Kortex Review – 5 things you should know about kortex.vip

Kortex Review – 5 things you should know about kortex.vip

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Beware! Kortex is an offshore broker! Your investment may be at risk.

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Kortex is presented as one of the world’s fastest-growing online brokerages, with a high-tech trading platform and low-cost investment solutions that are your gateway to the financial markets. Standard claims, but Kortex definitely isn’t one of the fastest growing brokers, as it’s basically an anonymous website that appeared online just 2 months ago. Kortex is a scam, and we are going to review it.

Kortex Regulation And Safety Of Funds

Kortex’s legal documents are an absolute mess. In its Terms and Conditions, the so-called brokerage starts by saying that it’s owned and operated by Kortex Limited – allegedly a Cyprus company with an address in Limassol. We found nothing about this company, but most importantly, no such entity is regulated by CySEC (the Cyprus regulator), so even if Kortex is headquartered in the country, its services would remain illegal.

On the other hand, they claim to have an IFSC license, which can’t be true, and it contradicts the claims that the company is registered in Cyprus – the Belize regulator IFSC does not regulate Cyprus companies. However, at the bottom of the document, Kortex introduces yet another country by stating that its business operations are governed by the laws of Saint Lucia, which suggests that the entity is an unregulated offshore brokerage. The legal mess is complete, but we can confirm that Kortex is unlicensed, which is a major red flag indicating a scam.

But the legal inconsistencies are just a part of the story. The most important aspect, in this case, is that Kortex is an exposed scam as the Russian Central Bank issued a warning against the broker, confirming it’s dishonest and illegal! The Russian Bank has been controversial for quite some time, as it blacklisted many legitimate companies for ideological reasons, but a warning is still a warning, and it proves that Kortex is a scam you should avoid!

That said, we recommend that you should deal with regulated brokers only! For example, CySEC (Cyprus) brokers and FCA (Britain) brokers have been proven safe because both authorities impose tight restrictions to ensure the safety of clients’ funds. The mandatory regulations include client account segregation, risk-reducing measures like leverage restrictions, negative balance protection, and increased capital requirements to license a broker (€730 000). But most notably, both CySEC and FCA brokers are covered by deposit insurance funds – clients of Cyprus brokers can claim up to €20,000 in compensation, while UK protections are up to £85 000 per person! On the other hand, trading with fishy unregulated brokers will leave unprotected and vulnerable to fraud, so it’s never recommended to trust your money with such entities.

Here is the warning publication:

Kortex Trading Software

Kortex claims its software is superior, but that’s just a lie and another red flag, as they apparently create a false sense of security and expectation. In reality, the broker has a Webtrader that’s anything but superior – it’s simple and cannot provide any advanced functionalities.

Since Kortex is an exposed scam, though, its trading software is pretty much irrelevant, so why don’t you check our lists with MetaTrader 4 brokers and MetaTrader 5 brokers and find a real broker instead? The high-rated firms are secure and provide the best platforms for Forex retail traders. Both MTs have become an industry standard and are acclaimed for their advanced features like automated trading and analytical tools, strategy testers, reliable indicators, and the marketplace with thousands of Forex apps. Trading with MT brokers is a good option, but you should stick with regulated companies, as markets are currently flooded with scammers!

Kortex Trading Conditions

Kortex trading conditions are standard. The trading instruments are grouped in the following asset classes: Forex, Commodities, Stocks, Indices, Crypto, MOEX and ETFs – a good selection overall, but it changes nothing, as Kortex is still an exposed scam!

The trading costs are standard as the average EUR/USD spread is around 1 pip – a common difference that regulated brokers offer anyway.

The trading risks are high as leverage can reach 1:200 – a risky ratio that’s prohibited in way too many countries. Hence, the trading service of Kortex will be illegal in the EU, UK, US, Australia, Canada or Japan, as regulators in these jurisdictions have banned this ratio. Beware!

Kortex Deposit/Withdraw Methods And Fees

The minimum deposit with Kortex is $200, a bearable requirement but definitely higher than the affordable brokers, some of which let clients open an account for as little as $5.

As for funding, Kortex claims that Credit/Debit cards, Bank Wire Transfers, QIWI, Webmoney and Bitcoin are available, but that’s not true. As you can see from the screenshot below, clients can deposit via bank cards only, but keep in mind that each transaction is carried out by the Russian payment processors WirePay and Freekassa. What this means is that chargebacks become much more complicated, if not impossible, as your money will be transferred internationally – whether to Russia, Saint Lucia, Belize or elsewhere! Beware!

As for withdrawals, there is no minimum amount specified, but each transaction will be charged 3.5% (a minimum of $30), which is an unacceptable fee! In contrast, regulated brokers rarely impose any withdrawal fees, and if there is a requirement, it would be symbolic, not $30!

However, there are other fees, and we deem all of them unfair and unacceptable, as well. The list includes a $60 monthly fee for inactivity, a $20 monthly maintenance fee (for both active and inactive accounts), a $1.50 to $5 clearance fee, and a $100 missing verification fee. The latter is treacherous, as it shows that Kortex accepts deposits from unverified accounts, which breaches international KYC and anti-money laundering laws! This is a scam!

How Does The Scam Work

Forex scams are not as sophisticated as you might think. The scheme usually consists of a fraudulent website and a scam call centre called a boiler room. Scammers pay little attention to excellence and create scrappy websites as they focus on contacting as many people as possible, and for that reason, their websites are usually substandard and ignorant. And to find victims, scammers use social media, Discord groups, Telegram chats, fraudulent ads, and most notably, they interact with hackers to buy people’s details. What usually happens is that you may receive an unsolicited phone call or a chat on social media by scammers who promote get-rich-quick schemes, guaranteed earnings, bonuses etc.

But the worst part of the scheme unveils after the first deposit. Clients will be fooled with fictitious profits, followed by promises for even more gains and requests for more deposits. In the worst case, victims will deposit again, but if they want to withdraw, they will not be allowed to. In a typical trick, scammers say that clients should pay taxes in advance if they want their money back. If this happens, the fraud becomes more than evident, and victims usually realise they’ve been scammed.

What To Do If Scammed

Inform the authorities first – call the police, contact other regulators and agencies and report what happened. Also, deactivate your cards ASAP and call your bank to inform them about what happened. They’ll give you instructions.

Unfortunately, if you deposited cryptocurrencies, there is not much you can do as these transactions are irreversible. If you used your bank card, you’d at least have the chance to file for a chargeback. However, keep in mind that scam recovery agencies are flooding the market, so you need to be cautious while trying to get your money back.

And lastly, consider sharing your experience to help protect others; we’ll appreciate it!

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