150 Traders Baned by Alpha Capital Because of Group Trading Allegations

Highlights:

• Alpha Capital has banned numerous accounts of its customers in a stunning move. 
• The company defends its actions, citing suspicions of group trading and account management violations.

The financial world is a strange place to be. Every now and then, this sphere offers something to think about. Recently, some Alpha Capital Group clients are upset because their accounts got blocked. However, the company says they did it because they suspected these clients were trading in groups or managing accounts together, which breaks the platform’s rules. 

Why This Move?

In a social media post on Sunday, Alpha Capital Group acknowledged that it had identified over 300 accounts linked to a single “Computer ID,” implying that one person had created several hundred accounts within Alpha Capital Group. Prop Firm Alpha Capital Group further explained in the post that, upon further investigation, the device CID might be connected to MYFXBook, leading to the flagging of these accounts by their system, which subsequently resulted in incorrect breaches for the traders involved.

Hi All,

We would like to address the recent mass ban of around 150 traders from our services.

Unfortunately we have seen an increase in group trading & account management practises on our platform over the past few months.

Yesterday Over 300 trading accounts were linked to…

— Alpha Capital Group (@AlphaCapitalUK) June 9, 2024

The prop trading firm stated that it plans to finish the investigation by the end of this week, reach out to each of the banned traders, and reinstate the accounts of those who were “banned incorrectly.” Alpha Capital Group summarised in their Sunday post that all affected accounts would receive an email on the same day and would be corrected by the following day.

Alpha Firm Returns with A Bang

In mid-February, Alpha Capital Group, like other prop trading firms, stopped new clients from the USA from opening accounts and joining new challenges. This happened because MetaQuotes, the provider of the popular MetaTrader platform, stopped licensing and working with many companies in the sector due to regulatory pressure.

However, in late May, the company announced that US investors could return. They did this by launching a separate service called Alpha Futures and a broker regulated in Seychelles.