First Alternative Group – “secure” spread betting earning 3% to 6% per month?

First Alternative Group offers managed spread betting on currency claiming “Average earnings are 3% to 6% per month”.

Spread betting is not explicitly mentioned on the website, but an internal URL refers to “spread trading” and the statement “tax free profits in the UK” strongly suggests that spread betting is being offered. Investment gains (including on forex trading) are subject to capital gains tax in the UK, but gains from spread betting are considered gambling wins and are therefore tax free.

In a video on the website, an unnamed person standing in front of a picture of an office (the lack of motion in the background makes it clear that he is standing in front of a still image) claims that First Alternative will “guarantee to outperform your standard investment classes, which on average earn less than 10% per year”. He also refers to it as a “secure investment”.

Who are First Alternative Group?

representative
Unnamed First Alternative representative

No details are provided on the website as to who is behind the business.

The site states “Expertly managed account with TAX FREE profits in the UK” but no UK address or company details are provided. The domain registration details of firstalternativegroup.com have been hidden.

How safe is First Alternative Group?

Notwithstanding First Alternative Group’s claim that the investment is “secure” and that they “guarantee to outperform standard investment classes”, spread betting is ultra high risk and can result in 100% losses; depending on the type of spread bet, investors can lose more money than they put in. Describing any spread betting or forex trading investment as “secure” is highly misleading.

If First Alternative Group fails to consistently win on its spread bets, investors may lose up to 100% of their money – and potentially more than they deposited if First Alternative Group exposes them to more than they deposited.

First Alternative Group promise to refund investors’ money within 30 days if they are not satisfied. The guarantee applies to £500, £2,500 or £5,000 “trial accounts”. This guarantee relies on First Alternative Group having sufficient funds available to refund investors. As does any guarantee “to outperform standard investment classes”.

Due to the lack of information provided by First Alternative Group, it is impossible to assess how likely First Alternative Group is to be able to fulfil its guarantees.

Should I invest with First Alternative Group?

Spread betting is, as the name suggests, gambling and 100% losses or greater are a strong possibility. Nothing that First Alternative Group claims about its ability to generate average returns of 3% to 5% a month, its guarantee to refund investors within 30 days or its guarantee to outperform alternative investments changes that.

Spread betting is regulated in the UK by the Financial Conduct Authority. However a search for First Alternative Group on the FCA’s register produced no results. First Alternative Group does not claim any regulatory authorisation on their website.

Investors should think carefully before handing over money to any business which does not disclose any physical address details or details of who is behind it.

Do not proceed unless you are prepared for 100% losses.

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