Blafx Review: Think Carefully Before Investing with This Broker
Every now and then you see a broker like Blafx. On the one hand, you have a legit license and on the other, you have an offshore branch. So what does this mean and should you trust these types of brokers?
Worry not! In our Blafx review, we will dissect this situation, so you know if you should consider this broker or avoid them completely. Here we go!
|Broker name||Reliable Broker Must Have|
|Legal name:||Bethle Aster Global Investments Pty Limited||Transparently displayed in the disclaimer or legal documents|
|Regulation:||Regulated (ASIC)||Within your legal jurisdiction – local regulator|
|Registered in:||Australia, Vanuatu||Your country or the country whose license applies in your legal jurisdiction|
|Established:||2021||The older the domain – the higher the possibility the company is trustworthy|
|Website:||blafx.com||Domain should be from local or international zones, no .xyz, etc.|
|Financial Authorities Warnings:||No||None|
|Contacts:||Email: [email protected]
|Phone, email, social media, web form|
|Is withdrawal possible:||Highly unlikely||Yes|
|Fees:||Hidden fees||Transparent fees – list of spread and commissions|
|If Active on Social Media:||Facebook, Twitter, YouTube||Often present on social media|
|Investor Protection:||No||Compensation fund|
Let’s cut straight to the chase. The Bethle Aster group, the entity behind Blafx, has two branches. One is registered in Australia and the other is in Vanuatu. This situation is not that uncommon in Forex, so what to do?
The Australian license checks out and it is very good that Blafx has it since ASIC is a trusted regulator. This authority requires brokers to have a certain minimal operating capital and provide various protections to traders, like low leverage and minimum deposit, among other things. With this license, you can trust the broker to keep your money safe.
On the other hand, the Vanuatu office means exactly what you think it does – uncertainty! This is the complete opposite of the Australian situation because there are no limits to what the broker can do. The Vanuatu regulator is as lenient as they come and you as a trader are maximally exposed to risk since the Vanuatu rules are not the same as the ASIC ones. And what’s worse is that Blafx does not even have a Vanuatu license, but only has a registered residence there.
Blafx or Bethlester, has some very intriguing parts in their offer. We start with the blafx MT4, which is a superb and beloved trading platform in Forex. You cannot go wrong with it and it can help you immensely, no matter your experience level. Another good thing is that the blafx app download is available for both PC and mobile devices.
The minimum deposit is also nicely priced at $100, which is affordable enough for traders on a budget. However, there are safer options out there for as little as $1, so keep that in mind. The blafx trading instruments are your typical sets of currency pairs, CFDs, and cryptocurrencies.
Furthermore, blafx has an IB program, where you can introduce a new blafx member and get certain benefits, including daily commissions, accelerated withdrawals, and other rewards.
And unfortunately, this is where the good stuff stops. One of the blafx features we do not appreciate at all is their account selection with only one option (ECN). Leverage is also a problem at 1:500, which is too high for us. It might be enticing for risk-seekers, but other traders are discouraged from trading with this leverage.
|Financial Instruments On Offer:||Currency pairs (USD/EUR, AUD/CAD, GBP/JPY, etc.)
CFDs (gold, silver, stocks, other commodities, etc.)
Crypto (Bitcoin, Ethereum)
|Commissions/bonuses:||Yes (through the IB program)|
|Education or Extra tools:||Yes|
Is This Broker Safe?
So, the million-dollar question – can you trust blafx? If we were putting our money on the line, we would be wary of entrusting it to this broker. Yes, it is great that they have a legitimate Australian license. This makes us trust their offer and we can feel safe in our trading.
However, they also have an office in Vanuatu, which we have trouble trusting. Nothing good comes from that place regarding Forex, and therefore, we recommend you think carefully before dealing with blafx. The risk is that you might think you are dealing with the Australian branch, only to find out that the broker secretly transferred you to the Vanuatu one, where they can manipulate you without consequences. And suffice it to say, you do not need that.
Trader Reviews – Sharing Experiences
Unfortunately, there are not many blafx ratings online. We could not find them on Trustpilot, which we did not appreciate, since this website is a trusted source of trader reviews that help us get a better picture of what the broker is like.
However, we did find some trader reviews on Forex Peace Army, both of them negative and describing withdrawal problems.
The first client comes from Indonesia, and she said:
“I processed the withdrawal on 22 and 23 February 2022, but until today 21 March 2022, no funds were transferred to my crypto wallet. Please, I need your support in this withdrawal process.”
The second trader had a similar experience, mentioning:
“I made a withdrawal process at this broker through the website on February 21, 2022, at 12:24:30 PM. The currency is crypto USDT. At the time of writing this review, 20 March 2022 at 11:36 PM (GMT +7) the withdrawal process is still pending. It’s been a whole month.”
How Does the Blafx Platform Reach Clients and Who Are They?
The blafx broker targets people in many countries, but from our research, those mostly include:
As you can see, there are a lot of Asian countries on this list, so we advise traders from that region to be extra careful, especially if the broker contacts you directly.
Deposits and Withdrawal Methods
When it comes to deposits and withdrawals, Blafx accepts many payment methods:
- Bank transfer
- Credit/Debit cards
Or at least they say they do. It has been reported that after making an account, you could only make deposits in cryptocurrencies. This is another reason for concern, as crypto payments are anonymous and hard to track, exposing you to risk.
On top of that, the broker does not mention anything about potential withdrawal fees and there is no withdrawal policy where we could check this, which is not something you want to see.
Reasons To Avoid This Company
For the most part, Blafx looks like a legitimate company, but they also have some similarities to Rockfort Markets. The broker operates from an office in Vanuatu, which does not provide traders with any line of safety. This means they could just walk away with your money, and you would have no one to call for help.
Additionally, there are very few user reviews about Blafx, and the broker does not comply with the industry’s best practices on trading conditions, all of which does not look good. The broker is also not transparent with its fees, making trusting them very difficult.
Our Safe Trading Experts’ Opinion of Blafx
As you are sitting by your laptop, finishing our Blafx Review, we hope you have already thought of five more reliable brokers to invest with. And if you also want our recommendations, we are here to give them to you. JP Markets can be a good place to start, and for a more personalized suggestion, contact us today! We can make your Forex dreams come true together and our advice is completely free!
What Is Blafx?
Blafx is a broker offering trading services. They have an ASIC license, but they also have a Vanuatu office, which is important to keep in mind.
Is Blafx a Licensed Broker?
Yes, they are. They have a license from the Australian regulator, but they operate without one in Vanuatu, which can be risky for traders.
What Are The Trading Platforms Of Blafx?
Blafx offers the industry standard MT4 platform. It has many advanced tools and a user-friendly interface that can help both amateurs and veterans.