Beware! KutFXHK 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.
Very rarely do we ever get the chance to experience brokers such as KutFXHK. This broker is very reminiscent of the very first FX brokerages that started to appear by the end of the last century and the beginning of the new one. Its entire look and feel remind us of it: the visuals are those quirky early 2000’s amateur website style, and it seems like the website has not been updated since 2019, while overall one might say that it was created by a bunch of ten-grader in their spare time. Aside from the website, everything else turns out to be familiar, and not in a good way.
We could not register because the entire account creation area was in Chinese. There was no real way of changing this; the registration page was utterly confusing, and it also required certain ID copies, which we would have never given in the first place.
And so, we are left at the mercy of the website. Personally, we do not trust it with the payment and trading information, but seeing as we have no choice, we will move on.
The supposed trading assets are forex currency pairs and precious metals. The 2 pips for the EUR/USD spread is unproven, and we found no leverage value anywhere.
The website is available in English and Chinese, although we think KutFXHK is mainly directed at Asian users.
KUTFXHK REGULATION AND SAFETY OF FUNDS
The home page claims the broker to be regulated by the FSA, but which FSA? The Financial Services Authority in Seychelles? That sounds about right, but for one thing- the Seychelles-based regulator does not include KutFXHK in its databank of licensed entities.
The image accompanying the FSA claim is that of the London Bridge, suggesting the broker to be regulated by the FSA in the UK, but there’s one issue. There is no FSA in the UK; the FCA is the official regulatory body. Are we to understand that KutFXHK has made a silly and very unprofessional mistake by mixing these two names up? We think so. And just to get the obvious out of the way, KutFXHK is not licensed by the FCA!
Other than that, we have a contact address in Hong Kong, but nothing in this claim suggests that the broker is regulated in the city-state. And it isn’t.
There are no other regulatory details, and we don’t really need any more lies. The broker is without a license and is, therefore, a risk to all! KutFXHK is also an obvious investment scam! Do not invest here!
Investing in unlicensed brokers is a huge risk and a complete waste of money. We urge all readers to check for a license first; this should be their first move when looking for a broker. Any UK, EU, US, or Aussie-licensed broker will do, although each broker has its own peculiarities. Yet, all regulated brokers are prohibited from putting their self interest above than of their clients, and therefore clients’ safety and security id their top priority. Not to mention that to provide a fair trading environemnt is at the top of their list as well.
KUTFXHK TRADING SOFTWARE
KutFXHK continues with the streak of disappointments. The next in line is a broken MT5 download link.
At first, we were surprised by the inclusion of the software, but after we found out that it wasn’t available we coulndn’t help ourselves but to laugh at the irony.
There is no trading software here, and therefore we ask what sort of broker is KutFXHK anyway?
KUTFXHK DEPOSIT/WITHDRAW METHODS AND FEES
There isn’t any payment info that we can give our readers here. KutFXHK has either purposefully left these out, or is too ignorant to have included them in the first place.
Honestly, payment methods differ from one scammer broker to the other. The most common variable is the almost ubiquituos inclusion of a crypto-based investment method.
It doesn’t matter in the end. This broker is unregulated, and we believe that all investments will be lost forever.
KutFXHK is by far one of the oddest brokers we have reviewed in a while. This is purely a visual thing. Set this aspect aside, and what you have is a common broker scam.
How Does The Scam Work
The scam does not work in mysterious ways, nor in any complex manners. It’s actually criminally simple, which begs the question as to why are investment scams still so rampant?
Maybe to answer that, one must realize that the simplicity of things tends to create a calm that cannot be fostered if one is subjected to complex tendencies.
Clients who enter into these scams are either those that have provided a contact – as a result of online ads or surveys- or users looking for a quick buck. Either way, one is either in or out; there is no middle ground.
The most important job of the broker and its reps is to overcome the user’s reluctance and compel him or her to invest an initial deposit. This is done through long conversations or email correspondence. Usually, the broker will promise high returns, rewards, and the like. It’s crucial for them that the user invests because when that happens the client is invested in the scam, not only monetarily but also mentally. This way, the victim will be more prone to invest in the scheme.
Now, it’s up to the scammer to drain as much money as possible until the client realizes what is happening. Usually, this happens after the second or third deposit, although cases greatly differ.
When the realization that there are unpaid profits, multiple pending withdrawals, and unresponsive account managers comes to the user it may be too late. But there is still some hope.
What To Do When Scammed
Most payments are done by credit or debit cards. So, filling for a chargeback is the safest way to try to get your money back. ISA and MasterCard have extended their cash-back period to 540 days.
The other popular payment method is a bank transfer but it’s much hard to get your money back here. Our advice is to call the corresponding bank and make a plan of action. It’s also crucial to change your bank account user name and password to prevent any possible money drainage!
All crypto-based payments cannot be traced, and are therefore lost! Never invest with crypto wallets in unlicensed brokers. Moreover, these investment methods are the fraudsters’ favorite.
Don’t put your money with recovery agents or agencies. These are either extensions of the scam itself or independent fraudsters. They promise to track down your lost investments but will only do so in return of a hefty fee. Once the fee is paid, they will disappear without a word!