ABSystem Company

ABSystem Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

ABSystem, a trading name for Arbitrage Broker Systems, was established in 2021. The company positions itself as an online forex and CFD broker, claiming to offer a range of financial instruments to its clients. However, its legitimacy has been questioned due to a lack of regulatory oversight and numerous complaints from users.

Parent Company/Ownership Structure

ABSystem is owned by Donnybrook Consulting Ltd., a company known for operating various other trading platforms that have faced scrutiny and allegations of fraudulent activities. This association raises concerns regarding the trustworthiness of ABSystem.

Headquarters Location

The broker is registered in the Commonwealth of Dominica, a jurisdiction often associated with lax regulatory frameworks. This location is a common choice for many offshore brokers seeking to operate without stringent oversight.

Global Business Scope

ABSystem claims to provide trading services to clients globally, focusing primarily on markets in Europe. However, it has been blacklisted by several European financial regulators, which limits its credibility and operational scope.

Main Regulatory Bodies

ABSystem operates without valid regulatory licenses. It has been flagged by multiple regulatory bodies, including Germany's BaFin, Austria's FMA, Spain's CNMV, and Italy's Consob, for operating without authorization, making its regulatory status a significant red flag for potential clients.

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2. Company History and Development

Key Milestones

Since its inception in 2021, ABSystem has attempted to establish itself in the competitive forex trading market. However, its rapid rise has been marred by numerous allegations of fraud and unregulated practices.

Business Expansion Journey

The company has sought to expand its service offerings by providing various account types and trading instruments. Despite this, its growth has been hindered by the lack of regulatory approval and negative reviews from users.

Customer Base Growth

While ABSystem claims to have a growing customer base, the exact number of active users remains undisclosed. The negative reputation among traders has likely impacted its ability to attract and retain clients.

Platform Development History

ABSystem offers a proprietary web-based trading platform, diverging from industry standards like MetaTrader 4 and 5. This decision has drawn criticism, as many traders prefer established platforms known for their reliability and functionality.

Important Awards or Recognitions Received

To date, ABSystem has not received any notable awards or recognitions within the financial services industry, further questioning its credibility.

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3. Trading Services Offered

Forex Trading Options

ABSystem claims to offer trading in over 250 instruments, including a variety of currency pairs. However, specific details regarding the number of forex pairs available are not disclosed, which raises concerns about transparency.

Stock Trading Options

The platform reportedly provides access to stock trading, but again, specific details regarding the number of stocks or the exchanges available are not clearly outlined.

CFD Trading Products

ABSystem allows trading in Contracts for Difference (CFDs) across multiple asset classes, including forex, commodities, and indices. However, the lack of regulatory oversight raises questions about the safety and security of these products.

Other Financial Instruments

In addition to forex and stocks, ABSystem claims to offer trading in commodities and indices. However, the absence of cryptocurrency trading options may limit its appeal to a broader audience.

Special Services or Unique Advantages

ABSystem promotes various account types, including Silver, Gold, Platinum, and Diamond, each with different minimum deposit requirements and spread options. However, the high minimum deposit thresholds (starting at $500) may deter beginner traders.

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4. Regulatory and Legal Background

Detailed Regulatory Information

ABSystem has been identified as operating without any valid regulatory oversight. It has been blacklisted by several financial authorities, including:

• BaFin (Germany)
• FMA (Austria)
• CNMV (Spain)
• Consob (Italy)

Legal Entity Structure by Region

As an offshore broker, ABSystem is registered in Dominica, which lacks robust financial regulations. This structure allows the company to operate with minimal oversight, raising significant risks for clients.

Client Fund Protection Measures

Due to its unregulated status, ABSystem does not provide any formal client fund protection measures, which is a critical aspect for traders considering where to invest their money.

Countries/Regions Served

ABSystem claims to serve clients globally, with a primary focus on European markets. However, its blacklisting by multiple regulatory bodies suggests that it may not be able to operate legally in these regions.

Compliance History

ABSystem's compliance history is concerning, with multiple warnings issued by financial regulators regarding its operations. The lack of adherence to regulatory standards has resulted in a tarnished reputation.

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5. Competitive Landscape

Main Competitors

ABSystem operates in a highly competitive space with several well-regarded brokers, including:

• IG Group
• OANDA
• Plus500
• eToro
• Forex.com

Positioning in the Industry

ABSystem's positioning is weak due to its unregulated status and negative reviews. In contrast, its competitors benefit from established reputations, regulatory oversight, and a wider range of services.

Market Differentiation Factors

While ABSystem offers various account types and claims to provide a wide range of trading instruments, its lack of regulation, high minimum deposits, and negative user feedback significantly diminish its attractiveness compared to regulated brokers.

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Conclusion

ABSystem presents itself as a forex and CFD broker with a range of trading options; however, its lack of regulatory oversight, association with a controversial parent company, and negative reviews raise significant red flags. Potential traders should exercise extreme caution and consider using regulated alternatives to ensure the safety of their investments.

For those interested in learning more about trading services and broker comparisons, learn more here.