KontoFX is an unregulated and dubious Crypto currency broker with spreads as high as USD170 for the BTCUSD tether. Reviews are also very negative about them.
User Review( vote)
I’m reviewing a CFDs broker specialized in offering Crypto currency trading assets on a web platform. KontoFX is also offering a maximum leverage of 1:20. I’m sure that many of you who would like to trade Cryptocurrencies have already come across this broker, and are wondering whether KontoFX is scam or legit. This KontoFX review tells the truth. So if you want to use this broker, be sure to read this review first.
KontoFX appears to have only one trading account, which is the standard account requiring a minimum investment of $250.
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In as much as this broker has many negatives that have tainted their name, they also do have some positives like offering a good variety of Crypto currency assets for trading and an acceptable minimum deposit for the same.
Some of the Crypto pairs offered by KontoFX include Bitcoin, Ethereum, Ripple, Monero, Ethereum classic, Bitcoin Gold, Dash, IOTA, Stellar, Bitcoin Cash, Neo, Cardano and many more being traded against the USD.
In addition to this, the minimum deposit is quite fair as most traders anticipate funding their accounts with at least $250. But still, there are big and respectable brokers who allow trading with as little as $50.
Now, the disadvantages of KontoFX can be overwhelming and this is where they lose serious customers.
I will guide you through them one by one so that you can see how Konto FX is operating.
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KontoFX review – lack of a license
On the sales page of KontoFX, they give us information that cannot be relied upon because it is extremely misleading. Issues of ownership is the problem here as KontoFX claims that they are owned by an entity based in Estonia by the name NTMT Transformatic Markets OU Harju maakond. This company is again operated by another Hungarian entity called Northside Business Centres.
Also, we come across another entity which is based in Russia and known as ООО «САМДАР». This Russian-based company is also the owner and operator of another unregulated brokerage called Cryptop Market.
But you see, all financial companies in Estonia are required by law to be regulated by the local Financial Supervision Authority. The regulator in question is known as Finantsinspektsioon. But the problem is that neither KontoFX nor their alleged overseer NTMT Transformatic Markets can be found in the database of Finantsinspektsioon.
Further digging into the web reveals that NTMT Transformatic Markets OU Harju maakond is a business selling retail watches online.
Their store, which is known as Gent Offers is selling wrist watches for the price of up to $1600. This is a bit weird because we expected to see that this company is only dealing with matters related to Currency trading and not selling of watches.
KontoFX is therefore not following any strict and ethical rules which are enforced by regulators such as the FCA, the ASIC or even the CySec.
Brokers that are regulated by the FCA are supposed to get up to GBP 50,000 if the company decides to go under. This acts as some sort of insurance and all regulators have this requirement.
For example, Cysec requires up to 20,000 EUR in the amount that traders can recover in case of insolvency.
Our main problem with KontoFX is that they are not regulated plus ownership status is shady.
KontoFX review – unusual withdrawal terms
Beware of this broker’s terms and conditions which state that profits won’t be available for immediate withdrawals. This is nothing but a crime because I do not see how a broker can opt to hold your profits when the right to cash them out anytime resides with you.
KontoFX does not speak the truth regarding trading conditions
KontoFX tells us that their spread start at 0.6 with leverage of up to 1:200. However, there is only evidence that the broker is offering Crypto assets only. They don’t have Forex, stocks, indices and precious metals. They should come clean on this.
KontoFX review – no MT4 trading
They don’t have MT4 platform, but are instead offering a customized trading platform that looks like the ones we find in binary options trading platforms.
If MetaTrader4 is missing, it means Kontofx is not going to fit well in the list of ideal brokers to trade with. Many traders prefer MT4 platform because of its diverseness and charting capabilities.
Any broker who does not offer MT4 trading is missing out a lot. I don’t know why this broker did not opt for this software when they are aware of the fact that it is the most commonly used trading platform on the web.
Many payment methods are restricted
KontoFX does not allow Bitcoin, PayPal, Neteller and Skrill payments. If you want to wire money into their platform, they want a minimum of $3,000 which is high and suspicious. Why would a broker erect this barrier to their traders?
Good and professional brokers won’t have these silly conditions. Only scam and dubious brokers have them.
KontoFX never stops mesmerizing us with their weird behavior. In terms of spreads, they offer 170 USD for the BTC/USD tether, which is almost 3 times the industry’s going rate of 50 USD only.
This is another way that KontoFX is intending to steal from their customers.
Reviews and customer testimonials are very negative regarding this brokerage.
Tales of how customers were robbed have spread across several blogs and trading forums. There is not a single positive testimonial or review about this broker.
One particular customer said that when he tried getting out his money from this platform, he got a phone call informing him that he couldn’t do it because the broker was using his money and needed a week’s notice.
Brokers are supposed to operate with sufficient float. That’s one of the reasons why you should only consider trading with a regulated broker and not those who refuse to get regulated because they want to scam traders.
With their unregulated and limited credibility, KontoFX does not inspire confidence at all. Also, if they are not letting go of money very easily once send to their bank accounts, it only means that this broker is shady and can easily steal from you.
My recommendation is to avoid such brokers at all cost. This list of brokers is sufficient for your needs. Pay specific attention to Octafx (for Forex trading).
What’s your experience with KontoFX? Comment below.