Alpha Gold Futures Review
Alpha Gold Futures is a company offering forex and spot gold trading. They also provide surprisingly little information on their trading conditions.
The Company. Security of Funds
Alpha Gold Futures Co. LTD
SEC of Cambodia
Alpha Gold Futures Co. LTD is registered in Cambodia. What is more important, is that they are overseen by the local Securities and Exchange Commission. This is an unusual form of regulation, which we must admit, we do not know much about.
While Cambodia is not a fully developed market economy yet, the country has been on the rise in recent years. The legal environment is likely to be looser than that the one in the European Union member states, for instance, but tighter than the one provided by off-shore zones.
Financial regulation is a key element of a broker’s credibility. Different agencies impose rules with varying degrees of strictness. As an example, the UK’s Financial Conduct Authority (FCA) is one of the most credible ones. It forces brokers to maintain clients funds in segregated accounts. This is a mechanism which prevents unconditional access to traders’ capital. Such a measure drastically limits the possibility of a the simplest form of fraud – a company accepting deposits and not allowing clients to withdraw anything.
On top of that, the FCA forces brokers to participate in the Financial Services Compensation Scheme (FSCS). This is a system, which guarantees client funds in case their broker goes bankrupt. If you trade with an FCA-regulated broker, your account will be protected, up to £50,000.
Minimum Initial Deposit
The minimum deposit requirement at Alpha Gold Futures is not specified. We find this a bit unusual, as most brokers state this part of their conditions in a very visible portion of their website. The ones offering lower levels, like FXTM (where you can open a cent-account with only $5) even use this as an element of their marketing.
Thad being said, this should be considered an important factor only for those, who can’t afford investing bigger amounts. There is nothing wrong with opening a small trading account. Remember to only trade with money you can afford to loose.
Average spreads & Commissions
The costs of trading at Alpha Gold Futures are not clearly revealed at the website. While testing with the demo platform, we revealed a 3 pip fixed spread on most pairs. This is not competitive with the current offers provided by other fixed spread brokers. As an example, FxPro provides a 1.6 fixed spread, as well as floating spreads, which usually go even lower. For a comparison of the offers provided by some of the best forex brokers take a look at our real time spread comparison page.
Alpha Gold Futures offers a maximum leverage of 1:100. While this was the standard for many years, currently a lot of brokers provide even 1:500.
That being said 1:100 is a totally fine leverage ratio for most trading systems. A higher level does not provide better trading conditions – it only provides traders the opportunity to risk a bigger portion of their capital on a single trade. This is the biggest reason for newbies loosing money, according to most sources.
Alpha Gold Futures provides MetaTrader4 (MT4) to its clients. This should not be surprising to anybody, who is following the industry closely, as it the most popular currency trading platform. While MT4 is very old (especially, in software terms), it does its job very well. From the speed of order execution (providing you are using a reputable broker) to the awesome charts, the platform is very well appreciated.
The most unique feature of MT4 is the ability to trade with an automated traded trading system. These so called Expert Advisors are commonly available and we have reviewed some of them here.
That being said, here is a preview of the MT4 platform provided by Alpha Gold Futures:
Methods of Payment
Alpha Gold Futures does not reveal any information the methods of payment available. This is yet another thing, which most companies tend to disclose in order to attract clients. Nowadays, online methods, such as Skrill, or even Bitcoin are growing in popularity.
Alpha Gold Futures is a Cambodian forex broker, which provides little information on about its services. The company is regulated by the local SEC, which brings at least some level of credibility to them. On the other hand, the trading conditions are not very competitive with the current state of the industry. That being said if you are a local, who is not that familiar with the financial markets, this may be a great gateway company for you.
Alpha Gold Futures Review Conclusion
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