Is AAFX Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with AAFX try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether AAFX is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker AAFX
AAFXTRADING is an STP and ECN broker, which was founded in 2014. The broker is headquartered in Hong Kong and has offices in Australia and in Saint Vincent and the Grenadines. The company offers its clients access to trading 7 classes of trading instruments, including currency pairs and contracts for difference (CFDs) on stocks, equity indices, precious metals, energies, commodities and cryptocurrencies. AAFX Trading Company Ltd is a registered online trading broker with the company number 22916 IBC , based in Saint Vincent and the Grenadines. Read more about AAFX Available Countries.
💰 Account currency: | USD, EUR, GBP |
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🚀 Minimum deposit: | USD 100 |
⚖️ Leverage: | Up to 1:2000 |
💱 Spread: | from 2 pips (Fixed), from 0.8 pips (ECN), from 0.7 pips (VIP) |
🔧 Instruments: | Currency pairs (62), CFDs on stocks (64), indices (11), metals (2), energies (3), commodities (8) cryptocurrencies (2) |
💹 Margin Call / Stop Out: | 50%/20% |
Pros and cons of AAFX
👍 Advantages of trading with AAFX:
•Tight spreads (from 0.8 pips on ECN accounts and 0.7 pips on VIP accounts).
•150+ trading instruments.
•3 types of partnership programs.
•Support of STP and ECN technologies.
•0% withdrawal fee.
👎 Disadvantages of AAFX:
•No investment programs.
•Customer support operates 24/6.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is AAFX Regulated? Broker’s license
Security (Protection for Investors)
AAFX has three offices. The company’s headquarters are located in Hong Kong. Also, AAFXTRADING has offices in Australia and in Saint Vincent and the Grenadines. The funds of the clients are kept in separate, segregated accounts. For data transfer AAFX uses a secure socket layer (SSL), which reduces the risk of user information leakage.
👍 Advantages
- The funds of the clients are separated from AAFXTRADING equity and kept on segregated bank accounts
- Negative balance protection
- If the broker violates its obligations written in the public offer, the client can file a complaint with the regulator
👎 Disadvantages
- Deposit and withdrawal of funds using debit/credit bank cards Visa, Mastercard or Wire transfer is available only after a client account is duly verified
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by AAFX, which you can see below.
Traders Union experts analyzed the policy of charging commissions on AAFXTRADING. The broker charges commission as a spread. The amount of the spread varies depending on the type of the trading account. The spreads on the platform are either fixed or floating. A fixed spread on AAFX is 2 pips. Minimum floating spread for EURUSD is 0.7 pips, average spread for EURUSD is 0.8 pips. The broker does not charge other commissions.
Account type | Spread (minimum value) | Withdrawal commission |
Fixed | from $20 | No |
ECN | from $8 | No |
VIP | from $4 | No |
Brokers that are similar to AAFX
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of AAFX conditions with its closest competitors.
Comparison of AAFX with other Brokers
AAFX | RoboForex | Pocket Option | Exness | TeleTrade | Octa | |
---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, Web platform |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MetaTrader4, MetaTrader5 |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$1 |
$25 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.7 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.8 points |
From 0.6 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
AAFXTRADING is a broker offering services in over 150 countries. It is suitable for the traders who prefer to work using STP and ECN technologies.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
TeleTrade is a broker for traders who value the variety of trading instruments and trade using their PC or a mobile app. The company is a good broker both for beginners and experienced traders.
The Octa broker has tried to adapt its conditions as much as possible to the various trading strategies used by traders. However, at the moment the company is more focused on active market participants, rather than passive investors.
Conclusions
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- Is Thinkorswim by TD Ameritrade Regulated? Is it safe?
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- Is JustForex Regulated? Is it safe?
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- Is Switch Markets Regulated? Is it safe?
- Is InterTrader Regulated? Is it safe?
- Is TopstepTrader Regulated? Is it safe?
- Is Investmarkets Regulated? Is it safe?
- Is Questrade Regulated? Is it safe?
- Is XTB Regulated? Is it safe?
- Is Fusion Markets Regulated? Is it safe?
- Is Colmex Pro Regulated? Is it safe?
- Is ClickTrades Regulated? Is it safe?
- Is Markets.com Regulated? Is it safe?
- Is Exinity Regulated? Is it safe?
- Is ActivTrades Regulated? Is it safe?
- Is HYCM Regulated? Is it safe?
FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.