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AFX Capital Broker Review

With numerous locations in a number of nations, AFX Capital was previously one of the most well-known online CFD and forex brokers. 2019 will see the company’s complete demise. 

AFX Capital Markets Ltd., the broker’s Cyprus-based parent business, previously possessed a CySEC license. This company completely collapsed, taking a substantial amount of trading capital with it, as did its overseas rivals.

Regulated by: No regulation
Headquarters Country: Cyprus
Foundation year: 2010
Supported Platforms: MT4, web trader
Minimum Deposit: $200
Types of Assets: FX, commodities, indices
Maximum Leverage: 1:500
Demo Account: No
Site Grid http://www.stofs.com; http://www.market-technologies.com; http://www.quantic-am.com; www.afxgroup.com

Financial regulators’ cautions

AFX Capital Markets Ltd. was the owner of AFX Capital. 2019 saw the corporation lose its CySEC license, and CySEC was of course the first to announce the news. 

Following this judgement, various EU regulators published it to protect their citizens from fraud should AFX Capital continue to offer financial services without a license. The UK FCA, the Maltese MFSA, and the Italian CONSOB all issued warnings on the status of brokers.

AFX Capital Trade

In addition to not complying with usual regulatory procedures, AFX Capital had little to offer previously. 

The EUR/USD spread was about 2 pips, which is far too large to be competitive. A commission-only account was an option for traders as well, but they were unlikely to save any money by doing so. 

The rest of the day was uneventful. MetaTrader 4 was used for trading, and the initial investment was $200.

The suspension of AFX Capital’s license caused harm to numerous clients because they were allowed to offer financial services as CIFs within the EEA zone. F

or instance, it was reported in the UK that clients lost more than 7 million pounds as a result of AFX Capital’s demise. They had to intervene and make an effort to recoup the lost monies using their own Financial Service Compensation Scheme. The Cypriot Investors Compensation Fund, which received money claims totaling millions of euros, experienced the same scenario. 

There were numerous problems and not every client was paid. The AFX Capital was originally penalized by CySEC in 2017 for breaking rules before being stopped entirely in 2019. After considering everything, we can say that traders do not have such a good opinion nor experience with AFX Capital.

Under suspicion of malpractice, AFX Capital has been suspended.

It appears that CySEC and other authorities aren’t being strict enough with some brokers. Many people pay their fine and go on, like easyMarkets. For AFX Capital, this wasn’t the situation. CySEC imposed a suspension on the broker in July 2019. They were forced to stop offering any form of financial services as a result of this suspension. Additionally, the broker was unable to promote itself as a financial services company. The broker was initially suspended in response to complaints that they were handling clients’ money improperly.

True to the Allegations Against the Broker, Some Traders Received Nothing

Further investigation into AFX Capital revealed many assertions made by CySEC to their former clients. AFX Capital had permitted accounts to mingle and money to be lost despite the stringent regulations that CySEC enforces for the segregation of customer funds. 

For traders using the broker, the regulator set up a form on their official website where they could file formal complaints. The investigation went on until it became evident that sizable sums of money were missing. Because of this, not all of the clients could have received complete payment.

Before regulators catch brokers mismanaging funds, they may do so for years. Traders frequently discover that they are the ones left holding the bag when the hammer falls.

It is obvious that AFX Capital was a scam because the broker’s license was suspended after it was punished for breaking the rules.

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