Scam Brokers

Absolute Fx Trade – Are They a Scam?

Chainbits Staff | Publish date: 10/06/2023 (Last updated: October 27, 2023 07:30 AM)

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Absolute Fx Trade - DO NOT TRADE WITH THIS PROVIDER

2.5/10

$100

Minimum Deposit

updated 2023

Try other platforms

The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.

Try these regulated brokers if you want to start trading cryptocurrencies

Plus500 Review - Regulated broker

Plus500CY Ltdauthorized & regulated by CySEC

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

Website URL: https://absolutefxt.com

Founded: 2023

Regulations: Not Regulated

Languages: English

Deposit Methods: Western Union, e-Wallets, Cryptocurrencies

Minimum Deposit: $250

Free Demo Account: Unavailable

Number of Assets: Unspecified

Types of Assets: Cryptocurrencies, Fiat Currencies

Trading Accounts and Conditions

Absolute Fx Trade claims to offer their clients multiple trading accounts. The minimum deposit for the starting account is $250. The maximum initial deposit requirement is for their Diamond Account, which requires you to deposit at least $20,000.

Besides the account types and the minimum deposit requirement for each of these accounts, Absolute Fx Trade does not tell us anything about other trading conditions such as spreads, leverages, fees, and so on.

Absolute Fx Trade – Advantages

There are no advantages to trading with Absolute Fx Trade.

Absolute Fx Trade – Disadvantages

We have listed all the disadvantages here that tell us the Absolute Fx Trade is a scammer:

Lack of Regulation

The first piece of evidence that Absolute Fx Trade is a scammer is the fact that this broker is operating without appropriate regulatory authorization.

On their website, this broker provides us with a UK address and telephone number. This would imply that the broker is therefore appropriately authorized to do business in the UK, which means that Absolute Fx Trade is authorized by the Financial Conduct Authority – the financial regulatory authority in this country.

Unfortunately, this assumption would be incorrect.

All authorized brokers are listed on the FCA’s online register. Absolute Fx Trade is not listed with them, which means that this broker is not authorized by the UK’s financial regulator to carry out their business in this country.

Operating in a country without the right permissions makes a broker dangerous and a scammer, therefore, it would be best not to deal with this broker at all.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

Warning Against Broker

The FCA is diligent in keeping an eye on all forex brokers that operate in their jurisdiction. And they have noticed that Absolute Fx Trade is operating in the UK without their permission.

Due to this, the FCA has issued a warning against this broker, letting all traders know that Absolute Fx Trade is not a broker that should be trusted. The regulator warns traders that doing business with this broker would mean that the trader would not be afforded protection from the FCA in case of a scam or any other untoward incident that they may experience when dealing with the broker.

When a trusted and respected financial regulator such as the Financial Conduct Authority issues a warning against a broker, it is wise to heed that warning and avoid that broker completely.

Issues with Registration

The next issue we have with this broker is their registration process. Absolute Fx Trade asks applicants to submit sensitive personal information and identification documents as part of their registration process. This is highly irregular and therefore raises a concern for us.

Regulated and legitimate brokers will not ask for this information at the registration stage; this information may be required after registration is completed or for specific regulatory processes (where the broker will specify exactly why they need that information and they guarantee the safety of the information being asked for).

When a broker asks for personal and sensitive information upfront, it is a sign that things are not right. It would be based to back away from the broker immediately.

Issues with Trading Platform

A broker’s mainstay is their trading platform. So, they advertise the trading platform they offer prominently on their websites. Honest brokers also provide their prospective customers with a free demo account, where they can test the trading platform on offer – as well as that broker’s trading conditions.

With Absolute Fx Trade, we are not told about what kind of trading platform they have. And neither are we given the benefit of a demo account to see for ourselves. Furthermore, since we were unable to register for an account with this broker, we could not find out what the live trading platform actually looks like.

This lack of transparency on their key offering is a clear sign that we are dealing with a scammer.

Issues with Trading Conditions

The only thing that Absolute Fx Trade tells us is that they have various trading accounts available for their clients. The broker adds the minimum deposit requirement for each of these account types, but nothing more. We do not know what the spreads are for each of these accounts, or even the leverage ratios, commissions and so on.

Considering the fact that the trading conditions are the only service offering a broker has, the lack of information on these issues tells us that we are dealing with a dishonest broker.

Concerns About Payments

On their website, Absolute Fx Trade claims to offer multiple payment options – e-wallets, Wester Union, and cryptocurrencies. However, since we were unable to access their client and payment area, we cannot say for sure that these payment options really exist.

We also need to point out that the safer and more traditional payment options are missing. This broker does not offer credit card, debit card and bank transfers as payment methods. And this does raise a red flag.

Most of the options this broker has are irreversible transactions. But transactions such as credit cards and debit cards can be reversed by filing for a chargeback. So, if these safer payment methods are missing, then we would be suspicious of that broker.

In fact, we strongly advise traders to use safer payment options such as credit cards when dealing with a new broker. This way, if you are scammed, at least you have a chance of getting your money back.

Conclusion

Absolute Fx Trade is a scammer and dealing with them would be dangerous. It would be wise to find a legitimate and regulated broker to deal with.