Ok after some trials and errors I found a way that the mesh and animation can be exported from DAZ3D to UE4 using Blender. It took a lot of tries but I think I finally got it working with UE4.10. I know people have got it to work with MAX3D, but it is just not an option for me due to the huge price tag. I liked DAZ3D over Makehuman since DAZ3D has more clothing selections, with Makehuman you probably have to spend a lot of time and effort to make it. The workflow I used is :
DAZ3D export to Collada (DAE) => Blender export to FBX(Binary) => import UE4
For the Blender export, make sure it has to be Binary otherwise UE4 complains that no valid animation take is found.
I’m seeing some warnings about smoothing group and “Imported bone transform is different from original…”, but other than that it appears to be working.