KontoFX Review – 5 things you should know about kontofx.com

KontoFX Review – 5 things you should know about kontofx.com

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Beware! KontoFX is an offshore broker! Your investment may be at risk.

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KontoFX belongs to a new group of brokers that only offer trading in Contracts-for-Difference on cryptocurrencies, as the latter have lately become very popular recently. Note that clients of such brokers do not actually buy nor sell any coins, but are only speculatively trading on the movement of their prices.

Like most such venues, KontoFX also uses a proprietary web-based platform instead of professional forex and CFD trading software like MT4 or MT5. It says it offers leverage up to 1:200, but on the platform we saw only a ratio of 1:1. In fact, the offer of this broker is somewhat unclear.

Actually, KontoFX offers trading in a number of crypto CFD against Tether (which they express as TTR instead of USDT for some reason). Despite promising low spreads, we saw a spread of around 170 USD on BTC/TTR, which is a very high value. The average in the sector is around 50 USD.

KontoFX Regulation & Safety of Funds

When it comes to the company behind the KontoFX brand, things get complicated. The broker’s website mentions a couple of firms: Transformatic Markets OU, based in Tallinn, Estonia, ООО «САМДАР», based in Moscow, Russia, and there is another address in Bucharest, Romania. There are no claims of regulation and obviously none of these companies is licensed in any country, which raises a serious red flag.

Besides, the Russian company is not unknown to us – ООО «САМДАР» operates another brand which we reviewed – Cryptop Market.

We advise our readers to avoid unregulated brokers, as most of them turn out to be scams. There are a number of reliable brokers licensed by well-respected financial watchdogs, such as the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC).

KontoFX deposit/withdrawal methods and fees

The minimum amount required from newly-signed clients of KontoFX is 250 EUR/GBP.  For wire transfers, however the minimum investment for deposit is 3 000 EUR/GBP. What is worse, according to the broker’s Deposit and Withdrawal policy, its clients cannot withdraw any amount less than 3 000 EUR/GBP.

We also spotted another alarming paragraph in KontoFX’s Terms and Conditions, according to which clients’ profits are subject to special conditions and cannot be withdrawn immediately:

How does the scam work?

Investment scam may come in a number of intricate ways, but one of the usual fraud schemes is as follows.

You come across a professionally edited video ad in the Internet or even on TV. The video tells a story about common people like you, who are rolling in money after trading the forex or crypto markets. After you watch the video, you will be urged you to fill a registration form, leaving your phone and e-mail. Not long after that than you will receive a phone call from an expertly sounding “account manager” who will promise you high returns and talk you into depositing a relatively small amount of money (say, $200) in some sort of investment company.

At first, usually, trades go well and investors are soon pushed to deposit more and hit it real big. Then, they will be contacted by a senior scammer, presenting him/herself as a senior financial adviser or a senior account manager. Keep in mind that each of the scammers contacting potential victims gets a percentage of each deposit. The Sales departments of brokers who first get in touch with clients get around 50% of the money invested, and then the “Retention” employees who persuade victims to deposit more get a commission amounting to around 10% of the deposited funds.

Many decide to invest more and then their trades usually start turning red. At some point, victims will want to close their account and withdraw what is left and here is the time when the “recovery” team steps in. Their task is to persuade victims into waiting six months or more so that the term within which they can file a chargeback with the bank expires.

What to do if scammed?

If you fall victim to a scam the first thing to do is to file for a charge back with your credit card company or your bank.

Also, if you have provided the scammers with any financial (banking) information or you have allowed them to access your computer via Team Viewer, block your credit card ASAP and change the password for your online banking service.

Finally, don’t trust the so called “Recovery Agencies”. It is possible that these contact you, offering help to recover your loss, but in fact they are running another scam. They will simply make you pay them upfront and then disappear with your money.

