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Is this broker a scam?

  • #21
  • May 23, 2011 11:22am May 23, 2011 11:22am
These guys have promised %20 bonus. I have deposited 22 K but didn't get the promised bonus. They still call me to deposit more.

Stay away from these guys. Currently I work with FXCM and very happy.
  • #22
  • Edited Oct 26, 2011 12:59am Oct 25, 2011 11:00am | Edited Oct 26, 2011 12:59am
For a long time I have been a dedicated Ava MT4 trader, invested much more than $25,000. It grieved me when I found out that there are major price differences between two different platforms in Avafx, Avatrader and Ava MT4.

In one screen shot I captured as attached below there is 0.023 difference for 1 ounce of silver:

For Avatrader the bid is 41.626
For Ava MT4 the bid is 41.603


Since the minimum trading size for silver is 100 ounce that meant

For 0.1 lot (1000 ounce) of silver sold, there would be more than$20 difference in cost.

For 1 lot (10000 ounce) of silver sold, there would be more than $200 difference in cost.

For 2 lot (20000 ounce) of silver sold, there would be more than $400 difference in cost and so forth.

Similar situation can also be found at other screen shots I found.

I ever tried to reach avafx regarding the issue, however after waiting for almost 2 months, they just said the prices are 99.99% identical and don't want to talk more.

I asked them how do they came up with 99.99%, they say, $31.98 / $32.00 = 99.9375% ~ 99.94

So firstly 99.9375% is NOT 99.99%.

Secondly, one set of bid and ask I just captured recently on their platform between gold is bid 1674.26 vs. ask 1674.86

And 1674.26/ 1674.86 * 100 = 99.96% which is higher /closer than the percentage 99.9375% they provided.

And that means for gold trader if they buy 1 lot of gold but the filled price is at ask 1674.86 instead of 1684.26 they consider that is mostly identical, and not an issue! So if all brokers do the same, offering the ask price when traders want to buy, wouldn't that be chaos?

Thirdly, one set of bid and ask I just captured recently on their platform between silver is bid 31.841 vs. ask 31.891

And 31.841/ 31.891 * 100 = 99.843% which is very close to the 99.9375% they provided, according to their unclear "identical" definition.

And that means for silver trader if they sell 1 lot of silver but the filled price is at bid 31.841 instead of 31.891 they consider that is mostly identical, and not an issue!

What if brokers in the world just filled the sell orders from traders at ask price? Wouldn't the world be in chaos?


Really, they think this make sense? In forex which high leverage is involved they are using the calculation for normal non-leveraged investments.

But in forex the difference of 1 - 99.94% is magnified a hundred or more times so the actual difference in dollar terms is hundreds of times of that.


For 99.9375% identical in price,

Only if one spend $32.00 to short one ounce of silver, so the difference in dollar is only $32.00 * (100 - 99.9375) % = $0.02 = 2 cent.

Like if one short only a single share of a silver stock worth $32.00 from a regular stock broker, and the broker filled the price at $31.98 instead of $32.00, looking at the difference of $32.00 and $31.98 on only one share of the silver stock, then one may be willing to accept that it is 99.375% identical, set aside commission wise is probably not very sound to short only one share of stock.

But in reality no one short only one ounce of silver in forex.

On leveraged forex, for one lot of silver it is $32.00 * (100 - 99.9375) % * 10000 = $200 of difference

So with the 99.9375% identical claimed by avafx it does cost me $200 more per lot in actual dollar value, which is fact.

So I see the argument need to consider the leverage effect and I can not accept their dismissing the issue as insignificant.

Please advise if any. Thanks.
Attached Image (click to enlarge)
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  • #23
  • Oct 25, 2011 10:50pm Oct 25, 2011 10:50pm
I have been a AVA customer for 3 years until recently where I decided to close the account. I received the entire balance in my bank account within 3 days - no questions asked.
  • #24
  • Oct 26, 2011 6:20am Oct 26, 2011 6:20am
Quoting ipine
[size="3"]For a long time I have been a dedicated Ava MT4 trader, invested much more than $25,000. It grieved me when I found out that there are major price differences between two different platforms in Avafx, Avatrader and Ava MT4.

In one screen shot I captured as attached below there is 0.023 difference for 1 ounce of silver:

For Avatrader the bid is 41.626
For Ava MT4 the bid is 41.603


Since the minimum trading size for silver is 100 ounce that meant

For 0.1 lot (1000 ounce) of silver sold, there would be more than$20 difference...
This is requote in a very ugly way.

What the hell is Requote ?

The price you clicked is not the price the broker is willing to give you.

*Not willing* implies that the broker is at a disadvantage if the deal went through at the price you clicked.

Remember:
Bad for you = Good for broker.
Good for you = Bad for broker.

Therefore, a requote is something the broker can do to screw you.

