Is KontoFX A scam?
Yes, KontoFX scam is one of the many FOREX scams out there. Numerous clients have been complaining to us online about the KontoFX Scam. After investing their money with KontoFx clients have contacted MoneyBackHero to verify if KontoFX was indeed a scam. This article hopes to shed some light on the KontoFx Scam and why KontoFX should indeed be considered a scam and is never to be trusted as a reliable Forex or Binary Options trading platform.
KontoFX Forex brokerage firm was established very recently (2018) as a new player at the Forex Trading Market. It is based in Estonia, with its headquarters in Budapest, Hungary. Being a child brokerage of NTMT Transformation Market OU, they offer a wide variety of cryptocurrencies and allows traders the option to trade with different CFDs.
They offer three types of accounts for their customers, all of which benefit the customer equally. Customers are all provided with access to the resource center, analyst manager, webinars, and market analysis on a daily basis.
KontoFX has about 30 CFD trading underlying assets at the broker and use Dash, Bitcoin, Cardano, Ethereum, Stellar and Tether as digital coins. The digital currencies offered by this company can be accessed by all their customers. The currency they use is either EUR or GBP, depending on the account.
Is KontoFX Regulated?
KontoFX is not a regulated broker, which is definitely a cause for major concern. Being unregulated, Konto FX promises to provide customers with profitable trades, however, this is without any level of accountability.
Although ESMA ruled that regulated brokers needed to downsize leverage caps to 1:30 KontoFX still offers broker leverage of 1:20.
Additionally, many people have alerted the public to be aware of the Trustpilot page associated with KontoFX as this cannot be trusted as well. This is because every time a negative review is posted, it is blocked, and three positive reviews miraculously appear in its place.
The other reason to be aware of Konto FX is because of the unrealistic promises that KontoFX are making. They even promised some clients that their capital will always remain safe. This clearly can’t be accurate since the very nature of any investment is that there is always the risk of losing money on your investment if things go South.
Why then, do people still trade with KontoFX?
Often, we hear of new brokerage companies appearing on the Forex Trading market. They come with different motives, new suggestions, offers, and products. Almost daily, news about scam and fraud alerts by brokerage firms appear which raises high suspicion about the Forex industry in general. Having full information about the broker before you begin trading is essential.
One can almost deduce that many people don’t gather enough information before signing up to the Konto FX trading platform or are perhaps simply enticed by the amazing offers and benefits (offering huge and fast turnaround on investments) put forward on the Konto FX website.
Before investing make sure to do some homework on your trading broker
1. Find out if it is regulated
Ensure that you are investing with a regulated broker. Importantly, if the company is licensed, you will usually see their legitimate license number on their website footer. If no number appears, this may be a red flag. If you realize that a broker does not have a legitimate license number, suggesting that they may not be regulated, avoid the trading platform altogether. No matter how enticing the benefits and offers are, trading with an unregulated broker is never worth it.
Consumers and investors have been advised by MFSA that before making any investment into any financial services transaction, there should be a level of certainty when carrying out a deal with an entity that is authorized to provide such services by the MFSA or other financial services regulatory authorities as applicable.
The people around the world have been alerted by MFSA that KontoFX is not licensed or authorized by the authority to offer any financial services or investment.
As an unlicensed broker, the implication is that they can break and make rules as they deem fit. So, they can’t be reported for dishonest behavior or for providing misleading information.
2. Check Brokers website reviews
When you look at KontoFX reviews, you will see a lot of differences in consistency and shared links. The dicey things about reviews, especially when search on google is that one cannot ascertain the authenticity of those reviews. Positive reviews can be fabricated by anyone to cover up something, and negative reviews may surface to tarnish or intimidate the company.
KontoFX is one of many brokers with lots of negative comments and reviews. Nonetheless, information has it that many are still getting scammed regularly because of a large number of people using their services.
Resource: If you are trading or curious about investing with a Forex Trading Broker, you can get a report on them here https://www.moneybackhero.com/broker-check-form/ .
3. Initial Deposit requirement
The initial deposit required by brokers from customers can make or mar them. If a company has an unusually high minimum deposit (above $300), this may indicate that this company may not treat beginners well. The initial deposit requirement for KontoFX is $250. This is well above the average initial deposit requirement of $100 in the FOREX industry. Nevertheless, it must be mentioned that many unlicensed brokers require a minimum deposit generally lower than what KontoFX requires.
4. The broker has a social presence
Brokers ideally should provide a platform for their customers to interact with one another and share their experiences. Having a strong social presence with customers being allowed to freely share experiences suggests that there is “nothing to hide”.
In the case of KontoFX, they have a weak social presence with Twitter having just 36 followers in more than a year with the social authority of one. On Facebook, they have about 219-page likes, Instagram, only two posts, and LinkedIn is even worse, with information close to nothing.
5. Withdrawal terms and conditions
If you have invested your money with a broker, you would hardly want to have difficulty cashing out your earnings. Usually, legitimate CFD brokers don’t have many withdrawal terms and conditions. You can get the money paid into your account at any time.
However, this isn’t the case with KontoFX. Thoroughly reading through the withdrawal terms and conditions of KontoFX will alert you to the fact that you can’t withdraw your deposit with your profit immediately after requesting it. This means customers will have to wait before having the money paid into their accounts if it will be paid out at all.
Additionally, there is no automated withdrawal mechanism in place for KontoFX. This means the process of withdrawing money will likely be a lengthy and arduous one.
If you have already given your money to a KontoFX trading scam and want to get it back, click here to receive a free consultation on how to get your money back.