Beware! KryptoHaus 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.
If you are looking for a scammer par excellence, look no further than KryptoHaus! All the signs are on the wall and we’ll help you see them.
KryptoHaus Regulation and safety of funds
First of all, although the address of KryptoHaus is given to be in the UK, the company is not registered with the Financial Sevices Authority (FCA), the official body that regulates forex brokers in the UK (image below).
You must know that forex brokers are strictly regulated by FCA in the UK and they must meet rigid requirements in order to get their license. First of all, brokers in this jurisdiction must deposit an initial capital of no less than 730,000 EUR which among other things serves as a barrier against scammers as they won’t invest so much money for the benefit of looking legit. Other requirements include keeping clients’ funds segregated with tier-1 bank establishments, reporting on a daily basis their transactions for the sake of transparency, providing protection on negative balance, etc. One of the biggest advantages in trading with licensed forex brokers from the UK is that they must participate in the local Financial Services Compensation Scheme from which their clients can be refunded in case of bankruptcy with up to 85,000 GBP per client.
If you want to extend the scope of your research of licensed brokers, please be informed that licensed brokers in the EU must meet the same requirements as their colleagues in the UK. The difference is that the amount of recompense in case of bankruptcy is 20,000 EUR per clients but only if the broker is regulated by CySec and deducts funds towards the local Investor Compensation Fund.
We hope that you will profit from this information that will facilitate your search of a licensed broker to trade with.
KryptoHaus Trading software
To its clients, KryptoHaus offers a web trader platform. This is a rather basic platform as you can see from the screenshot below. On the left, you can see the menu for trading products which in this case shows the forex pairs with their bid/ask price. In the middle is displayed the chart of one of these forex pairs, EUR/USD, with the fluctuation in price in a given time frame. From the bid/ask price, we calculate that the spread is 0.2 pips which is quite below the industry average. The low spread is beneficial for traders as the cost of transactions won’t be too high and they will be able to make a sustainable profit.
On the other hand, if you peruse the information about the different account types, you will notice that the parameters of the leverage are set to be extremely high – from 1:100 to 1:1000! First of all, this is another proof that this broker is a scammer as licensed brokers in the UK have capped leverage that cannot go over 1:30. This is one of the measures to protect clients from entering reckless and risky transactions with the hope of making a big win. Given the fact that 70% of traders lose in transactions, it will be sheer lunacy using such high leverage.
Before we move on to the next section, let us tell you a bit more about the trading software in forex trade. Forex brokers place MetaTrader 4 and MetaTrader 5 to be among the most popular and widely used platforms. They have a proven record of providing what traders need most – an auto trading option, trading signals, a financial calendar, an app market, code base with customs scripts, VPS, etc. Their charting options are out of this world and traders can use many charts, time frames, colours, etc., or create personalised templates. In addition to that, the technical analysis indicators that both platforms are equipped with, allow traders to predict the future direction of exchange rates and make a profit.
We strongly recommend finding a licensed broker that offers either of these platforms for your enhanced trading experience.
KryptoHaus Deposit/Withdrawal methods and fees
The clients of KryptoHaus will be spoilt for choice when it comes to selecting a trading account. The total number of trading accounts is 8 – Mini, Standard, Bronze, Silver, Gold, Platinum, Black and VIP. The minimum initial amount for the Mini account is $250. For the Black account, it goes over $500,000 and the VIP is invitation only.
To feed their account, clients can deposit money via credit card, wire transfer, American Express UPayCard, ePayments and GumBallPay.
If an account stays inactive for 6 months, a monthly fee of 10% will be charged every month. This may result in clients having to pay a substantial fee depending on the deposited amount. we want to mention here that licensed brokers normally charge a fixed fee, not a percentage.
The withdrawal payment methods are the same as the deposit ones. The minimum withdrawal amount via wire transfer is 250 EUR/USD/GBP and for other methods is 100 EUR/USD/GBP. Please note that there is a fee of $250 if the traders apply for withdrawal before executing more than 200 in turnover or a levy of 10% of the withdrawal amount. Other fees charged by the company are 50 EUR/USD/GBP for wire transfer, 25 EUR/USD/GBP for credit cards plus a processing fee of 10 USD/ 7 EUR/ 5 GBP. We consider that there are too many fees and some licensed brokers do not charge deposit/withdrawal fees.
The processing time for withdrawal requests is between 2 and 5 business days.
Another sign that this broker is a scammer is the fact that it offers bonuses. Please note that licensed brokers do not offer bonuses. It may look tempting to accept a bonus as it seems that it adds more trading power. However, you must remember that these funds belong to the broker, not the traders, and they come with heavy to fulfil requirements before the trader is eligible to withdraw the bonus amount. Should you choose to accept a bonus from KryptoHaus, you will be asked to execute a minimum trading volume of 25 times the sum of the deposit and the bonus amount. As you can see, even experienced traders will have trouble fulfilling such conditions.
How does scam work?
A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.
What to do if scammed?
If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.