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AFX Capital Review 2021: Catastrophic Collapse of Longstanding Broker

Jan 17, 2021 , ,
AFX Capital

The now-defunct broker AFX Capital collapsed in 2019. The collapse of their CySEC registered parent company, AFX Capital Markets Ltd, and its other international wings marked a substantial event in online forex and CFD investing. The broker’s failure to segregate client funds led to many traders being unable to recoup their losses.

CySEC Suspension and Investigation of AFX Capital

It isn’t uncommon for brokers to receive warnings from regulators, as in the case of OInvest. However, it is uncommon for a regulator to completely shut down a broker for their conduct. The trouble at AFX Capital began in July 2019. CySEC announced a complete suspension against the broker, as opposed to a temporary or limited suspension. They ordered the broker to completely cease their investment services and activities, along with any advertising. The regulator enacted the suspension because of their suspicion that the broker was not properly handling client funds.

AFX Capital Review 2021

Suspicions of Dirty Dealing Were Correct

In November of 2019, the regulator sent out a second statement. The statement invited former clients of the broker to submit complaints against the broker through CySEC’s website. Furthermore, the regulator stated that the investigation was ongoing. Unfortunately, their initial suspicion turned out to be correct. The broker had not been safeguarding client funds, and there would not be enough to compensate all former clients fully.

Poor Offerings Even When They Were Still Around

When the broker was still operating, their offerings were largely mediocre. The broker had multiple account types available, including ECN accounts with reduced spreads at the cost of added commissions. Their spreads weren’t great in either case, with their basic account’s EUR/USD hovering about 2 pips. It took a $200 minimum deposit to sign up, and they used the popular MetaTrader platform.

Don’t Wait Until It’s Too Late to Recover Your Funds

In conclusion, don’t wait around for a regulatory investigation to reveal empty coffers. Get your money back today. If you don’t think your broker is acting fairly, you can contact us today to implement a powerful chargeback solution that will recover your funds.