Regulators: Banco de Portugal
Minimum Deposit: €2,000
Maximum Leverage: 1:30
My Score: 3.4
This time I am going to tell you about a Portuguese broker but favorite of Spanish forex enthusiasts, Dif Broker. Continue reading for getting a throughout information about the broker.
Dif Broker is a forex and stocks and CFDs broker headquartered in Portugal. The company has been operation for many years. It founded in 1999. The “dif” name of the company comes from different.
Is Dif Broker scam or legit? Which regulations are they subject to? What is the difference between registration and regulation? What is Dif Broker minimum deposit requirement? Is Demo account available? Are customer service employees helpful and friendly? How much leverage do they offer? I advise my valuable readers to not open an account before reading this Dif Broker Review.
Most of the visitors to site come from Spain. Customers of the country make up 58% of their visitors. Other visitors of the website are 23% Poland, 10% United Kingdom, 3% Armenia and 2% Germany, respectively. If we need to compare the distribution with other brokers, we can conclude that the company highly focused for certain areas. We can verify this conclusion by the languages the website supports, since the languages match with the countries of most customers. The website is accessible for Portuguese, Spanish and Polish beside English.
The company has many awards from numerous foundations, i.e. World Finance, Global Banking and Finance Review. There are awards titles such as “best online broker of Western Europe” and “among the 100 best companies”.
Regulations and Investor Protection
The company has a lot of registrations in various European foundations. FCA or “Financial Conduct Authority” is one of them. Their FCA registration number is 434573. You can search the number from FCA’s own site under “Search the Financial Services Register”. In fact, the UK based authority is one of the most respectable foundations, but Dif Broker isn’t regulated by FCA. There is a big difference between registration and regulations. Registration only lets the firm to operate in a certain country, but there are many conditions to get a regulation license. For instance, the company should hold money amount of €730,000 to get a license from FCA. In return, FCA will grant the clients up to £50,000 if the company can’t pay to clients.
The broker is registered and regulated only by “Banco de Portugal” which is the central bank of the Republic of Portugal. You can check this by number 225. The company is also registered to CMVM (Portuguese Securities Market Commission) with No: 276. The CMVM has an EU license under Markets in Financial Instruments Directive (MiFID). The directive is accepted by European Parliament and Council and active since November 1, 2007. The main aim is to make regulation of financial instrument markets in EEA (European Economic Area). EEA consists of 28 EU members and three Non-EU members.
Dif Broker Account Types and Spreads
The broker doesn’t offer account options. The standard account is available for customers who deposit €2,000. Since the broker is subject to ESMA regulations, the maximum leverage is 1:30.
The fixed spreads are really wide. With 3 pips, Dif Broker is almost doubles the market average.
Dif Freedom Platform is the broker’s in-house platform. They provide 24 hour service for economic developments, technical analysis, data from renowned sources from Businessweek, Bloomberg for your smartphone, tablet or personal computer.
I couldn’t find their account types at first, but their employees quickly helped me. So the live chat service is functional.
Forex or Foreign Exchange Market is the biggest market in the world. Some claims say that the volume of average trading operations thirty times more than United States’s equity markets. So the firm offers you to join this interesting area. Whether it’s Major, minor or exotic, you can trade with 32 different currencies.
People actually owns the shares of companies with stocks. After you buy a share, you are under risk of losing money because of bad management, adversely you can earn money with good management. You can trade with hundreds of stocks from 33 Stock Exchange Markets including NYSE, Deutsche Boerse, NASDAQ etc.
CFD or “Contract for Difference” is one of the most complex trading instruments. CFD is an agreement made in a futures contract in differences by cash payments, instead of transfers of physical goods. To be clear, it’s also quite risky of losing money because of leverages. 72% of accounts lose money while making trading operations with CFDs, the firm warns.
Dif Customers can trade CFD with 20% margin and without commission.
There is standard margin 10%, but without commission. There are thirteen CFD commodities available in 4 different catagories: US Crude, Heating Oil, US Gasoline, US Natural Gas as Energy. Gold, Silver, US Copper as Metals. NY Coffee, NY Cocoa, NY Sugar as Soft Commodities. Corn, Wheat, Soybeans as Grains.
The broker is one of the earliest with its foundation in 1999. But, they haven’t got a regulation license by a major watchdog. This can be a reason to giving up trading for some. But they are regulated by Central Bank of Portugal and they can ensure some sort of trust.
Maybe this also explain Spanish people’s being of biggest customers since they are their only neighbors in the Iberian Peninsula.
Minimum deposit is one of the biggest cons of the broker. To be honest, I still can’t believe the greatness of number, €2,000. It’s almost like they don’t want you to deposit money. Also spreads are incredibly high. Maybe highest pips I have ever seen.
MT4 or Meta Trader 4 is market’s standard platform. Most of the companies offer this platform even if they have in-house platforms. Dif Broker doesn’t support MT4. However, uou can try their demo account, this is an advantageous feature.
Customer service was superb and helpful. This is a plus. Also the broker has wide range of trading instruments.
All in all, the broker won’t get high score from me due to disadvantages I mentioned above. But the choice is up to you.
Commissions and fees1.0/10
Platform & Tools1.0/10
- Variety of Trading Instruments
- Good Customer Service
- MT4 is not supported
- Wide Spreads
- High Minimum Deposits