AAFX TRADING Broker Review

AAFX Trading is a well-established STP and ECN broker, operating since 2014 with its headquarters in Hong Kong, and additional offices in Australia and Saint Vincent and the Grenadines. With authorization from the SVG Financial Services Authority (FSA 22916 IBC), AAFX offers trading across 7 asset classes including forex, CFDs on stocks, indices, metals, energies, commodities, and cryptocurrencies. Traders can benefit from a range of account currencies, low minimum deposits starting from $100, and competitive leverage of up to 1:2000.

Trading Conditions 

With AAFX, traders get a mixed bag of experiences. While the broker offers an extensive range of currency pairs (62) and a fair selection of indices (11), its lack of investment programs such as PAMM accounts or copy trading services disappoints more experienced investors. However, for beginners, AAFX presents a decent starting point with its educational resources, low minimum deposit requirement starting from $100, and a variety of trading tools, including MT4 and MT5 platforms.

The broker, established for over 7 years, serves as an ECN and STP broker, ideal for those seeking direct access to liquidity providers. With these technologies, traders benefit from swift order execution and competitive spreads. Nonetheless, AAFX isn’t suitable for passive investors due to the absence of MAM/PAMM accounts and copy trading services.

AAFX offers favorable trading conditions, including low spreads starting from 0.7 pips for VIP account holders and 0.8 pips for ECN accounts, with fixed spreads as low as 2 pips for EURUSD. Moreover, the absence of deposit and withdrawal fees adds to the appeal for traders.

AAFX is well-suited for beginners due to its educational resources, unrestricted demo accounts, and low minimum deposit requirements. It also caters to those inclined towards automated trading with the allowance of trading robots. However, for more advanced traders seeking comprehensive investment options, particularly in passive income avenues, AAFX may fall short.

Regulation and Security 

AAFX Trading is regulated by the Financial Services Authority of Saint Vincent and the Grenadines (FSA SVG), with registration number 22916 IBC. While the FSA SVG regulation offers a level of oversight, it’s worth noting that this regulator is generally considered less stringent compared to others like the FCA (Financial Conduct Authority) or ASIC (Australian Securities and Investments Commission).

Despite being regulated, some traders may find the oversight from FSA SVG less reassuring compared to stricter regulatory bodies. However, AAFX ensures the safety of client funds by keeping them in segregated accounts, separate from the company’s operational funds. Additionally, the use of SSL encryption for data transmission helps protect clients’ personal and financial information, reducing the risk of unauthorized access or data breaches.

Trading Instruments and Platforms 

AAFX offers a diverse range of trading instruments across multiple asset classes. Traders can access:

1. Forex: A wide selection of 62 currency pairs, providing ample opportunities for currency trading.

2. CFDs on Stocks: With 64 CFDs available, traders can speculate on the price movements of various stocks without owning the underlying assets.

3. Indices: A choice of 11 indices allows traders to diversify their portfolios and trade on the performance of global stock indices.

4. Metals: Traders can invest in precious metals such as gold and silver, providing a hedge against inflation and market volatility.

5. Energies: A selection of 3 energy commodities including oil, allowing traders to capitalize on price fluctuations in the energy markets.

6. Commodities: 8 commodity CFDs are available, enabling traders to trade on agricultural products, metals, and more.

7. Cryptocurrencies: AAFX offers trading on 2 major cryptocurrencies, allowing traders to participate in the growing crypto market.

Traders can access these instruments through the widely-used MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms. Both platforms offer advanced charting tools, technical indicators, and automated trading capabilities, making them suitable for traders of all levels. Additionally, AAFX provides educational resources, including guides and video tutorials, to help traders maximize their trading potential on these platforms.

Account Types

AAFX offers traders 3 types of accounts, each differing in minimum deposit size, type, and size of spreads, among other features. Traders have access to margin trading with leverage up to 1:2000, and the minimum deposit size on the platform is $100 USD.

1. Fixed Account:

   – This account type features fixed spreads, with a spread of 2.0 pips for EURUSD.

   – To open this account type, a minimum deposit of $100 USD is required.

   – Traders can utilize leverage up to 1:2000.

2. ECN Account:

   – This account type offers floating spreads, with a minimum spread of 0.8 pips for EURUSD.

   – To open this account, a minimum deposit of $1000 USD is required.

   – Traders can access leverage up to 1:2000.

3. VIP Account:

   – Users with VIP accounts also trade with floating spreads, with a minimum spread of 0.7 pips for EURUSD.

   – To open this account, a minimum deposit of $20,000 USD is required.

   – Traders can utilize leverage up to 1:1000.

Demo accounts are available for all types of trading terminals.

AAFX is a broker that allows traders to gain direct access to liquidity providers, choose suitable spread types, and open trading accounts according to their financial capabilities.

Pros and Cons

Pros:

1. Narrow Spreads: AAFX boasts tight spreads, starting from 0.8 pips for ECN accounts and 0.7 pips for VIP accounts, giving traders competitive pricing.

2. Wide Range of Trading Instruments: With over 150 trading instruments available, AAFX offers a diverse selection, allowing traders to explore various markets and diversify their portfolios.

3. Multiple Partnership Programs: AAFX provides three types of partnership programs, enabling clients to earn additional income through referrals, IB (Introducing Broker) programs, and more.

4. STP and ECN Technologies Support: AAFX employs both STP (Straight Through Processing) and ECN (Electronic Communication Network) technologies, ensuring fast order execution and access to deep liquidity pools.

5. Zero Withdrawal Commission: AAFX charges no commission for withdrawals, providing traders with cost-effective access to their funds.

Cons:

1. Offshore Regulation: AAFX operates under an offshore license, which may raise concerns among some traders regarding the level of regulatory oversight and investor protection.

2. Lack of Investment Programs: The absence of investment programs such as PAMM accounts or copy trading services limits options for traders looking for passive income opportunities.

3. Limited Support Hours: AAFX’s customer support operates 24/6, meaning it’s unavailable on Saturdays, which may inconvenience traders needing assistance during weekends.

Conclusion on AAFX Trading 

AAFX Trading offers a comprehensive trading experience with a variety of account types and trading instruments. With tight spreads starting from 0.7 pips and leverage of up to 1:2000, AAFX provides competitive pricing and ample opportunities for traders to capitalize on market movements. However, the offshore regulation and lack of investment programs may deter some traders who prioritize regulatory oversight and passive income options. Additionally, the limited customer support hours could be inconvenient for traders needing assistance outside of regular trading hours. AAFX is well-suited for both beginner and experienced traders looking for access to a wide range of markets and competitive trading conditions. Its user-friendly platforms, educational resources, and diverse account options make it a viable choice for those seeking to engage in forex and CFD trading.