Beware! ALKA Fitech 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.
If the claims on ALKA Fitech’s website are to be believed, this is a well-established forex broker with licences in some of the world’s leading markets. But this website is actually a good reminder of why you should do careful fact-checking before you put your money on the line. In this review, we’ll show you why ALKA Fitech is not what it claims to be, and how you could tell the fake brokers from the genuine ones.
ALKA Fitech Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities. But the availability of such information does not guarantee that it is not false or misleading
The first red flag that we are dealing with a scam is that ALKA Fitech is actually anonymous – nowhere is the name of the company behind this website mentioned. This is unacceptable for a legitimate financial services provider.
In the footer of the website we see a UK office address but also a statement that ALKA Fitech holds a licence in Cyprus.
Elsewhere on the website it is claimed that this broker holds licences in other regulated jurisdictions such as Australia and South Africa.
However, the text of the Terms and Conditions states that the applicable jurisdiction is the offshore zone of Vanuatu.
On checking the records of all relevant financial regulators, we find no licensed broker using the ALKA Fitech trading name and domain.
The website is primarily available in Russian. This has attracted the attention of the Bank of Russia, which has blacklisted ALKA Fitech.
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.
As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
ALKA Fitech Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|ALKA Fitech platform||✅||❌||✅||❌|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
ALKA Fitech uses a basic looking web based trading software, here’s what it looks like:
While this platform has the basic functionality to place orders, it cannot compare to the capabilities provided by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It is no coincidence that these platforms have established themselves as the industry standard. They offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.
ALKA Fitech Trading instruments
ALKA Fitech advertises trading in all major asset classes, including cryptocurrencies. This could also serve as evidence that ALKA Fitech is not a licensed broker based in the United Kingdom. The FCA prohibits brokers licensed in the country from offering crypto derivatives trading to retail customers.
ALKA Fitech Spreads and cost of trading
ALKA Fitech does not provide information regarding the price paid by the customer. In the trading platform we see a zero spread, which means that the broker charges some kind of commission. But it is not clear what the amount of this commission is.
ALKA Fitech Maximum leverage
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
ALKA Fitech advertises leverage between 1:100 and 1:500 for different account types. This is also clear evidence that ALKA Fitech is not a regulated forex broker.
Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
ALKA Fitech Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Crypto||24 hours||24 hours||Fee depends on crypto|
ALKA Fitech only allows the deposit of funds with cryptocurrencies.
This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.
Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
ALKA Fitech Minimum deposit
The minimum deposit required by ALKA Fitechis 150 USD. For the same or often lower amount you could open a starter trading account with a truly licensed broker, including some of the industry’s leading brands.
ALKA Fitech Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|ALKA Fitech||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
ALKA Fitech does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.