The key aspect to understand regarding Alacom Corporation is that it operates as a fraudulent entity rather than the legitimate forex broker it purports to be. While it displays characteristics typical of a scam that are readily identifiable, Alacom Corporation has also employed deceptive tactics, making it important to scrutinize its operations closely to uncover its fraudulent nature
Alacom Corporation Regulation
If a financial services provider is legitimate, its website typically provides transparent and comprehensive details about the owning company, its location, and the licenses it holds. However, the presence of such information doesn’t always guarantee its accuracy.
Alacom Corporation asserts that it operates under the umbrella of Alacom Corporation Ltd, headquartered in Cyprus, boasting licenses from regulatory bodies in Cyprus, the United Kingdom, Dubai, and South Africa. The website even includes links to licenses purportedly issued by the Cyprus Securities and Exchange Commission (CySEC), the UK’s Financial Conduct Authority (FCA), and the Dubai Financial Services Authority.
Upon clicking these links, users encounter licenses that appear credible. Yet, when clicking further on any of these websites, they’re redirected to the official sites of the regulatory institutions. Strikingly, the licenses attributed to Alacom Corporation are hosted on a separate domain, mimicking the appearance of the regulators’ websites. However, upon cross-referencing it with the records of these regulators, it becomes evident that the company isn’t listed among licensed financial service providers.
Entrust your funds solely to brokers that hold genuine licenses from reputable regulatory bodies such as CySEC or FCA. As a customer, you’ll benefit from various protections, including safeguards against negative balances and compensation for your funds if the broker faces bankruptcy. This compensation can amount to EUR 20,000 in the EU and 85,000 GBP in the UK.
Trading Software
Alacom Corporation utilizes a relatively simple web-based trading platform. Although this platform includes fundamental features like order placement, chart customization, and the application of technical indicators, it lacks the advanced functionalities present in widely used industry platforms such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5). It’s important to highlight that the existence of a trading platform doesn’t enhance the legitimacy of this website or guarantee the provision of genuine trading services.
Many fraudulent entities manipulate trading software to deceive victims into believing their funds are being invested legitimately.
Trading Instruments
Alacom Corporation’s trading software offers a range of assets including currency pairs, stocks, indices, commodities, and cryptocurrencies. However, it’s important to emphasize that this trading activity is undoubtedly fictitious rather than genuine. For legitimate investment in financial markets, it’s advisable to only engage with established and regulated investment intermediaries.
Alacom Corporation Spreads
Traders observe a spread of only 0.1 pip on the Alacom Corporation trading platform.
This indicates that the broker likely imposes some form of commission. However, notably absent from the website is any explicit mention of the commission amount.
Alacom Corporation Leverage
One of the unmistakable indicators that Alacom Corporation lacks regulation as a broker is the leverage it offers, ranging between 1:100 and 1:500. These leverage levels far surpass the limits permitted in the jurisdictions where Alacom Corporation falsely asserts to hold licenses.
Regulated brokers typically restrict higher leverage ratios exclusively to professional clients, who must meet stringent criteria regarding capital and experience and consequently forgo certain protections available to retail traders.
If you’re not classified as a professional trader but have the inclination to engage in high-leverage trading despite the associated risks, a more viable approach is to use the services of an offshore affiliate affiliated with a reputable and established brand.
Deposit and Withdrawal Methods
Alacom Corporation exclusively permits fund deposits using cryptocurrencies, a characteristic commonly observed among financial scammers. Cryptocurrencies serve as their preferred payment method due to the anonymity they afford scammers, as well as the lack of recourse for victims to request refunds.
Minimum Deposit
Alacom Corporation sets a minimum deposit requirement of 100 USD, which aligns with the industry standard. However, it’s important to note that with the same amount, one could open a trading account with a reputable and properly licensed forex broker. Several prominent brands in the industry provide Micro and Cent accounts with exceptionally low entry thresholds, catering specifically to novice investors. These options offer more security and transparency compared to Alacom Corporation.
Withdrawal Requirements
While Alacom Corporation does not outline any extraordinary conditions for withdrawal upfront, it’s common for these types of scams to spring surprises with hidden fees and other tactics aimed at obstructing users from withdrawing their funds. Therefore, one should exercise caution and conduct thorough research into a broker’s reputation and legitimacy before engaging in any financial transactions.