Beware! KatanaInvest is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
It took almost no time at all to quickly land on a conclusion of KatanaInvest. Two elements stood for us that expose it for the shady firm it is. First of all is the Warren Buffett video on markets trading strategies, which is just a compilation of him commenting on the various past states of the market, as well as future probabilities. This type of approach is mostly used by firms that use the hope built up by similar videos for the purposes of acquiring a first deposit, and then second, etc. The second poised element is the name of the brokerage itself… “KatanaInvest”. Why would you name your company after a Japanese weapon? To show power, or prowess? As you will see KatanaInvest does not live up to this name.
After a incredibly easy registration process we were led to a good looking trading dashboard, which immediately wanted deposit from us. The access of a live trading account should not have been so easily given to us, but as you will see, many aspects of KatanaInvest should not be as they are.
The cost of trade for the EUR/USD currency pair is between 0.5 and 0.7 pips which is a fantastic spread. The leverage has not been shown in the trading software, and so we had to trust the website with the info. However, that we found more difficult, and so we could not get a hold of a leverage.
The website is available in English, Italian, Russian, and German.
KATANAINVEST REGULATION AND SAFETY OF FUNDS
Nowhere throughout the website does it say that the company is regulated anywhere. The legal documents are as vague as they can be. The sole place where any relative info is given is in the footer, where an address in Estonia is given.
The main regulator in Estonia is the Finantsinspektsioon, which held no result when we searched for KatanaInvest. And anyway, the country is not known for its fair treatment of the FX industry. It still has a long way to go.
However, it does not say that the broker is actually regulated there, nor anywhere on the website for that matter. So we have to come to terms with the fact that KatanaInvest in NOT LICENSED by any agency, as is therefore a risk to all investments. Unregulated brokers do not return deposits!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
KATANAINVEST TRADING SOFTWARE
KatanaInvest has given its users the Sirix webtrader, a commonly used trading software by shady firms.
Aside from offering clients pending orders, one point clicking, options for chart customisation, and copy trading, Sirix has nothing else up its sleeve. In act, this terminal is an expert at creating the illusion that is actually has a lot more to offer than in reality. This is one of the main reasons why it has been used mostly by illicit brokerage firms.
KATANAINVEST DEPOSIT/WITHDRAW METHODS AND FEES
The methods for funding an account are bank card, wire transfer, and bitcoin. The payment area in the personal user dashboard gives us a minimum deposit requirement of $500 for wire transfers. As for the card deposits the minimum is unknown, for uses must contact support in order to pay via card. Bitcoin deposits are encouraged to be made through a shady blockchain address… so a minimum deposit via BTC is out of question.
The withdrawal policy mentions that there are fees for withdrawing, but there is nowhere a clear indication on what these really are, in terms of the actual amount. The withdraw processing time is 2 to 5 days.
There are also third party charged taxes for both deposits and withdrawals. As is expected, there is no explanation as to the specific origin of these and as to their exact values.
The following clause has become sort of a staple for illegal brokers. The Non-Deposited Funds provision reveals that users cannot withdraw profit made from trading. Furthermore, all bonuses are non deposited funds, and so cannot be withdrawn.
The company has the right to suspend the client’s account at any time without providing an explanation. Furthermore, it can also change the legal documents’ content without warning. This gives KatanaInvest the chance to add additional clauses that can further manipulate a user’s account, which can amount to additional fees.
The limited liability clause is here to make sure that KatanaInvest stays safe from any legal claims the users might have against it. The provisions is long, and so we have included only a part of it.
The legal documents are rather short on information, however just the Non-Deposited Funds provision is enough for us to advice you to not deposit your money at this brokerage. The good spread is not enough at all to redeem the bad qualities of this broker. The biggest thing to know about KatanaInvest is that it will not return your invested capital! Usually, it will use a range of methods to postpone your withdrawal request indefinitely.
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.