AAFXTRADING Review 2024

Trust

AAFX Trading Regulations

AAFX Trading Company Ltd. is registered in St. Vincent and the Grenadines. This is an unregulated entity.

Why is It Important to Know Where Your Broker Subsidiary Is Regulated?

Each regulator has its own requirements for brokers, which may differ substantially. Such requirements cover aspects like leverage levels and specific protections for investors. These protections may include negative balance protection, segregated accounts, and investor compensation funds. Traders should understand the differences between regulations to evaluate whether the broker suits their needs.

AAFX Trading operates under a single entity, AAFX Trading Company Ltd, registered in St. Vincent and the Grenadines. Traders should note that entities registered in St. Vincent and the Grenadines are not regulated. Nevertheless, AAFX Trading Company Ltd takes precautionary measures, such as holding client funds in segregated accounts. This ensures that clients’ money is not used for the broker’s own operational expenses in case the broker faces financial difficulties. Additionally, the entity offers negative balance protection, safeguarding clients from losing more money than they have in their accounts. I have summarized key aspects of the broker’s entities in terms of regulation and safety in the table below:

Is AAFX Trading Safe to Trade With?

AAFX Trading has one entity that is registered in St. Vincent and the Grenadines. This is an unregulated entity that provides negative balance protection and holds clients’ funds in segregated accounts. The segregation of clients’ funds ensures that the broker cannot use them for the company’s own purposes. With negative balance protection, clients cannot lose more money than they have in their accounts. However, the broker does not provide any compensation scheme.

Stability and Transparency

In my tests for the Trust category, I also cover factors relating to stability and transparency. Here, I focused on how long the broker has been in business, the size of the company, and the transparency in terms of information being readily available.

AAFX Trading has been in business for over 8 years. My research indicates that the company is not publicly traded and does not operate a bank. Clients can find the regulatory details in a designated section of the company’s website. Traders can also take a look at the Customer Agreement and the Introducing Broker Agreement in the Terms of Business section of the website.

Information about the different account offerings is available in the Account Types section of the company’s website.

In summary, my research indicated that AAFX Trading can be regarded as having a reasonable level of trust and stability due to the following factors:

• The broker’s entity provides negative balance protection and offers segregated accounts.
• More than 8 years in business.
• Easy access to important information on the company’s website.

Fees

AAFX Trading Fees

For this review, I tested the AAFX Trading Fixed Account, where the broker applies fixed spreads but does not charge commissions or swap/rollover fees. AAFX Trading also offers an alternative account featuring variable spreads.

AAFX Trading Spreads

I conducted tests on the Fixed Account’s spreads during two peak trading periods: the London open at 8:00 a.m. UK time and just after the US open at 2:45 p.m. UK time. These time frames represent the market’s most active trading hours.

I summarized my findings in the table below:

My tests indicated that AAFX Trading offers low spreads for Apple and Tesla. The spreads for Gold fall within a medium range, while those for EUR/USD, GBP/JPY, WTI Oil, Dow Jones, DAX, and BTC are high. I’d note that the spread for BTC is extremely high, so traders who are interested in Bitcoin should choose other options available in the marketplace.

Swap Fees

AAFX Trading does not charge swap fees.

Non-Trading Fees

AAFX does not impose inactivity fees, which means that accounts can be dormant for a period of more than 6 months without incurring extra charges. The broker also refrains from charging any other non-trading fees.

Are AAFX Trading Fees Competitive?

AAFX Trading provides competitive spreads for Apple and Tesla at its Fixed Account. The spreads for Gold are medium, while spreads for other instruments I measured are high. Additionally, the broker also doesn’t charge any non-trading fees.

Platforms and Tools

MetaTrader platforms are popular among brokers because they offer an extensive range of technical analysis tools and support algorithmic trading. Many traders are already familiar with either MetaTrader 4 or 5, so they don’t have to spend time learning the features of the platform.

AAFX Trading Desktop and Web Platforms

In this review, I tested the MetaTrader 5 platform, examining its charts, indicators, drawing tools, order functionality, and overall ease of use.

General Ease of Use

MT5 is an advanced trading platform that could be tailored to traders’ needs. Its interface is rather intuitive, although some traders may want to search for tutorials to take a deep dive into MT5’s capabilities. In general, advanced traders would have no problems with MT5, while beginners may need to spend some time learning the fundamental features of the platform.

For beginner traders, it’s beneficial to familiarize yourselves with various chart options, indicators, drawing tools, and order types. You may need to learn how to create watchlists and manage your trading positions. Despite the initial time and effort required, traders who invest in this learning, ultimately gain a powerful tool that helps achieve better trading results.

While the general look of the MetaTrader 5 platform may seem a bit outdated, I find the platform fairly intuitive and easy to learn. However, for novice traders who have never had experience with this platform, it may initially appear overwhelming. AAFX Trading provides the standard MT5 offering, so those who have previously used the platform with other brokers will be ready to trade in a couple of minutes.

