The KontoFX is an offshore based CFDs broker that operates in the cryptocurrency market. It has many crypto coins exchange pairs in its product portfolio. The trading platform provided by this broker is web-based and leverages offered capped at 1:200. Being said, we see many issues with this broker. In this KontoFX review, we will address all of the problems of this broker. It will be highly beneficial for traders if they read it thoroughly. Read the full KontoFX review here.
The offered product portfolio includes over twenty crypto coin pairs such as Bitcoin, Ethereum, Ripple, IOTA and many others. All these crypto coins traded against USD Tether. The minimum initial deposit of $250 is required for primary account opening. This amount is acceptable to many traders, but there are several legit brokers provide basic trading account at $5.
There are as many as three companies that are mentioned on the official website of KontoFX. The owner of KontoFX is NTMT Transformatic Markets OU Hajur Maakond situated in Estonia. Then there is another company called Northside Business Centres based in Hungry that manages the operation of KontoFX. Also, a third firm named OOO CAMдAP from Russia. This Moscow based firm linked with another unregulated brokerage provider called Cryptop Market.
Estonian local financial regulator the Finantsinspektsioon does not have registration of NTMT Transformatic Markets OU Harju Maakond or KontaFX. Interestingly, the NTMT is a retail business owner of the wristwatch, and Zippo lighters found our further in-depth research. From this, it is clear that the KontoFX is an unregulated and misleading broker. The most critical aspect of any broker is regulation and licensing, and KontoFX does not follow it.
The terms and condition mentioned on the website of KontoFX read that the traders can not withdraw their earned profit. Trading is performed to make a profit and if it is un-withdrawable what’s the use of such bogus broker. The spread on BTC/USD Tether 0.6 pips and is not competitive. Also, the leverage very high at 1:200 and eWallet is not acceptable for the payment. MetaTrader and a demo account are absent.
Is KontoFX scam or legit?
The crypto coin CFDs broker KontoFX is the unregulated and unlicensed entity. It misleads its clients with false information. Also, the trading conditions are uncompetitive. Forex trading is not offered. All of this indicates that the offshore broker KontoFX is a potential Australian trading scam. Traders investment is at risk with this broker.