ByAlpha attempts to present itself as a globally accessible online brokerage platform, offering a sense of security for investing in financial markets. However, investigations reveal that it lacks proper licensing and established credentials in providing financial services. It is imperative to examine why it’s advisable to avoid ByAlpha and explore alternative, reputable brokers for trading forex and other financial assets.
ByAlpha Regulation
The pivotal aspect of a financial services provider is its regulatory status. Licensed brokers offer comprehensive details regarding their operating company, location, authorized jurisdictions, and regulatory oversight. According to the website’s homepage, Compic Solutions LTD operates ByAlpha from the offshore jurisdiction of Saint Lucia.
Examining records from the local Financial Services Regulatory Authority reveals no registered entity under the name Compic Solutions LTD. Even if ByAlpha’s owner is based in Saint Lucia, this does not offer regulatory guarantees nor authorize the broker to provide services in international markets. Additionally, the Spanish financial regulator, CNMV, has issued a warning to investors, stating that ByAlpha is not an authorized broker.
ByAlpha Trading software
ByAlpha utilizes web-based trading software. This software falls short when compared to the extensive capabilities offered by MetaTrader 4 (MT4) and MetaTrader 5 (MT5). The popularity of MT4 and MT5 as industry standards is not accidental. These platforms provide a plethora of features, including extensive customization options, support for multiple accounts, the ability to create and execute custom scripts for automated trading, and the capability to backtest trading strategies.
It’s important to highlight that the existence of trading software does not necessarily validate a broker’s legitimacy. Financial scammers frequently manipulate trading platforms to deceive their targets, leading them to believe that their funds are being invested. In reality, scammers entirely fabricate these trades, funneling the funds directly into their own pockets.
Trading instruments
The trading software presents various financial instruments, such as currency pairs, commodities, stocks, indices, and cryptocurrencies. However, there’s little justification to trust that the trading provided by this unregulated website is genuine.
Spreads and cost of trading
ByAlpha assures a spread of 1.5 pips, which is indeed reflected in the trading platform. While this falls within the industry standard, numerous licensed and reputable brokers provide more advantageous terms.
ByAlpha Maximum leverage
ByAlpha offers maximum leverage ranging from 1:200 to 1:500 for different trading accounts. Regulated brokers typically do not provide such high levels of leverage to retail traders due to the associated risks of sudden and excessive losses. Higher leverage levels are typically reserved for professional clients who trade entirely at their own risk.