Demaxis Review | Is this Organization a Scam?

We are looking at a forex broker headquartered in Hong Kong, offering over 2000 assets for margin trading. On its website, Demaxis claims to be under the control of financial regulators, but we found no licenses. So is the firm deceiving users? Or what is it called? Online reviews do not provide any clear information, although there are suspicious positive comments on some platforms. In general, our task is to find out what lies behind the mask of this CFD platform, whether the organization is a scam, or not, and whether it can be trusted with money.

Highlights

First Impression of Demaxis.com

The official website of the broker introduces us to the trading conditions and some information about its activities. It can’t be said that any typical or popular template was used in creating the site. The top part of the page contains sections with information on conditions, the platform, types of accounts, the company, contacts, and additional tools. Besides English, there are translations into five other languages. Demaxis tried to create a quality resource, but they did it poorly. Also, at the top, there are quotes for popular assets, which show the same price of 1478.31. It can be seen in the screenshot. It may be because the markets were closed at the time of writing the review. However, in this case, the last prices before closing should be given.

The site is full of motivational phrases and clichéd formulations. As for graphic elements, there are pictures of traders sitting behind monitors and discussing some ideas. Overall, it’s an ordinary resource, but it lacks informativeness and specificity. If regulation is mentioned, from which financial commission? Where is the founding date, and explanation of the business model? Many trading conditions are also hidden. The Demaxis website cannot be called complete and comprehensive.

Partnership and Bonuses

Sections dedicated to the affiliate program and bonuses are missing. However, during registration on Demaxis, you can enter a promo code, which suggests the presence of an affiliate program. Also, in the user agreement, there is a single mention of bonuses at the time of withdrawal, meaning the broker does offer them. All of this shows a lack of transparency on the part of the company.

Account Opening on Demaxis.com

The process of account registration on Demaxis is quite lengthy and cumbersome. You need to provide not only your full name, email, phone number, and password, but also your date of birth and residential address. Additionally, you have to agree to the terms and select the currency of the account (EUR or USD).

We couldn’t create an account. We tried various addresses and details, but we kept getting the same error: “Please try again or get in touch for further assistance.” We contacted customer support through the online chat on the website to also find out how quickly Demaxis’ managers responded.

After waiting 8 minutes, we received a response from a representative, surprisingly in French. Fortunately, there are online translators, thanks to which we could continue the conversation in French. Eventually, the employee began asking for the phone number so that another manager could contact and help resolve the issue. Why does Demaxis even allow such problems? Why can’t customers open an account without a phone call? And why in French, not in English, especially when the official website does not even support translation into French?

Verification

Since Demaxis follows AML (Anti-Money Laundering) & KYC (Know Your Customer) policies, it requires users to go through verification. This procedure here is standard and does not differ from many other companies. Traders need to upload documents that serve as proof of identification (passport, government-issued ID, or driver’s license) and proof of address or residence (bank statement, residential certificate, government-issued lease contracts, or utility bill not older than six months). In addition to this, Demaxis requires uploading a copy of credit/debit cards if they are used as a method of depositing funds.

Trading Software

Since we couldn’t create an account with the broker, we’ll have to study the platform based on what is written on the official website. Demaxis boldly claims their advanced platform is suitable for all types of traders. Order execution faster than 0.05 seconds, more than 20 indicators, advanced charting tools, multiple order types, and full account management. Well, we’ll have to take their word for it, although it’s not entirely wise to do so, since anything can be written on a website.

Also, the trading terminal at Demaxis is available not only as a WebTrader but can also be downloaded to a computer or mobile phone. However, without access to the personal account, we cannot follow the links to the official AppStore/Play Market stores. By the way, a demo account is apparently missing, as there are no mentions of this feature.

How Can I Trade With Demaxis?

The broker offers access to more than 2,000 assets: forex, commodities, metals, indices, stocks, and cryptocurrencies. The commission for trades is indicated as zero, which means that Demaxis either offers high spreads to generate income from its operations or uses a Dealing Desk business model, thereby making money when clients lose money. We think the latter option is more likely. Traders can use leverage up to 1:400, and apply one-click trading functions; other features and additional services depend on the selected account type.

