If you are reading this FXKM review, then you are in search of a dependable and reliable broker for trading online in the financial markets. When people make up their minds to engage in online trading, they believe it will be a breeze and they can get started in a few minutes. But, this is easier said than done because you don’t just Google online brokers and sign up with the first one. Yes, it is something you can do, but you have to be prepared to deal with the consequences. Doing so leaves you vulnerable to scams because not all platforms are legitimate.
Setting up a website is pretty simple these days, so cybercriminals often masquerade as online brokers and trading platforms in order to get people to deposit their money. Once they get their hands on their funds, they can simply disappear. These are not isolated incidents, as you only have to do a bit of research to find that millions of people have lost their money this way. Most people get ripped off because they sign up with the wrong broker, as they don’t bother doing any research. This is a mistake you do not want to make.
It is true that thousands of online brokers can be found these days and all of them are promising you professional and quality trading services. But, you cannot take them at their word when your hard-earned money is at stake. You have to look into each of their claims and verify it before you decide to entrust them with your funds and your information. This is applicable in the case of FXKM, one of the names you will discover when you are looking for a brokerage.
At first glance, you might find FXKM’s offerings appealing because they offer you trading in the forex market, along with CFDs on indices, stocks, precious metals and commodities. The MT4 and the MT5 trading platforms are also promised and this only adds to the appeal. However, it is only when you go a bit deeper that you can uncover the reality. This eventually shows that there are a number of problems with FXKM and some of the major ones are:
They are not licensed
One of the biggest issues that you will come across FXKM is their false claims about regulation and licensing. If there is one tip that experts give about avoiding online trading scams, it is to not choose unregulated and unlicensed brokerages. These are not bound to follow any rules or regulations and are not monitored by any authority, so they can do pretty much whatever pleases them.
Since people have gotten smarter, so have these scammers and rather than boasting about their lack of licensing and regulation, they now pretend to have a license. This is the case with FXKM because when you go through their website, you will discover that it claims to be licensed and regulated by the ASIC. This is the Australian Securities and Investment Commission (ASIC), which is the regulatory authority in Australia that governs brokers in the country.
The ASIC is one of the well-reputed regulatory authorities in the world and its licensing undoubtedly adds credibility to any brokerage. This is probably why FXKM has used its name, but this claim is proven false when you check the ASIC’s online register. You will not find the broker mentioned anywhere, which means it is lying about its regulatory status. Furthermore, you will also discover that FXKM also breaks one of ASIC’s rules in its offerings, which is discussed below.
Excessive amount of leverage
The ASIC policy that FXKM contradicts is pertaining to the leverage it offers. It is the norm for online brokers to offer leverage to their clients because it adds an incentive to the trading process, so the fact that FXKM does the same is not surprising. The problem is with the excessive amount of leverage they offer, which is a whopping 1:2000.
Yes, leverage can be handy and lucrative because it opens up the potential of making high profits, but it is not without risks as traders can also lose everything with such ratios. Therefore, such obscene amounts of leverage are usually banned and the ASIC has also banned leverage levels higher than 1:30. Hence, the fact that FXKM claims to be offering such excessive levels of leverage is further proof that it is not regulated by the Australian authority.
Lack of Terms and Conditions
The Terms and Conditions of a brokerage are a crucial aspect because these outline what kind of trading conditions you will get, the various fees that will be charged and the policies you will have to comply with. Some form of documentation should be available, whether it is T&Cs, Client Agreement, or simply Legal Documents. The problem with FXKM is that they do not have any such thing available on their website.
This is alarming because you will not find even one legitimate and authentic brokerage that will ever do so. They will never expect their clients to blindly agree to anything because everyone wants to know what they are getting into. Yet, FXKM has not mentioned anything. It makes things worse because they also offer trading bonuses, which usually come with turnover requirements, but since there are no Terms and Conditions, you have no idea what you will be expected to do.
Invitation code required
Another issue you will come across at FXKM is that it requires an invitation code for you to be able to open an account, which you do not have. Without creating an account, there is no way to confirm if the broker does offer the MT4 and the MT5 trading platforms. Likewise, you cannot check what payment methods are supported on their platform either and this is another major concern.
What is the Verdict?
No matter how eager you are to start online trading and want to begin right away, you need to resist and avoid opting for a brokerage like FXKM because its glaring problems confirm that it is nothing more than a scam.