Is Alfa Trade a Reliable Forex Broker? - OSC warning


Earlier this year AlfaTrade was blacklisted by the BSCS, now the broker faces another warning note with the OSC AlfaTrade warning published yesterday.Is Alfa Trade a reliable Forex Broker? AtoZ Forex presents.

7 October, AtoZForex The Ontario Securities Commission (OSC) has been successfully monitoring the financial market against unlicensed financial services providers. Resulting into many discoveries and issued warnings against illicit business in the region. One of such warnings has been published yesterday, as the OSC has warned against Nemesis Capital Limited operating as AlfaTrade.

OSC AlfaTrade warning

The red flagged brokerage firm is operating online via alfatrade.com and is offers its clients to trade Forex via the MT4 platform, the broker allows its clients to open various types of accounts, ranging from standard to VIP accounts. Moreover, AlfaTrade claims to have operations in over 150 countries, with their website being supported in 10 different languages. When assessing its registered address, the Forex broker’s website claims to be operated through the following address: Stoney Ground, Kingstown, St. Vincent and Grenadines.

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According to the Canadian watchdog, AlfaTrade is not registered in Ontario and therefore is prohibited from engaging in the business of trading in securities and advising investors regarding the investing or buying/selling securities matter. AtoZForex has reached out to the firm and asked whether the Forex broker possesses any license within the Ontario region, the support team of AlfaTrade provided the following answer:

“We do not have the license yet. Once we do, the information will be available on our website.”

The previous warning on AlfaTrade

Aside from the recent OSC warning on AlfaTrade, another Canadian regulator has blacklisted the brokerage firm previously. The British Columbia Securities Commission (BCSC) had red flagged Forex broker AlfaTrade earlier this year in March, adding the Forex broker to its exhaustive Investment Caution list. The essential reason for the regulative measure against AlfaTrade is due to the recent discovery that a British Columbia resident was able to open an account with the Forex broker, while AlfaTrade is not registered to offer its services in the province.

Indeed if traders would make a small search they could find it out that the broker is not registered in Canada, but they are not regulated anywhere in any-case since to open a St. Vincent and Grenadines registered company takes just a few weeks.

Alfa Trade non compliant media operations

Is Alfa Trade a reliable Forex Broker? Besides the OSC AlfaTrade warning, Alfa Trade has been under AtoZ Forex Scam alert for a while now due to their non compliant media operations.

Take for example the following Alfa Trade Facebook advertisement which has been targeted on Eastern Europe. The broker advertises everything which is punishable by law, including offering high profitability, sending the trader a winning strategy and not only that playing with traders greed and emotion by using a fake quote "I already made 1 670 euros by trading on stocks."

alfa-trade non compliant addvertisement

Such media advertisement is against every major regulation. Just because Alfa Trade is not a regulated broker, they are able to get away with this.

So, to conclude your question "Is Alfa Trade a reliable Forex Broker?" My answer would be no!

Traders should avoid committing funds with unauthorized Forex brokers, and always double check if a broker is licensed by any reputable regulator. Another method is to check the AtoZ approved Forex brokers list. AtoZ Forex team of professional traders test brokers on monthly basis and those who pass the test receive an AtoZ Approved badge.

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