AAFX Review

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8 minutes read/Updated: 30 September 2020

AAFX is a registered but unregulated forex broker based in Saint Vincent and the Grenadines. Its leverage is among the highest available, making it suitable for clients interested in trading with the highest stakes. This article will give an analysis of the spreads and leverage offered by AAFX with an objective overview, which is vital before you decide where to invest your money.

Strengths
  • Amongst the highest leverage around
  • No commission charged
  • More than 200 stocks and 40 currency pairs
Weaknesses
  • Not currently regulated
  • Limited platforms and tools

WHAT DID OUR TRADERS THINK AFTER REVIEWING THE KEY CRITERIA?

Summary and spreads

AAFX is legally registered under the name AAFXTrading Company Ltd, and alongside its headquarters in Saint Vincent and the Grenadines, it also has offices in Hong Kong and Malaysia. With some restrictions, it is available to clients across the globe. The fact that AAFX is not currently regulated by any government body may be of concern to clients, especially given the high-risk nature of leveraged trading. While it specifies that client funds are kept separate from those of the company, AAFX does not have membership with a third-party dispute resolution organisation, meaning any problems with the broker may be harder to resolve.

AAFX has a competitive offering for both fixed and variable spreads. AAFX offers three account models — a Fixed account, an ECN account and a VIP account. All are available with a base currency of either USD, EUR or GBP. Both the Fixed and ECN accounts are commission-free but have different spread offerings. While the Fixed account has fixed spreads starting from two pips, the ECN account provides variable spreads starting at 0.2 pips. Meanwhile, AAFX’s VIP account claims to offer clients with starting balances of $20,000 access to commission-free and swap-free trading.

Both Fixed and ECN account types require a minimum deposit of USD/EUR/GBP 100 to get started. AAFX’s full selection of assets is available to clients of either account. These are diverse, including over 200 stocks, 40+ currency pairs and cryptocurrencies. With regards to trading platforms, AAFX has opted to restrict its offering to the most popular and widely-used trading platform, MetaTrader 4. This is available for PC and Mac as well as mobile devices on iOS and Android.

Leverage

Clients interested in high-risk, high-reward trading can access maximum leverage of 1:2000 with AAFX. Even among high leverage brokers, this rate is extremely high, giving you the opportunity to expand your trading position significantly. As with any trading strategy, leveraged trading requires experience and caution when exercised.

Access to the maximum leverage of 1:2000 is dependent on the account size. For its ECN and Fixed accounts, AAFX offers 1:2000 for accounts up to $20,000. This drops to 1:1000 for account sizes from $20,000 up to $250,000, and it drops again to 1:500 for accounts above $250,000. Maximum leverage remains at 1:500 for any account size over $250,000. Leverage availability is different for VIP accounts: these clients will have 1:2000 leverage for account sizes up to $250,000, at which point it will reduce to 1:1000, then again to 1:500 for accounts over $500,000.

The bottom line

AAFX’s offering of platforms and tools may be limited, but its range of assets is fairly diverse, and the low spreads keep trading costs competitive. The biggest selling point that differentiates AAFX from other leverage brokers is the extremely high leverage offering. This will attract clients looking to magnify their funds for maximised trading positions.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.