AlphaBet BTC Review: Is it Safe?

| Publish date: 12/12/2019 (Last updated: December 25, 2019 11:13 AM)
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Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.

AlphaBet BTC - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Deposit
X

updated 2020

AlphaBet BTC is a brokerage based out of Bulgaria that presents itself as a blockchain-based trading platform for cryptocurrencies. However, it also offers a range of Forex and other trading options.

Its trading platform is web-based, and does not use the MT4 (MetaTrader 4) platform. It offers a spread on the EUR/USD Forex pair is 3.1 pips, which is more than 2 times the industry average. The site requires a minimum $250 deposit.

Try these regulated brokers if you want to start trading cryptocurrencies

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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.

  • Website URL: https://www.alphabetbtc.com/
  • Founded: 2018
  • Regulations: No
  • Languages: English, German, Spanish, French
  • Deposit Methods: Visa, MasterCard, Cryptocurrency (Bitcoin, Ethereum, Ripple), SSL Secured, Bank Wire, UPay Card, EntroPay.
  • Free Demo Account: No
  • of Assets: N/A
  • Types of Assets: Cryptocurrencies, CFDs, Currency Pairs, Commodities, Stocks, Indices, Futures

Overview

AlphaBet BTC is a brokerage based out of Bulgaria that presents itself as a blockchain-based trading platform for cryptocurrencies. However, it also offers a range of Forex and other trading options.

Its trading platform is web-based, and does not use the MT4 (MetaTrader 4) platform. It offers a spread on the EUR/USD Forex pair is 3.1 pips, which is more than 2 times the industry average. The site requires a minimum $250 deposit.

AlphaBet BTC: Advantages

Range of Assets for Trade

AlphaBet BTC offers its users quite a diverse portfolio of assets on which to trade. You can trade in CFDs, Forex and binary options in various asset classes such as currency pairs, commodities, indices, futures, precious metals, stocks as well as a wide range of cryptocurrencies. The site claims that its main cryptocurrencies on offer are Bitcoin, Ethereum and Litecoin.

AlphaBet BTC: Disadvantages

Unfortunately, this brokerage has many more negatives than positives, all of which indicate that this could be a scam.

Lack of Clarity on Company Ownership

There is a lack of clarity on who owns this company. AlphaBet BTC’s website only states that the company that owns its trademark is based in Sofia in Bulgaria. The company is called alphabetBTC, but details are missing.

Lack of Information about Licensing and Regulation

As a norm, brokerages that offer CFD and Forex trading services in Bulgaria are regulated by the country’s FSC (Financial Supervision Commission) or by a financial regulator from another country in the European Union which is also modeled on the ESMA (European Securities and Markets Authority) framework.

However, in the case of AlphaBet BTC, there is no information on the website about licensing by Bulgarian authorities, or even how the brokerage is regulated. This is a huge red flag as it indicates that the brokerage is not licensed or regulated by any government agency – even from its country of origin.

Licensing and regulation are critical factors for traders’ safety. If a company is not subject to regulations, there is a strong chance that the company behind the brokerage is a scam and that it will not fulfill its obligations toward its clients.

No Clarity on Services and Trading Conditions

Another cause for concern is that this brokerage claims to be a blockchain-based trading platform. In fact, novice traders could be misled into thinking that AlphaBet BTC offers exchange services too. However, this broker in reality offers binary options and CFD trading.

There are also no trading conditions mentioned on the website. A reliable brokerage will offer detailed information on reference spreads, leverage, account types, and so on. However, on this website, all of this information is missing.

No Free Demo Account.

AlphaBet BTC does not have any free demo account, so the only way you can check its product range and offerings is by opening a live account.

No Support for MetaQuotes Software

Unlike other brokerages, AlphaBet BTC does not support the MetaTrader 4 platform for trading. Rather, clients can trade on a web-based platform that is focused on trade in binary options and Forex.

This web-based platform, while intuitive and offering charting options from TradingView.com, does not compare to the user-friendliness of the MetaTrader platform, which is what 80% of the trading community uses today.

The MT4 platform is equipped with features that include nearly 100 market indicators, trading robots that can be customized, etc.

Spreads are Very High

The spreads that AlphaBet BTC offers are very high. Since there is no free demo account on which spreads can be checked, the only way to do so is by opening a live account. The EUR/USD currency pair’s spread is in the range of 3.0 to 3.1 pips, which is more than two times the industry norm.

Such spreads are not advantageous for traders, and, in fact, are considered unacceptable.

Withdrawal and Fees

The website lists multiple payment methods such as Visa, MasterCard, SSL Secured, EntroPay, UPay Card, Bank Wire, and Cryptocurrencies such as Ripple, Bitcoin and Ethereum.

Withdrawals are also very slow and the process cumbersome. It can take 14 days and more for withdrawals, with just processing taking between 5 and 7 days. Transaction fees are also very high. Withdrawals via card can cost over $20, while bank wire fees are as much as 1% of the total amount being withdrawn.

The website also will not allow withdrawals of less than $300 via wire transfer and $50 via credit card. Such conditions are rather excessive in Forex trading. While many brokerages charge minimal withdrawal fees, setting a limit on the amount that can be withdrawn is a red flag.

Bonus Trading Conditions

AlphaBet BTC also has bonus trading conditions. For funds to be withdrawn, a trader will have to execute a minimum trading volume of 40x for every 1-unit bonus he or she was awarded.

The brokerage adds another condition that if clients wish to withdraw their money without having met the previous condition, then they would need to forfeit 25% of their funds.

Such tactics are typical of untrustworthy brokerages and scams, and chances are, when you attempt to withdraw your funds, you will not be able to do so.

Conclusion

AlphaBet BTC has received unanimously negative reviews. This site has only one thing in its favor – its range of trading options. Everything else on this site is a huge red flag that screams scam.

With no license or regulation, ridiculous terms and conditions for withdrawals (especially of bonuses), no transparency on trading conditions, no MetaTrader support, no free demo account, and extremely high spreads, this is one site that you should completely steer clear of – it is too high risk and is most likely a scam.

AlphaBet BTC

2.5

User Experience

3.5/10

Payment Options

2.0/10

Security

1.8/10

Support

2.3/10

Reputation

2.7/10

Pros

  • Account can be opened in any one of 4 different currencies
  • Minimum Deposit Requirements on Par with Industry Average
  • Supports MT5
  • Wide Range of Trading Instruments

Cons

  • No Demo Account
  • Skrill not available as a payment option
  • Strange Withdrawal Conditions that are not fair to traders
  • Not registered, licensed or regulated despite operating in the EU

Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:

AvaTrade
$100
Minimum Deposit

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.

Plus500
$100
Minimum Deposit

76.4% 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

eToro
$200
Minimum Deposit

eToro is a multi-asset platform which offers CFD and non CFD products. 66% 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.

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