An Unregulated Offshore Broker
AAG Markets is a new forex broker that entered the sector in 2019. It offers the popular MT4 Trading platform, and is an STP (Straight Through Processing) broker, which makes it look quite promising.
But is AAG Markets a reliable broker?
No, in fact, they are one of the shadiest CFD and forex brokers in the market. They lie about their location and even post fake positive reviews to seem reliable.
In my AAG markets review, you’ll find out more information on why this broker is a fraudster and why you should stay away from it at all costs.
Regulation of AAG Markets
AAG Markets is an offshore forex broker and is based in St. Vincent and Grenadines. They are not licensed with any regulatory authority, which makes them unreliable on all aspects. When a broker doesn’t have the necessary regulation, it means it can perform all kinds of shady activities without facing any consequences.
Reputed regulatory authorities such as the FCA ensure that brokers don’t act against the interests of their customers. They have the provision of keeping funds of the broker and its customers separate so the broker can’t steal them. When a broker is licensed, you can be certain that you’re trading with someone reliable and trustworthy.
However, when the broker is unlicensed, there is no way to determine its credibility. It can steal your funds, freeze your account, and do anything without facing any repercussions. That’s why I don’t recommend doing business with unregulated brokers.
I must point out that AAG Markets is providing contradictory information on its location. On its website, it claims it is located in St. Vincent and Grenadines as you can see here:
But on its social media profiles, it claims to be a UK-based broker:
This broker is blatantly lying about its location so it can get
AAG Markets Trading Conditions
Account Types and Minimum Deposit
AAG Markets offers three account types to its users. They are:
Raw Spread Account
The minimum deposit requirement for this account is 1,000 USD, which is considerably high in comparison to industry standards. The minimum spreads available for this account are 0.1 pips however it has a service fee that ranges from 3.5 USD to 10 USD.
This account has the minimum deposit requirement of 1,000 USD as well. However, its offered spreads are a little higher (minimum 0.8 pips) but the broker claims that it doesn’t charge any service fee for this account.
This is the most expensive account of AAG Markets and it requires an initial investment of 100,000 USD minimum. The VIP account offers the benefit of reduced spreads (minimum 0 pips) and no service fee. However, apart from that, the broker doesn’t share any other information on its website about the benefits of this account.
They offer standard leverage of 1:100, which is average for offshore brokers. However, you can request to get their unique 1:888 leverage as well.
You must keep in mind, however, that high leverage leads to more risk and is a double-edged sword. You can make huge profits with such leverage but you can lose your entire capital at this pace as well. If you’re a new trader, you shouldn’t use a high leverage due to this reason.
Fees and Commission
AAG Markets charges a service fee for their Raw Spread account that varies from 3.5 USD to 10 USD. They also charge swap rates, which is simply an overnight interest. They charge this fee for overnight financing.
Apart from that, the broker doesn’t share any details on its fees and commissions. They don’t claim to charge any deposit or withdrawal fee, which makes them seem more reliable.
AAG Markets Trading Platform
AAG Markets uses the popular MT4 (MetaTrader 4) platform. MetaTrader 4 is a product of MetaQuotes Software and it entered the market in 2006. Since then, it has become the go-to trading platform for any forex broker.
MT4 offers multiple indicators as well as the facility of automated trading through bots, along with its various other advantages. The interface of MT4 is quite easy to use as well.
You should note however, that many shady brokers tend to use this platform because of its reliability as well. The credibility of MT4 might make the broker seem reliable too, which are two very different things.
Why You Should Stay Away from AAG Markets
At a glance, AAG Markets might seem like a genuine broker, but that isn’t the case. Here are main red flags due to which you should stay away from this shady broker:
Excessive Minimum Deposit
The minimum deposit to open a live trading account with this broker is 1,000 USD, which is excessively high in comparison to any reputed broker. A high initial deposit requirement forces you to deposit a large amount into the trading account.
This puts your funds at risk because the broker can deduct your funds in the name of hidden fees. Regulated brokers tend to have minimum deposits as low as 5 USD, so you can see how high the demand of AAG Markets is.
AAG Markets doesn’t have a license to operate as a forex broker. It is not regulated by any reputed agency such as CySEC or FCA. You should never trade with an unregulated broker for the following reasons:
- The broker is left unchecked, so it can do anything to your funds (such as stealing them)
- Taking any legal action against an unregulated broker is extremely difficult because there’s no particular agency you can contact
- Lack of regulation indicates that the broker doesn’t adhere to basic customer-centric policies of those agencies. In other words, the broker might be involved in a shady business
Unregulated brokers are scammers in 99% of the cases. They can steal your funds, show you simulated trades and do much worse without facing any consequences of their actions.
I always recommend doing business with a regulated and licensed broker, which AAG Markets isn’t.
Lying about Location
While writing this AAG Markets review, I noticed that this broker lies about its location in different places.
At the homepage of its website, it claims to be based in St. Vincent and Grenadines whereas on its social profile, it claims to be based in the United Kingdom.
Although I’ve already mentioned this point earlier, it’s crucial to determine the legitimacy of a broker.
Why would a broker lie about its location on different platforms?
The answer is, to dupe traders. It is proof that AAG Markets is a greedy and unreliable broker that you can’t trust.
No US Clients
AAG Markets can’t serve any traders based in the US or the UK. They claim it’s because of some laws, however, I know the real reason.
The US has one of the strictest and best regulatory authorities called the NFA (National Futures Association). It makes sure that the forex brokers of the region adhere to its client-focused policies and operate in the interests of their traders.
To serve any US-based clients, a forex broker must first get a license from the NFA. AAG Markets doesn’t have any license, let alone a license from the NFA.
This is just another red flag and indicates that the broker doesn’t want to serve its customers fairly.
Contradictory Terms and Conditions
AAG Markets have two different pages for Terms and Conditions and they both contradict each other. Again, the contradiction is about the location of the company.
Here, they claim they are based in the United Arab Emirates, a country situated in Western Asia. However, on another ‘Terms of Business’ page of their website, they claim they are based in St. Vincent and Grenadines:
Such contradiction is a proof of theri shady operations. At one place, they are claiming to be based in the UAE while on the other place, they claim to be based in St. Vincent and Grenadines.
If they are based in the UAE, then they are offering their services illegally because as a CFD and forex broker, they must have a license from Dubai Financial Service Authority, or the Central Bank of the UAE, or the Financial Services Regulatory Authority of Abu Dhabi.
They don’t have any license, so they are obviously not based in the UAE.
Fake Positive Reviews
Another lie I spotted on their website was this review:
The strange thing about this review is that the reviewer claims AAG Markets have been serving him for “3 years”, which is impossible because the broker came into existence in 2019 (just a year ago).
How can a company that didn’t even exist before 2019, help a client since 2017?
It just indicates that the review is 100% fake and the broker has posted it on their homepage to deceive traders.
I wonder how many fake positive reviews they have posted online to create a positive reputation. You can’t trust the positive reviews of AAG Markets you see everywhere.
AAG Markets Review: Conclusion
I can’t recommend this broker to anyone after discovering the various lies it’s telling people. It lies about its location, and it posts fake reviews online to make it seem credible.
On top of that, AAG Markets is unregulated and doesn’t have a license from any reputed agencies.
In the conclusion of my AAG Markets review, all I can say is that you should stay away from this broker. You’d be safe if you don’t interact with them at all.This review (AAG Markets) was originally published at The Skeptic Tank. To read the full review, go to – www.skeptictank.org/aag-markets-review/