Beware! KBLTrade 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.
In this review, we are going to examine a shady broker that’s potentially an illegal business and a scam. They offer Forex and CFDs, claiming to provide services to customers in 39 countries. However, the trading software they deliver is questionable, to put it mildly. We found other disturbing signs, as well, which we’ll share in the full KBLTrade review.
KBLTrade REGULATION AND SAFETY OF FUNDS
KBLTrade is a totally anonymous broker, sharing nothing about themselves. The only thing we were able to find is that the Marshall Islands governing laws apply to their business conduct. But that’s a problem because the islands are considered a tax haven and notoriously famous for the lack of financial regulation. They do not even have a regulator there, so the FX companies based in the Marshall Islands are working non-compliant to any laws whatsoever. Offshore brokers like KBLTrade can carry out fraudulent activities and financial crimes without suffering the consequences. Your funds are not safe if you deposit with KBLTrade because it’s an illegal enterprise and very likely a scam.
Avoid them and see the adequately regulated EU brokers and the British brokers we recommend by following the links provided. The European financial markets are strictly regulated and safe for traders and investors. Financial authorities in the EU and UK enforce various customer protection regulations to guarantee fair and ethical business behaviour. Most importantly, there are money protection schemes laid down to ensure traders and investors’ money in case of bankruptcy or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person.
KBLTrade TRADING SOFTWARE
KBLTrade offers only web-based trading software, and that’s a noteworthy downside. The platforms shady brokers develop by themselves are lacking in functionality and unreliable, but most importantly, considered prone to fraud and price manipulation. Beware.
While evaluating trading software, see the MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular Forex platform, which seasoned traders and investors highly acclaim and prefer. The software provides sophisticated trading tools such as Expert Advisors, Algo trading and plenty of complex indicators. MetaTrader also created a marketplace where you can find more than 10 000 apps and third-party developed trading solutions.
The EUR/USD spread was 0.4 pips at the time of writing, which indicates price manipulation. We were doing the review during the late US session on Friday when spreads are wider than usual. At the same time, other trustworthy sources were providing with quotes difference higher than 5 pips, upholding that KBLTrade is a fishy broker indeed.
The default leverage level with the starter account is 1:100, a level considerably risky for retail traders. If mishandled, such a ratio might cause utter losses and destroy the trading account very quickly indeed. The risks involved motivated many financial authorities to impose leverage restrictions as customer protection measures.
So, the European, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t provide higher levels than 1:50. The Swiss brokers aren’t restricted, but there is a 20 million francs capital requirement in Switzerland, which keeps shady brokers away.
KBLTrade DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with KBLTrade is $250, more than twice higher than the regulated brokers’ requirements- $100 on average. The funding methods are said to be Credit/Debit cards, Wire Transfers and e-wallets, but they do not specify which online payment systems are accepted. Anyway, it’s best to fund trading accounts via bank cards because a chargeback is possible for up to 540 days from the transfer date.
However, if you have a preferred payment system, see our lists with legit Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers. The selected companies are strictly regulated, so it’s unlikely for traders to experience fraud.
There are no withdrawal restrictions, and the requests are supposedly processed free of charge because KBLTrade doesn’t specify any fees whatsoever. It’s said that the transfers will be handled within 2 business days, which is a favourable condition, but KBLTrade is an unreliable broker, so this might be untrue. Furthermore, offshore transfers take up to a month sometimes, so beware.
The inactivity fees are also seemingly favourable. After 12 months of inactivity, the account becomes dormant and will be subject to a $30 annual fee. These conditions are surprisingly good for a shady entity like KBLTrade, but it doesn’t change their situation much.
KBLTrade offers deposit bonuses, but traders shouldn’t accept trading incentives from them. It’s a trap, making it impossible to withdraw any sum whatsoever. To become eligible for withdrawal, clients have to reach a minimum trading volume of 30 times the deposit plus the bonus amount. So, the trading incentives effectively lock the account, and traders don’t have access to their own money.
Overall, KBLTrade is an illegal broker, which is an argument enough to stay away from this suspicious business.
HOW DOES THE SCAM WORK
People can see many fraudulent ads on the Internet and social media posted by scammers who want to steal as much as possible from traders and investors.
If you click on the post and submit your e-mail and contact number, they’d ring you immediately and would promise you anything to make you deposit money as quickly as possible. Most of the scammers are experienced manipulators, and before you know it, they’d ask for your bank card numbers out of the blue. Urgency is a treacherous sign, so if someone pushes you to start trading ASAP, then it’s most probably a scam.
However, the first deposit is just the beginning. Gradually they’d ask for more money from you no matter what. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d persuade you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and would even ask you to deposit even more funds if you want to withdraw. The scammers’ mantra is “give me your money”, they’d insist every day you should fund your account over and over again for no obvious reason. Legit companies do not bother you over the phone to deposit with them, so if someone pushes you to invest, it’s most probably a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!