AFX Trade LLC – Can You Trust Them?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
AFX Trade LLC - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2022
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
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://afxtrader.com
Founded: 2021
Regulations: None
Languages: English, French, Swedish
Deposit Methods: Bank Transfer, Credit Card
Minimum Deposit: $250
Free Demo Account: No
Number of Assets: N/A
Types of Assets: Stock Market, Indices, Commodities, Cryptos, Forex
Trading Accounts and Conditions
AFX Trade LLC offers their clients the following trading accounts:
- Base: The minimum deposit is $250. Spreads are different for various currency pairs. EURUSD is 2 pips, GBPUSD is 2.3 pips, and USDJPY is 2.2 pips. Leverage ratio is 1:100.
- Gold: The minimum deposit is $10,000. Spreads for EURUSD is 1.8 pips, for GBPUSD is 2.1 pips and for USDJPY is 2.0 pips. Leverage ratio is 1:200.
- Platinum: The minimum deposit is $25,000. Spreads for EURUSD is 0.8 pips, for GBPUSD is 1.2 pips and for USDJPY is 1.0 pips. Leverage ratio is 1:300.
- VIP: The minimum deposit is $100,000. Spreads for EURUSD is 0.2 pips, for GBPUSD is 0.5 pips and for USDJPY is 0.3 pips. Leverage ratio is 1:400.
AFX Trade LLC – Advantages
There are no advantages to trading with AFX Trade LLC.
AFX Trade LLC – Disadvantages
Here are all the disadvantages we have found that tell us that AFX Trade LLC is actually a scam:
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Unregulated and Blacklisted by FCA
AFX Trade LLC provides us with an address in the UK, but no corresponding telephone number. In the same breath, the broker also states that AFX Trade Ltd is registered in the Marshall Islands. The problem is that the relationship between AFX Trade LLC and AFX Trade Ltd is not clearly specified.
Now, to operate out of the UK, a broker will have to be registered with the the Financial Conduct Authority – the UK’s financial regulator. So, we checked their database and we found out that this broker has been blacklisted by the FCA for operating in the UK without proper authorization. This means that this broker is an illegal entity – a scam!
Next, being based in the Marshall Islands makes this broker an offshore entity. The red flag here is that this jurisdiction does not have any regulatory framework in place to supervise forex brokers. Therefore, unless a broker has a valid license from another jurisdiction, then being registered in the Marshall Islands means they are still completely unregulated and therefore not authorized to offer their services in any jurisdiction.
Now, this is not where the confusion ends! In their Complaints Procedure section of their legal documents, the broker reveals yet another location where they are supposedly based – St. Vincent and the Grenadines. Now, we checked the online database of the SVG FSA (Financial Services Authority), and we found out that this broker is, in fact, registered there. However, this does not make a difference at all to their regulation status since the SVGFSA has clearly and repeatedly announced that they do not regulate forex and CFD brokers!
And now, since AFX Trade LLC has no license whatsoever, we can say with complete confidence this broker is operating illegally and is out to scam traders.
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.
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.
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Lies About Trading Software
AFX Trade LLC claims to offer their clients both the MT4 and the MT5 trading software. These are the two best trading platforms in the world today, so if this were the case, it would have been a huge win for this broker. AFX Trade LLC did have versions of the MT4 and MT5 platforms. However, the versions they have are the demo versions taken directly from the developer’s (MetaQuotes’) website; these versions are not configured to a specific broker since they are just demos – to show how the software work.
So, basically, this broker does not really have a working trading platform at all and has tried to hoodwink traders into believing they are offering the best trading platforms in the world.
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Issues with Account Opening and Trading Conditions
The first thing we need to point out is that we were unable to open an account with this broker – which is another red flag. And since we were unable to register for an account, we will have to go by whatever information this broker has given on their website about their trading conditions.
The minimum deposit is $250, which is much too much, especially when there are so many great brokers in the market today who will let you open an account for less than $50. Furthermore, the massive jump from the basic account deposit requirement to the other, more advanced accounts, is just ridiculous.
Next, the spreads this broker offers are much too high; they are completely unfavorable for traders. Industry averages range from 1.5 pips to 0.5 pips for starter accounts, so the 2+ pips offered by this broker are just unreasonable.
The leverage ratios offered are all much too high. AFX Trade LLC is targeting the UK and European customers, and in both these jurisdictions, leverage ratios are capped at 1:30. Therefore, anything higher than that are illegal leverages. This is just another indication that we are dealing with a scammer.
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Unreasonable Withdrawal Terms
Since we were unable to access this broker’s client and payment area, we cannot comment on the payment methods. However, the withdrawal terms presented are very unreasonable.
If you wish to withdraw your funds using the wire transfer option, you cannot withdraw less than $1000. You also have to pay a withdrawal fee of 3.5% and 4.5%, which are just too high. And if you have not been trading on your account and wish to withdraw your funds, then you will be charged a massive 90Euros!
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Unfair Bonus Terms
As with most scammers, AFX Trade LLC offers their clients bonus and then puts unfair withdrawal terms in place. So, if you have accepted a bonus from this broker, then you will not be able to withdraw your funds until you have met their trading volume target – 25x the bonus and your deposit amount.
Conclusion
AFX Trade LLC is a scam – they are not to be trusted.
AFX Trade LLC
Pros
- None
Cons
- Unregulated and Blacklisted by FCA
- Lies About Trading Software
- Issues with Account Opening and Trading Conditions
- Unreasonable Withdrawal Terms
- Unfair Bonus Terms
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
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.
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.
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