Some advice on choosing a reliable broker
AAAFx Postponed Investorâs Withdrawal for over 6 Months
Broker: AAAFx
Regulatory status: not regulated
Complainant: Ms. Ding
Cause of complaint: heavy loss and withdrawal failure
On the appealing forex market, both high rated and low rated brokers compete for a share of the pie. To increase their market share, the low rated brokers try their best to attract more investors with misleading advertisements such as offering so-called âbonusâ or âlow deposit threshold at US$ 5â. Therefore, it is crucial for investors to choose a reliable broker. Recently, Ms. Ding told WikiFX about how she was defrauded by AAAFx, an unreliable and illegal forex broker.
Event recap
In mid-September of 2018, Ms. Ding, drawn by the so-called âhigh bonusâ, opened an account at forex platform FORMAX and began trading. As she seldom made any profits at first, Ms. Ding only applied for one withdrawal in late October. Later, things started to go wrong at FORMAX, as the broker first took back the bonuses it had given out and then transferred all clientsâ assets to the platform AAAFx without their permissions. After that, Ms. Ding asked the customer service about her withdrawal issue via social media messages and emails, but she either got auto-replies that the broker âwill respond in a few minutesâ, or prevarications and excuses of the customer service. Over 6 months after her first inquiry about the withdrawal, she still didnât get her money.
Case analysis
Investors can draw the following two lessons from Ms. Dingâs case:
- The âbonusâ pitfall
In recent years, the booming forex market more brokers attracted various forex brokers. The compliant brokers can easily carve out a niche on the market, while the illegal brokers seem to rely mainly on false advertisements to increase their market share, and âbonusâ is a typical slogan of such misleading campaigns. Therefore please be especially careful when you see ârisk-free high profitsâ or âgreat bonusesâ in brokerâs advertisement. Always check its compliance and other information, in order to avoid potential risks.
- From Ms. Dingâs experience of withdrawal failure after her deposits was transferred to AAAFx, WikiFX reminds investors that if you find the irregularities of brokers, such as delaying withdrawal, stop trading immediately and seek media assistance to expose them by sharing your experience. This can, to some extent, increase investorsâ chance of receiving the money withdrawn and reduce their loss for some illegal brokers may be forced to process investorsâ withdrawal under the pressure of media exposure.
Conclusion
The case involved two brokers, FORMAX and AAAFx.
According to the WikiFX App, illegal forex broker FORMAX has escaped with expired regulation, and the broker has also been exposed in WikiFXâs previous article.
AAAFx currently has no valid regulatory status, with a poor WikiFX rating of 1.93. The broker has received heavy complaints recently and shows low credibility, while its relation with FORMAX is still unclear.
WikiFX reminds investors to stay away from the two brokers and keep in mind to verify brokerâs compliance before making investment.
Some advice on choosing a reliable broker
AAAFx Postponed Investorâs Withdrawal for over 6 Months
Broker: AAAFx
Regulatory status: not regulated
Complainant: Ms. Ding
Cause of complaint: heavy loss and withdrawal failure
On the appealing forex market, both high rated and low rated brokers compete for a share of the pie. To increase their market share, the low rated brokers try their best to attract more investors with misleading advertisements such as offering so-called âbonusâ or âlow deposit threshold at US$ 5â. Therefore, it is crucial for investors to choose a reliable broker. Recently, Ms. Ding told WikiFX about how she was defrauded by AAAFx, an unreliable and illegal forex broker.
Event recap
In mid-September of 2018, Ms. Ding, drawn by the so-called âhigh bonusâ, opened an account at forex platform FORMAX and began trading. As she seldom made any profits at first, Ms. Ding only applied for one withdrawal in late October. Later, things started to go wrong at FORMAX, as the broker first took back the bonuses it had given out and then transferred all clientsâ assets to the platform AAAFx without their permissions. After that, Ms. Ding asked the customer service about her withdrawal issue via social media messages and emails, but she either got auto-replies that the broker âwill respond in a few minutesâ, or prevarications and excuses of the customer service. Over 6 months after her first inquiry about the withdrawal, she still didnât get her money.
Case analysis
Investors can draw the following two lessons from Ms. Dingâs case:
In recent years, the booming forex market more brokers attracted various forex brokers. The compliant brokers can easily carve out a niche on the market, while the illegal brokers seem to rely mainly on false advertisements to increase their market share, and âbonusâ is a typical slogan of such misleading campaigns. Therefore please be especially careful when you see ârisk-free high profitsâ or âgreat bonusesâ in brokerâs advertisement. Always check its compliance and other information, in order to avoid potential risks.
Conclusion
The case involved two brokers, FORMAX and AAAFx.
According to the WikiFX App, illegal forex broker FORMAX has escaped with expired regulation, and the broker has also been exposed in WikiFXâs previous article.
AAAFx currently has no valid regulatory status, with a poor WikiFX rating of 1.93. The broker has received heavy complaints recently and shows low credibility, while its relation with FORMAX is still unclear.
WikiFX reminds investors to stay away from the two brokers and keep in mind to verify brokerâs compliance before making investment.