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Alfa Trade UK ceases trading activities

Nasir Mohammad | Jul. 15, 2015
Alfa Trade UK ceases trading activities

15 July, AtoZForex, Lagos  Israeli registered firm, UK regulated Alfa Trade has sent out a letter to clients, clarifying that it has suspended its services till further notice, due to the fact that its FCA license has been suspended.

In its statement to clients, the broker has stipulated that all open positions be closed by July 21. They have presented the following options to clients in regards to the closing procedure.

  • Open positions can be transferred to a third party as requested by the client
  • clients can close out their own positions fully by 12.00 midday (BST) on 21st July 2015,
  • in the event that clients do not close out their own positions fully in Alfa Trade (UK) Limited will close out the positions fully as at 12.00 midday (BST) on 21st July 2015.

Heres an excerpt from the statement on how pending client orders will be handled:

As soon as all open trading positions in the name of a client have been closed in Alfa Trade (UK) Limited’s books, Alfa Trade (UK) Limited will undertake one of the following steps:-

1.) Where there is a nil balance on a client account, Alfa Trade (UK) Limited will proceed to close the account forthwith;

2.) Where there is a credit balance on the client account, Alfa Trade (UK) Limited will forward a statement of account to the client by MT4  and remit the balance on the account as soon as possible thereafter to a bank account opened in the name of the client, as agreed with Alfa Trade (UK) Limited;

3.) Where there is a debit balance on the client account, Alfa Trade (UK) Limited will forward a statement of account to the client and undertake one of the following steps:-

4.) Where there is sufficient Client Money deposited by a client to cover the entire debit balance on the client account, Alfa Trade (UK) Limited will transfer sufficient funds owed to the firm to clear the debit balance on the account;

5.) Where there is insufficient Client Money deposited by a client to cover the entire debit balance on the client account, Alfa Trade (UK) Limited will notify the client of the amount necessary to clear the debit balance on the account.. The client will transfer funds to Alfa Trade (UK) Limited to clear the debit balance on the client account.

As Alfa Trade UK ceases trading activities, reports reaching AtoZ also points to the fact that the firms is planning an exit from the UK market realm, with an intention to acquire a CySEC license for reasons that have not been disclosed, but it looks like a voluntary surrender of license, rather than a case of Alfa Trade UK going bust. Quite a similar situation with that of another Israeli Forex firm, Plus500.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.