AA Crypto Hedge poses as a reliable broker but are they? You’ll find that out in my detailed AA Crypto Hedge review below. The website of this broker (aacryptohedge.com) is quite an ordinary site with nothing to make it stand out.
Reliable brokers tend to keep their websites attractive to help them stand out while scammers tend to keep their websites quite ordinary as they don’t care about the UI. So, the poor quality of AA Crypto Hedge’s website made me question their reliability a lot.
AA Crypto Hedge License and Regulation
AA Crypto Hedge gives a UK-based address in the footer of its website:
As a financial services provider, AA Crypto Hedge must hold a license from FCA (Financial Conduct Authority), the financial services regulator in the UK. So I checked the FCA register and searched for AA Crypto Hedge’s name there. However, it didn’t yield any results.
This means AA Crypto Hedge doesn’t have a license to operate as a forex broker. They are an unlicensed and unregulated broker.
AA Crypto Hedge is an unlicensed broker. You should avoid trading with them as it will put your funds and data at risk.
As such brokers provide their services illegally, you shouldn’t trade with unlicensed and unregulated brokers.
There are many scams in the forex industry and so, financial regulators exist in many regions such as the US and Europe. These regulators impose heavy restrictions and laws on forex brokers (and similar service providers) to ensure that the broker doesn’t act against the interests of its client.
How can you spot a broker who is trying to deceive you?
A broker’s credentials, registration, and job history can be reviewed using BrokerCheck, a free online tool provided by FINRA. Disputes with clients, disciplinary actions, and specific financial and criminal matters on the broker’s record are all covered in the disclosure portion of BrokerCheck.
However, an unregulated and unlicensed wouldn’t have to follow those restrictions. They can act against your interests (such as steal your data) and get away scot-free.
On top of that, regulators like FCA offer insurance compensation in case the broker steals the funds of their clients. For example, FCA can give you up to £85,000 if a FCA-regulated broker steals your funds. You don’t get such facilities with unregulated brokers. This is a strong reason why I don’t recommend trading with an unregulated forex broker.
AA Crypto Hedge Trading Conditions
You should always check the trading conditions of a forex broker before doing business with them. Let’s see what are trading conditions of this broker:
This broker doesn’t have its own trading platform. They have used the notorious TradingView screenshots in the place of a trading platform. It is a common tactic among shady forex brokers and it’s clear that AA Crypto Hedge is a fraud.
AA Crypto Hedge uses a web-based trading platform. It limits your trading abilities substantially and doesn’t provide you with any good functionalities. Your chances of making good profits become very thin when you use such a terrible trading platform.
To be honest, the best trading platforms available in the industry are Metatrader 4 and 5. Almost all reputed forex brokers use these platforms because they offer a ton of features. It would best if you traded with a forex broker that offers a reputed trading platform like Metatrader 4.
AA Crypto Hedge offers multiple account types, each has a different minimum deposit requirement. The smallest account requires you to deposit $250, which is substantially higher than regulated brokers. Licensed brokers demand $50 on average while some might even go as low as $10!
Many forex scams keep their initial deposit requirement high which allows them to grab a lot of funds immediately. Such brokers are aware of their pathetic services and so, they don’t give you a chance to test out their services beforehand. Instead, they force you to make a big financial commitment. In case you decide to discontinue availing their services, they will steal the huge deposit you had made.
It’s a common strategy among shady forex brokers and that’s why I don’t recommend trading with such brokers.
The excessive minimum deposit requirement of this broker indicates that it’s a fraudster.
Leverage and Spreads
The offered leverage at this firm is 1:100. This is another piece of evidence that AA Crypto Hedge doesn’t hold a license to function as a forex broker. That’s because the UK-based regulator FCA doesn’t allow its brokers to offer a leverage ratio higher than 1:30.
High leverage is usually a sign of a scam. This is why financial regulators restrict their brokers on how much leverage they can offer to their clients.
