Kontofx is a CFD Crypto currency broker who claims to be licensed, professional and user-friendly. They invite us to come to their platform so we can convert opportunities into solutions with a Crypto currency broker we can trust. The problem is that we do not trust Kontofx, and neither should you. They seem to be dealing with a wide range of Crypto currencies which include Bitcoin, Ethereum, XRP Ripple, Litecoin, Monero and many others. Kontofx is allegedly providing innovative technology which has made it a premier provider of reliable and future heavy Crypto trading. This statement does not have any meaning by the way. It is just adding to the vagueness which we find on their about us page.
There are many alleged advantages of using this brokerage. These include access to a variety of Crypto currencies, all in one trading platform, competitive spreads, financial coaching and education, real time execution, variety of trading accounts to suite your needs, a single wallet, and safety of client funds.
These features would mean nothing if this broker was not reliable and regulated. The problem has to set in when we discover that they’ve even been blacklisted by the FCA. So that means we cannot risk at all. They even seem to have their customized trading platform which is different from the usual MT4 accounts which traders love so much.
Is this broker legit or should they be given a second chance now that they are not regulated and have already been blacklisted?
Before we move into the details of this broker, we advice you to choose these reliable brokers instead.
They are allegedly based out of Hungary and are owned by an Estonian company. They can be contacted by phone, email as well as chat. Most if not all brokers can be contacted through these 3 ways. So this is not a feature that should make them any unique. They are also offering a number of ways to deposit funds into their platforms. These include Credit Card and Wire transfer.
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Other features which are offered on the platform include Technical analysis, Fundamental analysis, real time charts and news. There don’t seem to be any demo accounts here, and so we are just wondering how on earth we can start trading with real money on a live account offered by a broker whose reputation is not known.
A demo is very important because it enables us to test how tight their spreads are. KontoFX claims that they are offering tight spreads in the market. But this is hard to believe without seeing. They are also claiming that the platform is reliable. But how can we know if we already do not have a means to test the platform other than to deposit the minimum required for us to start trading?
KontoFX offers a web-based trading platform which does not require traders to download anything in order to start trading. In addition to that, they are offering 3 ways to start trading. Traders can choose to trade for themselves, use an automated trading system which is in-built or choose social trading feature to copy other traders on the internet.
These accounts seem to be fully equipped and with the right features. However, the broker does not tell us upfront what the minimum deposit is. So this is a big problem as well because even if we wanted to test their service, it would be difficult for us to move ahead.
The broker does not have a license, and they seem to be giving us misleading information about their ownership. At some point, they even tell us that their entity is owned by another company known as NTMT Transformatic Markets OU Harju maakond. We have checked the financial services database for the country which the broker claims to be based at and found that the name NTMT Transformatic Markets OU Harju maakond does not exist. The name KontoFX does not exist as well.
When we conducted more research into the matter, we discovered that NTMT Transformatic Markets OU Harju maakond was a business selling wrist watched. Their website can be found on the domain gentoffers.com where people can order wrist watches costing up to $1600.
Perhaps this company is somehow associated with KontoFX. If this is the case, our recommendation is that they should just focus on running their wrist watch business rather than starting a brokerage business.
Now, the main issue with KontoFX is their unregulated status and shady ownership. You should always keep in mind that regulation is the most single factor to keep in mind when you want to protect your investments. Those brokers who have sought regulations with the relevant financial authorities adhere to strict requirements. They cannot afford to risk stealing from their clients because they will lose the license and get labeled a scam. On the other hand, outright scam brokers do not mind this. They go ahead to offer brokerage services even if they have no license.
In their terms and conditions, they claim that withdrawal of profits won’t be available for immediate withdrawals. Secondly, they tell us that withdrawals are not covered by the same terms which cover deposits. In other words, this rogue broker is simply claiming that you won’t be allowed to withdraw your profits immediately. The question is why. In addition to that, they intend to hold profits and yet they have not given us any bonuses. This is criminal.
While KontoFX claims that they are offering favorable spreads for a pair like BTCUSD, we see that the spreads are 3 times as high compared to those of other brokers who are even more reputable compared to this shady broker. KontoFX offers spreads that are nearly $170 compared to those of other brokers which is about $50. For that reason, we believe that not only is this broker quite expensive, but their terms are nonsensical and they are also a scam. Stick to these brokers.
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