Beware! KeyONcapital 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.
KeyONcapital is a broker that offers trading in Forex, Stocks, Commodities, Indices and Cryptocurrencies. They advertise 3 types of accounts – Bronze, Silver and Gold, differing in terms of minimum deposit requirements and leverage:
The registration form asks only for Name, Email address and Phone number and on submitting these details we were redirected to the client area. We also received a confirmation email with the account credentials in plain sight – not the best practice in terms of security and privacy since email communications can be intercepted.
KeyONcapital Regulation and safety of funds
KeyONcapital claims to be “a multinational company with regional offices and trade centers in Berlin, London, Singapore, New York, etc.” This is a big statement, but the fact is throughout their website there is no physical address, nor a phone number or email address. The only way to contact them is via an email form on their Contact Us page.
The broker’s bragging does not stop here – they say they have more than half a million registered users that make 2 million transactions per month amounting to over $50 million – see for yourself:
Actually, down on the same page the users are 50,000, which is also hard to believe. KeyONcapital is a completely anonymous entity, and even worse – they are scammers who do not shy to put outright lies on their website. If we have to believe the information they put on their License page they are the most regulated broker ever – we counted 6 regulatory bodies that have “authorized and are regulating them”: FCA, CySEC, Dubai Financial Services Authority, Bahamas Securities Commission, Mauritius Financial Services Commission and Vanuatu Financial Services Commission.
Well, we made the effort to check these agencies’ databases – not one had a record of the brokerage. As you can see on the screenshot above they cannot even lie consistently – on the same page they have different License numbers for the same watchdog organization, CySEC. But this is understandable considering that reality is quite the opposite – the Cyprus Securities and Exchange Commission (CySEC) has issued a warning against the website:
To conclude, KeyONcapital is not regulated by any respected financial authority and their promises for “the highest standards of safety for our clients’ funds” because “client funds are kept in major international banks and are fully segregated from the company’s own funds” are not grounded in any regulations they must adhere to. If you are considering investing in Forex trading we would suggest finding a broker licensed by an established watchdog organization, such as the Financial Conduct Authority (FCA) in the UK, CySEC or the Australian Securities and Investment Commission (ASIC).
These agencies have other rules besides Segregation of Funds. The Minimum Capital Requirements for brokers regulated by the FCA or CySEC are 730,000 EUR, while in Australia they are AUD 1 million. European brokers have to participate in Compensation Schemes that provide additional guarantees to investors’ funds in case the broker goes bankrupt – up to 85,000 GBP in the UK and 20,000 EUR in the EU, and they need to comply with a Negative Balance Protection policy, which ensures that the traders may not lose more than the total sum deposited, in this way effectively preventing indebted accounts.
KeyONcapital is an anonymous, unregulated broker, however, so they are not bound by these rules and policies. Any claims regarding the good trading conditions and tight spreads they offer or the safety of clients’ funds are not guaranteed by any regulatory agency, so we would warn our readers that there is a considerable risk to their money if invested with this broker.
KeyONcapital Trading Software
With regards to their trading platform, the broker also does not spare the superlatives – ït “is regarded as the best one and is extremely popular with traders.” Actually, their proprietary, web-based software is a rather basic platform with limited features and poor design – we were actually surprised to find out it provides a Demo option:
We advise our readers to select a broker that offers an established trading platform, such as the MetaTrader 4 (MT4) or the MetaTrader 5 (MT5). MT4 is the world’s number one platform, preferred by more than 80% of users worldwide. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language. Its successor, MT5, has some advantages – it allows traders to execute trades on different financial markets through a single account and there is a hedging option.
KeyONcapital Trading Conditions
The EURUSD spread we see in the platform screenshot above is very competitive – 0.1 pips. Regulated brokers usually provide spreads between 1 and 1.5 pips for this most traded currency pair. Considering the untrustworthy nature of this broker, it is hard to take anything in their proprietary software at face value – rather we believe it may have been rigged to display good trading conditions.
KeyONcapital offers leverage up to 1:500 for their premium accounts. Trading on leverage can be tricky as it entails significant risks, especially to inexperienced traders. Although it allows for making bigger profits, one may incur great losses too, often much greater than the invested funds. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30.
KeyONcapital Deposit/Withdrawal Methods And Fees
The broker does not give any information about payment transaction methods on their website. Although there are some references to “bank details” and “credit cards” in their legal documents, in the Client area the only deposit option is via Bitcoin:
Other popular payment methods, such as PayPal and e-wallets are also not available. Bitcoin is the top choice of scammers because it is untraceable and anonymous.
The minimum deposit amount is $100 which is not very high. With regards to commission and fees, however, the situation is different. We understand the broker charges commissions on withdrawals, but we do not know what the exact fee is. Similarly, commissions on trades is not specified – it “depends on size of trade and type of instrument.” The inactivity fee is excessive – “a monthly fee of $10 is applied in case of no trading activity during the period.”
Overall, we must say that KeyONcapital is definitely a scam broker – stay away and do not invest with them!
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.