Alacom Corporation review – 5 things you should know about alacommcorp.com

Beware! Alacom Corporation is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

The most important thing you need to know about Alacom Corporation is that this website is a scam and not the regulated forex broker it claims to be. In many ways it is a trivial and easily recognizable scam, but in some aspects Alacom Corporation  has taken some very cunning steps to deceive its potential victims. It is therefore worth taking a detailed look at what this website reveals as a scam.

Alacom Corporation Regulation and safety of funds

If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has.The availability of such information does not guarantee that it is not false or misleading.

Alacom Corporation claims that behind this broker there is a company named Alacom Corporation Ltd, which is based in Cyprus and holds licenses from financial regulators not only in this jurisdiction, but also in the United Kingdom, Dubai and South Africa. The website even has links to the licenses from the websites of three of these regulatory institutions – Cyprus Securities and Exchange Commission (CySEC), UK’s Financial Conduct Authority (FCA), and Dubai Financial Services Authority.

When you open the links you see perfectly credible looking licenses. When you click on any of the links on these websites you are taken to the actual websites of these institutions. But the Alacom Corporation  licenses themselves are on a different domain, which is a copy of the regulators’ websites. When you look up Alacom Corporation  in the records of these regulators, you find that such a company is not listed among the licensed financial services providers.

The text of the Terms and Conditions specifies the applicable jurisdiction as the offshore zone of Vanuatu.

The Alacom Corporation website is available primarily in Russian. We therefore checked the Bank of Russia’s register, where we found a warning to investors that Alacom Corporation is not licensed.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker. You should also open the regulators’ records separately, not through links on a potential scam website.

Trust your money only to brokers who are truly licensed by reputable regulatory institutions such as CySEC or FCA. 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.

Alacom Corporation Trading software

Alacom Corporation implements a fairly basic web-based trading platform. While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

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.

Alacom Corporation Trading instruments

Alacom Corporation’s trading software includes currency pairs, stocks, indices, commodities and cryptocurrencies. But as stated, this trading is undoubtedly fictitious, not real. You should only invest in the financial markets through established and regulated investment intermediaries.

Alacom Corporation Spreads and cost of trading

In the Alacom Corporation trading platform, we see a spread of just 0.1 pip. Such a spread implies that the broker charges some kind of commission. But nowhere on the website is the amount of the commission stated.

Alacom Corporation Maximum leverage

One of the more obvious clues that Alacom Corporation is not a regulated broker is the leverage offered between 1:100 and 1:500. These levels greatly exceed those permitted in the jurisdictions in which Alacom Corporation falsely claims to be licensed.

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.

Alacom Corporation Deposit and withdrawal methods

Alacom Corporation 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.

Alacom Corporation Minimum deposit

Alacom Corporation specifies a minimum deposit of 100 USD, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

Alacom Corporation Withdrawal requirements

Alacom Corporation  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.