A reader asked if KayaFX was safe. I investigated and discovered several troubling details about KayaFX. Here’s what you should know before giving KayaFX your money.
Is KayaFX Safe? KayaFX is NOT safe. KayaFX pretends to be a FOREX broker. However, it is not regulated, and there are numerous complaints online from people who have lost money with KayaFX.
The KayaFX sales pitch is exciting and makes it seem that you could quickly make a lot of money. Unfortunately, the truth is much more sobering.
Why KayaFX is NOT safe.
KayaFX is NOT safe because it is not regulated. KayaFX is not governed by any laws or or code of ethics. In other words, they can do what they darn well please, and it would please them very much to take your money and keep it.KayaFX claims to be a FOREX broker that operates all around the globe and provides professional services for its customers. KayaFX is trying to project a professional image. KayaFX is not a professional service and it is NOT a FOREX broker.
On the KayaFX website, the physical address is shown as Mazars House, Gelderd Road, Leeds, England, LS27 7JN.
However, a Google search of this address links to an accounting office. The street image appears to be a Land Rover repair shop. You would think a so-called professional FOREX broker would try a little harder to look the part.
Also, KayaFX.com website states that it is owned by AlphaTec LTD. This doesn’t check out either. A Google search of AlphaTec LTD shows it is a German textile buying company.
These fake addresses are KayaFX attempts to look legitimate.
KayaFX Lives in Montenegro.
Buried deep in the KayaFX Terms and Condition is the revelation that the billing is managed by Hermes Solution DOO, GOLUBOVCI BB, 81000, Podgorica, Montenegro. Montenegro, a former republic of the Communist Socialist Federal Republic of Yugoslavia.
Montenegro appears to be the base of operations for the KayaFX scam. Every dollar, pound, euro, or crypto you give KayaFX goes to Montenegro and is gone forever. You won’t get it back.
How the KayaFX Scam Works.
The KayaFX scam is nothing more than an auto-trading scam with a slightly improved website. Here’s how it works.
Until you give KayaFX money, all the interactions you have with them will be to assure you that you can make a lot of money quickly by investing with their special platform.
To be clear giving KayaFX your money is not investing. It’s just giving someone you don’t know in Montenegro your money.
However, KayaFX wants you to believe that you’re a soon to be a rich hot-shot investor. You’re not. You’re the target, the mark, the john.
KayaFX sets the trap by appealing to your greed or your need. They do this by exploiting your trust.
Fake Trading Accounts.
If you try the KayaFX demo account, you will be amazed at how easy it is to make money. You’re not making money. You’re playing a game, and KayaFX controls everything.
In the demo account, KayaFX will manipulate the software to make it appear that you are getting great returns. All that is happening is the software if adding numbers. It’s not money. It’s just numbers. The dollars or euros that are growing in your account are just pixels on the screen. They are not real.The purpose of the demo account is to give you the confidence to put real money into your so-called trading account and to stoke your greed to a fever pitch.
The minimum you can deposit in your so-called KayaFX trading account is €250, but you will probably be strongly encouraged to put much more into your account. And, if you’re greedy to make a lot of quick, easy money, you might do it.
There are several complaints online from people who gave KayaFX thousands of Euros.
Your Money Vanishes.
When you deposit the money into your so-called trading account with KayaFX, the magic happens. In other words, your money disappears.
By the way, I call the KayaFX trading account a “so-called trading account,” because it’s not real. When you deposit money with KayaFX you are just throwing your money away. It’s not in your account. It’s in the scammer’s bank account.
The KayaFX account is just software that puts numbers where there should be dollars and euros. It’s like a video game. Nothing in it is real.
As long as you think you are making money with KayaFX, they will string you along. KayaFX will manipulate the software so it appears that you are making huge gains and then encourage you to deposit more real money so you can get rich faster.
This fake investing will continue until you try to take money out. That’s when the party ends. Money only flows one way with KayaFX. Money goes in, but it never comes out.
When you ask for your money, you will be locked out of your account. Game over.
KayaFX Scam: Round Two.KayaFX isn’t done with you yet. Once you have lost money to KayaFX, they target you for round two of the scam. They will let you stew for a few days grieving the loss of your money; then they will contact you and offer to help you recover your money.
Naturally, they won’t say they are KayaFX. They’ll have another name and try to convince you that they have great luck getting money out of KayaFX. Don’t believe it, because the instant they convince you that they can get your money back, they are going to ask you to give them more of YOUR money, and that’s the second half of the scam.
To be clear, the only money you lost is the money you gave them. The money that you thought you made from your “so-called investments” wasn’t real. That was just numbers on your computer screen.
Read the KayaFX Risk Warning.
Read the KayaFX Risk Warning. It’s at the bottom of the website, written in small dark type buried in a black footer. KayaFX does not want you to read it. The fact they are so darn sneaky should be enough to scare you away.
However, if you’re still determined to play the KayaFX game, please read the Risk Warning. The Risk Warning states that trading FOREX is “highly speculative.” Highly speculative means gambling on crack.
The KayaFX Risk Warning directly states that you might lose “all of your invested capital.” If they are warning you that you might lose all of your money, you can bet they you will lose all of your money.
As if highly-speculative and straight up telling you that you could lose all of your money wasn’t enough, KayaFX adds that they can shut your account down for any “suspicious activity” and they don’t have to tell you either.
Let’s summarize, shall we? Trading with KayaFX is gambling on steroids where you will lose all of your money, and they will shut down your account. Any questions?
Is KayaFX legit? KayaFX is not legit. It is a scam trading website based in Montenegro. Any money you give to KayaFX is gone forever.
Is KayaFX regulated? KayaFX is not regulated. KayaFX does not adhere to any laws or ethical constraints.
Is KayaFX dangerous? KayaFX is very dangerous. KayaFX won’t kill you, but it will take your money.
Is KayaFX a scam? KayaFX is indeed a scam. It is a new wrinkle on the old auto-trading scam where you deposit money and are tricked into thinking you are investing. You’re not. KayaFX just took your money.
How to Get Your Money Back from KayaFX. You cannot get your money back from KayaFX. The money you gave KayaFX went to Montenegro. The most you can hope for is not to get scammed a second time when someone contacts you promising to get your money back. That’s a scam too. Don’t fall for it.
Read the Federal Trade Commission’s warning on FOREX Trading.
If you found this article helpful or have experience with KayaFX you would like to share, please leave a comment below. Thanks.