the investors. The website supports English, German, Spanish, Italian, Indonesian, Polish and Arabic languages. Usually, it means the company has chosen these countries as its target. However, Dax300 is not authorized in any of the mentioned countries. Moreover, Spain’s regulator CNMV has issued a warning against Dax300 and Brown Fox Limited:
“BROWN FOX LTD www.dax300.com is not authorised to provide the investment services detailed in Article 140 of the Securities Markets Law, which include investment advice, or to provide the auxiliary services detailed in the Article 141 of the said Law in relation to the financial instruments, including, for those purposes, foreign currency transactions.”
We recommend you to avoid unregulated offshore brokers and choose among the regulated ones. The most reliable regulators are the UK’s Financial Conduct Authority (FCA), or the Swiss Financial Market Supervisory Authority (FINMA). Here you can check the list of the FCA-regulated brokers.