High leverage ratios can wipe out all of your earnings and even put you in debt quickly. They are very risky, especially if you’re a beginner.
The spreads of this broker can go up to 2 pips, which is quite higher than the industry norm of 1 pip. It means trading with this broker would be more expensive and you wouldn’t get to make profits.
AA Crypto Hedge offers the following account types:
You’ll need to make a minimum deposit of $250 to start trading with this account. You get maximum leverage of 1:100, which remains the same with all accounts. You get a floating spread of 2 pips and bonuses of up to 75% of your deposit.
This account requires a minimum deposit of $1000 and offers teh same benefits as the Basic account along with a 50% capital insurance and a dedicated account manager. You get a 50% bonus with this account.
The Gold account requires a minimum deposit of $5000 and the maximum deposit requirement is $9999. You get 75% capital insurance, 0.8-1.2 pips spread, and 35% bonus.
This account requires a minimum deposit of $10,000. You get 80% capital insurance, 0.6-1.2 pip spread, and 35% bonus.
This account requires a minimum deposit of $20,000 and offers the lowest spread of 0.4-1.2 pips. You can get a 15% bonus and all the benefits you were getting with the previous account types.
AA Crypto Hedge Payment Methods and Charges
While trying to find information on their deposit methods, I discovered several inconsistencies indicating that they are indeed a scam.
In the Terms and Conditions of AA Crypto Hedge, they say you can deposit funds into your trading account through bank wire or credit card. However, when you setup your account and click on the deposit button, you get the additional options of Skrill and BTC.
This is a huge error and should not be taken lightly. Also, you should avoid investing in a forex broker’s account with cryptocurrency as their transactions are usually non-refundable. It’s best to invest with bank cards as they let you get a chargeback for 540 days after the date of transaction.
The minimum withdrawal limit is different for every payment method. The minimum withdrawal limit for wire transfer is $500 while for BTC it’s $50. If you withdraw funds through a credit card, the limit is $100. They claim to take three to five business days for processing withdrawal requests.
According to the terms and conditions of AA Crypto Hedge, they don’t take any brokerage fee and the withdrawals and deposits are not subject to fees.
As you must’ve noticed in the Trading Accounts section that AA Crypto Hedge offers several bonuses to its clients. Note that if you accept any bonus, you must execute a trading volume 25 times the sum of the bonus and your deposited amount. It is a very difficult requirement to meet and without meeting this demand, you can’t withdraw your funds. Clearly, AA Crypto Hedge is trying to trap new traders and their funds through its shady bonus conditions.
A common strategy among shady forex brokers is they would offer you a ton of bonuses. Bonuses in the forex industry are notorious as they allow the broker to complicate the withdrawal process for the user. The funds you receive in a bonus always belong to the broker, not you.
Is AA Crypto Hedge a Scam? Yes!
The forex industry attracts a lot of scams and they are of various sorts. Some scammers tend to give an unsolicited call and claim that you’re eligible for a random bonus. Others would run ads on the internet claiming to offer attractive deposit bonuses or easy profits.
Creating a website and filling it with lies is very easy. And these scammers target inexperienced traders too. Usually, these brokers operate from offshore areas such as St. Vincent or the Commonwealth of Dominica. They operate from such areas because these places don’t have financial regulators like the US or the UK. So they don’t have to follow any strict laws and can easily steal the funds of their users without facing any legal repercussions.
You should always check a broker’s regulation and T&C’s before trading with them.
AA Crypto Hedge Review: Conclusion
AA Crypto Hedge is an unlicensed forex broker with a basic website and a terrible trading platform. I don’t recommend working with this horrible broker.
There are many scams in the forex industry like AA Crypto Hedge. And they keep growing. The best way to combat these scams is to spread the truth about them so their schemes would fail before they even start.
If you know someone who’s interested in forex trading, share this article with them. They should know the truth about such scammers.