In this review of the Daweda Exchange we focus on their Auto-trading system.
It is not a unique concept, nevertheless it is interesting. It allows higher payouts, but on the other hand the execution of your orders might not be as simple as with a broker/market maker. It is because you depend on other traders willing to take the opposite side of your trade.
Therefore our general recommendation would be to be extremely careful when switching from the Daweda demo to the real account, because the execution of your trades could be very different on the live account.
100% payouts, really?
Another problem that we see with Daweda is their claim that you will get 100% payouts. It is a bit misleading, because the nominal return on your investment is 100 %, but you have to pay a 5% fee. So the real payout is 95 %. It still is the highest you can get nowadays, but we don’t think it is fair to advertise 100 % payouts.
And you should also know that Daweda will take its 5% fee even on losing trades, so every time you risk 105 % of your investment, meanwhile with other brokers it is 100 %.
The vast majority of other brokers don’t charge trading fees, so to compare apples with apples Daweda should advertise net payouts of 95 % (fees deducted), that is our opinion.
As we said, the vast majority of brokers do not charge any trading fees. And showing the Daweda fee as 0.5$ compared to fictitious 10%-20% of other brokers is not fair either. But the reason is clear, 0.5$ looks better than 5 %, even though it is the same.
So the truth is that Daweda charges a 5% trading fee meanwhile other brokers 0%. And it is not the only lie Daweda is using in its table, the minimum contract size with other brokers is not $25, but as low as $1. So 10 times less than Daweda. And we don’t know what Daweda means by “full statistics” that other brokers don’t have.
So the Daweda comparison table with other brokers is manipulated.
Beware of the Auto Trading System
Here is the biggest problem of Daweda, they offer an Auto-Trading System (ATS) that is allegedly “proven and reliable”. Proven how? Can anybody prove that it is profitable? Reliable how? We are not seeing answers to these questions.
The Auto-Trading System uses a primitive formula to determine a trend and then it places trades according to it and to your settings. We very seriously doubt that this strategy can be profitable in the long term.
But the worst thing about the Daweda ATS is that they won’t let you try it on the demo, you need to deposit at least $350 to get access to it. So they want you to risk your money since the first trade with a system that you could not test! This is totally irresponsible and should be forbidden, especially for regulated brokers!
This how all scams that we have reviewed so far work, they say they have a proven trading system that you will get access to after you deposit. So why is Daweda behaving the same way? Why they don’t let you try their Auto Trading System on the demo without depositing any money?
We assume that is because the ATS is not profitable and they don’t want you to discover it until they make at least some money on you thanks to the trading fees.
Daweda Exchange is obviously not honest, because it uses a manipulated comparison with other brokers and because it offers an Auto Trading System that you cannot try until you deposit money.
Therefore we don’t recommend trading binary options with Daweda Exchange at this time.
See the list of binary options brokers that we recommend.