AFX Trader – The Troubling Facts about the Broker

AFX Trader

With the number of brokerages operating in the financial markets multiplying, it can be difficult for those wanting to trade to select one. Every other platform comes off as highly appealing and this can lead to a great deal of confusion because you cannot decide which one to go with. The tall claims and promises are undoubtedly impressive, but you have to bear in mind that there are mediocre as well as shady companies that exist. The problem is that they also present a similar façade even though they are not what they present themselves as. This AFX Trader review is the perfect example.

You should remember that a shady or scam company, or even a mediocre one will never disclose their problems to you. Instead, their goal would be to convince you to sign up with them at all costs, which means they are going to make some very impressive promises. Furthermore, these days it has become easier for these platforms to design professional and attractive websites that help them in carrying out their ruse. This means that you have to be cautious when you are looking at brokers and never fall for their appearance.

No matter how tempting their offerings may be, you have to be careful because this is just how scammers trap their victims. They are well-aware of what to focus on to draw people in and if you make a slight mistake, it can come back to haunt you later. So, what do you do? You should look at a broker closely and ensure they are what they claim to be and not just scammers trying to trap you. One of the brokers you will come across is AFX Trader and no matter how impressive it appears, you should assess it carefully.

Doing so will show you some of the troubling facts about AFX Trader, which show that it is not a broker you want to sign up with. What are they? Let’s take a look.

No license and regulation

The license and regulation of a brokerage is one of the first things to check because it can immediately tell you what kind of a company you are dealing with. Professional and quality platforms will have a license to provide their services and will be regulated by the respective authority in the jurisdiction they are in. Being licensed and regulated means that they have to comply with laws and maintain standards of services and provide investor protection.

What about AFX Trader? When you check their background, you will find that they claim to be based in the United Kingdom. The AFX Trader website has an address that puts them in London, which means that the company should be licensed by the Financial Conduct Authority (FCA). However, when you check their online register, you will not find AFX Trade LLC. This means that the company is clearly not based in the UK.

This is further confirmed by the fact that the FCA has issued a warning against AFX Trader and this is like a black mark. After all, the FCA is one of the most renowned regulatory authorities in the world and the fact that it has issued a warning against AFX Trader is confirmation that the brokerage is unreliable and untrustworthy.

As for the actual location of AFX Trader, you will find that it is operating from the Marshall Islands, which is an offshore jurisdiction that does not regulate its forex industry. Therefore, the region has become an infamous scam haven and companies based there cannot be trusted.

Malicious bonus policy

The second troubling fact that you discover about AFX Trader is associated with its bonus. First off, the fact that the broker is offering a trading bonus to its clients is a problem in itself because this practice has been banned in multiple jurisdictions. This also includes the UK, where the broker claims to be based.

The reason bonuses were banned was because they come with strings attached that are exploitative for traders. This prompted regulatory authorities to ban bonuses altogether, yet AFX Trader is offering them. Most importantly, the bonus policy that you find in the Terms and Conditions of AFX Trader make it apparent why bonuses were banned in the first place.

When you check out their policy, you will discover that they come with the most obscene trading volume requirements. They expect you to achieve a 25 times turnover, which is impossible for any trader and since it is a precondition for withdrawals, you will be unable to access your money.

No trading software

The key feature of any online brokerage is their trading software, which you need for making trades in the financial markets. There are numerous platforms that exist in the market, but the most popular ones are known as the MT4 and the MT5. The fact that AFX Trader is offering these platforms will undoubtedly impress anyone.

But, when you actually check out the distributions available on the AFX Trader website, you will discover that it is a stock distribution that does not have anything to do with the broker. This means that it does not have any bearing on your account with the broker, which essentially means that AFX Trader does not have any trading software at all.

Uncompetitive trading conditions

Another troubling fact about AFX Trader is that it does not have any spreads to offer. This does not come as a surprise after you have learnt that it does not have a trading software. As for leverage, you will find that AFX Trader is advertising ratios that go as high as 1:400. These levels are considered obscene because of the risks associated with leverage.

In fact, it has prompted regulatory authorities to impose a cap on leverage. For instance, the FCA permits leverage of 1:30 for retail traders and not more. Yet, AFX Trader is offering such high levels that are considered downright dangerous.

Bottom Line

These troubling facts about AFX Trader show that it is not a broker you should consider for opening your trading account.