KontoFX Review: Scam Update

Is KontoFX A scam?

Yes, KontoFX is a full blown, documented scam. We generally review companies to clarify if they are legitimate or not. In this case, no review is necessary, Konto Fx has already proven themselves. KontoFx is one of the unfortunately many FOREX scams out there. Hundreds of KontoFx scam victims have reached out to us in the recent months and we’d like to spread the awareness to try and prevent more theft and heartache. This review will shed some light on the KontoFx Scam and explain exactly why KontoFX should indeed be considered a scam and why this company should never be trusted as a reliable Forex or Binary Options trading platform.

A Brief History of KontoFX

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.

Their “Trading platforms”

KontoFX offers 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?

No, KontoFX is not a regulated broker, which is definitely a cause for major concern. Being unregulated, KontoFX promises to provide customers with profitable trades, however, this is without any level of accountability.
 Although ESMA (European Securities and Markets Authority) ruled that regulated brokers needed to downsize leverage caps to 1:30 KontoFX still offers broker leverage of 1:20.

Their Reviews Are Fake

One of the more worrying items regarding this scam is the Trustpilot page associated with KontoFX. It cannot be trusted in the least. After a careful glance you’ll notice that every time a negative review is posted, it is blocked, and three positive reviews miraculously appear in its place. The review page is also targeted by fake reviews from scammers disguising themselves as recovery agents. This is most likely due to how rampant this scam is. Scammers often flock to areas where large scale marketing has been done and there are plenty of victims to feed off of.

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. 

They Are Lying To Their Victims

If what we’ve covered up until now is not enough to make you aware of Konto FX then let us continue. The extent of unrealistic promises that KontoFX are making would be laughable to the average onlooker. Unfortunately it’s not always so easy when you’re caught in the trap of their sales pitch. They’ve reportedly promised clients that their capital will always remain safe and there is no chance of them losing any of it. This is of course a ridiculous statement to be making when the very nature of any investment of the sort that they are offering is that there is always the risk of losing money on your investment if things go South. All that is assuming they were offering legitimate investments…which they’re not.  

Why then, do people still trade with KontoFX?

Well, because KontoFX is very good at their scam. They have a professional looking site and have very crafty sales people portraying themselves as financial advisers convincing people of their credibility. They also engage in online marketing to target individuals who are looking to invest their money and are ripe for the picking.

Get Informed

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.