Prop Firm Alpha Capital Bans 150 Traders Due to Group Trading Allegations

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.

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 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.

Since our launch, our unwavering commitment to building a platform and environment to sustain not only our businesses longevity but also a place our clients can rely on.

Due to the recent market development in the United states (US) we have made the decision to suspend…

— Alpha Capital Group (@AlphaCapitalUK) February 19, 2024

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.

Just a final sign off from me before I go and enjoy some family time.

A great month in the books for us as a business and we couldn't do it without you all so I want you to know we appreciate each and everyone of you.

June will be a major month for us as a group welcoming the…

— Alpha Capital Group (@AlphaCapitalUK) May 31, 2024

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.