Scam Brokers

Alfa Capital Markets – Can You Trust Them?

Chainbits Staff | Publish date: 06/07/2022 (Last updated: July 04, 2022 04:46 AM)

Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

Alfa Capital Markets - DO NOT TRADE WITH THIS PROVIDER

2.3/10

$100

Minimum Deposit

updated 2022

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The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.

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Plus500CY Ltdauthorized & regulated by CySEC

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Website URL: https://alfacapitalmarkets.ltd

Founded: 2021

Regulations: Not Regulated

Languages: English

Deposit Methods: Not Specified

Minimum Deposit: $250

Free Demo Account: Unavailable

Number of Assets: N/A

Types of Assets: Stocks, Forex, CFDs

Trading Accounts and Conditions

Alfa Capital Markets offers their clients the following trading accounts:

Standard: The required deposit starts from $250.
Professional: The required deposit starts from $10,000. You are offered a 30% bonus.
Business: The required deposit starts from $30,000. You are offered a 50% bonus.
Business Plus: The required deposit starts from $100,000. You are offered a 100% bonus.

However, when you register for an account with this broker, there is an entirely different set of account types mentioned: Micro, Premium, Pro, Standart, VIP, and Zero Fixed.

Clients are offered a choice between fixed spreads that range from 2.1 pips to 2.3 pips, or variable spreads that start from 0.2 pips, but also have a $20 commission. The maximum leverage offered by this broker is 1:1000.

Alfa Capital Markets – Advantages

There are no advantages to trading with Alfa Capital Markets. This broker is a scammer.

Alfa Capital Markets – Disadvantages

Here are all the reasons why it would not be wise to trust Alfa Capital Markets:

Lack of Regulation

The first big red flag that tells us that this broker cannot be trusted is their lack of regulation.

On their home page, Alfa Capital Markets makes a rather strange claim: that Alfa Capital Markets is the broker’s commercial name that is regulated and authorized at both the National and European level by the so-called national control and authorization bodies. Then, the broker provides a license number (38720) and something the broker calls European LEI-2549-006s-7R14-01ZC-6H27/2021.

To add the to the confusion is the other corporate information: a UK address but an Indian phone number.

So, here are all the issues we have with this information. First, the regulation information provided by this broker is all nonsense. There is no regulator specified and those license numbers are bogus.

Next, if a broker has a UK address, then they need to be regulated by the financial authority of that country – the Financial Conduct Authority. However, when we checked the online register of the FCA, we found that there was no broker (or company) by this name listed with them. So, Alfa Capital Markets is also not listed with the FCA.

Everything about this broker’s claims of regulation status is a lie, which is the first – and greatest – sign of their scam.

Plus500

$100

Minimum Deposit

Start Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

AvaTrade

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Minimum Deposit

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

No Legal Documents

Another sign of their scam is the fact that Alfa Capital Markets doesn’t actually have any legal documents to speak of. When you register for an account with this broker, you are required to tick the box that states that you agree to their Terms and Conditions. However, if you click on that link, you are taken to their Contact Us page. There is no legal document available at all.

Legal documents are a legal necessity since they spell out the exact terms of the contract between you and the broker – what services they offer (trading conditions, commissions, fees, etc.), their payment policies, withdrawal and deposit policies, and so on. Without these details, the broker can scam you and there will be nothing that you will be able to do about it.

Issues with Account Creation

We usually create an account with a new broker to verify the claims they make on their website – the kind of trading platform they offer, the payment options, the fees attached to those options, and the actual trading conditions.

When we tried to create an account with this broker, we were immediately given an error message that our live account could not be created. This is typical of such scams, where the only way that you will be allowed to create an account is when the broker gets in touch with you.

Issues with Trading Platform

Alfa Capital Markets claims to offer their clients a liquid trading platform. However, the broker does not specify (once again) what that actually means. What you see on their website is the image of a generic trading platform – a web-based software that is very basic and offers extremely limited functionality. A platform we have seen numerous times with other scam websites.

And because of the fact that we could not even create an account with Alfa Capital Markets, there is no way to verify the actual trading platform that this broker offers.

Issues with Account Types

As we mentioned in our Account Types section of this review, there is a contradiction in the types of accounts that this broker offers. On their website, they offer one set of accounts, but when you attempt to create an account with them, you are offered a completely different set of account types from which to choose.

This sloppiness is typical of low-grade scammers.

Very High Leverage

While the rest of the trading conditions seem within industry limits, the kind of leverage this broker offers (1:1000) tells us clearly that they are a scam. Leverage ratios in jurisdictions such as the UK and EU are severely limited (it is 1:30). Therefore, the leverage ratio this broker offers is illegal.

Issues with Payment Options

Another red flag is the lack of information about the kinds of payment options this broker offers. On their website, they have a list of logos of various international banks, but they do not specify what options they offer.

Bonuses Offered

And finally, this broker offers bonuses, a promotional tool that has been banned in most jurisdictions because of their unfair terms. And since this broker has not even bothered with legal documents, we do not know what the terms of these bonuses are – a typical scam move.

Conclusion

Based on our review, our conclusion is that Alfa Capital Markets cannot be trusted. This broker is a scammer and your money is not safe with them.