Beware! AMFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
AMFX is an interesting case of a broker, and not for the reasons you might think. This alleged FCA regulated company claims to be offering legitimate trading terms, and for the most part we believed it. However, our experience with forex brokers has made one thing perfectly clear- never judge a broker by its looks; always look in the nooks and crannies for it is there that one finds the truth of the matter. Read the review to see for yourself if AMFX should be trusted.
Just to get it out of the way, the broker requires identification documents for opening a live account. This is always a good sign that the company check each of its newly registered clients. However, with AMFX things are different.
It’s never a good sign when we cannot access our freshly registered demo account. Once we opened our email that had a download link for the MT4, we were met with the first major obstacle. The link was broken, meaning that any trading conditions, payment methods (from a client area), and other crucial information will be taken from the website of the company.
Even so, there is no information on actual forex spreads; all that we now is that they are fixed for the Micro and Premium Account. The leverage for the Micro account, acting as the standard, is 1:400, and you need a $500 investment or more to open it. There are two other accounts, none of which have any spread info on them, both of which have a hefty minimum deposit requirement.
User can trade with Forex Pairs, Commodities, and Indices.
The website offers English as its only language.
AMFX REGULATION AND SAFETY OF FUNDS
Here’s where things get tricky. To begin with, the holding company SVS Securities Plc is said to be registered in the UK, with an FCA regulatory stamp. At first, many will succumb to this info, and proclaim AMFX as a safe environment. Yet, we are had to double, even triple, check some things, because we had our suspicions from the start.
The official FCA register, where all licensed companies share a roof, gave us result of a SVS Securities Plc, with two significant details, as underlined in the snip below.
First of all we have a Cloned Firm warning, that even though does not directly apply to AMFX (am-fx.com), is still very suggestive. Second, the official website of operation for SVS Securities Plc is svssecurities.com and not am-fx.com. One should be getting the bigger picture here.
If that was not enough, then a simple search of AMFX in the FCA database produces the final blow.
This clearly declares that AMFX is UNREGULATED. If the FCA says so, then any investment made with this broker is a total risk! With this new development, the clone warning can be seen in a different light, i.e many of the features that AMFX offers are probably taken from previous versions of svssecurities.com.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
AMFX TRADING SOFTWARE
As we previously mentioned, the opening of a trading platform was unachievable. Even the demo account was not a possibility. Nevertheless, the website of AMFX advertises the MT4 as its main platform, which is said to be also available on Android and Apple devices.
A functioning Metatrader 4 is arguably the best trading software for brokers to use. It does take some time to get used to, but once the ropes have been grasped, the possibilities are nearly endless. The terminal offers a huge customization basis for charts, time frames, pending order types, trades in centralized markets, and Expert Advisors allowing for automatic trading even when a user is away from his computer.
What’s interesting, is that while we were entering our registration details, the broker gave us the option to choose another trading software named Vertex. We would have enjoyed experiencing a new platform, but alas this was cut short by AMFX’s lack of professionalism.
AMFX DEPOSIT/WITHDRAWAL METHODS AND FEES
One can never trust an illicit broker with payment information. The only way to be sure is to sign up and access the payment terminal from within the client area. As you know, we couldn’t register, and thus must commit to the website’s payment information.
Account base currencies are GBP, USD, and EUR.
Deposits are made via the following options: Credit Card, Bank Transfer, and Skrill. Unfortunately, there is nothing else on deposits. We cannot confirm the absence of fees or processing times… What’s more is that the legal documents section found on the website is just an illusion; once you start clicking through the pdf files users will be greeted by broken pages. So we have no choice bu to conclude that there are no legal documents, which acts as another solid proof of just how illegitimate AMFX really is.
At least for withdrawals we are given a whole form to complete, which actually looks pretty legitimate. However, it’s confusing that anyone can access it, registered user or not. In it, we have only one option for requesting our money back, through Wire transfer. We believe that the minimum withdrawal amount is $1, while any fees or wait times have not been disclosed.
One thing to remember is that illegitimate brokerage firms always find a way to impose a fee for any reason! Furthermore, seeing that there are no legal documents is cause for concern, because there is nothing that stops AMFX from making up new rules or completely changing trading conditions.
We strongly advise traders to only deposit the minimum deposit, or better yet – not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.