AvaFX uses a dealing desk that means your loss is their profit. Your profit is their loss.

They are not regulated in any serious market & willing to rob you.
  • #25
  • Nov 30, 2011 3:39pm Nov 30, 2011 3:39pm
Quoting nedim75
This is requote in a very ugly way.

What the hell is Requote ?

The price you clicked is not the price the broker is willing to give you.

*Not willing* implies that the broker is at a disadvantage if the deal went through at the price you clicked.

Remember:
Bad for you = Good for broker.
Good for you = Bad for broker.

Therefore, a requote is something the broker can do to screw you.

AvaFX uses a dealing desk that means your loss is their profit. Your profit is their loss.

They are not regulated in any serious market & willing...

http://www.forextradingzone.org/reviews

AvaFX is a somewhat questionable forex outfit based in Israel (with a minimal presence in the British Virgin Islands and an office in Ireland). Just established in 2006, the organization walks a very fine line between an obvious scam and a legitimate business. It is starting to gain a poor reputation, which will hopefully deter some traders from gambling their accounts with an unpredictable and possibly predatory broker.


Location:Tel Aviv, Israel
Guaranteed stop losses:No - orders executed at best available price
Swap-free accounts:Yes - no extra charges and available to everyone, not just Islamic traders
Typical spread on EUR/USD:3 pips (0.0003)
Order processing:
Market Maker
  • #26
  • Jan 8, 2014 12:54pm Jan 8, 2014 12:54pm
To test a broker i found this software

http://www.brothersoft.com/anti-scam...-4-521899.html
  • #27
  • Feb 10, 2014 3:20pm Feb 10, 2014 3:20pm
Quoting ocram72
To test a broker i found this software http://www.brothersoft.com/anti-scam...-4-521899.html
I think we should not just jump into conclusions with issues like this, as I wonder sometimes how a broker who invested much to become one could do something that would affect them.. Maybe something went wrong or something was not understood. This is why it is necessary to look through the terms of agreement as it goes a long in helping us make our decision. Another thing that can help as well is communicating with the broker and following through with whatever new developments they have, this something I appreciate Profiforex online agents for, very quick to respond. We learn to develop that trader broker relationship!
  • #28
  • Feb 11, 2014 7:21am Feb 11, 2014 7:21am
AvaTrade a scam? Really?
  • #29
  • May 10, 2014 6:58pm May 10, 2014 6:58pm
Hello Everyone. I am a junior member and am not allowed to open a new thread. This thread seems to be the most relevant on my feedbacks on the broker Dupont Fx

Dupont FX Review - 1. Stay Away from their Managed A/c (Autotrading A/c). What a load of BS!
2. Determine upfront on their so called `bonus conditions’. Many other brokers don’t have similar conditions, so why accept !

I funded my account with USD5k and received an equivalent amount of bonus. Within about 2 weeks, the account was blown away with a loss of USD9,584.41.

From an analysis of the trades made [as attached], it is clear that the team is at best highly negligent, and at worst, fraudulent! Come on guys, you don’t make monies from your clients with that kind of lot sizes. There were 24 lots buy and 24 lots sell within a minute span, out of a USD10k account! This is irresponsible risk management. Win or lose, imagine the amount of spreads they just made!



Separately, I have another 2 accounts and have been trying to make withdrawals since 1st and 6th May’14. The original investment amounts are USD2000 and USD1000 (6 months ago) and bonuses of USD1000 and USD500 were given. The position of the accounts as at 8 May’14 is as follows:-

[See attached file for the summary in PDF format]

Deposit / Win Bonus Balance
(Withdrawal)
A/C 1 2000 904 1000 3904
(1000) (1000)
-------- ----- ------ ---------
1000 904 1000 2904
A/C2 1000 443 500 1943
------- ------ ------- -------
2000 1347 1500 4847
===== ==== ===== =====

I have requested to make withdrawals of USD3347 (2000 + 1347) which are my deposit sums and the winnings’ amounts. However, I was informed on 7 May’14 that I am not allowed to do so as I have yet to transact the minimum number of lots. What a surprise as it was never made known upfront and even the customer service officer in my conversations with him all along have never mentioned these `so called bonus conditions’. I am protesting on this matter and will be following up with the broker on these rules and am currently waiting for them to work out the `so called’ entitled withdrawal amounts.
My other brokers do not have these conditions and I know a lot of them don’t. Overall, it has been a bad and painful experience. They just want your money. Stay away.

