Kruger Exchange review – 5 things you should know about Krugerexchange.com

Kruger Exchange review – 5 things you should know about Krugerexchange.com

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

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Kruger Exchange is a CFD brokerage which emphasizes on crypto currency trading and we believe is based in Bulgaria. It provides а web-based trading platform, and not the MetaTrader 5 trading platform, and we could see a spread of $24 on BTC/USD. Clients have at their disposal a leverage of 1:400 and a wide range of crypto pairs. The required minimum deposit is $220 which is nothing out of the ordinary in Forex trading.

Kruger Exchange regulation & safety of funds

According to the website of the brokerage the company behind Kruger Exchange is based in Bulgaria with an address Sofia City, Slatina Region, Hristo Smirnenski R.A., bl. 64. Here is a screenshot:

We do come upon a Bulgarian contact address on the website. Bulgaria a member-state of the European Union and online Forex trading is duly integrated within its regulatory framework which is modeled after the ESMA guidelines. However, we find no mention of a license by the Bulgarian authorities – thus we may safely conclude that the brokerage Kruger Exchange does not fall under any regulatory oversight whatsoever.  However, the brokerage does inform us about its trading conditions and it provides a web-based trading platform. Through a demo account we could get a look at it. Here is a screenshot:

The spread on BTC/USD is $24 which is quite favorable and way below the industry average. Furthermore, the leverage extended to traders is quite generous – 1:400, although we emphasize that trading with such a high leverage hides the risk of losing more than your initial deposit.

Putting aside the trading conditions of the brokerage – while researching the brokerage on the web we came upon an official warning issued by the Financial Conduct Authority in the UK. Again, you may see for yourself:

On it we read that the British financial watchdog suspects Kruger exchange of taking part in scam operations and further states that it has illegally targeted British traders without proper authorization from the relevant authorities. Being blacklisted is perhaps the most clear-cut sign of trouble in Forex trading. We may safely assume that potential clients of the brokerage may be open to substantial risk.

We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.

The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.

Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.

Lite FinTech deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw via a wide range of payment methods. They include the standard Visa, MasterCard and bank wire, as well as Skrill, Neteller, giropay, moneta, iDeal, SOFORT, AstroPay, QIWI, CASHU, Neosurf, paysafecard and others. Going through the terms and conditions of the brokerage we did not come upon any worrisome withdrawal conditions.

However, this is no guarantee the brokerage won’t charge any unexpected fees. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.

After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.

Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.

It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Lite FinTech – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

What to do when scammed?

As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.

You may contact your bank or credit card provider and file a chargeback. 

If, however, you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should switch it asap!

Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!

 

Rich Snippet Data
Review Date
Reviewed Broker
Kruger Exhange
Broker Rating
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2 Comments

  1. I am a victim of a scam. In the beginning of February I opened an account with Kruger Exchange and deposited £250 on their trading platform. I instantly received a call from one of their brokers called Michelle Suchi to introduce the company and say that I could not make any money with £250 but that if I opened a premium account she could trade with me and make big profits. I was not convinced but she kept calling me everyday until she managed to convince me to deposit £5000 GBP. I am not financially educated so unfortunately I believed her. Although I told her that I did not have the money she convinced me to use my credit card saying that before the next statement was due I would have doubled the money and be able to pay it back to the bank. Now I realised how stupid I was but at the time I believed her and made the payment. She arranged some Skype trading sessions with me to teach me how to trade and to trade with me. On the second session we made over £2000 GBP profit. Two weeks after I had a personal issue with my grandmother and she had to be hospitalised and I urgently needed money to pay for her medical assistance. I then massaged the broker at KrugerExchange explaining the situation and asking to withdraw my funds. (At the beginning I was told that I could withdraw funds at any time as long as my balance was sufficient). There is when the nightmare started. She was not calling me back and always saying that she was busy. At some point she called me and said that I could not withdraw my funds until the 15th of march but that the money would be in my account by that day and that she would transfer me to a different broker because as I was not interested in trading anymore she could not keep me. After I wrote a massive email complaining, a few days later a received a call from another broker called Jessica Smith saying that she was Michelle’s (my original broker) supervisor. She then said that I could not withdraw my funds unless I traded with her stating that my account was under some sort of contract and that I had to generate liquidity before getting my funds back. I said that I did not want to trade any longer and she was really rude to me on the phone saying that she was losing money every second she was with me on the phone and that if I didn’t want her help to get my money back she would have to call me back another day.
    I then wrote another email complaining and I got a call from a guy called Adam claiming that he was from the financial department and saying that he understands my frustration however if I don’t trade as they want, they can hold my funds for months. He said that I had to do only one trade that would be an assured trade and then I could withdraw my funds. So Jessica called me back and told me to place a trade on the platform and leave it open saying that by Friday the 15th I would get my money back. Friday came and I did not hear from them nor got my money back. So I went to check the platform online and the website was down, the URL no longer existed. I then emailed them and the emails bounced back as the server did not existed. The following day Jessica contacted me saying that they changed the domain to kruger-exchange.com instead of krugerexchnge.com and when I asked about my money she said that as I don’t want to trade I can’t take my money out until I generate liquidity and finish with the alleged contract that my money is on. She then added a USD3900 bonus to my account as an apology for the inconvenience. Which is nonsense since I can’t withdraw the money. Now I owe £5000 GBP to Visa and HSBC and my grandmother is not getting the assistance needed. I am a full time student and having that huge debt is gonna ruin my finances. I reported to the Financial Conduct Authority, to HSBS (which is trying a charge back), to VISA and to Action Fraud whom has taken on the report and has logged it and has provided me with a Crime Reference Number. I uploaded pictures of emails and my trading platform on Forex Peace Army. (I can’t find a way to upload it here)

    1. Following up my previous post. After exchanging emails with KrugerExchange, they finally authorised my withdraw request. I have already received the funds in BTC and they only have deducted some fees from the transaction when I originally purchased bitcoins. I have not received the profit yet as it is subject to the terms and conditions of the leverage that was put into my account but according to KrugerExchange I can trade on the profit as I wish. Therefore I would kindly ask for this post to be removed or marked as resolved please.

      Thank you for the platform and space to express my concerns.

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