AlphaFXC – Are They Safe? – ChainBits

Website URL: https://alphafxc.com

Founded: 2021

Regulations: Not Regulated

Languages: English, German, Spanish, French, Italian, Polish, Portuguese

Deposit Methods: Wire Transfer, Perfect Money

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: 1,000+

Types of Assets: Stocks, Cryptocurrencies, Forex

Trading Accounts and Conditions

AlphaFXC offers its clients the following trading accounts:

  • Basic: The opening deposit range is from $250 to $2,499. Commissions are set at 5%, crypto leverages range from 1:1 to 1:2, the spreads are variable and start from 2.4 pips. Forex leverage is at 1:50.
  • Silver: For this account, the deposit range is from $2,500 to $9,999. Commissions are set at 4%, crypto leverages are between 1:3 and 1:5, the spreads are variable and start at 2.1 pips. Forex leverage is at 1:100.
  • Gold: For this account, the deposit range is from $10,000 to $74,999. Commissions are set at 3%, crypto leverages range from 1:5 to 1:10, the spreads are variable and start from 1.8 pips. Forex leverage is at 1:100.
  • Platinum: For this account, the deposit range is from $75,000 to $149,999. Commissions are set at 2.5%, crypto leverages range from 1:10 to 1:20, the spreads are variable with the minimum spread at 0.6 pips. Forex leverage is at 1:100.
  • VIP: For this account, the deposit opens at $150,000. Commissions are set at 1.5%, crypto leverages range from 1:10 to 1:20 and variable spreads start at 2.2. Forex leverage is at 1:100.

AlphaFXC – Advantages

AlphaFXC does not have any advantages, so we have left this section of our review empty.

AlphaFXC – Disadvantages

Here are all the disadvantages we were able to identify in this broker:

  • Unregulated Broker Flagged Off by FCA

AlphaFXC claims that it is based in the UK; it gives a UK phone number as proof that it is based there. There is also a vague email address provided. The problem is that there is no physical address given to verify that this broker actually is based where it says it is. In its Terms and Conditions section, the broker does not mention any company name, however, in the About section, there is a company by the name of Alphafxc Trading. This is most probably the parent company, though the broker does not explicitly say so.

Whatever be the case, this broker’s hints that it is a regulated company based in the UK are all lies. The FCA (Financial Conduct Authority), the UK’s regulator, has also noticed this broker’s fraudulence. In fact, it has flagged off this broker as an offshore entity that is operating illegally in the country. In fact, the FCA states that this broker is based out of the Commonwealth of Dominica and is not authorized to operate in the UK.

Therefore, we are dealing with a broker that has lied about its location and regulation status, which means that we are dealing with a scammer.

$100

Minimum Deposit

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

$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.

  • Web-Based Trading Software

AlphaFXC offers its clients the use of a web-based trading software that has a lot wrong with it. First of all, it is a very simplistic platform that does very little. It cannot even come close to the norm, which is the MetaTrader 4 software. The MT4 platform offers its users a wide array of tools that make trading much more efficient.

This platform on offer by AlphaFXC is a very poor one, with little in its favor. There isn’t much you can do on it besides buy and sell.

  • Fraud and Price Manipulation

Another huge issue we have with this broker is that it is involved in price manipulation as well as fraud. How is this apparent?

On its trading platform, AlphaFXC is offering trading instruments that have been banned by the FCA. This means that this broker is offering illegal trading instruments to its clients. Furthermore, the broker’s buy/sell difference for the BTCUSD pair is just 10 cents, which is much too low. This indicates that there is price manipulation going on here.

  • High Leverage

AlphaFXC offers its clients leverage ratios that are as high as 1:100. This is extremely risky and illegal in the UK. The UK (like the EU, Australia, Canada, the US, and other countries) has placed a limit on how much leverage a broker can offer, which is a maximum of 1:30.

This limit has been imposed to prevent traders from going bankrupt by taking too high leverages from their brokers. So, this leverage offered by this broker is illegal.

Even if you consider the leverage ratios offered for cryptocurrencies, this broker is breaking the law. A maximum leverage of 1:20 in cryptos is just ridiculously high, especially when you consider that the EU has capped that ratio at 1:2 for these instruments.

  • Limited Funding Methods

The only way you can make deposits or withdrawals is via PerfectMoney or Wire Transfer, which are both irreversible charges and therefore unsafe options. Once your money is gone, there is no way you can get it back. A better option would be credit cards or debit cards, because these options allow for chargebacks in case you are scammed.

  • Issues in Currency Conversions

Another issue we have with this broker is the use of currencies. If you make withdrawals, then you are charged fees in UST (a crypto stablecoin which has a 1:1 conversion rate to the US Dollar). The problem here is that the only way that you can make funds transfers to and from this broker is bank transfers or PerfectMoney, which don’t allow for transactions in cryptos, which means that there is money conversion required. Which means that you will end up losing money every time you need to convert your funds into cryptos. And that money will go to the broker. A scam through and through!

Conclusion

Everything we have reviewed about this broker has proved to us that we are dealing with a scammer. We would advise all traders to stay away from AlphaFXC.

AlphaFXC

User Experience


3.3/10

Payment Options


2.0/10

Security


2.0/10

Support


2.0/10

Reputation


2.2/10


Cons

  • Unregulated Broker Flagged Off by FCA
  • Web-Based Trading Software
  • Fraud and Price Manipulation
  • High Leverage
  • Limited Funding Methods

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