Illegal Broker KP Baited Investor with Small Profits

Exposed broker:KP

Regulatory status: operating under cloned license

Complainant:Mr. Wu

Cause of complaint:investor can’t withdraw

Event recap

At the beginning of 2019, Mr. Wu was attracted by the advertisement of KP he saw online and signed up at the broker to make investment. Unlike usual trading platforms, KP offers investors a cash account and a KP account. While both accounts will generate profits from spread trading, withdrawal can be made only through the KP account. The growing profits in Mr. Wu’s account made Mr. Wu unwary and he wasn’t alarmed even when he failed to get refund of the withdrawal he applied for in April (withdrawal refund will take no more than 6 months, according to the system notice). By the end of September, KP suddenly made a public announcement to all clients, saying that the withdrawal channel is temporary suspended due to system reasons, and Mr. Wu finally realized something must be wrong. After that he contacted the customer service for several times, yet fail to get any reply. Until now, Mr. Wu still can’t withdraw his balance in the account.

Analysis

It seems that KP well deserved its position on top of WikiFX’s most complained broker list in September, and Mr. Wu’s experience demonstrates how the illegal broker set investors up. On its website, KP kept boasting about the high profits it can generate for investors in order to lure them into making deposits, and once they take the bait, the illegal broker’s trap in the withdrawal process will be ready to swallow up their deposits. Investors also revealed in their complaints that KP’s alleged partnership with renown companies such as TRADE REAL turned out to be fraudulent, while its trading software is not MT4 software as the official site claims. Moreover, the ASIC(Australia)’s license for common financial services KP holds is suspected to be a cloned license. In short, information that KP offers in its advertisements and on the website is seriously misleading.

Conclusion

According to WikiFX App, KP currently has no valid regulation, and its ASIC (Australia)’s license for common financial services is suspected to cloned. With less than 1 year in business, KP is rated at only 1.5 on the WikiFX App, and WikiFX suggests investors to stay away from this dangerous and unreliable broker.