Pros & cons of AAFX

AAFX Fact sheet

Finding the right broker is never an easy feat as there are so many brokers in the market these days. The most important aspect to look for though is trustworthiness. You need to be able to fully trust your broker before depositing your hard-earned cash into a trading account on their platform. 

AAFX is authorized and regulated by the Financial Services Authority of St. Vincent and the Grenadines. However, the regulator is known to be less than strict, and there are no other regulatory entities that supervise the broker. This means that the safety level is not very high with this broker. 

Policies that AAFX follows

To increase the safety and security of the traders’ funds, the broker provides negative balance protection and keeps clients’ funds in segregated accounts, separate from the company’s finances. Negative balance protection is critical for traders, especially when the broker provides 2000:1 leverage. To prevent accounts from going negative AAFX does provide this service and implements Stop Out Levels to this end. 

AAFX offers a 35% welcome bonus to new traders. However, this is not something we appreciate in brokers when we review their policies. Offering bonuses and competitions to traders is not how well-regulated brokers attract clients. In order to be eligible for the bonus, the minimum deposit should be 500 USD. Keep in mind that in order to be able to use the bonus, you should wait for an email and contact customer support. If you start trading without waiting for the bonus, the bonus will be lost. This is a bit of a sneaky tactic which further casts some shadows on the broker’s business dealings

There are 152 assets available for trading with AAFX which is not very high. Traders have access to trading Forex, commodities, indices, cryptocurrencies, and shares as CFDs. CFD, short for “Contract For Difference”, is the preferred instrument for short and medium-term market speculations. When trading CFDs, traders can use leverage to increase their purchasing power. AAFX offers up to 2000:1 leverage, which is huge by any standard. Most competitors offer much less available leverage. In general, CFD traders experience more liquidity and can short assets as well as go long. Let’s discuss each asset type offered by AAFX in more detail. 

Forex trading on AAFX

There are 62 available currency pairs for trading, including majors, minors, and exotics. Majors are more liquid than minors, and minors are more liquid than exotics. Liquidity matters for traders as low liquidity bring smaller spreads and more trading opportunities. The most liquid currency pair is EUR/USD and the average spread in pips with this broker is 0.8. Available leverage for trading currencies is up to 2000:1. However, it’s important to note that high leverage is dangerous, especially for inexperienced traders. The minimum trading fee for FX pairs on an ECN account is 0.6 pips. On a Fixed account, fees start from as low as 2 pips. For VIP account holders, EUR/USD spreads start from as low as 0.4 pips, however, opening a VIP account is not easy as there’s a 20,000 USD minimum initial deposit required to open this account. 

Stock CFD trading on AAFX

There are 64 available stocks as CFDs for trading with AAFX. Trading fees start from as low as 1 cent per share. Trading CFDs is best for speculating short and medium-term as you can go short or long, use leverage, and trade more liquid assets. In addition, there are much lower barriers to entry. On the other hand, real shares are better for investing long-term as you do not pay rollover fees. 

Available stocks include popular company shares such as: 

• Apple
• Adidas AG News
• American International Group Inc
• Air France
• Allianz
• Amazon
• American Express Company
• Boeing Co
• Alibaba Group Holding Ltd – ADR
• Bank of America Corp, etc.

Crypto CFD trading on AAFX

Cryptos have become highly popular recently, and Bitcoin is the most popular among them. There are CFDs on Bitcoin available for trading with AAFX. Traders can speculate on Bitcoin vs USD and Bitcoin vs EURO prices. It’s worth mentioning that the assets are very limited compared to what other brokers are offering. The average spreads on both CFDs are 110 pips. Trading crypto CFDs have various advantages. In addition to what we’ve mentioned earlier on CFD trading, when speculating on Bitcoin/USD or Bitcoin/EUR, you don’t need to worry about how to store tokens or how to cash out as your returns go straight to your account balance. 

