Broker Trusted Point
Financial market trading is incomplete without the intervention of a financial service provider. The broker is a central body which provides you with basic amenities required to pursue trading. There are sundry firms in the financial market. One of the oldest names in this list is AAAFx broker. Let’s find out what the broker has to offer.
About AAAFx Broker
AAAFx is one of the oldest financial service providers established in the year 2008. It provides trading through contracts for difference, but the range of tradable assets offered is limited compared to other competitors. There is nothing wrong if we say that the broker’s high minimum deposit ($300) does not do justice with the trading features it is offering. Today, many novice, renowned and advanced firms provide better services at an affordable range of $250. It includes T1markets (with a minimum deposit $250) and ROinvesting (with a minimum $100).
Is AAAFx Broker safe or scam?
The broker is registered and authorised in Greece by HCMC (Hellenic Capital Markets Commission) and provides its trading services to just European Economic Area clients. The other AAAFx International is authorised and licenced by the Financial Service Authority (FSA) and provides its services in the rest of the world. There is no logic being a single brokerage firm stills operation with two websites and has two regulatory authorities. It has been 12 years of operation and broker and has not taken a single step to merge its two branches. It will also help the broker to enhance its trading standards and features as there will be a single branch to look upon.
Well, if we talk about Is the firm safe? Then the answer will be “not sure”. There are three types of things: a legit, scam and the one which falls between two. So, AAAFx falls in the third category. We are not sure about the legitimacy of the firm.
History of AAAFx Broker
It is one of the oldest brokerage firms operating in the financial arena since 2008. It has been a long period (12 years) the broker is offering service. Still, it has not worked on the official website’s up-gradation, trading features, trading platforms and several other areas.
The website of the broker is too complicated in comparison to the website of emerging brokers. Also, the information provided on their website is less. Thus, it becomes hard for novice traders to understand the entire concept and trading scenarios from this short information.
Apart from this, trading platforms’ choice is also limited and requires certain up-gradation in terms of features. Many brokerage firms have moved towards MetaTrader 5, but with AAAFx it is still a dream.
There is no information about the types of trading accounts offered by the broker on their official website. However, by researching various sources we concluded that the broker facilitates trading through three basic accounts: Classic account, profit sharing account, and MetaTrader 4 account. These accounts do not carry any mind blowing features, charges a higher amount, and allows trading through its outdated platforms. Have a look:
- Only MetaTrader 4
- Manual trading (no bot trading)
- No commission-free trading
- $2.50 as a forex commission
- Forex trading is not commission-free
- Charges $10 as a forex commission
- Trading available on a single platform: ZuluTrade
- No commission-free trading
- Monthly subscription fee charged $30
- $2.50 as a forex commission
- Performance fee about 25% on gain above the highest previous level
By looking at each account, you must have figured out one basic thing that is commission on trading. Most of the brokerage firms around do not ask for a commission fee on trading. They make a profit through swaps and spreads just like trading. But to open a forex trading account with AAAFx, you need to deposit high minimum deposit $300 plus the commission fee (as seen above varies for different accounts)
The broker provides two options to carry out trading first, MetaTrader 4 and second, ZuluTrade. These choices seem a little bit conventional concerning the contemporary world. The trading world is moving toward MetaTrader 5, and the broker still stands in the market with an “old is gold” mindset. The broker should try to adapt to the progressing technology by employing advanced trading tools to lure huge traders.
Markets and Products for trading
The broker provides trading on restricted financial markets such as foreign exchange market, stock market, cryptocurrency market etc. But options available in a particular market are less in comparison to other brokerage firms. You can see it from the number of assets listed below:
1) Forex currency pairs (including majors, minors and exotics): 34
2) Indices: 10
3) Commodities: 6
4) Treasury: 1
5) Cryptocurrency: 5
The website of the broker does not contain any information regarding the number of assets and trading market. They have just mentioned the stocks on the topmost section of the website, and here also they have not provided a good amount of information. So, it literally seems hard to find out complete and authentic details about the broker.
Opening an online trading account with the broker is more or less like that of other brokers. But, you require to provide some uncertain information which trader might not feel comfortable providing.
The process seems to be complicated, and the main problem is with the time required for document verification. The method of document verification is very time-consuming. So, the broker should try to work in this area to facilitate instant account opening.
Brokers do not offer any trading tool from its side apart from those which come along with trading platforms. The brokerage firm mainly focuses on offering social trading service, and thus, somewhere it has missed this essential aspect. It has pre assumed that signal providers and traders already have their tools, trading strategies and everything they require for trading. It is certainly a major aspect which requires attention.
