Beware! Kingdom Investments 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.
Kingdom Investments tries to mislead its potential customers into believing that it’s a reliable broker, however the reality is very different. This broker’s true colors came to light the moment we realized it’s registered in St. Vincent and the Grenadines – a country that doesn’t regulate forex brokerage at all. Moreover there’s no decent information about its trading conditions or payment methods. Apparently Kingdom Investments expects you to take its words for granted and register right away – something we don’t advise you to do. No reputable broker would hide such important information, just the opposite – they display it in detail and let you decide if you want to register. So in the case of Kingdom Investments there certainly are a lot of red flags that this firm is not to be trusted. For more information about it keep reading the full review.
Regulation and safety of funds
Let’s start from the basic facts – this broker claims its registered address to be in St. Vincent and the Grenadines, it also displays an email, but no phone number. Now, St. Vincent and the Grenadines is a popular location for online scammers, as this country doesn’t license nor regulate forex brokerage. So if a forex firm claims to be authorized by the local FSA, bear in mind that this is a straight-up lie. The proof can be found in FSA’s website – there is a warning the moment you land on its homepage stating that forex brokerage activities are not licensed in this country. You can also read the full notice on its website, take a look at it down below:
As FSA clearly mentioned, “potential investors must be aware that if an entity is unlicensed and unregulated, they will be using its services at their own risk”, meaning that you won’t get any client protection in case things go wrong.
Despite its claims to offer negative balance protection, as well a segregation of accounts, this just can’t be the case of Kingdom Investments. Regulated firms don’t follow any guidelines and aren’t supervised by any financial authority. Unlike them, regulated brokers have to meet a ton of requirements in order to get a license. With licensed brokers you can be sure that your funds are really kept in separate accounts apart from the brokes’ own capital. What’s more there’s a minimum capital requirement as well – all regulated brokers in the UK and the EU must hold at least 730 000 EUR, while those in the US – at least 20 000 000 USD. If you invest with a legitimate broker in the EU or the UK you can also benefit from a compensation in case the broker goes bankrupt – up to 20 000 EUR for most of the countries from the EU and up to 85 000 GBP for the UK.
Kingdom Investments claims its trading software to be “award-winning”, “unique” and “best-in-class” – the same cliches that every other scam firm uses, but anyway. There’s no way to preview the platform or to open a demo account either, so the only option we had was to open a live account.
The platform itself isn’t anything special or “unique” – just a simple web-based software powered by TradingView. Take a look at it down below:
As you see, it has some basic features and tools, but it certainly isn’t worth the risk of investing with an unregulated broker like Kingdom Investments. There are plenty of legitimate firms that offer user-friendly platforms like this one, or even better – like the advanced software of MetaTrader 4 or MetaTrader 5.
MT4 and MT5 are appropriate even for both advanced traders and beginners. You can be assured that the safety of your funds and personal information is granted as all transactions are encrypted as well as your IP address.
You can also choose between a wide range of educational resources, forex news and technical analysis tools. Most of the customers consider the trading bots to be the best part however. These bots, also called Expert Advisors, analyze the forex market in a search of certain conditions and then perform trading operations once they find them.
MT5 and MT4 can be easily downloaded on PCs, smartphones and tablets and have regular updates. Unfortunately, since Apple removed both MetaTrader 4 and 5 from its AppStore, these platforms can’t be downloaded any more from iPhone/ iPad users. All of you that have already installed the apps can continue using them, but without the above-mentioned updates. On the contrary you can still download MT4 and MT5 from Google Play Store.
Kingdom Investments doesn’t mention anything about its trading conditions that can be useful for the trader. This is not a good sign for sure, as you don’t know what to expect – what if you happen to face very high spreads and trading costs or too risky leverage that just doesn’t suit you. That’s why reputable brokers always display this information beforehand and let you decide if you want to trade with them. In the case of Kingdom Investments, we had to register in order to find out what trading conditions are there.
On its platform there was a spread of 0.4 pips for EURUSD, that is fine for trading in general. However keep in mind that this broker isn’t authorized to offer financial services, so better avoid it. Instead choose a reputable broker with a proven reputation that offers tight spreads below 2 pips.
The leverage we saw on the platform was 1:100. This is too high an amount that is associated with greater risk of losing your investment. In fact there’s a leverage cap in most of the countries that regulate forex brokerage -1:30 for the UK and the EU and 1:50 for the US. Still, if you want to give it a try and trade with higher leverage, we suggest looking at some of the offshore subsidiaries of legitimate forex brokers.
On the website there’s nothing mentioned about the minimum deposit either. After we opened an account and tried to fund it it became clear that the minimum deposit this broker requires is 250 USD. This is a standard amount, as most reputable brokers usually ask for the same sum. Again, don’t trust Kingdom Investments, as it’s unregulated and its payment methods are very shady as well – but for that in a second.
Deposit/Withdrawal methods and fees
Kingdom Investments doesn’t specify what payment options you would have. After we registered we realized exactly why – this broker offers only crypto transactions and a bank transfer. You can use different platforms for crypto payments like Kraken, Coinbase and Bitonic. Take a look at all of them down below:
It may seem as if you have a variety of payment options but in fact they are all crypto related. This isn’t a good sign either, as crypto transactions are proven to be 100% irreversible, so you can’t overturn the process and get your money back no matter what.
How does the scam work
Be very careful to whom you provide your personal information like email or phone number. The moment scammers have your number they will start calling you in an attempt to make you invest right away.
They will most certainly assure you that trading with them is risk-free, which is highly doubtful at least to say. Also be prepared to hear that you can get a fast and incredibly high return on investment – this is also a shameless lie of course. Scammers tend to sweet-talk traders into making a deposit and then vanish like thin air.
Before that however they might try to manipulate their trading software so it looks as if your money is being invested. They might also fool you into believing that your results are very profitable. This is done with one specific purpose – to make you invest even more before you find out that everything is a lie.
Expect all kinds of hidden fees the moment you try to withdraw even a cent and what is the worst part – to find out that a withdrawal is declined no matter what you do.
What to do when scammed
If you have been scammed, the first thing you can do is to turn to the bank that issued your credit or debit card and ask for a chargeback. If you have paid with your Visa/ Mastercard, a chargeback is eligible within 540 days.
Wire transfers are more difficult to return, and the best thing you can do in this situation is to change your online banking username and password as soon as possible.
Using payment methods like Neteller, Paypal or Skrill also gives you the opportunity to open a dispute in case of online scam.
Unfortunately crypto transactions are irreversible as we already stated and therefore your money can not be returned. All in all we advise you not to trust brokers that use only crypto coins such as Bitcoin or Ethereum.
Last but not least, certainly don’t trust people on the internet offering to return your funds only after you pay a certain fee. They might also be scammers so don’t risk losing more money than you already have!