Commodity CFD trading on AAFX

There are 13 available commodities for trading with AAFX, including precious metals, energies, and soft commodities. Commodity prices change according to global supply and demand. The soft commodities offered by AAFX include:

• COCOA
• COFFEE
• COTTON
• CORN
• WHEAT
• SOYBEAN
• SUGAR
• RICE

Available energy commodities include:

• Brent Crude Oil
• Natural Gas
• WTI Oil

Available precious metals include: 

• Gold vs USD
• Silver vs USD

Indices trading on AAFX

There are 11 available indices for trading. Indexes are essential for analyzing stock markets. Their valuation is also connected to other markets such as currencies and commodities. Indices follow the performance of a basket of grouped stocks. For instance, the US30 or Dow Jones index follows the top 30 US companies, and therefore, indicates the state of health of the American economy as a whole. Spreads start from as little as 1 pip on the US 500 when using the ECN account type. 

Available indexes offered by AAFX include:

• Australian 200
• Spain 35
• Euro Stoxx 50
• France 40
• DAX-Germany 30
• Hong Kong 50
• Japan Nikkei 225
• UK100
• NASDAQ-100
• S&P 500

Every trader has a unique style and each trader values different things in accounts. Some prefer high spreads to high commissions and vice versa. Some are looking for VIP trading conditions while others are searching for cent accounts. In order to meet the needs of a wide variety of trader types, AAFX provides 3 account types: ECN Spread, Fixed Spread, and VIP. Let’s discuss each type in more detail to see what account type might be the best for your trading style. 

Pros & cons of AAFX account types

AAFX Demo Account

AAFX offers free demo trading accounts to its clients. The Demo account can easily be opened from the broker’s home page and you’ll be able to see an “Open Demo Account” button in the top right corner. A demo account helps traders experience live markets without the risk of losing money. Demo trading is crucial for beginners to learn how to use trading platforms, indicators, and general trading. While it’s true that the MetaTrader platforms have a simple design, traders still need to spend quality time learning all the details before going live. 

AAFX ECN Spread Account

The ECN account offers floating spreads starting from 0.6 pips on EUR/USD, while average spreads on most major currencies, including the EUR/USD are around 0.8 pips. The minimum initial deposit required to open this account type is 100 USD. Available leverage is up to 2000:1 and the available platforms are MT4 and MT5, with the account base currencies being USD, GBP, or EUR. 

AAFX Fixed Spread Account

As the name suggests, the Fixed account type offers fixed spreads starting from 2 pips. Each asset class and instrument has different fixed spreads. The ECN and Fixed accounts have a lot in common and both accounts can be opened with 100 USD, EAs (MetaTrader trading bots) are available. Available leverage is 2000:1 and both accounts offer access to the full set of MetaTrader platforms. In addition, swap-free account types are available on all three accounts. 

AAFX VIP Account

The VIP account offers VIP prices and services. Margin trading is available, automated trading is allowed, and access to MetaTrader (MT4) and MetaTrader (MT5) is offered which is similar to other account types. However, in order to open this account type, traders need 20,000 USD minimum initial deposits. Spreads start from as low as 0.4 pips. 

AAFX Islamic Account

AAFX offers swap-free versions of all three account types. The swap-free accounts are also known as Islamic accounts. In order to abide by the religious law of Islam, the accounts do not charge traders with interests when keeping positions open overnight. When traders open accounts, they automatically get swap-free accounts since the broker doesn’t have swaps.

Getting started on AAFX – Main steps

In case you have already made your decision to open a live trading account with AAFX, we are here to guide you through the entire process. Registration and account opening is fully digital and the broker provides a user-friendly website. In addition, the home page is available in 14 languages.

Step 1: Open an account

The first step is to go ahead and open the AAFX home page. You will be able to see an “Open Live Account” button in the top right corner. By pressing that button you will be redirected to a registration page where you are required to fill in personal information about yourself. 

Step 2: Time to verify your account

The next step is to verify your live trading account. For verification, you need to provide proof of your identity and proof of residence. For proof of residence, you can scan or take a clear picture of a utility bill or bank statement and upload it on the website. Make sure there are no shadows or light reflections when you are taking photos. When it comes to proof of identity, you can use these government-issued documents: passport, driving license, or ID card. 

