Alphatrade-fx Review – Check the Red Flags

Alphatrade-fx Review

As the number of scam and fraudulent operators in the market continues to climb, people are becoming more and more concerned about the reliability and authenticity of the brokerage they choose. It is understood that you will be worried because there is a great deal of money involved, as is your personal and confidential data. People want to trade in the financial markets for making money, but you can lose it just as quickly if you sign up with a fraudulent broker. The popularity of online trading has resulted in more and more cybercriminals joining the fray, something that becomes evident with this Alphatrade-fx review.

Everyone wants to opt for an authentic and genuine brokerage and avoid a scam, but this is easier said than done. No company is going to advertise its fraudulent nature and will do its level best to convince you that it is legitimate. Therefore, it is your responsibility to do an assessment to know what kind of company you are dealing with. Bear in mind that these scams deliberately add offerings and features that people find hard to resist. These are designed to attract people to their platform and those who are too eager fall into this trap and end up suffering at the end of the day.

Signing up with a scam operator can derail your financial goals and cause losses that can be quite devastating. In fact, it can often demotivate people and turn them away from trading, which means you will miss some truly good opportunities. So, how do you ensure it does not happen to you? You should look for any red flags in a brokerage instead of signing up right away. This can assist you in determining if you are dealing with a bogus company, or a reliable one. Presented as one of the top forex and CFD brokers, Alphatrade-fx will catch your eye with its offerings. But, does it have any red flags? Checking its offerings will help you figure it out. Let’s get started:

Lack of licensing and regulation

If you go through the scam stories, you will find one thing in common; all scammers are unregulated and unlicensed, which allows them to get away with because they do not have to worry about any accountability. Licensed and regulated companies, on the other hand, have to uphold and maintain high standards and comply with numerous laws and regulations. They are also accountable for their actions and can offer you protections. Hence, checking Alphatrade-fx’s regulatory and licensing status is a must.

When you check their background, you will discover that Alphatrade-fx is owned and operated by a company named Businesoft Limited, which is registered in Saint Vincent and the Grenadines. The same company is also behind another brokerage brand known as Unicorn FX. The problem is that the SVG is an offshore zone and its Financial Services Authority (FSA) has mentioned it outright that they do not oversee the forex industry.

This means that Alphatrade-fx does not offer you any of the protections that a regulated and licensed brokerage can and you cannot take their word for anything because they cannot be held accountable and don’t have to comply with any rules. In fact, SVG is considered a hotbed for scam companies because of this lack of regulation, so it is a major red flag where the broker is concerned.

Malicious bonus policy

The fact that Alphatrade-fx is offering trading bonuses to its clients is already a big red flag. Why? This is because trading bonuses have been banned in most of the world’s regulated jurisdictions in order to protect consumer interest. Therefore, the fact that Alphatrade-fx is offering these bonuses should be a concern already.

Moreover, the reason for the ban on bonuses becomes evident when you check Alphatrade-fx’s bonus policy because it discloses the malicious intent associated with the trading bonus they offer. In order to withdraw the earnings made from the bonus, you are first required to make a deposit of $250 and then achieve certain trading volume requirements. The requirements have deliberately been kept so high that even professional traders will find it difficult to achieve them. Thus, your withdrawals will be blocked and you will not be able to access your money.

Excessively high spreads

The spreads offered by a broker are of the utmost importance because they determine your profits at the end of the day. It is understood that you want the tightest spreads possible because this means more profits for you, but you will not find this at Alphatrade-fx. As a matter of fact, you will discover that the brokerage actually has the highest possible spreads, which can lead to losses for you. Their spread for the standard EUR/USD currency pair stand at 3.4 pips, which is usually 1 pip on average. This is excessive and shows that you are not dealing with a competitive brokerage at all.

Basic trading platform

The trading platform of a brokerage plays a key role in your trading, so it has to be dependable and feature-rich. You are in for disappointment when it comes to Alphatrade-fx because they offer a basic, web-based trading platform that does not even come close to the features and tools that other advanced platforms can offer to you. These include the MT4 and the MT5, which have become renowned in the financial markets for their advanced technology and performance.

High withdrawal fees

A look at the withdrawal fees being charged by Alphatrade-fx is another indication that your trading costs will be very high when you opt for this platform. Not only do they have extremely high fee of withdrawal, they are also charging a dormant account fee, if your account remains inactive for just a month. Most brokers these days are actually waiving off withdrawal charges as a sign of good faith, yet Alphatrade-fx is charging obscene amounts for this purpose.

Bottom Line

These red flags make it apparent that Alphatrade-fx is not a smart choice for anyone looking to profit in the financial markets.