Anyone use AFXI

If so what do you think?
seems to market itself on the fact thats its a true interbank forex platform. really bashes "brokers" for their schemes.

AFXI.com

please dont think this is a plug for the site, i just started trading a few days ago and would like a good analysis.

Ezekiel91,

The problem I have with AFXI [they are an Introducing Broker for Commerce Bank] is the fee structure. They offer 2 pip spreads and then a fee of $1.25 per 10,000 unit currency trade. So if you trade 100,000 EUR/USD you get a 2 pip spread and a fee charge of $12.50. In effect this amounts to a 3 1/4 pip spread. With other pairs it will be higher.

If you go to AFXI, they have a good section on how most brokerage houses screw their customers. It is very descriptive and factual.

As I have stated in other posts on this forum, I recommend trading forex through the futures contracts traded on Globex. Globex offers 1 pip spreads and through InterActive Brokers you can trade for $6/round-turn.

Like most houses or banks, AFXI and/or Commerce Bank will screw you on the interest-rate rollover. If you are due interest, they will not pay unless you have $1 million on deposit with them. You simply get nothing. If you owe interest, you can add about 3% to the actual rate.

With futures, the price of the contract reflects true market interest-rate differentials so you don't get screwed.

Now, if your account only lets you trade 10,000 or 20,000 currency units because you have a small account, then you don't have much choice except to trade through a spot house or bank. In that case at least AFXI and Commerce are honest. You won't get screwed by them, except with the interest-rate rollover.

Just off the bat, in looking at their website, I'll give my opinion. I've never used them or know of anyone who has used them. The things I don't like are:

No mention of CFTC or NFA on their site. They say interbank pricing with 2-3 pips. Should be more like 1-2 pips if real interbank. I noticed some spelling errors on their website. I did a whois on their domain name and the have it protected by proxy (doesn't show name of owner). They may be a legit company, but that's just a few things I find a bit suspicious.

JohnFX