Austria’s FMA has issued a warning against KontoFX broker
Austria’s financial markets and services regulator FMA has warned that Forex broker KontoFX is not licensed to carry out banking operations in the country. In essence, this means the company cannot operate in Austria.
The Austrian Financial Market Authority (FMA) is an independent, autonomous and integrated authority for the Austrian financial market. The Austrian FMA is responsible for: contributing to the stability of Austria as a financial market; reinforcing confidence in the ability of the Austrian financial market to function; protecting investors, creditors and consumers.
KontoFX is a Forex and CFDs broker that also offers cryptocurrency trading and operates through the website www.kontofx.com. According to the regulator’s warning, the brokerage is owned and operated by two companies, Estonia-based NTMT Transformatic Markets OU and Hungary-based Northside Business Centres. All the companies offering financial services in Estonia should be authorized by the local Financial Supervision Authority. However, there are no records about KontoFX or its parent companies in the regulator’s register.
The company doesn’t just lack proper regulation but also has been blacklisted by one more regulator – Financial Conduct Authority. This is going to be our biggest concern about KontoFX. In addition, numerous negative reviews from the scammed clients only prove that the broker cannot be trusted.
When choosing a new Forex broker, it is very important to verify that they are in fact licensed for investors from your country of residence. Trading with a licensed broker ensures you will not have issues withdrawing your investment. The most trustworthy brokers are those registered with such regulators as FCA in the United Kingdom and ASIC in Australia. You can read our review on this broker here.