DirectFX Review

DirectFX is a brokerage in a rather special position right now: for at least 10 more weeks, it will apparently only function in a limited manner, as the regulator (ASIC) under which the operation falls, takes its time to re-launch the business.

What it means is that for the time being, the brokerage does not accept any new traders.

Those who already have accounts at the site can close their positions, but that’s about all they’re allowed to do trading-wise. If you want to register a new account with the broker, you’ll have to wait.

Overview

DirectFX is obviously an Australian FX/CFD broker, and – as said above – its regulatory background is provided by the country’s prestigious regulatory authority: ASIC.

The operation was launched way back in 2006, so by any standards, it could count itself amongst the veterans of the online trading industry. It is indeed too bad that it has failed to retain its regulatory backing.

The corporate entity behind the brand is Direct FX Trading Pty Ltd, based at Level 11, Suite 2, 10 Bridge Street, Sydney, NSW 2000, Australia. It is a registered Australian company. Its company number is 120189 424 and it possesses Australian Financial Services License (AFSL) #305539. It is safe to assume that this is indeed the license that has been temporarily suspended by ASIC.

This license gave the operator the right to peddle its financial services to clients in Australia and New Zealand. There is no record of the operation being registered with any other national regulatory agency.

The reputation of the operation is not a stellar one, and according to some feedback, the current suspension of the dealing, market-making and advising activities is due to the fact that the regulator has moved against the operation, on account of compliance issues.

Account Types

Apparently, the broker features 4 account types (or rather: more, accounting for the Demo versions available for some of these variants).

The accounts are: MT4 Standard Account, the MT4 Pro Account, the CQG Account and the MAM/PAMM Account. The MT4 and the CQG Accounts are available in Demo versions too.

The MT4 Standard Account features:

– a minimum deposit requirement of $100

– full market coverage

– maximum available leverage of 1:400

– full EA support

– VPS service

The same goes for the MT4 Pro account, which offers better trading conditions, with spreads starting from as little as 0.2 pips.

The CQG Account offers:

– fast ECN/STP execution

– interbank liquidity

– fully customizable trading interface (that goes for MT4 too)

– one-click trading through SnapTrader

– real-time market data

– an impressive selection of order types and durations

– web-based trading

The MAM Account option supports:

– an unlimited number of sub-accounts

– a more than decent selection of allocation methods

– periodic reports

– VPS solutions

– handy client management

Interestingly, a MAM Demo account can be opened too.

Whether or not these account types will remain unaltered after the re-launching of the business, is anyone’s guess at this point.

Trading Platform/Software

The trading platform selection of the broker is based on MT4. There are an impressive number of platform-related services offered, above and beyond a mobile version for the same trading platform.

Besides the base version of MT4 – which can be grabbed off its website for free – the broker also offers access to CQG FX, a Multi Account Manager (MAM) as well as to a VPS service (which is excellent for MT4’s EAs).

Deposit Options

In regards to Deposit options, the broker has elected to keep the going as simple as possible. According to the official DirectFX website, it usually takes some 1-2 days for the funds deposited by traders to settle in their accounts.

Neteller is touted as the top deposit option. To make a Neteller transfer, one can fill out the form presented on the official site, which pops out readily once one clicks the Neteller button.

Bank wire is apparently the second preferred deposit option of the broker. Wire transfers take 1-2 days to settle in trader accounts. The broker offers detailed instructions for such transfers, for every one of the supported currencies. It is indeed important to pay attention to what account one sends money to, depending on the currency used.

The other two accepted deposit methods are Skrill and UAE Exchange.

Markets

The market coverage of the broker is fairly standard. It includes Forex, Precious Metals, Futures and CFDs. The total on currency pairs and metals is 48+, which is not particularly impressive.

Fast ECN/STP execution is offered on Forex.

The CFD selection covers Indices, Commodities and Bonds. As far as precious metals are concerned, what we’re really looking at is Silver and Gold. Precious metals are traded at margin with the broker, obviously: without physical delivery.

On Futures, there are a couple of fees charged: a monthly exchange fee of USD 15 and a USD 5.98 commission per round turn, across all the supported asset-classes.

Customer Support

DirectFX support can be contacted through an email form on the Contact page, as well as through an email address ([email protected]) and a phone number (+61 2.8488.0991).

Safety

While funds should theoretically be safe with the broker, one should bear in mind that the operation is currently on forced hiatus due to regulatory non-compliance.

Final Thoughts

DirectFX looks like an operation that has its act together – at first glance. From a technical point of view, it offers a good selection of trading platforms as well as decent market coverage.

However, its problems with ASIC and its generally unfavorable reputation simply cannot (and should not) be ignored.

 

DirectFX Overview
Regulation: ASIC