Beware! Allctrading is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Dont put all your eggs in one basket. Open trading accounts with at least two brokers.
We are reviewing Allctrading, also known as All Crypto Trading, a broker offering embarrassingly expensive services. Their platform is ugly, and the only available instruments are traded against cryptocurrencies. Nevertheless, this isnt the most significant issue with this broker. Find out what it is in the full Allctrading review.
Allctrading REGULATION AND SAFETY OF FUNDS
Allctrading is purportedly located in London, UK, so to act as a Forex broker, they need to hold a valid license issued by the local authority FCA. However, it was clear that this business is not regulated right from the beginning because the British brokers are no longer allowed to provide crypto derivatives trading. Nevertheless, we researched but found nothing about Allctrading, so its unregulated, which is the biggest problem for traders because there is no security guaranteed whatsoever. Your funds would not be safe if you deposit with them.
Avoid Allctrading and see the high-rated EU brokers and British brokers instead. The European markets offer high-grade security, and there are even deposit insurance funds protecting traders money in case of insolvency or fraud. As a result, CySEC brokers clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. Consider this fact before making any deposits whatsoever.
Allctrading TRADING SOFTWARE
Allctrading provides web-based trading software thats ugly and challenging to use. It lacks functionality and certainly cant compare with MetaTrader, for example. As already mentioned, there are only crypto-traded pairs, which are very expensive to trade. For instance, the BTC/USDT (which is a crypto that roughly costs 1 US dollar) Buy/Sell difference is close to $400, which is scandalous. At the same time, Bitfinexs spread was as low as $20, so Allctradings services turn out to be 20 times more expensive. Thats a scam sign.
Put Allctrading behind and consider the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists, which can deliver upper-class platforms. Both MTs feature sophisticated trading tools such as Expert Advisors, Algo Trading, complex indicators and advanced charting tools. Traders can also access a marketplace with more than 10 000 apps, a unique feature for the retail FX market.
The leverage is fixed at 1:5, which may seem a low-risk ratio, but as there are only cryptocurrency pairs available, its actually pretty high. The digital coins are highly volatile, so leverage should be considerably reduced, and even 1:5 is an overly risky level.
In fact, leverage is the most dangerous aspect of trading, so many financial authorities imposed regulations to reduce leverage-related risks. As a result, EU, British and Australian brokers limit their clients to 1:2 for cryptocurrencies and 1:30 for FX majors, while Canadian brokers and US brokers are not allowed to provide more than 1:50. Most of the high-leverage brokers are poorly regulated offshore businesses, so be cautious.
Allctrading DEPOSIT/WITHDRAW METHODS AND FEES
As seen in the picture below, the minimum deposit with Allctrading is $500 or 5 times more than the regulated brokers requirements on average. The funding methods are Credit/Debit cards and Wire Transfers. Out of those, the bank card direct deposits as seen as safer because its possible to dispute transactions and eventually get a refund if the relations with the broker go wrong.
While talking about deposit methods, see some Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The high-rated companies on the lists are strictly regulated, so you wont face scammers.
The withdrawal restrictions are as follows: minimum $500 for Wire Transfers and $100 for Credit/Debit card transactions. The withdrawal request is said to be processed within 5-7 days free of charge, which is also unfavourable. However, Allctrading reserves the right to introduce any fees at any time, so the withdrawal conditions may eventually become unbearable. Thats an alarming sign. In contrast, most of the regulated companies impose no withdrawal restrictions and process the requests for 48 hours free of charge, which is the right thing to do.
The inactivity fees are also not specified, and the entire dormant procedure is pretty vaguely presented. Well, Allctrading would put accounts dormant when inactive for an unspecified period and would collect inactivity fees from time to time. Given how general this clause is, consider this scenario: you havent traded for 2 months, and Allctrading decides to put your account dormant and charge it 50% of the balance. Can they do that? Definitely, yes! They have reserved the right to introduce fees whenever they want to! Once again, your funds would not be safe if you deposit with Allctrading.
They offer trading incentives, but the additional bonus clauses are not less unfavourable. When traders accept bonuses, they have to execute a minimum trading volume of 25 times the bonus plus deposit to become eligible for withdrawal.
Overall, Allctrading is a shady unregulated business and a suspected scam, so stay away and report immediately if they approach you.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud thats rather distinctive because its effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; thats the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. Theyd then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that wont happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if theyre going to pull money out. Those criminals wont stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, its crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but wont do anything to help you!
Share online your experience; its important to protect others, as well. Be responsible!
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