Step 3: Make your deposit and start trading

The final step is to make a deposit and start trading. AAFX provides multiple funding options, including bank transfer, Bitcoin, Neteller, Skrill, FasaPay, WebMoney, Perfect Money, Western Union, and MoneyGram. Most funding methods are instant, but withdrawals may take several business days. There are no transaction fees from the broker's end. Once your account is funded, download the trading platform of your choosing and you are good to go. 

Trading fees with this broker are average. There are no deposit fees, withdrawal fees, or inactivity fees which is a good thing. Both fixed-spread and floating-spread accounts are available, and the trading fees depend on the account type you pick. Trading fees on EUR/USD start from 0.4 pips when using the VIP account. For ECN account users, spreads start from 0.6 pips and average markups on EUR/USD are around 0.8 pips. Fixed spreads start from 2 pips. In order to better understand the fee policies of AAFX, let’s compare it to other brokers. For the comparison, we picked the ECN account which offers spreads from 0.6 pips. 

Comparing AAFX fees with other brokers

AAFX fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

AAFX fees compared to eToro fees

AAFX fees compared to IG fees

AAFX fees compared to XM fees

AAFX fees compared to AvaTrade fees

AAFX fees compared to Capital.com fees

AAFX provides access to the full set of MetaTrader platforms. Both software programs are old but super reliable. The biggest weakness of the MetaTrader platforms is that they look a bit dated. MetaTrader 4 (MT4) was released in 2005 and MetaTrader 5 (MT5) was released in 2010. Since their release, the platforms have not changed much. However, this is also their biggest strength. Yes, they look like old windows programs, but they can easily run on old computers as well. MetaTrader’s platforms can smoothly run on even low-budget devices and they are reliable and trusted. Keep in mind that MT4 was built for trading currencies and if you are planning to trade various asset classes, such as stock CFDs and others, it’s best to pick MT5. 

AAFX provides a mobile trading version of the MetaTrader 4 platform to all clients, and the app is available for both Android and iOS devices. The mobile app provides much of the functionality that can be found in its desktop counterpart, but there are some limitations. For the most part, it is a decent companion to the desktop software as it gives access to order placement and changing, access to your full trading journal, as well as has built-in news functionality with push notifications.

Quality education is very important for novice traders, while experienced traders need tools for conducting technical and fundamental analyses. The broker provides extensive educational material, including video tutorials for teaching how to use trading platforms, educational videos on trading, and e-books to help new traders along. In addition, there is daily technical analysis available, however, the research tools are limited with this broker. Overall, the education and research options are fairly average.

Good customer service is super essential for growth and attracting new clients. AAFX understands this well and provides 24/5 customer support. The support is available in over 20 different languages, and the team of customer support agents is accessible via email, live chat, or over the phone. Customer support offices are located in Australia, Hong Kong, and St. Vincent and the Grenadines. The customer support agents are friendly and professional and overall, the customer support provided by this company is good. 

To sum everything up, AAFX is a regulated broker, however, the regulator is not very strict and the overall safety rating is low. Available leverage is up to 2000:1, which is huge compared to the competitors’ offerings. Available assets include Forex, commodities, indices, cryptocurrencies, and shares as CFDs, and the total number of assets is just 152 which is not all too impressive. There are ECN spread, Fixed spread, and VIP accounts available for trading. The minimum initial deposit requirement for opening ECN spread and Fixed spread accounts is 100 USD. For opening the VIP account the minimum initial deposit required is 20,000 USD. Trading fees on EUR/USD start from 0.4 pips when using the VIP account, while for ECN account users spreads start from 0.6 pips, with average pips on EUR/USD being around 0.8. Fixed spreads start from 2 pips and the available trading platforms are MetaTrader 4 and MetaTrader 5, with both desktop and mobile versions available. Research and educational materials are average, and customer support is outstanding. Overall, AAFX is an average broker and we couldn’t find anything that could be considered very special that would make it stand out from the competition.