Beware! This is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
AltMarkets is a Dubai based forex broker, which (allegedly) also offers management of funds. The company is owned by Al Pro Global Consultant Limited. The company doesn’t seem legitimate.
Their website does not list any details on the account types or trading conditions which they offer. There are only brief explainations on how trading Forex and CDFs works, in general. They do not state their offered spreads or leverage ratios.
The website states AltMarkets are regulated, but no regulatory agency is mentioned. This leads us to believe they are under no supervision. You may already know this, but we will remind you again – when it comes to financial services (such a being a broker) regulation is very important. Regulatory agencies, such as the FCA in the United Kingdom, are government bodies which oversee financial companies. Generally speaking the entire sector (including banks, insurance agencies, investment funds) are under some form of regulation.
In the case of forex brokers, a good licensing system is necessary in order to protect the client’s interest. Some regulators impose segregation of clients’ money from the companies, meaning your deposit can not be used for other activities. Other regimes offer compensation schemes – a system in which brokers set aside part of their profits, in order to create a fund, which would be used to compensate clients in the event of a broker bankruptcy.
As far as we can tell AltMarkets are not regulated anywhere. Being based in Dubai, one would assume they would be regulated by the Dubai Financial Service Authority (DFSA). However that is not the case.
The company also claims to be providing an account management service. First of all, this is not general practice as it creates potential for conflict of interest. If the broker operates with an STP/ECN model (making money only form the transaction costs per trade), they could potentially execute many trades, just to make bigger profits. If the company is a market-maker the situation is even worse – they could loose a clients’ money and make a profit on the loss. You can clearly see why there is a distinction between a broker and a company offering trading advice/account management.
Add the potential for scams described above to lack of oversight over AltMarkets and you have a dangerous situation.
AltMarkets supposedly offers MetaTrader4, although we couldn’t find such a section on their website. This may be a temporary technical issue or it may be indicative of the entire operation being a hoax.
No account funding methods are displayed on the website. At this point this is consistent with the overall feel for the company – little to no information about everything.
Support is offered via e-mail and telephone. At this point, we would not recommend contacting them for any reason. We suspect you may start receiving calls from them, if you bother to leave your contact information anywhere on the site.
We would not recommend trading with AltMarkets.com for many reasons. The company is not regulated, which always carries an inherit risk for your money. Even if they are a legitimate broker, that is not properly illustrated on their website – there is no clarification of the trading conditions, even no section from which to download the platform. AltMarkets is very likely to be a scam, aiming to part unsophisticated investors with their money.