Be cautious with the Turkish DegerFX broker scheme!

On 8 March 2022, the external dispute resolution (EDR) organization Financial Commission announced that it had approved DegerFX as a member. In our review, we found that DegerFX primarily addresses a Turkish audience. Additionally, the broker operates its platform in English. However, the boiler room seems to reside in Montenegro. DegerFX LLC, established in Jan 2021 in St. Vincent & The Grenadines, is the operator of the unregulated broker scheme. The broker is not authorized to operate in the UK, Europe, or other regulatory regimes. We advise staying away from unregulated offshore brokers.

Key data

The narrative

DegerFX has no authorization in UK or Europe to offer its regulated financial services. Neither are they authorized in Turkey. The SVG Financial Services Authority (FSA) explicitly stated that it did not issue broker licenses only a few weeks ago. Moreover, offshore broker licenses are not valid in most other regulatory regimes.

We always point out that offshore brokers pose a high risk to traders. They are not supervised, and no one knows if the operators adhere to regulatory requirements such as segregated customer funds. Therefore, we also issue a warning against DegerFX.

Financial Commission update

The Financial Commission membership includes the protection for up to €20,000 per the submitted complaint, backed by the Financial Commission’s Compensation Fund.

In early 2021, the Financial Commission disclosed some of its operations metrics. In 2020, it received 1340 complaints, which is a 32%YoY increase. Traders sought $10.9 million in compensations (48% increase YoY) and awards to traders. $1,495,474 has been awarded to complaining traders, an 148% YoY.