WikiFX Scamwatch: FCA warns against AFX Trade!

We note that the UK regulator FCA issued a warning to a forex trader called AFX Trade on July 18. Subsequently, the WikiFX team immediately launched a research investigation into it. Next, we will show you the true nature of AFX Trade in our review.

Moving to the WikiFX APP, we find that AFX Trade is included, but with a score of only 1.00/10. The words unregulated and unlicensed are clearly visible. Also, WikiFX warns investors to stay away from this broker!

About AFX Trade

AFX Trade presents itself as a newly established forex and CFD broker. According to the official website, we can see that the broker offers its clients a wide range of trading instruments, including stocks, indices, commodities, cryptocurrencies and Forex.

Regulatory Inconsistencies

In the footer of the website, we can see that AFX Trade has provided a contact address in the UK. However, in order to operate legally in the UK, brokers must be licensed by the Financial Conduct Authority (FCA). However, as stated in the warning, the FCA confirmed that AFX Trade is an unregistered entity and a risk.

Furthermore, in the FAQ section and in the text of the Terms and Conditions, it is stated that the AFX Trade Ltd company is actually based in the Marshall Islands. This is an offshore zone where there is no financial regulator and companies can be incorporated online. Because of this, the Marshall Islands is a preferred base for many financial fraudsters.

But the legal chaos about AFX Trade doesn't end there. Another piece of legal documentation, the Complaints Procedure, alleges that the company was incorporated in another offshore zone, Saint Vincent and the Grenadines (SVG).

AFX Trade is indeed listed among the companies registered in SVG. But this guarantees absolutely nothing to customers. The local Financial Services Authority explicitly warns that it does not license forex brokers and does not supervise International Business Companies that engage in such activities. This enables SVG registered fraudsters to pretend to offer genuine brokerage services.

All signs indicate that AFX Trade tries to hide the fact that an unregulated offshore company is behind it.

Trading Conditions

The trading conditions described on the website provide us with further evidence that AFX Trade could not be a licensed broker in the UK. The leverage of the three types of trading accounts varies between 1:100 and 1:400.

The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

Another clue is that AFX Trade offers bonuses, which is not allowed to brokers in the UK and other regulated jurisdictions.

AFX Trade specifies a 2 pip spread for the starter account. Most licensed brokers offer more favorable terms. The minimum deposit of 250 USD is also not very competitive. Some leading brands in the industry allow you to test your trading skills with token amounts of just 1 USD or 5 USD.

Trading Platforms

AFX Trade claims to offer clients the two most established trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). But the installation files that can be downloaded from the website represent the generic version of the software, which is not configured for a specific broker. Such a demo version of the platforms can be taken directly from the developer of the software, MetaQuotes, and does not provide the ability to conduct real trading.

At the time of writing this review, it was not possible to register a new AFX Trade account. Therefore, we cannot confirm whether AFX Trade offers functioning trading software. But given the lack of a license and the warnings from financial regulators, we can say with a great deal of confidence that even if this website had a trading platform, this trading would be fictitious.

You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customized scripts for backtesting trading strategies.

Conclusion

No doubt, AFX Trade is a risky broker! If youre scammed by this broker, please keep the evidence and contact us as soon as possible. You can also log in to our official website or mobile app for self-exposure, copy this link to the browser to open it, and check how to expose the scam https://bit.ly/3dWv4N1

As we all know, Forex trading has a significant level of risk. Make certain that the broker you choose comes highly recommended and has excellent reviews on WikiFX. Conduct extensive research on a certain broker to see whether they have any complaints, particularly on the withdrawal procedure, customer support, website stability, and so on. Before investing, it is preferable to choose a reputable and well-recommended forex broker.