Beware! Alpha Financial Group 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.
Alpha Financial Group is a forex and CFD broker that offers a variety of trading instruments on a web based trading platform, leverage of up to 400:1and seven account types.
We counted some 45 currency pairs, lots of which exotic or minor like USDCNH, USDHKD, USDPLN, USDNOK, USDRUB, USDSGD, USDMXN,USDSEK, USDDKK, USDZAR, USDTRY and USDCZK, as well as CFDs on silver, gold, oil, natural gas, coffee, copper, cotton and tin, 10 indices, stocks and even crypto coins including NEM, Monero, Dash, Ripple, Litecoin, Bitcoin, Ethereum, Ethereum Classic and USD Tether.
Spreads with their staring silver account however were somewhat higher than we would have liked with a standard account – 3 pips for the benchmark EURUSD pair is at least twice as higher than the levels considered attractive by most traders. And yet this is not our biggest concern about Alpha Financial Group, but fact that their website is virtually anonymous and what is even worse, they have been blacklisted by several regulators as a potential scam scheme.
Alpha Financial Group regulation & safety of funds
Let us start with the fact that we know virtually nothing about the company that runs Alpha Financial Group. There are just two contact numbers – one German and one from the UK and that is all – no company name, no corporate address, not to mention any information about a licenses – all forex and CFD brokers operating from an EU country like the UK or Germany should be licensed by an official EU regulator like the UK’s Financial Conduct Authority (FCA), BaFin in Germany, or let say the Cyprus Securities and Exchange Commission (CySEC).
So basically Alpha Financial Group is a unregulated, anonymous website, which, as we already noted, was actually blacklisted bye several regulators – the CNMV of Spain and the Australian Securities and Investments Commission (ASIC), which warn that Alpha Financial Group is running a scam.
Alpha Financial Group deposit/withdrawal methods and fees
We were not able to prove if Alpha Financial Group accept payments with major e-wallets like Neteller and Skrill. Be aware that recently Skrill adopted a new anti scam policy according which only licensed brokers can use its services. Apart from that Alpha Financial Group accepts payments with VISA and MasterCard, as well as bank wire.
Also, be aware of any trading bonuses that Alpha Financial Group might offer you. The practice is highly controversial and is prohibited on the European market altogether. The problem with all trading bonuses is that they are always linked to some minimum trade volume requirement – in the case of Alpha Financial Group 40 times the amount of the bonus plus your deposit, which might easily be used by scammers to cancel your withdraw requests.
On top of that the minimum deposit requirement is also unacceptably high – 5000 USD.
How does the scam work?
More and more often fraudsters use the social media websites like Facebook and Instagram to hunt for new victims. And they also do it through the so called robo scam websites like Bitcoin Profit and Brexit Trader, which are especially designed for the purpose. On a robo scam website you will be greeted by a nicely cut video add, promising you easy and completely risk free returns with a small investment, that is supposed to generate profit automatically. And if you get interested and leave your e-mail and phone, in a second you will be transferred to the website of an offshore broker, where you will be asked to deposit about 250 USD.
And do not be carried away by the success of your initial trades. This is an old scam technique – scammers will manipulate your trading account so that you will be tempted to deposit a larger sum. And that is exactly what your “senior account manager” will advise you on the phone – to deposit at least 10 000 USD so that you will be able to see some real returns.
And at that point most people do fall into the trap and invest as much as they can, without realizing they have been scammed until the very moment they decide to withdraw a portion of their money. And than, their withdraw request is canceled, because they have not met some minimum trade volume requirement, possibly linked to a welcoming bonus. Of course the excuse might be different, but it will all come to the same – scammers will not be paying any money back.
What to do if scammed?
Probably the only plausible chance to recover your deposits is to file for a charge back with your credit card company. Fortunately both VISA and MasterCard will agree to do that within 540 days – that is their new anti scam policy.
Also, if by any chance you have told scammers your banking details – your credit card number for example and your online banking password, immediately cancel your credit card and change the password.
And finally, do not accept the services of the so called recovery agencies – they will simply charge you some upfront money, without retrieving you anything, basically leaving you even deeper into the red.