ABSystem Forex Broker

Absystem Forex Broker - Complete Information Guide

1. Broker Overview

　　Absystem, officially known as Arbitrage Broker Systems, was established in 2021 and operates from its headquarters located at 8 Copthall, Roseau Valley, 00152, Commonwealth of Dominica. This brokerage is privately owned and primarily targets retail forex and CFD traders.

　　Since its inception, Absystem has aimed to provide a comprehensive trading experience, boasting features such as 24/5 customer support, personal account management, and various trading tools. However, the broker's development has been marred by serious allegations regarding its legitimacy. It is linked to Donnybrook Consulting Ltd, a company notorious for operating multiple fraudulent trading platforms.

　　Absystem positions itself as a forex broker that caters to both novice and experienced traders, offering a variety of account types and trading instruments. However, due to its unregulated status, many potential clients are advised to exercise caution when considering this broker.

2. Regulation and Compliance Information

　　Absystem operates in a regulatory gray area, as it is not regulated by any reputable financial authority. The Commonwealth of Dominica, where it is based, lacks a formal regulatory framework for forex brokers, which raises significant concerns regarding the safety of client funds.

• Regulatory Bodies: Absystem has been blacklisted by several European regulators, including:
• BaFin (Germany)
• FMA (Austria)
• FSMA (Belgium)
• Consob (Italy)
• CNMV (Spain)

　　These warnings highlight that Absystem operates without proper oversight and does not comply with necessary financial regulations.

• 　　Client Fund Protection: Absystem does not provide any guarantees for client funds, nor does it maintain segregated accounts. This lack of protection means that in the event of insolvency or fraudulent activity, clients may lose their investments without recourse.

• 　　KYC and AML Compliance: There is no clear evidence that Absystem adheres to rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) policies, which are vital for safeguarding against financial crimes.

  　　

3. Trading Products and Services

　　Absystem claims to offer a diverse range of trading products, including:

• 　　Forex Pairs: The platform provides access to over 250 currency pairs, including major, minor, and exotic pairs.

• 　　CFD Products: Traders can also engage in Contracts for Difference (CFDs) across various asset classes, such as:

• 　　Indices

• 　　Commodities

• 　　Stocks

• 　　Cryptocurrencies (though the availability of specific cryptocurrencies is not clearly stated)

• 　　Unique Products: While Absystem promotes its trading capabilities, there is little transparency regarding any unique or proprietary trading products.

• 　　Market Updates: The frequency of product updates and the introduction of new trading instruments remain unclear, as the broker does not provide consistent information on this front.

　　Absystem primarily serves retail clients, but there is no indication of institutional services or white-label solutions being offered.

4. Trading Platforms and Technology

　　Absystem provides a web-based trading platform along with support for MetaTrader 4 (MT4), a popular choice among traders for its advanced charting capabilities and automated trading options. However, it lacks support for MetaTrader 5 (MT5).

• 　　Web-Based Platform: The proprietary platform claims to be user-friendly and designed for both beginner and advanced traders. However, details regarding its functionality and features are limited.

• 　　Mobile Application: There is no specific mention of a mobile application available for iOS or Android devices, which may limit trading flexibility for users on the go.

• 　　Execution Modes: Absystem reportedly offers various execution modes, including ECN and STP. However, the effectiveness and reliability of these modes are questionable given the broker's unregulated status.

• 　　Technical Infrastructure: Information regarding server locations and the underlying technology supporting the trading platform is not disclosed, which raises concerns about the broker's operational transparency.

• 　　API Access and Automated Trading: There is no clear indication that Absystem supports API access for automated trading, which may limit options for algorithmic traders.

  　　

5. Account Types and Trading Conditions

　　Absystem offers several account types with varying conditions:

• 　　Silver Account:

• 　　Minimum Deposit: $500

• 　　Spread: From 3 pips

• 　　Trading Tools: 50+

• 　　Trading Signals: 3 per week

• 　　Gold Account:

• 　　Minimum Deposit: $3,000

• 　　Spread: From 2 pips

• 　　Trading Tools: 125+

• 　　Trading Signals: 5 per week

• 　　Platinum Account:

• 　　Minimum Deposit: $10,000

• 　　Spread: From 1.5 pips

• 　　Personal Account Manager and Risk Management features included.

• 　　Diamond Account:

• 　　Minimum Deposit: $50,000

• 　　Spread: From 0.5 pips

• 　　Personal Analyst and additional risk management services.

• 　　Demo Account Policy: Absystem does not provide a demo account, which is a significant drawback for traders wishing to test the platform before committing real funds.

• 　　Leverage: The broker offers leverage up to 1:100, which is relatively standard but can pose significant risks, especially given its unregulated nature.

• 　　Minimum Trade Size: The minimum trading lot size is 0.01, making it accessible for smaller traders.

• 　　Overnight Fees: Information regarding overnight fees or swap rates is not explicitly provided, which could affect trading costs.

  　　

6. Fund Management

　　Absystem supports various deposit and withdrawal methods, although specifics are limited:

• 　　Deposit Methods:

• 　　Options include credit cards, bank transfers, and digital wallets.

• 　　Minimum Deposit Requirement: $500 for the Silver Account.

• 　　Deposit Processing Time: The broker does not specify how long deposits take to process, leading to uncertainty for potential clients.

• 　　Deposit Fees: There is no clear information about deposit fees, which could be a hidden cost.

• 　　Withdrawal Methods and Restrictions:

• 　　Withdrawals can be made through similar methods as deposits.

• 　　Minimum Withdrawal Amount: $100.

• 　　Withdrawal Processing Time: Like deposits, withdrawal processing times are unclear, which can be frustrating for clients seeking access to their funds.

• 　　Withdrawal Fees: The fee structure for withdrawals is not transparently communicated, raising concerns about potential hidden charges.

  　　

7. Customer Support and Educational Resources

　　Absystem claims to offer customer support through multiple channels:

• 　　Support Channels:

• 　　Phone: Multiple international numbers are provided.

• 　　Email: Various compliance emails are available.

• 　　Online Chat: Not explicitly mentioned.

• 　　Service Hours and Coverage: The support operates 24/5, but specific time zones are not indicated.

• 　　Multilingual Support: The languages supported are not specified, which may limit assistance for non-English speakers.

• 　　Educational Resources: The broker provides limited educational materials, including:

• 　　Webinars

• 　　Tutorials

• 　　E-books

• 　　Market Analysis Services: Daily market analysis, news, and research reports are not prominently featured, which may hinder traders' decision-making processes.

• 　　Trading Tools: Basic tools like calculators and economic calendars are mentioned but are not extensively detailed.

  　　

8. Regional Coverage and Restrictions

　　Absystem operates in various regions, but there are significant limitations:

• 　　Primary Service Markets: The broker appears to target clients primarily in Europe, especially German-speaking countries.

• 　　Regional Offices: Specific regional offices are not disclosed, which raises concerns about the broker's operational transparency.

• 　　Countries Not Accepted: The broker does not accept clients from certain jurisdictions, including the United States and potentially other regulated markets.

• 　　Special Restrictions: Due to its unregulated status, clients from countries with strict financial regulations are likely to be excluded from opening accounts with Absystem.

　　In summary, while Absystem presents itself as a forex broker with a wide range of features and trading options, its lack of regulation, transparency, and numerous warnings from financial authorities suggest that potential clients should approach with caution. The risks associated with trading through an unregulated broker can outweigh any potential benefits.