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KayaFX Review 2020: Should I Risk Ignoring FCA Warning?

Dec 14, 2020 ,
KayaFX

The online forex and CFD broker KayaFX is a brand of the parent company AlphaTec LTD. They list their address as being in the UK, but upon closer inspection, it seems that they are actually operating out of Estonia. Either way, the broker has no registration with any financial regulator. This means that anyone trading with them has no protections and that the broker can essentially do whatever they please.

Trading with KayaFX

KayaFX has a relatively impressive selection of assets available. Across currency pairs and CFDs, they have several hundred options. These include CFDs on stocks, commodities, and indices, along with both major and minor currency pairs. Unfortunately, their entry-level spreads are too uncompetitive, with the EUR/USD spread being as high as three pips, even worse than the offerings from NESSfx.

KayaFX Review 2020

KayaFX – Warning Statement From FCA

KayaFX claims to be a UK broker, but the FCA has done their best to let traders know that this is not the case. The financial regulator has put out a statement warning about this broker. Their warning says that the broker has no authorization to offer financial services of any kind to UK residents. They make it clear that they believe the broker has been doing so anyway and that traders should stay away from this broker.

Premium Accounts Offer Too-High Leverage

There are four account types available when trading with KayaFX. These run from Mini up to Gold. One of the “perks” of higher account types is access to more leverage, up to 1:200. This is far beyond the ESMA cap of 1:30 and much too high for novice traders to invest safely. The premium accounts also offer floating spreads and hedging options.

Don’t Risk Losing Your Deposit

There aren’t many signs more unmistakable than a warning from the FCA. Nobody should be investing with KayaFX. If it’s already too late and you’ve lost your deposit with an online broker, you can contact us today for a free consultation to explore your chargeback options.