The prop trading firm Alpha Capital Group has come under fire from some clients after their accounts were blocked. However, the mass blocking of access to trading for 150 different users was allegedly due to suspicions of engaging in "group trading" and "account management practices," which violate the platform's rules.
300 Accounts Linked to a Single CID
In a social media post on Sunday, Alpha Capital Group admitted that it identified over 300 accounts linked to a single "Computer ID," a unique serial number for each personal computer and smartphone. This means that one person created several hundred accounts within Alpha Capital Group.
"Upon further investigation, this device CID may be linked to MYFXBook connecting to those accounts, and unfortunately led to our system flagging these accounts which then led to incorrect breaches for the traders involved," Alpha Capital Group explained.
The prop trading firm also acknowledged that it aims to finalize the investigation this week, contact each of the banned traders, and restore the accounts of those who were "banned incorrectly."
"All accounts affected in the above will receive an email today, and will be rectified tomorrow," Alpha Capital Group summarized in their Sunday post.
Alpha Capital Group Returns after February Turmoil
Alpha Capital Group was one of the prop trading firms that suspended the ability for new clients from the USA to open accounts and join new challenges in mid-February due to regulatory pressure.
This was due to a decision by MetaQuotes, the provider of the widely used MetaTrader platform by prop trading firms, to suspend licensing and cooperation with a significant portion of companies in the sector.
However, at the end of May, the company announced a comeback for US investors thanks to the launch of a separate service called Alpha Futures and a Seychelles-regulated broker.
In other trading world updates, Finance Magnates reported last week that Nicola Berardi, the CEO of Traders Trust, announced the launch of a new trading firm called TradingCult.
