facebookPast 2 to 3 months have been educating, back testing and forward testing with demo acc on a daily basis for forex. Feel like I'm kind of ready to start live. Wondering if anyone with experience in fx has any advice before i start. Thanks ! ? - Seedly

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Anonymous

30 Jul 2019

General Investing

Past 2 to 3 months have been educating, back testing and forward testing with demo acc on a daily basis for forex. Feel like I'm kind of ready to start live. Wondering if anyone with experience in fx has any advice before i start. Thanks ! ?

Discussion (4)

What are your thoughts?

Some advice on choosing a reliable broker

AAAFx Postponed Investor’s 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 “bonus” or “low deposit threshold at US$ 5”. 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 “high bonus”, 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 clients’ 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 “will respond in a few minutes”, or prevarications and excuses of the customer service. Over 6 months after her first inquiry about the withdrawal, she still didn’t get her money.

Case analysis

Investors can draw the following two lessons from Ms. Ding’s case:

  1. The “bonus” 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 “bonus” is a typical slogan of such misleading campaigns. Therefore please be especially careful when you see “risk-free high profits” or “great bonuses” in broker’s advertisement. Always check its compliance and other information, in order to avoid potential risks.

  1. From Ms. Ding’s 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 investors’ chance of receiving the money withdrawn and reduce their loss for some illegal brokers may be forced to process investors’ withdrawal under the pressure of media exposure.

Conclusion

The case involved two brokers, FORMAX and AAAFx.

  1. According to the WikiFX App, illegal forex broker FORMAX has escaped with expired regulation, and the broker has also been exposed in WikiFX’s previous article.

  2. 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 broker’s compliance before making investment.

Guess you could open an account and start with let say 1000 with a leverage of 50:1 ratio, which is the highest available ratio for brokers in Singapore.

Test with your strategy at say 0.01 lot or 1000 units. Then see how it turns out in live trading.

Gabriel Tham

Gabriel Tham

02 May 2018

Tag Team Member at Kenichi Tag Team

Demo account is always good to learn but the emotional and psychological aspect of a demo vs Live ac...

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