Charts

MT5 offers 97 indicators and 21 timeframes, which is more than enough to customize your charts and adjust them to your needs.

Trend indicators, oscillators, volumes, Bill Williams indicators, and custom indicators help to design the chart you need.

Available timeframes range from 1 minute to 1 month, providing traders with an opportunity to observe short-term developments, as well as significant multi-month trends.

MT5 also supports:

• lines
• channels
• Gann tools
• Fibonacci tools
• Elliott tools
• shapes

These tools are commonly used for decision-making in trading, so their inclusion is a must for any reputable trading platform.

Each chart can be displayed as a bar, a candlestick, or a line. Candlesticks are generally the most popular among traders as they suggest plenty of various patterns that are used for making trading decisions. That said, other chart types also have their advocates.

MT5 charts are accessible even to novice traders. Nevertheless, they also offer enough options for experts.

Like most traders, I have my favorite indicators and drawing tools, which include RSI, moving averages, and channels. I prefer using candlestick charts for the insights they offer through candlestick patterns. I find it easy to use and combine various indicators in MT5.

Orders

MT5 offers all main order types including:

• Market orders. This type of order allows you to buy or sell the instrument at the current market price. It is used when the trader needs to establish a position in the fastest possible way. The main downside of a market order is the necessity to pay a spread, which is the difference between the bid price and the ask price.
• Limit orders. This order is used to buy or sell the instrument at a pre-set price or better. Limit orders are suitable when the trader wants to get a specific entry point and is unwilling to pay the current market prices.
• Stop-loss orders. These orders are used to get you out of the position when the price is moving in the wrong way. The order is triggered when the price reaches a specified point.
• Stop limit orders. This is a stop-loss order which puts a limit order instead of a market order when triggered. This is a potentially risky way to close a position, and it should be used only by experienced traders.
• Trailing stop orders. This order allows you to set a stop order that will move if your open position trends favorably. It is used to protect your profits in case the market direction changes.

Different expiration types are available for all pending orders, including GTC (good-till-cancel), Today, Specified, and Specified Day.

Personally, I strongly prefer limit orders and use them for both entry and exit points. These orders are highly effective in risk management, particularly during significant market movements when market orders can result in prices that deviate greatly from your expectations.

AAFX Trading MT5 Mobile App

In this review, I have tested the AAFX Trading MetaTrader 5 Mobile App for Android.

General Ease of Use

The MT5 mobile app for Android is quite user-friendly. It provides charts, quotes, account balance info, an economic calendar, news, and other tools designed to help traders make informed decisions. As expected, traders have access to the standard features of the MT5 mobile app. If you’ve previously worked with the MT5 app, you’ll be able to begin trading in a short period of time.

Charts

MT5 mobile app offers:

• 30 technical indicators
• 24 drawing tools
• 9 timeframes
• 3 chart types

This selection of options is sufficient for mobile-based trading. I prefer using a mobile app when I don’t have access to the desktop platform but need to monitor the market and open positions. While the app is helpful in certain circumstances, it is not as efficient as the desktop platform, which remains the primary solution for traders who require fast and active trading capabilities.

Orders

The MT5 mobile app allows you to place market orders, limit orders, and stop orders. However, trailing stops are not available on mobile trading terminals.

Tradable Instruments

What are CFDs?

CFDs (Contracts for Differences) are financial instruments that enable traders to speculate on asset prices without owning the underlying securities. The key advantage of CFDs is the access to significant leverage, which is typically not available when trading other instruments. Consequently, CFDs are especially popular for short-term trading.

What Can You Trade with AAFX Trading?

• 58 forex pairs. The list includes popular names like EUR/USD and GBP/JPY, as well as more exotic options.
• 12 commodities. Traders have access to Gold, Silver, WTI Oil, and other popular commodities.
• 11 indices. Major indices like DAX, Dow Jones, and SP500 are available for trading.
• 64 stocks. The stock offering includes big names from various markets like Tesla, Air France, and Adidas Salomon.
• 2 cryptocurrencies. BTC/USD and BTC/EUR are available for trading.

AAFX Trading provides access to forex pairs, indices, commodities, stocks, and cryptocurrencies. The forex selection aligns with industry standards, featuring major forex pairs, crosses, and exotic currencies. The broker provides an extensive range of commodities and indices. The stock offering is limited to just 64 names, but it contains stocks from various markets, so traders will have sufficient opportunities for diversification. The cryptocurrency selection is limited to Bitcoin, which can be traded in pairs with the USD and EUR.

Customer Support

AAFX Trading Customer Support Test

AAFX Trading’s customer support is available 24/7 via online chat, email, and phone. During my tests, I posed various questions to the customer support team through the online chat. These questions included inquiries about negative balance protection and segregated accounts, account types, swap rates, and commissions. The team was prompt and helpful in their responses. I’d note that AAFX Trading’s online chat appears to be initially assisted by a bot, which attempts immediate answers, but a human representative quickly takes over to address questions more comprehensively.

