Beware! AlfaMarkets 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.
The AlfaMarkets website assures us that this broker should be our first choice when selecting an investment intermediary. But even a surface inspection reveals numerous red flags that this is not a legitimate financial services provider, but a scam. In this review, we’ll show you why it’s in your best interest to stay away from AlfaMarkets.
AlfaMarkets Regulation and safety of funds
Guaranteed Funds | Segregated Accounts | Negative balance protection | |
AlfaMarkets | ❌ | ❌ | ❌ |
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 |
When you visit the website of a legitimate broker you can expect to find clear and detailed information about the company that owns and operates it, where it is based and what regulatory regimes it is subject to. Licensed financial services providers are also required to provide a comprehensive set of legal documentation.
We do not find any identifying information on the AlfaMarkets website. It is unclear which company is behind this website and where it is based. There are no Terms and Conditions, Client Agreement or other required documents. If you don’t know exactly who you are dealing with and what the terms of the deal are it would be an obvious mistake to put your money on the line.
The financial regulators of the Netherlands and Spain have issued warnings to investors that this website is not authorised and is a probable scam.
Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.
There are many benefits for retail traders to trade through a licensed broker in the EU. These brokers must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.
All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. EU forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.
AlfaMarkets Trading software
Analytical tools | Auto trading | Custom indicators | Mobile apps | |
XYZ platform | ✅ | ❌ | ✅ | ❌ |
MT4 | 30+ indicators | ✅ | ✅ | Android and iOS |
MT5 | 50+ indicators | ✅ | ✅ | Android and iOS |
cTrader | 40+ indicators | ✅ | ✅ | Android and iOS |
AlfaMarkets implements a basic web-based trading platform. Here is how 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.
AlfaMarkets Trading instruments
Currency | Stocks | Indices | Crypto | Commodities | |
AlfaMarkets | ✅ | ✅ | ✅ | ✅ | ✅ |
XM | Yes | Yes | Yes | No | Yes |
FBS | Yes | Yes | Yes | Yes | Yes |
FXTM | Yes | Yes | Yes | Yes | Yes |
The AlfaMarkets trading software includes currency pairs, commodities, stocks and cryptocurrencies. But as stated, we have every reason to believe that the trading offered by this anonymous website is fictitious.
AlfaMarkets Spreads and cost of trading
AlfaMarkets | XM | FBS | FXTM | |
Spread EURUSD | 1.5 | 0.6 | 1 | 1.1 |
Spread GBPUSD | 1.5 | 1.3 | 1.2 | 1.4 |
Spread USDJPY | 1.5 | 1.3 | 1.2 | 1.4 |
AlfaMarkets promises an industry typical spread of 1.5 pips and indeed this is the level we see in the trading platform. But again, we should point out that this trade is not real, and it is in your best interest to invest through licensed brokers.
AlfaMarkets Maximum leverage
Forex | Stocks | Crypto | Gold | Indices | |
AlfaMarkets | 500:1 | 100:1 | 10:1 | 100:1 | 100:1 |
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 | ❌ | ❌ | ❌ | ❌ |
AlfaMarkets offers leverage between 1:200 and 1:500 for different account types. his is not a level that you see with regulated brokers. 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.
AlfaMarkets Deposit and withdrawal methods
Deposit time | Withdrawal time | Price | |
Bank wire | 2-5 business days | 2-5 business days | $25+ |
Credit card | Instant | 24 hours | Free |
PayPal | 1 hour | 24 hours | 2% |
Skrill | 1 hour | 24 hours | 2% |
Neteller | 1 hour | 24 hours | 2% |
Crypto | 24 hours | 24 hours | Fee depends on crypto |
In the deposit menu we see only one option – the obscure and suspicious payment processor Payola.
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.
AlfaMarkets Minimum deposit
AlfaMarkets | XM | FBS | FXTM | |
Minimum deposit | $250 | $5 | $10 | $5 |
According to the descriptions of the account types, the minimum deposit is 200 USD, but the deposit menu itself sets a minimum of 250 USD.
For the same amount you could open a trading account with almost any licensed broker. Leading brands offer Micro and Cent accounts to novice investors with a much lower entry threshold.
AlfaMarkets Withdrawal requirements
Trading volume | Fee/Tax on withdrawal | Minimum withdrawal | |
AlfaMarkets | 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 |
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.