Offshore broker AK Global Markets (AKGM) offers trading in forex and various CFDs on Veta Trader platform. Its retail clients are offered a single Standard account type, and there are also Premium account options for institutional clients.
Below, we will highlight both the advantages and disadvantages of AKGM’s offer and regulatory status.
AK Global Markets Advantages
AKGlobal Markets is a Forex brokerage based in the Cayman Islands. It provides a web-based trading platform, not the MetaTrader4 trading platform and a wide variety of trading products. Clients are extended a generous leverage of up to 1:100, but the minimum deposit is a bit excessive – traders are required to invest a minimum of $500.
AKGlobal Markets regulation & safety of funds
The company behind the brokerage is said to be AK Global Advising LTD registered offshore in the Cayman Islands. Brokerages in the Cayman Islands are required to meet $100 000 capital adequacy, however, no further rules are enforced and the regulatory body in the country cannot compare with European regulators. For one, there is no financial compensation scheme nor is there assurance for the safety of the clients funds. Often offshore brokerages commingle the client’s funds with their own which leads to fraud and poor allocation of funds.
Putting that aside, the brokerage does provide a web-based trading platform and through a demo account we could see a spread of 0.3, however, with a certain caveat – there is a $50 commission per lot which put together amounts to a 5.3 spread which is quite over the top. Usually, in Forex trading brokerage offer spreads from 1 to 1.5 pips which we consider favorable for traders. All this compels us to state that clients of the brokerage may be open to a number of risks.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
Solid choice of tradeable assets
Clients of AKGM are offered wide range of forex pairs and various CFDs for trade – on indices, commodities, precious metals and individual stocks. This is a solid product portfolio, that only lacks cryptocurrencies such as Bitcoin
Leverage up to 1:100
While most offshore brokers usually provide leverage ratios higher than 1:100 (provided to Standard account holders with AKGM), this is still a solid level. Actually, most professional traders rarely use leverage higher than that, because of the greater risk of loss.
AK Global Markets Disadvantages
AKGM is trademark owned by AK Global Advising LTD, a company registered on the Cayman Islands, which allegedly has offices in the USA, UK, Singapore, Hong Kong, Saudi Arabia, the Netherlands, Italy, and more.
The Cayman Islands are a popular offshore destination for forex brokers. Although locally registered brokerages are required to meet a capital adequacy requirement of $100,000, the regulatory bodies in offshore zones place little emphasis on compliance-checking, reporting and supervision and, more importantly, companies are not required to detail individual transactions. This means that clients of such brokers have no assurance for the security of their funds and no guarantee that the company will fulfill its obligations.
Besides, many of these offshore companies are fraudsters seeking to cut financial and regulatory corners.
MetaTrader not supported
Unlike most forex brokers, AKGM does not support the popular MetaTrader 4 platform. Instead, it offers its services on Veta Trader, available as desktop download, web version and mobile apps. Although this platform has wide range of technical analysis tools and good charting package, we suppose many traders will miss the good old MetaTrader4.