All Info About Accounts

Demaxis has six plans with different sets of auxiliary services and a minimum deposit. What immediately catches the eye is the high threshold for the minimum deposit of $2,500, as well as the absence of a demo account. In other words, to try the platform and test the service, you need to invest a minimum of $2,500. At the same time, most well-known, legal, and experienced brokers offer starting amounts as low as $10. Do you see the difference? By the way, on the main page of the site in the advantages section, the broker indicates “Low minimum deposit,” which looks very comical and absurd.

The first three plans differ little from each other, so the rationale behind their creation is unclear, as the range of services is the same, and other parameters are not indicated. However, the fourth type of account, which has a minimum deposit of $50,000, already has unique features: dedicated support, personal push & SMS alerts, and exclusive market updates. The fifth type of Demaxis account requires $100,000 and only differs in two options: private account manager and free installment. The last account type is “VIP” which requires a capital of $250,000. Its conditions are not disclosed, and to activate it, you need to contact a manager.

It should be noted that the broker ignores the size and type of spreads, while the commission is indicated as zero. It suggests that the spreads will be very high, but it is not known exactly how high. We have also already mentioned the high minimum deposit. Moreover, the leverage of 1:400 is an indicator of the absence of a license, as regulators prohibit companies from offering such high leverage. There is an Islamic account, but no demo or ECN. Therefore, the trading conditions in Demaxis cannot be called advantageous, competitive, or reasonable. Quite the opposite.

Market Analysis and Education With Demaxis.com

The broker provides clients with an economic calendar, online quotes for popular instruments, futures expiration dates, daily technical analysis, market hours, and basic information about traded asset classes. Additionally, contests and promotions are held.

Deposit, Withdrawal, and Fees

There are no commissions for depositing and withdrawing funds in Demaxis. Money can be transferred using credit/debit cards, bank wire transfers, Bitcoin, and e-wallets.

How Can I Contact It?

Demaxis provides a phone number, email, online chat, and a special feedback form for communication. Also, they have created accounts on Instagram and Facebook.

Upon checking the contact details, nothing suspicious was found, but, strangely, an American phone number is listed instead of a Hong Kong one, since the firm is based in Hong Kong, according to the official website. The phone code for Hong Kong starts with +852, but the website lists +1, which belongs to the USA. Social media accounts are sparse; they have few followers. For example, there are only 438 followers on Instagram, and there is no activity on the posts at all.

Is Demaxis Dangerous?

So far, we haven’t been able to definitively establish whether the broker is dangerous or not. There is an employee in the online chat who responds within 10 minutes, the contact details are real, but the trading conditions leave much to be desired. Moreover, for unknown reasons, it’s impossible to register an account; one must contact a Demaxis representative by phone. In general, it’s necessary to check the company’s operating period and licenses. Only then can a final verdict be given to the organization.

How Long Does The Broker Work?

The firm prefers to hide its founding date, which is a significant drawback. Registration documents for Demaxis are also missing. Therefore, we’ll have to look for information in other ways.

Social media accounts were created in 2022. The domain was also registered on March 7, 2022. It answers the question “How long has the broker been operating”. Demaxis started working in the first half of 2022. This period cannot be considered long or significant.

How Is Demaxis Regulated?

The broker only mentions on its website that it is regulated, but does not provide specific abbreviations of financial commissions or links to registers. It already suggests that Demaxis is trying to present itself as a legal company. If this were true, we would see the name of the regulator, the license number, as well as a link to the registry.

We also want to check the legality of the organization by examining relevant registers. The firm indicates a legal address in Hong Kong, which means it’s necessary to check the registry of legal entities in this jurisdiction, as well as the registry of the Securities and Futures Commission, which regulates broker activities. In neither case was Demaxis found. In other words, the company is providing a fake address.

Frequently Asked Questions (FAQ)

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Expert Opinion

Initially, the company does not give the impression of being an outright scam or an illegal broker. The trading conditions, of course, are out of the ordinary, as the minimum deposit of $2,500 is clearly inflated, especially when compared to other firms, and the size of the spreads is not indicated. At the same time, it’s strange to see a 0% commission, as the intermediary must somehow make money. However, upon further study, it became clear that Demaxis operates without a license and also has a B-Book business model, which is characterized by the fact that the organization can profit when traders lose money. Also, the operating period is not very long. Therefore, one should not trade here, as the risk of losing money is very high.