Updated on April 22, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding AlfaTrade due to the issues we've identified.
Is AlfaTrade Scam or Legit Broker? ▲
We strongly discourage our readers from engaging with AlfaTrade for their trading needs. This brokerage is operated by Nemesis Capital Ltd., a company incorporated in St. Vincent and the Grenadines, a jurisdiction notorious for its leniency towards forex trading regulations. This leniency attracts a multitude of dubious forex brokers due to the minimal regulatory requirements and the low cost of setting up operations. St. Vincent and the Grenadines has thus become a haven for brokers of questionable legitimacy, including the likes of Brokerz and TraderUR. For a more in-depth understanding of the perils associated with brokers from this jurisdiction, we have compiled a detailed analysis highlighting the risks of trading with such entities.
AlfaTrade positions itself as an online brokerage entity, yet its operational base is shrouded in ambiguity. The brokerage falls under the umbrella of Nemesis Capital Limited, officially domiciled in St. Vincent and the Grenadines. This location is widely regarded for its liberal regulatory environment, which significantly eases the maintenance of a company. Additionally, AlfaTrade claims a presence in Europe, specifically in Bulgaria, while maintaining a contact number based in the UK.
As of now, the company’s website is reportedly under maintenance, with the promise of being operational shortly. Despite this, trading activities are purportedly ongoing via the AlfaTrade MetaTrader4 platform. Historical information reveals that the company once held registration with the FCA (UK) until its license was suspended in 2015. The scenario depicts AlfaTrade as engaging in questionable business practices while masquerading as a reputable and established brokerage offering a range of trading options including forex, CFDs, commodities, and indices.
AlfaTrade’s dubious operations have been further substantiated by a plethora of complaints, evidencing the broker’s targeting and attraction of an international clientele across various jurisdictions. Consequently, based on client complaints, international regulatory bodies in the Forex domain have flagged the broker, issuing scam alerts and warnings against engaging with AlfaTrade for soliciting traders without appropriate licensing.
Warnings from regulatory authorities include:
“The National Commission for Companies and the Stock exchange reports that the companies Nemesis Capital Limited and Nemesis Capital Bg Limited are not authorized to provide investment services” – CONSOB, 2016.
“Nemesis Capital BG Limited, doing business as www.alfatrade.com is not registered in Ontario, Canada to engage in the business of trading in securities.” – Ontario Securities Commission, 2016.
In light of the significant concerns raised throughout our review, we emphatically recommend against opening a trading account with AlfaTrade. For those seeking to engage in trading, it is crucial to opt for brokers regulated by esteemed global authorities that adhere to stringent regulatory standards and have demonstrated a commendable reputation over time. It is advisable to consider well-regulated brokers from jurisdictions such as the UK or Australia.
AlfaTrade Update
Our exhaustive research indicates that AlfaTrade has ceased its operations, with the broker’s website currently inaccessible. There is a conspicuous absence of evidence to suggest any ongoing operations by the broker. Given the inherent risks and the general instability associated with offshore-based brokers, we strongly advise against engaging with such entities for trading activities.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
AlfaTrade Review 2024