TK,Malaysia 11 May14
Attached Image (click to enlarge)
Click to Enlarge Name: 1004507 6may14.png Size: 94 KB
Attached File(s)
File Type: pdf Dupont managed acct2 table only.pdf   88 KB | 343 downloads
  • #30
  • May 18, 2014 7:32am May 18, 2014 7:32am
Who are AVA FX regulated by? Only go with well regulated brokers as only then will you have recourse to events like this.
  • #31
  • May 25, 2014 10:10am May 25, 2014 10:10am
Quoting bertotorde
AvaTrade a scam? Really?
ForexBrokersJournal.com recently published a detailed Avatrade Review . It doesn't seem AvaTrade to be a SCAM broker but their trading conditions is not ideal at all.
  • #32
  • May 25, 2014 11:42pm May 25, 2014 11:42pm
Quoting camil7
Who are AVA FX regulated by? Only go with well regulated brokers as only then will you have recourse to events like this.
As far as I know avafx is regulated by ASIC, BVI financial services commission, FSA (Japan) and Central bank of Ireland..nothing serious
  • #33
  • May 27, 2014 5:22pm May 27, 2014 5:22pm
Considering recent events, I suggest stay away from this broker. I deposited some money, they took it from my bank account but didn't transfer to my trading account, because apparently I hadn't validated my account sufficiently. So I uploaded needed documents through their website, they said documents were corrupt and they couldn't open them, then I sent them on support email, first emails didn't go through, then they said they couldn't open my documents. Everyone else I sent those files to try could, but they couldn't. Then they wanted me to prove that my bank account is connected to credit cards I deposited from (???). All that started a week ago and its still not resolved, not sure it even can be, they don't seem to understand anything I explain them. I just hope I can withdraw everything I have there and be done with those blithering morons. If you value your time, nerves and money, use some other broker.
  • #34
  • Sep 22, 2014 4:15pm Sep 22, 2014 4:15pm
I opened account with this guys about 10 months ago and deposited $2k, on top of that I was given $500 bonus. When I made my first $1000 profit I tried to withdraw $500. For some reasons they were not executing my withdrawal and not giving any explanation. After few weeks of struggle some other person (not my account manager) inform me that since I was given bonus I had to complete some minimum amount of lots before I can make any withdrawal. On at I've requested to remove the bonus, and they did so. Few months after that again I tried to make a withdrawal. Again nothing was happening. After few weeks of back and forth emails some other person came into picture saying that he is the account manager now and promised to handle my withdrawal. However, after a while he came back with the new reason sang that they cannot do anything if I have open positions. Few weeks later I closed all the positions and submit new withdrawal request. Guess what happened. Now another guy contacted me saying he is the account manager now and started asking me why I need to withdraw and negotiate with me how much to withdraw. This was totally insane. Can you imagine you broker asking you is kind of question? Anyway, in short in deposited $2000 and in 10 months made profit Of about $1,500. In addition, after I asked them second time for withdrawal, they changed my spreads and increase it almost 3 times. I'll wait one week more if they execute my withdrawal I'll post about it, if not again I'll let everyone know in forex market.
  • #35
  • Oct 19, 2014 11:52pm Oct 19, 2014 11:52pm
Well, finally I got my withdrawal. they promised that from ow on there will not be any problem or delay, lets hope!!!!!!!!!!!!!!!
  • #36
  • Oct 23, 2015 11:19am Oct 23, 2015 11:19am
Hi everyone, I am struggling with Avafx since longtime but my money is stuck in the platform hence with them.

Poor customer support
No technical analysis or guidance provided
Delays in deposit transfer to account which creates panic and you have to hedge at higher levels.
Although they promise you trade recommendations, they leave you to trade on your own and incur losses.

Please save your hard-earned money and don’t trade with avafx.
  • #37
  • Oct 25, 2015 12:01am Oct 25, 2015 12:01am
Hi everyone, Avafx and other brokers are on an "Unauthorized trading platforms" list where I live. Please be cautious! Here is the link:

https://www.lautorite.qc.ca/en/press...2015-00-0.html
  • #38
  • Oct 25, 2015 4:50am Oct 25, 2015 4:50am
Quoting frenchiematt
Hi everyone, Avafx and other brokers are on an "Unauthorized trading platforms" list where I live. Please be cautious! Here is the link: https://www.lautorite.qc.ca/en/press...2015-00-0.html
good list so far! we shouldn't avoid all broker in this list, I also noticed many familar "names" in the list. Thanks.
  • #39
  • Oct 26, 2015 2:46am Oct 26, 2015 2:46am
Quoting leopard31
{quote} As far as I know avafx is regulated by ASIC, BVI financial services commission, FSA (Japan) and Central bank of Ireland..nothing serious
I heard lots of beefs from traders about Avatrade and the firm really looks murky. Just read FPA reviews there is a feeling that they cheat with traders with price differences, slippage etc. Better to stay away from them.
  • #40
  • Oct 26, 2015 8:07am Oct 26, 2015 8:07am
Why would you, guys, ever intrust your money to an unknown broker with so bad reputation??
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