Italy's CONSOB has alerted investors against using services of AlfaTrade, following several warnings issued by Canadian regulators. Is AlfaTrade a reliable broker?
23 November, AtoZForex – The National Commission for Companies and the Stock Exchange (CONSOB) has issued an alert against the retail forex broker AlfaTrade. The regulator notified investors that Nemesis Capital Ltd and Nemesis Capital Bg Ltd, holding Alfa Trade, are not registered with the CONSOB. Hence, none of the entities is allowed to provide any investment services in Italy.
Is AlfaTrade a reliable broker?
According to AlfaTrade's website, the brokerage is owned by Nemesis Capital Ltd. While, Nemesis Capital Bg Ltd serves as a payment service provider for AlfaTrade. The forex broker offers its clients trading in Forex through tseveral platforms, including MT4 and Webtrader. AlfaTrade also enables its clients to open various accounts, ranging from standard to VIP accounts. In addition, the brokerage claims to operate in more than 150 countries. When browsing through the website of AlfaTrade it can be spotted that the firm claims to be registered in Stoney Ground, Kingstown, St. Vincent and Grenadines. But there is no information related to the regulation of the brokerage.
The official notice of the Italian regulator states that both Nemesis Capital Ltd and Nemesis Capita Bg Ltd are not registered with the CONSOB. So they can not provide investment services or execute activities in Italy. Consequently, the companies are not permitted to provide any services via AlfaTrade in the region. The regulator warns investors against committing their funds with AlfaTrade.
Previous warnings
This is not the first time when the brokerage is blacklisted. In October, the Ontario Securities Commission (OSC) issued a warning against AlfaTrade. Since it is not registered in Ontario and, thus, is not authorized to engage in the business of trading in securities and advising investors. Prior to this warning, Canada’s British Columbia Securities Commission (BCSC) had red flagged the firm. The regulator undertook the measure as a British Columbia resident was able to open an account with AlfaTrade. Whereas, AlfaTrade is not registered with the BCSC to offer its services in the province.
Therefore, traders should be wary of using AlfaTrade's services. In addition, AtoZForex advises avoiding committing funds with unauthorized Forex brokers, and always double check if a broker is licensed by any reputable regulator. Alternatively, a trader can 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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