13 October 2024 , 09:43
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The offshore broker Alchemy Markets, a member of the Alchemy Group that also includes the FCA-regulated Alchemy Prime and the Vanuatu-based FXPIG, was forewarned about by the Spanish watchdog CNMV last year.
This international broker strategy may or may not be designed to deceive consumers by using the same trading style and brand across domains and websites. After doing a fresh examination, we rated the Alchemy Group as having “Orange Compliance.” This is our most recent review.
A trading corporation established in the United Kingdom, Alchemy Prime Limited is a member of the wider Alchemy Group, which conducts business both onshore and offshore. This business was established in September 2013 and has been registered with the Financial Conduct Authority (FCA), the regional watchdog, since 2014.
We chose to look into the claims made by numerous traders that this regulated and ostensibly “clean” broker had conned them. To discover the real story about how this company deceives customers.
Patrick Graham Cann and Niky Gope Kundnani’s Scam Network
Established in the United Kingdom, the Alchemy Group brings together professionals with experience in financial market trading dating back to the 1970s. This organisation is divided into multiple sections, with headquarters in the United Kingdom and abroad in places like the British Virgin Islands and Seychelles. On a state-of-the-art trading platform, Alchemy’s clients can trade cryptocurrencies, Forex, and CFDs & futures.
The FCA has approved the domain name alchemy prime.uk. However, the business also operates an offshore division called Alchemy Markets (alchemymarkets.com) out of the Seychelles. Remember that the latter is particularly dangerous to trade because it is situated offshore, where the legal and regulatory framework is somewhat loose.
Brief Story of Patrick Graham Cann’s Alchemy Group
While the offshore division of the Alchemy Group uses the name Alchemy Markets and the domain https://alchemymarkets.com, the UK FCA-regulated investment firm Alchemy Prime operates the website with the domain https://alchemyprime.uk. The word “Alchemy” serves as the basis for the used logos. Although they add extras, they use the same primary design elements (see picture left).
The webpage for the offshore mutation is poorly designed. Documents such as the KYC Policy, Privacy Policy, and Client Agreement, for instance, are absent. All that appears is the error message 404. Additional links on the Alchemy Markets offshore broker website point to the FCA-regulated entity’s Client Agreement.
Furthermore, Alchemy Group uses the FCA-regulated Alchemy Prime Ltd as a payment agent to run the offshore broker FXPIG through Prime Intermarket Group Asia Pacific Ltd, which is registered in Vanuatu and licensed by the VFSC. The FXPIG website states that every company is managed by a single entity.
According to UK Companies House data obtained through Alchemy Prime Holdings Limited, Indian national Gope Shyamdas Kundnani, who was born in 1957, is in charge of Alchemy Group and is the bank payment partner for Alchemy Markets.
Compliance Check of Patrick Graham Cann’s Companies
We were able to register as EEA residents with the offshore broker schemes FXPIG and Alchemy Markets during our evaluation on March 13, 2023. The two schemes are not permitted to provide their financial products in the jurisdictions that make up the European Economic Area.
We have not found any limitations on the pre-KYC first-time deposit quantity in our payment simulation. Through a bank wire to the multi-currency accounts of the offshore broker program at UK-based Blackthorn Finance, we would have been able to send $50,000 to the scheme.
However, the offshore broker FXPIG, which is regulated by the VFSC, does not allow pre-KYC deposits.
Retail clients can choose from a maximum leverage of 1:500 offered by both FXPIG and Alchemy Markets, offshore brokers. In the EEA regions, however, a maximum of 1:30 is permitted, which is against the law.
Because of regulatory concerns at Alchemy Markets, we are listing Alchemy Group on the Orange Compliance List.
Conclusion
Even though this broker is governed by FCA regulations, it is not safe at all. Despite the complexity of the plan, we have faith that the British regulator will step in and stop Alchemy Prime from acting improperly.
To reiterate, with the substantial setup and monthly costs in addition to the minimum deposits required for each type of live account, this platform is most definitely not user-friendly for beginners. Avoid the offshore branch at all costs as it is a major problem.
Nobody enjoys reading unfavourable comments about a platform they are considering using. Claims of Ponzi schemes and withdrawal problems are also unpleasant. Finally, a costly platform and associated fees never helped a rookie. These are good grounds for staying away from Alchemy Prime Limited.