Regulators: –
Cryptocurrencies: YES
Minimum Deposit: $250
Maximum Leverage: N/A
Spreads: N/A
My Score: 1.2
KontoFX is a forex and CFD broker targeting the crypto market. A large number of brokers were launched with the rise of cryptocurrencies in investment markets.
Trading on cryptocurrencies, which already have high volatility, could be more profitable through these brokers. KontoFX is one of the brokers in this frame.
It’s hard to get the information you’re looking for on KontoFX’s official website. Because the information on the website is not enough. For example, depositing and withdrawing methods are a subject that needs to be explained in detail.
However, there is very limited information on this subject. The number of monthly visitors to the official website is almost 110k. Their website, kontofx.com, and customer support are available in English, German and Spanish.
Well, is KontoFX scam or reliable broker? Is Kontofx legit? What is kontofx? What are account types offered by Konto fx and its trading conditions like spread, maximum leverage and bonuses? In this KontoFX review, you can find all the details about this broker.
Be sure to read this review before you open an account.
If you have a problem with KontoFX, you can write to me in the comments section below this article. I will try to respond as soon as possible.
KontoFx Regulation and Investor Protection
The most problematic issue between Forex traders and newly established brokers is regulated. It is very difficult for newly established brokers to obtain licenses from reputable regulators. Therefore, they will have to choose relatively less reputable regulators.
This situation is acceptable and understandable. However, some brokers are completely unlicensed. This is in no way acceptable.
Who are kontofx? According to KontoFX’s official website, www.kontofx.com, the broker is owned by Estonia-based NTMT Transformatic Markets OU Harju Maakond and operated by Northside Business Centres in Hungaria.
However, no information was given by Contofx about the license. Under normal circumstances, licensed brokers will clearly share their license number or license document on official websites.
Investors can then make inquiries and see their reality thanks to this license number.
It is a legal requirement for forex brokers in Estonia and Hungary to be regulated by local authorities. For example; The brokers in Estonia are regulated by Finantsinspektsioon, the local financial authority.
However, when I questioned these regulators, I found no information that KontoFX was regulated. So I can clearly say that KontoFX is an unregulated and unlicensed broker.
If you intend to trade with a large amount of capital, I strongly suggest you trade brokers who are regulated by reputable watchdogs like ASIC, FCA, FSA or CySEC. To trade with an unregulated broker is risky. I think you do not want to lose your money to scammers.
So, why is the regulation crucial for brokers? I can answer this question by explaining the watchdogs’ requirements. For example; FCA regulated brokers must hold 730,000 sterling in their bank accounts as minimum net capital.
Besides, this account should be held separate from clients’ funds and operational accounts of the company. If the company goes bankrupt, the clients’ funds are guaranteed by the Financial Services Compensation Scheme (FSCS) for up to £50.000.
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Account Types Offered by KontoFX
Only one account type is offered by KontoFX: Standard Account. The minimum deposit for this account type is $250, which is higher than the average forex industry of $100. The minimum deposit required by unlicensed forex brokers is generally lower.
But in this case, the situation is exactly the opposite.
It is also possible to find reputable regulators that require a low minimum deposit. For example; FxPro and XM reputable brokers and they offer a low minimum deposit.
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Leverage available for KontoFX trading accounts is up to 1:200. This leverage ratio applies to FX pairs. As I mentioned at the beginning, KontoFX aims to provide trading services in crypto markets. If you wondering about leverage more you can check out my What is leverage article.
The maximum leverage offered for cryptos is 1:20. I can say that this leverage level is a bit high and risky for cryptos. Because cryptos already have high volatility.
The minimum trade size that Konto fx accepts is 1 micro lot (0.01 lots). Unfortunately, we cannot find any information about the spreads. I tried to connect live chat but they did not answer.
Trading Platforms
Konto fx offers its customers the dynamic WebTrader platform. The broker says in its website: MT4 is behind this platform. You do not need to download and install any software on your devices. The platform does not require Flash, it can be run almost every device.
Not having the MT4 platform is a big disadvantage. Because the platform is the best known among all brokers. Nevertheless, there are various trading platforms and I wrote them in this Best Forex Trading Platforms article.
Kontofx offers various cryptocurrencies such as Bitcoin, Ethereum, Ripple, Dashcoin, Monero, IOTA, Cardona, Stellar and others.
Payment Methods
Payment MethodsKontoFX offers in terms of deposit and withdrawal methods are very limited and insufficient. Only major credit cards are available as a payment method. You can use VISA, MasterCard or Maestro.
However, if you want to use a wire transfer, the minimum deposit and withdrawal amount is 300 EUR / GBP. Previously this amount was 3000 EUR but was reduced. However, I can say that it is high and it is useless.
No e-wallets accepted as payment method. Kontofx does not offer popular e-wallets such as Neteller, Skrill, and PayPal. It’s odd not to offer bitcoin as a payment method for a broker who aims to offer online trading services on the crypto market.
Conclusion
Kontofx is an unregulated broker. Many of the traders commented negatively about the broker. So, this means clients satisfaction is not adequate. There is not enough information on their website about spreads and payment methods.
As I mentioned before many times, investing with unregulated brokers comes with a severe risk of losing your money to scammers.