Deposit and Withdrawal

AAFX Trading Deposits

AAFX clients can choose between various e-wallets and cryptocurrencies for depositing funds into their accounts. The broker doesn’t charge any deposit fees and processes deposits instantly. The minimum required deposit is $100.

AAFX Trading Withdrawals

As usual, withdrawals take longer to process compared to deposits, but the processing time is still swift thanks to the use of e-wallets. AAFX Trading does not levy any withdrawal fees, and the minimum amount for withdrawals is $100.

Account Types and Terms

AAFX Trading clients can choose between a Fixed Account (fixed spreads), an ECN Account, and a VIP Account (variable spreads). There are no swap fees and commissions across all of the accounts offered by the broker. The Fixed and ECN Accounts require a minimum deposit of $100, while the VIP Account has a minimum deposit requirement of $20,000.

Why is Choosing the Right Account Type Important?

The account you choose should align with your trading needs. Typically, traders should consider factors like base currency options, contract size, commissions, fees, the number of allowable pending orders/positions, and minimum deposit requirements.

What Account Types does AAFX Trading Offer?

All accounts offered by AAFX Trading are swap-free and provide a maximum leverage of 1:2000. The Fixed Account and the ECN Account require a minimum deposit of just $100, making them easily accessible for beginners. Accounts can be opened in three currencies: USD, GBP, and EUR.

Supported countries

AAFX Trading accepts clients from all countries.

What is CFD leverage?

CFD Leverage allows you to avoid paying the full value of the position. Instead, you pay a deposit, which is called margin, while the remaining funds are borrowed.

In the AAFX Trading case, traders have access to leverage of up to 1:2000. This is an extremely high level of leverage, so traders should be careful and use the appropriate risk management techniques.

AAFX Trading Account Opening Process

To open an account with AAFX Trading, follow these steps:

• Step 1. Visit the broker’s website and click the “Open Live Account” button on the home page.
• Step 2. Enter your name, email, address, country, phone, and date of birth.
• Step 3. Verify your identity and residence by submitting the required documents, such as an ID and utility bill.

In my case, the account opening process took less than five minutes. I was promptly directed to the client portal, which featured user-friendly navigation, so I encountered no problems during the registration.

What is a demo account?

A demo account is an account that allows you to test the broker’s services and your trading skills without risking your money.

Please note that your trading experience will differ when you use a demo account compared to a real-money account due to human psychology, as traders find themselves under pressure when real money is at stake.

It’s a good idea to use the demo account for practicing and learning the trading platform, but do not spend too much time on the demo.

Research

AAFX Trading provides daily research reports in a dedicated section on its website, covering both fundamental and technical aspects of popular trading instruments. I found the reports to be comprehensive and valuable for traders at all levels.

In my personal trading, I use various research reports to take a look at what others are thinking and what levels they are targeting. Such analysis helps understand market sentiment. Traders should note that the interesting research reports are located in the “About Us” section of the website, which is an unconventional location for such research materials.

In addition to daily reports, the broker expands its research offering within the client portal, where traders can access daily news in video format. These short segments cover the day’s key events.

The broker also offers an economic calendar, which can be found in the Education Center part of the website. Additionally, traders have access to other tools like Currency Converter, Fibonacci, Pivot Point, CFD Profit/Loss Calculator, Stop Loss Limit, Daily Signals, Margin Calculator, Pip Value, and Heat Map.

Besides the standard calculators commonly found on brokers’ websites, traders can also explore Daily Signals covering various asset classes. The Heat Map displays the major currencies’ performance against each other and provides an opportunity to quickly evaluate the current market sentiment.

Education

On its website, AAFX Trading presents a collection of educational videos covering various topics such as technical analysis, MetaTrader tutorials, and cryptocurrencies. The broker also offers several ebooks: “Forex Trading Strategies”, “Insider Techniques to Profitable Forex Trading!”, and “New Revolution To Home Based Business.” I’ve noticed that these ebooks could benefit from the inclusion of graphics. Visual aids are often crucial for traders to fully understand the content.

Traders can also take a look at the “Latest News” section, which before included market updates but today presents a collection of articles on MetaTrader 4 and trading tips.

The Bottom Line

AAFX Trading operates under the entity AAFX Trading Company Ltd, registered in St. Vincent and the Grenadines. While it’s an unregulated entity, it does offer securities like negative balance protection and keeps client funds in separate accounts.

The broker has a diverse trading portfolio that includes forex pairs, stocks, commodities, indices, and cryptocurrencies. It shines particularly in its variety of commodities and indices, although its range of cryptocurrencies is somewhat limited.

Clients can trade on the respected MetaTrader 4 and MetaTrader 5 platforms. My testing revealed that spreads on the Fixed Account were generally above the industry average. However, it’s worth noting that AAFX Trading doesn’t charge any commissions or swap/rollover fees across its account offerings.

AAFX Trading provides multiple deposit and withdrawal methods, including cryptocurrencies, without any extra fees. I found that the broker has a respectable research offering, though its educational support is somewhat limited.

FAQ