Rich Snippet Data
Review Date
Reviewed Broker
KontoFX
Broker Rating
11stargraygraygraygray

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10 Comments

  1. Roy Albert Buss

    Hi,
    Following my trusting nature I have fallen fowl with KONTOFX.
    I now read the fine article you have published on the web.
    If I had read this before your warning of scammers I would
    now continue to have £250 I trusted KONTOFX with.
    Their tactic is a little different but same result!!
    They have found fault with all the proof of who I am.
    Requiring further and different detail emailed to them,
    it seems now a consumer receipt that I had emailed wasn’t
    as clear sentas the wished, I was to do it again or another
    this time to be clearer and show all four corners of the document.
    A very clear car insurance receipt was emailed, a further
    unsuitable document. This time ‘they do not take insurance
    receipts’. Their follow ups are phoned, and quite intimidating
    I am now ready and waiting for the ‘Senior Accounts Manager’
    (Adrian Mathias) to phone me. I now want my money back.
    If necessary I will sue them, have you their SE LONDON
    office address, Please help to catch the scoundrels
    Best regards ROY A Buss. Maidstone

    1. Just crazy as there a bunch of scam brokers out there. Would like to know how it turns out.

    2. Thank god I read your comments Albert before going any further!! So thanks for that!

      I’m trying to block my card now, and trying to get my initial £250.00 back…… will see!
      I decided to check the company out with trading standards, but couldn’t find anything. Then checked security through my bank, hence finding your post!!! I had slight suspicions, don’t know why as it all sounded very plausible. Like you, I trusted them.

      Think I’ll hold onto what little I have and leave the scammers alone. Never thought I would fall for this. Glad I stopped it now!!!

  2. If they ask for you bank account number and you don’t give it to them they can’t get into your account right ?

    1. No, they can’t. Event if you give it to them, they still can’t withdraw without a pass.

      1. Well!! Well!! Makes interesting reading? I hope and prey l have not been led up the garden path! Only time will tell now.

  3. I just dropped a very pursuicive call to make a deposit. They claim to have a autotrading machine that do all the trading for you. I was directed to them by some AI Qprofits that included Mark Shuttleworth as the engineer behind the AI robot. Am at a junction.

  4. I got contacted by KONTO FX 2 weeks ago the person called herself Christina she told me that they are now in charge of the clients from Kaya FX and want to fix the problems that, she wrote me an email using the name Vivian Pears from Konto FX later she replied from another account as a Christina Christ I wanted my invested funds back and she said its fine and will be there in the next days but nothing so far.
    on the second call she found excuses why I did not get anything so far and wanted me to download any desk to “explain what happened to my account and in case they need fast more money on the account ” that is exactly the same scheme Kaya used to steal directly more money from the investors and also to get hold of personal data so that is a big no go, do not allow anybody to use any desk on your computer !!!!
    since then she promised me that the money will be on the way but they can’t even find the confirmation that it has been send,what means they didn’t do it
    I did some research and they use even part of the same mailbox address kaya is using in Estonia the only difference is that they use now some offices in Hungary where I am sure it is also just a mailbox.
    I will keep you up to date what happens next with Konto FX also I got the calls recorded if you want to message me and I can publish them.

  5. Dreadful company. I deposited £250 and suddenly my password would not work. I have called many times to get the issue resolved to no avail. Avoid like a bargepole…

    Just spoke to my bank, they will refund if you paid by CC just contact your banks’ fraud dept and claim back from your end…

    UPDATE
    Was called today (the day after I left my review) by a very nice lady. They said they will be refunding me within 7 days. I will update again in 7 days…

    UPDATE 2
    Well, it’s now seven days and still no refund in my account? I feel very let down by KontoFX. I even put a hold on my complaint to my bank and VISA for 7 days allowing them time to credit my money back, and even then I was let down ;o(
    If you are having problems getting refunded by KontoFX and you paid by either credit card or debit card don’t bother calling them, just go straight to your bank and ask to report a fraud. If enough unhappy customers do this they will get their Merchant’s Licence revoked as they just can not be trusted with your money! BEWARE!!!!

    P.S. It’s very suspicious that all their 5 star reviews are from people who’ve only left one review? I suspect the 5 star reviews are false and written by the staff!

  6. I foolishly paid funds into Kontofx and have regretted it ever since. I am now having a continuous struggle to get anything back from them. I will keep trying. Well and truly scammed.

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