JAFX Review

WHO IS JAFX?      

According to research in South Africa, JAFX is an English company founded in 2016 with headquarters in Kingston, St Vincent and the Grenadines.

JAFX was founded by a team of traders who recognized that cryptocurrencies are the future form of money.

The broker aims to bridge the gap for the everyday trader and give them the start needed to achieve success and profit whilst in a highly safe and secure environment.

It offers trading strategies through the MetaTrader4 platform with low spreads and fast executions is on offer in forex, commodities, CFDs, and cryptos.

SAFE OR SCAM

JAFX is and off-shore company as it is registered in St Vincent and The Grenadines. It is not regulated.

It is not known if client funds are kept in separate accounts although sources indicate it uses a bank in Bulgaria. Client funds will not be safe and secure with this broker as it does not have a regulatory body keeping an eye on it.

Numerous countries are not accepted as clients, such as the United Stated, Germany, Japan, Ghana, Burma, Ivory Coast, Congo, Cuba, Iran, Iraq, Lebanon, Libya, Malta, North Korea, Somalia, Sudan, Syria, United States, Vietnam, and Zimbabwe.

PRO AND CONS

 LEVERAGE

Leverage enables a trader to get a much larger exposure to the market the person is trading than the amount deposited to open the trade. Leveraged products, such as forex trading, magnify a trader’s potential profit – but also increase the potential loss.

Leverage is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1 000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the collateral to cover any credit risks that may arise during trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you need to have enough funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

At JAFX the leverage ratio is 1:500.

ACCOUNTS   

JAFX offers only one live account type to all traders. The JAFX Standard Trading Account has the following features:

• Leverage up to 1:500
• Minimum Trade Size 0.01 Lot
• $4 Commission Per Lot RT
• Spreads starting from 0.4
• Spread average of 0.6

Clients also have the option to open a free demo account. Clients can log onto the JAFX WebTrader and open a demo account online or download and install the JAFX MT4 and open a demo account in MT4.

The broker also offers Swap-free Islamic accounts for clients of the Muslim faith which complies with Sharia law, enabling traders of the Muslim faith to benefit from the institutional grade liquidity that JAFX offers.

To replace the free swaps and interest, clients would instead pay administration fees on any positions that are applicable for such costs.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex:

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities:

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices:

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals:

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy:

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

JAFX offers the following of the above:

• Forex
• Commodities
• CFDs
• Cryptocurrencies

However, the main focus is on cryptocurrencies and 31 tradeable instruments are on offer that include all major coins listed with BTC and other majors quoted only against the USD.

FEES

Cost and fees depend on different factors, like spread and margins, and XXXXXX clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

JAFX offer variable spreads that starts at 0.4 pips. It does not charge any deposit or withdrawal fees.  The broker charge an inactivity fee of $10 for clients with a non-zero balance which have not traded for 30 days. Commission is charged at $4 per round lot.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of JAFX a minimum deposit of $10 is required to open an account. Corporate clients need to deposit a minimum of $100.

The following methods can be used to fund accounts and to execute withdrawals:

• Bitcoin
• Debit cards
• Credit cards

Only Bitcoin can be used to withdraw money. Deposits will be processed within 6 hours but to withdraw funds through Bitcoin will take between 3 to 4 business days.

It is not clear on the website, but it seems like the currency to use to deposit funds with are USD.

TRADING PLATFORMS

The forex trading platform provided by JAFX to its clients is the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

With JAFX clients can only trader on the MetaTrader4 platform. Features of this globally preferred platform are:

• Online quotes
• Analytical functions
• Interactive charts with 9 periods
• 23 analytical objects
• 30 built-in technical indicators
• 9 timeframes, to mention a few

The platform is available for desktop, smartphones, and as WebTrader and provided in English.

Everything you need for your daily trading is available on MT4. This include all market and pending orders, instant execution and trading from a chart, stop orders and trailing stop, a tick chart and trading history.

In addition, the WebTrader allows quick and easy access to the trading platform directly from within web browsers without needing to download or install any additional software.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with JAFX for the first time, you will be required to go through a basic “know your customer” process, which will allow JAFX to verify your submitted details and ensure the safety of your funds and account details.

Opening an account can be done from the JAFX portal. After submitting all documentation required you will receive approval within 24 hours and can then start trading.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

Contact details for JAFX are:

• Address: JAFX Ltd, The Financial Services Centre, Stoney Ground, Kingstown, St Vincent and The Grenadine.
• Telephone: +44 20 3519 7974 (UK) and +61 39 1115 706 (Australia)

Customers can reach the support team in real time by phone, live chat, or request a return call. The service is provided in English.

EDUCATION       

Before starting to trade, potential clients of JAFX should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

JAFX does mention on the website that it offers additional services like webinars and guides to assist beginner trader, but no such tools are found on the pages.

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

JAFX does not offer any research tools to assist beginner or advanced traders.

AWARDS

Being an awarded company instils extra confidence by traders.  JAFX has not received any awards since its inception.

CONCLUSION  

Using JAFX as you broker is a huge risk as the company is nor regulated and it is not clear if it does keep client funds in separated accounts.

The broker does offer competitive spreads and trading on the popular MT4 platform, but the funding methods are limited which would be a problem for many traders.

There is also no educational or research tools offered to assist beginner and advanced traders, although it does offer a demo account.

DISCLAIMER

While JAFX promises to make all efforts to fill a trade at the requested price, trading on-line does not necessarily reduce risks associated with currency trading, therefore quotes and trades are usually subject to the terms and conditions of a Client Agreement, which is accessible through the broker’s website.

Forex trading carries a high level of risk and can result in the loss of all your investment. You must be aware of the risks and be willing to accept them in order to invest in the stock, binary options or futures markets.

Do not trade with money you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on the broker’s website.

Potential traders should first acquaint themselves with all these associated risks and seek advice from an independent financial advisor, according to research in South Africa.

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FAQs

TRADING ENVIRONMENT

How many instruments can I trade with JAFX?

Forex, commodities, CFDs, and cryptocurrencies

Which platforms are supported by JAFX?

MetaTrader4 and WebTrader

Does JAFX offer leverage?

Yes, JAFX offers a maximum leverage of 1:500

What spreads can I expect with JAFX?

JAFX offer variable spreads starting from 0.4 pips

Does JAFX charge commission?

Yes, JAFX charge $4 commission per round lot.

Is JAFX regulated?

No, JAFX is not regulated

Is JAFX a recommended forex trading broker for experts and beginners?

Yes, JAFX offers a trading environment for both beginner and advanced traders

What is the overall rating out of 10 for JAFX?

4/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does JAFX offer a demo account?

Yes

How long is the demo account valid?

It is not clear for how long the demo account can be used

Which live trading accounts does JAFX offer?

Standard JAFX Trading Account

What are the available deposit currencies for a live trading account?

USD,

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for JAFX?

$10

How do you make a deposit and withdrawal with JAFX?

JAFX offer bitcoin, credit and debit cards as deposit methods. Only bitcoin can be used for withdrawals

Does JAFX charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Withdrawals take between 1 to 2 business days depending on your banking institution. Traders should note however that depending on a specific bank service it may take several days for the money to be available in a client account.