KontoFX scam is an enormous shtick that is now clear as day. It does not need research or investigation to back up its crime. Financial Fund Recovery is now ready to verify and list the facts regarding the KontoFX scam.
Financial Fund recovery helps victims counter scam brokers and recover the lost money back from them. We recommend you not to engage with KontoFX as it is suspected to be a scam broker. Instead, retrieve your funds if you are currently trading with Kontofx. To know more about the scam, keep reading.
IN THIS ARTICLE
What is KontoFX?
KontoFX, a forex brokerage firm founded in 2018, Estonia, started as a new opponent in the forex arena. Headquartered in Budapest, Hungary, they offer various cryptocurrencies and allow various CFDs to broker NTMT Transformation Market OU.
KontoFX offers three account types for their clients, and each one of them benefits the client quite reasonably. Moreover, customers are given access to,
- analyst manager
- resource center
- market analysis
KontoFX presents 30 CFD trading underlying assets. It uses the following as digital coins,
KontoFX is a child company of the NTMT Transformatic Markets OU, but despite that, we cannot give it a leeway of operating without a license from any financial regulators. They offer leverage of 1:200 and a specially designed Webtrader that can be used without installing Flash and is easy to use for experienced and beginner traders. However, there are numerous shady aspects that we are about to uncover.
Depending on the account, the money used here is EUR or GBP. To start trading, you need to make a minimum deposit of 250 EUR or GBP; you can make transactions via Visa, Mastercard, Maestro, and Wire transfer.
Is KontoFX Legit or a Scam?
When you start searching for brokers to conduct your trading activities, you must first learn about their certificate(s). They tell you if a central authority regulates the broker or if KontoFX is an offshore and/or unregulated identity.
When an entity outside of your jurisdiction regulates a broker, you have limited to no legal resources if your funds are compromised. The broker has to be licensed by the regulator in your jurisdiction to make a complaint of theft.
Following are some of the examples of regulatory authorities that issue brokerage licenses:
- The Cyprus Securities and Exchange Commission (CySEC)
- The Financial Conduct Authority (FCA)
- The Australian Securities and Investments Commission (ASIC)
A broker not licensed by the regulatory authority in your jurisdiction is unregulated, and you should avoid them at all costs. You should still avoid a regulated brokerage if they happen to be outside your jurisdiction.
Know about the Kontofx scam or not, here.
For someone well-versed in investing, KontoFX comes across as an obvious scam with all the exaggerated claims they pull. The fraud is easily identifiable, but a newbie can still fall for it. Unfortunately, the sales team is quite good at fetching customers, and innocent traders end up turning into victims of their deception.
The Regulations on KontoFX:
KontoFX is not a regulated firm. The service provider is not credible and has made unrealistic promises. Usually, European brokers follow the rules and leverage to 1:30. On the Contrary, KontoFX, a forex game player, grants leverage of 1:200.
KontoFX has no license that can cut down its unsolicited actions. The trading terms and conditions threw light on the fact that the leverage goes up to 1:200 and spreads that shoot low to 0.6 pips. The offerings are just too good to be true. The flashy numbers are here to manipulate and attract investors instead of benefitting its traders.
The deposit and withdrawal platforms review indicates that a crypto trading brokerage does not actually support crypto payment platforms. Furthermore, cryptocurrencies are more secure than regular money, and therefore it is not safe to trade with KontoFX.
KontoFX is a definite scam; we do not recommend trading with them. However, if you are already trading with them, we recommend you to stop immediately and do not deposit any further funds with them,
How does KontoFX Scam Work?
KontoFX intelligently played and aced their game quite swiftly. The fake reviews posted across sites helped gain heavy traffic and what followed was more traders. The negative reviews posted were deleted and blocked in no time. KontoFX scam operates from a professionally designed website and has extensive marketing campaigns. All of this cumulatively results in enhanced market visibility and credibility.
Signing up with KontoFX
Signing up with KontoFX is easy. The first page of the website has the open account button. Upon clicking the button, you reach a sign-in window, and the registration process is relatively fast, similar to other broker platforms.
The registration window also displays the risk disclosure stating that the CFD and Forex trading involves significant risk and may lead to loss of funds invested. The signing-up process has nothing suspicious that raises any doubts.
Trading Software of KontoFX
The proprietary WebTrader is specially designed for the customers according to KontoFX, and it also promises the best trading experience along with a good variety of tools and features. However, this raises doubts since scam brokers often use their own trading software to allow independence in planting all their schemes.
With other trading software, the constant monitoring by the online community and little leverage to actually fulfill their plans limits them. Here, the broker is free to incorporate those pieces of trading software into its platform, raising more suspicions.
The Trading Accounts of KontoFX
KontoFX offers three account types:
Self, Self-Trading Account
This account offers a basic set of necessary trading options suitable for experienced and beginner traders. In addition, they can try out and adjust their own strategy with this account, offering spreads from 0.6 pips.
Auto Trading Account
The account allows users to let the robots trade for them, artificial intelligence tech analyzes the market and predicts future movements.
Social Trading Account
This account allows traders to copy the positions of the most successful traders on the platform and increases the possibility of successful trades.
The currency is EUR, GBP for all three accounts. The inexistence of demo accounts and a minimum deposit of 250 euro/pounds can be hefty for beginners who cannot afford the losses.
Trading Conditions with KontoFX
The lack of regulation on KontoFX allows them to offer high leverage, which is not impossible to get from regulated brokers since ESMA regulations set 1:30 as the leverage cap. Meaning KontoFX got the leeway to ramp up the ratio to 1:200, and it also seems reasonable as Forex pairs can be less volatile than cryptocurrencies.
But the higher the leverage, the larger the losses. The spread of 0.6 pips is also enticing, but the broker will not have commissions on transactions.
The Customer Support of KontoFX
KontoFX has a well-functioning system offering 05:00 – 22:00 GMT customer support in three languages.
The flashy over-the-top offerings hide flaws behind them. But, unfortunately, that is how these scams work.
What Do You Do If You Lose Your Funds To KontoFX Scam?
If you have deposited money with KontoFX and you suspect shady activity heave a sigh of relief; your money is not lost forever and can be recovered. There exist avenues that protect individuals and aid them in getting their funds back. Fund recovery specialists can recover your money from the kontoFX scam for you.
Here is where we come in, our trained group of lawyers can assist you in getting your hard-earned wealth back in no time. Financial Fund Recovery has successfully recovered over $19 million. Contact us, and our consultants will aid you if you have been a victim of such financial fraud.
We are here to get your money back in no time and efficiently.