The broker has two trading websites AAAFx for the European Economic Area and AAAFx international for the rest of the world. Still, the broker fails to reach each corner of the world. Trading is available for a handful of counties such as Australia, South Africa, Germany, Saudi Arabia, leaving some major ones: Korea, Cuba, Iran, Sudan, China, Myanmar, Canada, United States, Puerto Rico.
Commission, fee and spreads
AAAFx does not provide up to the mark spread and commission. It also charges a commission fee on each trade which varies with different account types. For profit-sharing account and MetaTrader 4, the commission is as high as $2.50, and for a forex trader, it is $.30. The classic account also has some fixed charges such as $10 for forex and $0.80 for the contract for difference. The list of numerous trading charges does not end here the broker charges high rollover rates or overnight swaps for the trading positions held open after 17:00 EST.
Overall there are ‘n’ number of high charges, and sometimes the trader itself gets confused where he is providing and for what reason.
Deposit and Withdrawal
The minimum deposit required to open a trade with the broker is as high as $300. The broker does not charge any commission fee (exception forex commission as mentioned above), but the payment processors may charge a certain amount from a trader. You require to pay a straight withdrawal fee of $25 (leaving credit and debit card, which is free).
- Bank wire transfer: Traders can transfer the amount directly from his/her account to the broker’s account, but it takes three long days in this bank transfer, which is a major drawback.
- Bitcoin: This mode of payment is accepted from those who possess bitcoins. There are no transaction charges with bitcoin. However, the process is tiresome as it takes about thirty minutes to process payment.
- eWallets: The methods are Neteller and Skrill. Usually, the deposit is processed instantly with other brokerage firms, but with AAAFX it sometimes delays up to 24 hours.
Thus, there are many issues regarding the withdrawal amount and time required to process payments. The firm should take all these problems and drawbacks into account to improve its future.
Leverages of AAAFx Broker
The broker’s maximum leverage depends on the location of the client, which is not correct. There should be uniformity in the value of leverage. The leverage rates for the trader in the European Economic Area are limited to 1:30. The broker’s international leverage rates are also much higher, reaching 1:500 for all tradable instruments. But, this value declines to 1:200 for equity larger than 50,000 dollars. Also, for the new account, the broker offers extremely low leverage of 1:100. This value is genuinely low in comparison to other well-known firms which provides higher leverage of novice accounts. Many traders usually argue and complain to the customer support team regarding the broker’s low leverage, as seen in many reviews and comments.
AAAFx fails to stand in the competition with other brokers when it comes to providing helpful additional features. Thus, we can say that the financial service provider is suitable for novice traders but not for those who are experienced who are really looking for enhancing their trading standard.
Research tools define the size of your profit. They keep yourself updated with each market movement. Unfortunately, the broker does not provide an economic session calendar, report season calendar, latest news updates, latest financial event information. This somewhere disappoints thousands of traders.
The broker says that it has a proficient team of experts which works round the clock to help you out. Then how come this team fails when it comes to execution. There are various options provided for contacting the broker, but the response time is huge. The client has to wait for long to receive any kind of feedback on its request. The broker makes far better improvement in terms of customer support, as it is the backbone of any business.
Education: Platform Demo, Video and Tutorial
The educational material and courses are distinctly lacking compared to other advanced financial services providers who offer a wide range of material. Educational courses at TradeATF are very famous. It includes a tutorial, webinars, articles, videos on demand.
Disadvantages of AAAFx Broker
1) High minimum deposit $300
2) No additional tools and indicators for trading
3) Meta Trader 5 not available
4) No commission-free trading
5) High trading charges
6) Lack of educational material
7) Lack of research tools
8) Changes required in terms of withdrawal time and charges
9) Little Choice of Platforms
10) No VPS
The Bottom Line
The broker has been operating in the market for the past 12 years. However, no additional trading tools and educational materials are offered. There is no latest market new, in-house team of trading experts, and no regular technical analysis. When we compare it with other brokers, we will find that the $300 minimum deposit is too high and the withdrawal commission of 25 dollars is also relatively high. Moreover, there are various negative customer reviews regarding the broker.
Overall, the financial market is full of talented and advanced brokerage firms offering better services at an affordable range. So, be cautious if you are thinking of opening an online trading account with the AAAFx Broker. In case you find any doubt, consult some good market analysts. 101investing, HFTrading, ETFinance, and several others.
Does AAAFx provide educational material?
No, the broker does not provide educational and research tools for analysing trades.
What is the minimum deposit for AAAFx?
The broker’s minimum deposit is as high as $300 with additional commission charges that vary with account types.
Do AAAFx offer Meta Trader 4?
No, the broker does not provide trading on MetaTrader 4. The two conventional trading platforms of the broker include Meta Trader 4 and ZuluTrade.
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