Beware! AA Crypto Hedge is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
AA Crypto Hedge promises to provide you with cutting-edge technology, safety and security of your funds and unmatched trading conditions. How much of this is possible and how safe it is to trade with this broker? We find the answers for you.
AA Crypto Hedge Regulation and safety of funds
The address of AA Crypto Hedge is shown to be in the UK where forex brokers are regulated by the Financial Conduct Authority (FCA). After checking FCA register we found out that such broker is not in the register (image below). This is proof that trading with this broker will put your funds at risk and we advise you to stay away from AA Crypto Hedge as it is not licensed and is possibly a scammer.
If you are interested in trading with a forex broker from the UK, the first thing you must do is verify that the broker is licensed by FCA. Only this way your funds will be safe and you will be protected against scammers. Licensed brokers in the UK must meet many rigid requirements set by FCA in order to get their license. First of all, they must deposit an initial capital of no less than 730,000 EUR which is a guarantee that no scammers can sneak in. In addition to that, licensed brokers must keep clients’ funds separately in tier-1 bank establishments, provide protection against negative balance and report daily their transactions for the sake of transparency and to avoid shady deals. One of the best advantages in trading with licensed British brokers is the fact that they must also participate in the local Financial Services Compensation Scheme which will provide refunds of up to 85,000 GBP per client if the broker goes belly up.
These trading conditions are matched to a certain extent by the EU brokers who must meet the same requirements. The difference is in the amount of the refund that clients of a bankrupt broker can get which is 20,000 EUR per person if the broker is licensed by CySec and participates in the local Investor Compensation Fund.
We hope that the links we provided above will help you select a forex broker that will meet your trading needs.
AA Crypto Hedge Trading software
AA Crypto Hedge offers a web trader platform (image below). You can see a third-party chart developed by TradingView displaying the fluctuation in the price of the EUR/USD currency pair in a given time frame. You probably realise that this is a very basic platform and traders can use the sell and buy buttons to execute their transactions. From the bid/ask price we can calculate that the spread is 0.2 pips which is lower than the industry average of 1.5 pips. However, if you look at the account types information provided in the last image, you will see that the spread can reach up to 2 pips which is rather high with the implications that the cost of transactions will be high and traders won’t be able to make a long-term sustainable profit. Also, if you look at the same image, you will see that the leverage is high – 1:100. First of all, this is another proof that this broker is not legit as in the UK as well as in the EU, there is a cap on leverage and it cannot exceed 1:30. This is a measure to protect clients’ funds and to prevent them from entering into reckless trading activities with the false hope that they can make a big profit when using high leverage.
Before we move on, we would like to let you know that a web trader is not the best trading software and there are other trading platforms that can enhance traders’ experience. In this regard, we would like to mention the two top trading platforms for forex trade – MetaTrader 4 and MetaTrader 5 which are considered to be the Rolls-Royces of trading platforms thanks to the extensive package of trading tools and instruments they are equipped with. We want to mention the auto trading option, the financial calendar, the app market, VPS, trading signals, code base with customs scripts, etc. We can’t omit to mention the excellent charting options both platforms offer and that contain a practically unlimited number of charts, time frames and colours, even the option of creating personalised templates. These charting options in combination with the technical analysis indicators help traders predict the future direction of exchange rates and make a profit.
We strongly recommend finding a licensed broker that offers either of these platforms.
AA Crypto Hedge Deposit/Withdrawal methods and fees
For its clients, AA Crypto Hedge offers 5 different trading accounts – Basic, Silver, Gold, Platinum and Diamond. The minimum initial deposit for the Basic account is $250. This may not seem like a big amount, however, licensed brokers will ask for as little as $1-5. The other accounts start at $1,000, $5,000, $10,000 and $20,000+ respectively.
We found some discrepancies in the information regarding deposit methods. In the Terms and Conditions document, it says that to make a deposit, clients can pay via credit card or bank wire. However, when you open an account and click on the deposit button, you see as deposit options BTC, Skrill and credit card. We want to warn potential traders that payments made with cryptocurrencies may have implications regarding their chargeback options, as you will find out in the last section of this review.
The minimum withdrawal amount varies according to the payment methods chosen by the client – for a wire transfer, the minimum withdrawal amount is $500, for a credit card, $100 and for BTC, $50. The withdrawal request processing time via credit card is between 3 and 5 business days.
As per the company’s policy, there are no brokerage fees or commission for executing trades. Deposits and withdrawals are not subject to fees by the broker.
Similarly to other shady brokers, this one also offers bonuses which are subject to some rather difficult to fulfil conditions. Should the client decide to accept a bonus, he/she must execute a minimum trading volume that is 25 times the sum of the deposit and bonus amounts. Fulfiling such conditions will present a great challenge even for experienced traders! Furthermore, the client won’t be eligible to withdraw funds before these conditions are met. You can imagine the mess accepting a bonus will create with client’s funds and his/her withdrawal options. In contrast, licensed brokers never offer bonuses or other incentives to their clients and this is the difference between them and brokers such as AA Crypto Hedge.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.
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AA Crypto Hedge