Beware! Al-Awal Capital is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Al-Awal Capital is a forex company we do not recommend to trade with!
The company trades in forex, CFDs and precious metals. It offers 4 different accounts – Beginners, Positional, Professional and Scalpers. Registration is easy and almost immediately you get a confirmation email with your login details.
Al-Awal Capital Regulation and safety of funds
As per the information on the company’s website, this forex broker’s address is in Birmingham, UK and the company is registered in UK and regulated by FCA. It’s a big, fat lie! If you look at the screenshot below, you’ll see that the name of the company does not exist in the FCA register. Giving misleading information as this company did makes us inclined to think that we are dealing with scammers here.
Whether a forex company is registered and regulated is the first thing you should check before you decide to trade via a broker. Only registered and regulated forex brokers mean that you are not dealing with scammers and can guarantee you safety for your funds. Please look for forex brokers in the well-established jurisdictions. In EU and UK, forex brokers must have an initial capital of 730,000 EUR to be able to operate. No scammer will invest so much money to look legit! Also, brokers regulated by CySEC must contribute to compensation funds from which, in case the broker declares bankrupt, its clients will be compensated by up to 20,000 EUR each. If the forex broker is regulated by FCA, then the clients will be compensated by up to 85,000 GBP per person. There are also other safety and precaution measures, i.e., legit forex brokers must report their transactions on a daily basis which is a way to prevent scams and shady deals. These are exactly the types of forex brokers you should choose for your trading activities!
Let’s say it again – Do not entrust your money to this non-regulated company!
Al-Awal Capital Trading software
The trading platform for Al-Awal Capital is MetaTrader 5. We must say that this is an excellent choice of a platform as MT5 is one of the leading platforms and very popular with the forex brokers. Along with its ‘older brother’ MetaTrader 4, it offers a lot of advantages compared to other trading platforms, i.e., auto Trading options, a financial calendar, an app market, trading signal (upon subscription), VPS, code base with customs scripts, etc. However, offering a trading platform with so many trading tools and instruments cannot compensate for the fact that this forex broker is non-legit!
If you look at the screenshot below, you’ll get an idea what MT5 looks like – on the left side, you have a menu for navigating the trading tools and instrument, below, you have the currency pairs with their bid/ask price. In the top horizontal bar, you have tools to set the display of the currency pairs charts. Here you see a display of 6 different currency pairs (you can increase or decrease the number of charts displayed). If we look closely at the EUR/USD currency pair, we’ll find out that the spread is 0 pips. If you click on the sell or buy option, you can execute the trade or you can select the auto trade option after setting the parameters for it.
In the account types section, we are alarmed to see that the leverage for each account can reach up to 1:500. High leverage, such as this one, although tempting, contains many risks for the trader. You may think – wow, big leverage equals big win! But we think – no,no,no, big leverage equals big loss! Just think about the fact that over 80% of the traders lose money in forex transactions. The higher the leverage, the higher the risk of losing your hard-earned funds, so please exercise some caution when it comes to leverage!
Al-Awal Capital Deposit/Withdrawal methods and fees
If we look at the account type information (please refer to the first screenshot), we’ll see that the minimum initial deposit for the Beginners account is $1. For the Professional account the initial deposit goes to $500 and for the Positional and Scalpers accounts, it is $ 10,000.
Payment methods for the deposits and withdrawals are limited to bank wire only.
On the company’s website, there is no information about the minimum withdrawal amount, nor are there any specific information about fees, except that the company is entitled to receive fees or compensation from the client for the services provided and those fees and other charges can be changed at any time without having to ask for the client’s consent.
Overall, we consider that the deposit and withdrawal methods and fees as written on the company’s website are not to the client’s advantage and lack clarity in their stipulation.
How does scam work?
Actually, it’s quite simple and users often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for chargeback.
What to do if scammed?
Our advice is to immediately file for chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.