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KayaFX Review - is it scam or safe?

KayaFX Review - Is kayafx.com scam or a safe broker?
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Trading Accounts

 

Account type Minimum deposit Maximum leverage Spread
Mini $250 1:100 Fixed, from 3 pips
Bronze Unknown 1:100 Floating
Silver Unknown 1:200 Floating
Gold Unknown 1:200 Floating


 
KayaFX is a forex broker which offers multiple account types, although trading conditions are currently not fully specified. This may be a temporary issue and we will update this review, once conditions change.
 

The Company. Security of Funds


 

Company Country Regulation
GammaTech Services OÜ Estonia N/A


The company, which operates KayaFX is called GammaTech Services OÜ and is registered in Estonia. They do not claim being regulated by any agency. This is very troubling. The company may be applying for a license, but is currently unregulated.
Dealing with such a legal entity is not advised. As you may know, the financial services sector is highly regulated. This is due to the fact it inherently has serious scam potential. Would you deposit your savings at a new bank, which doesn’t have a license? The same goes for forex brokers – unregulated companies can essentially take your money and not even facilitate any trading whatsoever.

 

In order to separate the scammers from legitimate businesses, most countries have set-up regulatory agencies. The United Kingdom, for instance, has the Financial Services Authority (FCA). It oversees a lot of companies, such as pension funds, insurance companies and forex brokers. An FCA regulated forex broker has to frequently submit reports to the agency and more importantly follow its rules. Two are the most important ones from a trader’s perspective.

 

First and foremost, client’s funds are supposed to be kept in the so called segregated accounts. This means, the broker can’t freely access the trading capital of its clients and “borrow” it. The second key rule is participation in the Financial Services Compensation Scheme (FSCS), The Scheme is a mechanism, which serves as an insurance company and guarantees against broker bankruptcy. If you trade with an FCA-regulated broker, your account will be covered up to GBP 50,000, in case the broker goes under.
 

Trading Conditions


 
Minimum Initial Deposit
The minimum deposit at KayaFX is $250. Nowadays, this is a relatively high level. Most brokers, like HYCM, require $100. That being said, this should not be a major consideration for experienced traders, as it doesn’t speak much about the credibility of a company.


 
Average spreads & Commissions
KayaFX does not provide much information on the spreads which it provides. Only the fixed spreads, which are available for the smallest account types are disclosed. They start from 3 pips on EUR/USD (the most liquid currency pair), which is not impressive. As an example, FXPro offers fixed spreads starting from 1.6 pips. That being said they also offer variable spreads, which tend to be even better.


 
Leverage
Leverage is the only fully disclosed trading condition at KayaFX. The ratios provided vary from 1:100 to 1:200, which are perfectly sufficient for a trading strategy, which involves some sort of risk management.

 

Many brokers are offering higher leverage nowadays. This only allows clients to take bigger risks, which can be very dangerous, especially for beginners. Be sure to fully realize the potential for losses, involved in margin trading before participating in it,
 

Trading Platforms


 
KayaFX allegedly provides MetaTrader4(MT4) to its clients. This is the most popular currency trading platform, which is provided by many brokers. Its most unique feature is the availability of custom add-ons, such as new technical indicators, market screeners and automated trading systems, better known as Expert Advisors. Furthermore the platform’s charting is very pleasant. Some traders keep a version of the platform running, only to use the charts, if they trade with a broker, providing a different platform.


Sadly, we couldn’t register an account with KayaFX, in order to test their version of MT4.
 

Methods of Payment



KayaFX provides a lot of payment solutions. They include Bank Transfer Credit Cards and a variety of e-wallets, such as WebMoney, Skrill and Neteller.
 

Conclusion


 
KayaFX is an Estonian forex broker. The company is currently not under any regulation. Trading conditions are not fully disclosed. The account opening page does not work properly at this point in time. All of these issues may be resolved in the future and we will update this review, if this happens. Here are this broker’s strong and weak sides:

 

 

Pros Cons
MetaTrader4 Platform Unregulated company
Lots of payment methods Lack of information on trading conditions
  Registration process currently not working
  MT4 not freely downloadable

 

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Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Traders` reviews for KayaFX

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