Beware! KSG Markets 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.
KSG Markets a.k.a Knight Service Group Limited is certainly a scammer – this much is evident from the fact that the New Zealand Financial Markets Authority (FMA) has issued the following warning against them:
What is more worrying is that the broker has re-branded from Business Choice Partners Group after a warning had been published by another regulatory agency – the British Financial Conduct Authority (FCA). The warning states the following:
For us the re-branding is a clear sign that the broker is acting in bad faith – if they were legitimate they wouldn’t have a warning against them, but if the FCA had somehow made a mistake, Business Choice Partners Group would certainly have tried to defend its brand instead giving up on it and changing it.
Even if there were no warnings against the broker, the fact that it is illegitimate is really obvious – take a look, for example, at their contact information:
Mentioning your country of operations is laughably insufficient as an address – if it even is their country of operations. It is incredibly vague and unhelpful. There is also no mention whatsoever of who runs the company, or even a phone number. The only way to contact the company seems to be an email address. About how quick they respond, if at all, your guess is as good as ours.
As a little side-note, in the account making process we were prompted to send in a picture of our credit card – back and front. Now, there are cases where a company needs to verify that you are indeed the card holder to process a request – however, legitimate brokers give instructions to cover all the credit card details they do not need – as a rule of thumb they need the card holder’s name and the last 4 digits on the front. Anything more is grounds for suspicion. These instructions are not something Knight Service Group Limited has bothered to put out whatsoever.
Please do not give scammers like them access to your credit card
KSG Markets regulation and safety of funds
As we established, the company has a warning issued against it by the FCA stating that it is operating on British territory without a license. The risks in investing with unlicensed brokers are quite a few and restrictions are placed for a reason. For example, it is not uncommon for companies to start up with little capital in an offshore location, which lacks regulation, offer extreme leverages and then go bankrupt in under a month, taking all of their investors’ capital with them. The regulatory agency has put forth rules that make it impossible for this scenario to happen in Britain or to a licensed company – there is a minimum capital requirement of 730 000 pounds and brokers are made to participate in guarantee funds, which recover up to 85 000 pounds of losses per trader in the case of bankruptcy. There are additional requirements – the keeping of client funds in segregated accounts and for brokers to report daily to the agency on their activity.
For these reasons it is advised to stick with a trusted company and minimize the inherent risks of Forex Trade.
KSG Markets trading software
KSG Markets provides its traders with a downloadable distribution of Metatrader 5 – the powerhouse trading platform that has turned into the industry standard for its many convenient, yet sophisticated features. One of them is the automatic trading option for example – the trader can employ specifically programmed algorithms to trade instead of them – the so- called “expert advisers” These bots are developed by community members and distributed on a market that the platform hosts.
The broker’s version of the platform has all the features of MT5 – the aforementioned automatic capability and the plethora of graphical options like drawing trend lines and making use of indicators. The spread is really tight as well – it goes as low as 0.1 pips. The leverage the broker offers is 1:100.
What is curious, however, is that we were presented with a demo account once we downloaded the platform and were unable to switch to a live one. What’s more is that there was no indication that the account was a demo one. It seems like the broker wants to pretend to be providing a live account when it is not.
KSG Markets deposit/withdrawal and fees
Furthermore, there is no link to any of the mentioned document present anywhere in the account making process. It is incredibly unprofessional to withhold such important information from your customers – especially for a company that claims to have been operational from 2016.
So, we cannot know what means of payment the broker accepts, the amount of time it takes them to process a withdrawal request or if there are any fees associated with the process.
How does the scam work?
KSG Markets is undeniably not a legitimate broker – so much is clear from the multiple warnings issued against them and the shocking amount of suspicious or lacking details on their website. So how and why do such fraudulent brokers operate? Most of them follow a well-established scheme to extract as much money from their victims as they can get away with.
The scam starts when the potential victim stumbles upon an ad on a social media platform – be it Instagram or Facebook, or any other one – the ad will promise one and the same thing every time – quick and easy profits. How the company achieves that is via a miraculous and new discovery about the industry, or some sort of insider information. The wording can be quite varied and creative.
These ads lead to sites much similar to KSG Markets’ own. If their visitor decides to make an account they must give their phone number and email away. When that is done a bombardment of emails and calls will begin, all wanting one and the same – a deposit. If you fall for it and actually go with it, depositing money with the broker, you will most certainly see your account balance plummet or soar – in the first case the scammers will try to get you to recover your losses by depositing more money, which they will then proceed to blow away as well. In the second you will start getting calls demanding you “upgrade your account” by paying a fee. The scammers care little about the actual trades they perform and only want to steal your deposits
What to do when scammed?
When scammed, you have little options to recover your money – you can file a chargeback if you have used a credit card or a reputable e-wallet – in the case of Mastercard or Vista you can do so within 540 days of the transaction.
There are three things you must do to avoid increasing your losses – first off, you have to change all credit card the scammers had access to. Secondly you must delete any desktop sharing software they had you put on your PC. These people will often make you use TeamViewer or AnyDesk to access your PC without your consent once you catch on to the scam.
Finally, you must beware of further scams – if you are contacted by any “recovery agency representatives” that promise to repay you some of your lost money at the cost of an advance fee do not trust them – they are simply a part of the scam. Often times when you realize you are being scammed and stop depositing money your information will be passed on to a different scammer that will make claims like these. Needless to say, they are only after your fee, and once you transfer it you won’t hear from the agency anymore.