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AFX Trading - BEWARE - They are dangerous

Discussion in 'Scam Alerts' started by jdaveh, May 16, 2011.

  1. jdaveh

    jdaveh Recruit

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    Fellow FX Traders,

    I am writing this post because I want to warn the average FX trader about the very dangerous services of AFX Trading (Home).

    I am not sure sure if anything can be done to recover the losses these guys have made on my account but I want to be sure that my experience can serve to protect others from these dangerous individuals.

    Here’s my story:

    AFX Trading offer a service they called “Managed Accounts” where they promise a Return of 50% to 100% a month. They don’t ask you to send them your money, instead they trade on your MT4 account and you pay them a commission on profits weekly. If you miss the commission they stop trading your account. That’s fair enough and quite a smart thing.

    I was happy with this arrangement because it meant that I stayed in control of my funds as they remained in my broker’s account and they traded the account for me.

    We filled in the paperwork and one of the stipulations was that they would close all orders if the equity went below a DD of 20%. On the basis of the returns they promised this was an acceptable loss for me.

    The first week of trading went well. They made over 12% Return in 3 days. The start of the second went well. They made another 12% in a few days. Then came the bad trade. Which they compounded by adding to the position. Even worst, the losses fell below 20% DD threshold and they kept the positions opened. By the time Friday came along my account was at 50% DD with the NFP payroll report a few hours away. I emailed them asking them to hedge the opened positions and to slowly close the hedged DD as they made new profits. They did as I suggested: they hedged the opened positions before the report was released. The NFP report came and went and instead of keeping the positions hedged they removed the hedge. Before I new it they had lost 75% of my account. I closed the open positions myself as I had control over my account and a good thing I did because if I hadn’t I would’ve lost all my funds.

    They pleaded with me to let them trade my remaining 25% so that they could recover the losses. My reply to them was that they should send me their own money and I would place it on my account and let them trade their own money to recover my losses. Well obviously they haven’t accepted to do that - they are very brave trading other people’s money but not so brave trading their own.

    I take full responsibility in that I trusted them too easily and fell for the promises of high returns. I have no excuses for that and myself to blame. But as I said in my intro, I just want to expose them, I want their name to be blacklisted so that when another trader thinks about using them and they do little bit of research on the net, it will become clear to them that they shouldn’t trust these people with even a cent of their money.

    That’s my story. Beware of AFX Trading.

    jdaveh
     
  2. Romeo

    Romeo Sergeant

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    What kind of paper work did you fill out? Was the broker aware that you had assigned an account manager to trade the account?

    The account manager to be taking advices from you as a customer to hedge specific positions for whatever reason sounds already very unprofessional.

    Sorry to hear about your losses, but well done that you informed the other traders.
     
  3. MichelAnge21

    MichelAnge21 Sergeant

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    Kudos for taking responsability for a lapse of judgment. Firms that promise such a rate of return and promise to deliver it consistently are all scams. There is no exception to that rule: absolutely none.

    Any Bozo can easily operate such a scam. You trade one position for client A and the OPPOSITE position for client B. At the end of the week, you get one winner and one loser. The winner is glad to pay the commission and, at worse, the loser ( you ) will close his account.


    In order to avoid unfairly damaging another company s reputation, let s just add that AFX Trading doesn t seem to have any relationship with AFX Capital.
     
    #3 MichelAnge21, May 18, 2011
    Last edited: May 18, 2011
  4. Pharaoh

    Pharaoh Colonel

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    Even better, sometimes the loser can be talked into adding more funds to make it easier for the scammer to "trade back the losses".

    Always demand to see a live account statement with many months of trading before letting anyone manage your money.
     
  5. jdaveh

    jdaveh Recruit

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    They asked me to fill in a spreadsheet with details on the account and details on risk/reward options to agree to.

    The broker was not aware of this arrangement.

    Again in hindsight I should’ve been suspicious of the paperwork process but I thought I’d give them a shot anyway as I thought I only had 20% of my account at risk.

    As I said in my initial post, I take my responsibilities and I want this forum to flag these guys to the community of frustrated fx traders who might find AFX Trading’s proposition an attractive one because it promises good returns and takes the trading out of your own hands. Just don’t do it!!!

    jdaveh
     
  6. jdaveh

    jdaveh Recruit

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    That’s actually what they did. So I asked them to send me their own money and I’d place it on my account and let them recover my losses that way. They chickened out!

    jdaveh
     
  7. MichelAnge21

    MichelAnge21 Sergeant

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    What ? They declined ? I have an idea ! Tell them that, if they put their own money in your account, you ll split with them the 50% per month return for one year. That s an offer they cant refuse.
     
  8. Pharaoh

    Pharaoh Colonel

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    Never let someone have access to your account's trading password without first filing an LPOA with the broker. The vast majority of brokers ban allowing someone else to trade your account without an LPOA.

    If the "secret account manager" loses, you keep the losses.
    If the secret account manager" makes money, you pay a commission and then your broker later cancels the profitable trades - so you still lose.
     
  9. JOHN ELICE

    JOHN ELICE Recruit

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    Afx trading gave very good result to me from last several months

    I GOT GOOD ROI FROM AFX TRADING FROM LAST SEVEN MONTHS.
    COMPANY GIVE FULL SUPPORT TO ITS INVESTERS


    John Elice
    UK
     
  10. Tijl Uilen

    Tijl Uilen Recruit

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    When you see something like "a Return of 50% to 100% a month." you must become suspicious from the very beginning. Such promises presuppose trading with a very high risk. You noticed it during this month when you lost money.

    I do not anyone who would make 50% a month constantly. I could do such thing back-testing my strategies on historical data, but this is very different from real life.

    So I feel sorry for you. Don't trust bucketshops :)
     

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