Reason to avoid: No license
Listed Date: March 13, 2019
Top 3 Regulated Forex Brokers
Beware Kapitalfx is a Non-Regulated broker. It is NOT SAFE to trade.
Is Kapitalfx a scam or legit broker?
No, it is not safe to trade with Kapitalfx. Kapitalfx is a social trading and Investing company that allows its users to watch the financial trading activity of other users, copy them, and to make their own trades. It is owned and operates by Altea Investments Limited, and claims to be located in Frankfurt am Main, Germany. However, it does not carry a license from Germany regulator – Federal Financial Supervisory Authority (BaFin).
All the brokers which are based in Germany and which offer their financial services to the German public have to be authorized by its local regulator BaFin. Those who don’t have such license are usually considered to be frauds as the investments are not protected with those firms. You can read our detailed article about why traders should choose BaFin regulated brokers.
Also, the terms and conditions on the website state that Kapialfx is under the jurisdiction of Cyprus, however it is not regulated by the Cyprus Securities and Exchange Commission or probably any other regulator.
We have heard Kapitalfx denies traders withdrawing funds. We have feedbacks from traders that they cannot withdraw money. You can read the feedback here.
We advise all investors and traders to avoid Kapitalfx and other unregulated brokers. The lack of information about the broker’s regulation, trading conditions and contact details should be the biggest red flag for those who plan to invest with the entity. Usually, such companies run investment scams. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as eToro and XM.com.