Beware! AlForexTrade 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.
Warning! AlForexTrade has nothing to do with Forex brokerage! They only offer Binary Options trading and some Bitcoin investment plans, which we do not recommend to anybody. On top of that, AlForexTrade is an undisclosed broker, which withholds critical information about its legitimacy. Find out everything you need to know about this fishy enterprise in the full AlForexTrade review.
AlForexTrade REGULATION AND SAFETY OF FUNDS
AlForexTrade is an unidentified entity which doesn’t give any information about the company that supposedly stands behind it. They did not even put their headquarter address on their website, but only claim that the governing law of the United States apply as they conduct their business. We researched the register of NFA- the US government body that authorises the Forex broker, but in vain.
Your funds are in danger if you make a deposit with AlForexTrade because it’s an unlicensed, unauthorised and unregulated sham Forex broker, which illegally sell financial products and services!
If you are looking for a reliable, trustworthy Forex broker choose a CySEC(EU) or FCA(UK) regulated company, which are not surprisingly the leaders in the retail Forex industry. The customer protection policy is placed on top of their priority list, not because they want to, but because they have to. In these jurisdictions, the Forex brokers have to comply with many strict rules and regulations, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts etc. But most importantly, there are money protection schemes in operation, such as ICF in Cyprus and FSCS in the UK, which guarantee the deposits of the traders. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in the UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
AlForexTrade TRADING SOFTWARE
MetaTrader4 and MetaTrader5 are not available for trading. Metatrader is the most popular Forex trading platform in the world, which is highly renowned for its stability and reliability. It also comes with a variety of sophisticated tools such as Expert Advisors, Automated Trading, Complex Indicators and even its own marketplace.
Warning! AlForexTrade provides its customers with some fishy web-based binary options platform! Binaries are elementary so-called trading instruments that have nothing to do with the rest of the options on the market, where the investors are not required to buy or sell the underlying assets at the expiration date of the options contract. The Binary Options are pure gambling, where the traders bet on the price with two possible outcomes- win or lose. Binaries were banned in the EU and UK a few years ago because of their gambling nature, but also because these are prone to fraud and price manipulation! Stay away from AlForexTrade; it’s a scam!
No spreads available. The spread is the difference between Buy and Sell and forms part of the trading costs for the customers. The leverage levels are also unknown if any apply at all. The leverage, on the other side, is the second fundamental aspect of trading. It’s a powerful financial tool that allows the traders to amplify the potential profits, but the risks involved increase dramatically. A higher leverage level, such as 1:500, is dangerous for your funds and might cause significant losses if misused.
AlForexTrade DEPOSIT/WITHDRAW METHODS AND FEES
Warning! AlForexTrade T&Cs is the only legal document available, and the information about the trading conditions is really scarce. It raises another major red flag, which proves once again that AlForexTrade is a broker that should be avoided!
The minimum initial deposit is unknown, but if we judge by the Investment plans on their website, it should be 1 Bitcoin, which is simply ridiculous.
Warning! The single funding method available is Bitcoin, and that’s another major red flag! Beware, you cannot file a chargeback when using Cryptocurrencies to make a deposit, and it’s almost impossible to get a refund if you end up being scammed!
No information about minimum withdrawal amount restrictions or withdrawal fees that apply.
No information about their dormant account policy. It’s a set of rules and conditions that deals with accounts that have become inactive. The legit Forex broker will charge the inactive accounts with 5 to 10 dollars per month at most.
No information about bonuses or other forms of trading incentives. The traders should know that the bonuses are not free money, but a leverage tool that further increases the risk. The trading incentives such as bonuses, promotions, you name it to benefit the brokers, not the traders, because different conditions apply which very often freeze the accounts making it impossible for the clients to withdraw their money unless some unfair requirements are met!
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will simply rely on the quantity; they will publish tens or hundreds of websites and will just wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Fraudsters are working in social media nowadays, and an increasing number of scammers is approaching people on Facebook, Instagram, Telegram, you name it. They will create pages showing lush lifestyle, cars, yachts, celebrities etc. and will insist that you will make even more money if you click on the like button. You will see pictures showing profits of tens of thousands of dollars, and if you have no FX experience, you might easily believe in what they promise. Often the scammers will give free advice or a tryout, and before you know it, they will be asking for your money upon subscription.
WHAT TO DO WHEN SCAMMED
No one is immune to scam; anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience; it is essential to protect others, as well. Be responsible!