Dax300 Review

Dax300 Review by professional Forex trading experts the “” FX trading team, Finding out everything you need to know about the broker is in this Dax300 Review.

Dax300 Review

Dax300 offers the above account types, plus an Islamic (swap-free) one. All of them offer leverage up to 1:400 on forex trades and fixed spreads on the MetaTrader 5 platform.

Dax300 Advanatges:

MT5 available

The MetaTrader 5 is the latest trading platform released by MetaQuotes. The software developer even announced that it will stop updating and selling the previous version, MetaTrader 4, which has been the industry standard for more than 10 years now.

That is why we consider the fact that Dax300 supports MT5 as an advantage. Besides, this platform has basically the same great charting package as MT4, it also offers wide range of automated trading strategies (EAs), technical analysis indicators, and more.

>>Top MT5 forex brokers<<

High leverage levels

Dax300 provides leverage up to 1:400, which is considered a high ratio, although a number of brokers provide similar or higher ratios. Such leverage ratios allow investors to trade with positions that are 400 larger than the money in their account. The tricky element in margin trading is that it can multiply both profits and losses, so be careful when using high leverage levels.

Dax300 disdvantages:

– An offshore broker

The company allegedly owning and operating this brokerage, Brown Fox Limited, is registered offshore, in the Marshall Islands. IT & Finance administration services, on the other hand, are carried out by Blonde Bear OU, an Estonian company.

Forex brokers registered offshore are not to be trusted and therefore we advise traders to stay away from them.

– High spreads

According to the information on its website, Dax300’ spreads on EUR/USD are fixed at 3.0 pips, which is a very high value. Most fixed-spread brokers offer lower spreads. By comparison, CySEC-regulated broker easyMarkets, offers spreads fixed at 1 pips for this pair . You can find more information on trading costs at our dedicated page:

>>Compare the real-time spreads of top brokers<<

– Market Maker model

Most fixed spread brokers are market makers and Dax300 is no exception. According to its Terms and conditions, the broker acts as a principal in each trade, which means that it sells to its clients when they want to buy and buys from them when they want to sell. It also means that the broker wins when its client loses.

– Comparatively high initial deposit

Although an initial investment of $250 is not that high in the forex world, a number of trusted and regulated brokers require less as a start. For example, one can open an account with easyMarkets by depositing just $100.

– MT4 not supported

As we have mentioned above, MT5 is the most recent MetaQuotes software, but it seems that the MT4 remains the favorite platform of most traders. This is partly due to the fact that some MT4 EAs and indicators don’t work on the MT5.

Dax300 offers more than 50 currency pairs and CFDs on indices, commodities, and stocks on the MetaTrader 5 platform. It offers high leverage levels and the option to trade in micro lots. However, we find its spreads too wide. The minimum initial deposit it requires is also relatively high, but what bothers us most with regards to Dax300 is the lack of reliability. It appears to be an Estonian broker registered offshore. Here is a little clarification for those of you who are new to the forex world: offshore brokers face little if any requirements and are not supervised by any authority. They can easily disappear with your money and there is little you can do about it.

That is why we advise our readers to invest with brokers that adhere to certain rules and are licensed by reputable financial watchdogs, such as Cyprus’ CySEC or UK’s FCA. These governmental agencies require authorized barkers to report transactions, to keep client funds in segregated accounts, and to comply with many other rules. Besides, both jurisdictions have compensation schemes in place and in case your broker becomes insolvent.

The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.

Dax300 Review Conclusion

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