When you buy or sell currencies online, you can likely get caught on the radar of scammers. While you might think you are going through a simple registration process, you will never get an idea of the real-time trading conditions.
So, among the scammers across the internet, you would have observed the Kiplar scam way back in the past. Hence, in this article, you will know how our team exposed the Kiplar Broker Scam.
The overall process
As soon as you register through the website, you will not be able to continue. Besides the relevant details, you will have to give a legit phone number. When the broker focuses on getting your phone number, it will connect with you to tell you about the offers. A bit later, you will be caught up in a challenging situation when you have deposited a certain sum of money.
On the other hand, the leverage is also capped at 1:400, the standard value set for offshore brokerage firms. You will further not observe the spreads as you start trading through Kiplar. You can only use shares, commodities, and currency pairs while trading online. But, you will not be able to use cryptocurrencies, which are common assets in the past years.
Illegal documents & unclear terms and conditions:
While you go through the website of Kiplar, your viewpoint of the broker will change when you go through the documents. When you’re about to open one of the legal documents, it will direct you to the website’s home page. Moreover, you will not get a brief idea of the terms and conditions as you will find many broken links after registration. Hence, as there are no legal documents, it proves that the firm is illegitimate.
Unregulated broker with no safety of funds:
After carefully going through the terms and conditions, you will find that Saint Vincent and the Grenadines register the company. This place is known for many illegal brokers globally, and individuals don’t find it safe to deal with such brokers when they are established at this location.
Generally, brokers from Saint Vincent and the Grenadines don’t regulate the foreign exchange market. Therefore, you can be sure that Kiplar comes under the list of unregulated companies. Ultimately, the entire team will only entice you to deposit funds. But, when you want to withdraw the money, you will not be able to do so even after repeatedly calling or emailing the team.
On the contrary, when you’re trading with FCA or CySec brokers, the team assists you with a financial reimbursement scheme if you face a significant loss. While CySEC assures you up to 20,000 euros, FCA offers you 85,000 pounds if you cannot pay the debts.
The trading platform is not powerful:
You will not be happy using the dashboard soon after using Kiplar’s trading platform, MT5. You will come across many features through the interface. However, you will not be glad about the overall performance of the software. As Kiplar doesn’t have a license for foreign exchange trading, the level of trust is bound to go down.
Besides, the website doesn’t present information regarding the payment apart from a minimum deposit of $250. Considering this, it’s pretty clear that Kiplar is illegal. You must also not take things light-heartedly when copies of legal documents are not present on the website. You have to think twice and contemplate why the broker wants to hide critical information.
How does the broker scam work?
The usual scam runs on a multi-level and a basic model. Post-registration, the scammers will insist on making an initial deposit with the promise of connecting you with traders. The senior scammers will later persuade you to invest more funds by saying it’s the right time to make hefty profits.
But, the moment you try to withdraw the money, the team will deny or come up with reasons for the delay. The scammers will say that the traders make a big mistake of withdrawing the money soon. They will also ask for additional documents and state the clauses of the agreement you had accepted earlier.
Scammers find one way or other to target innocent people and take their money. Whenever you are a scam victim, you need to do certain things to improve your chances of recovering money. If you have made a deposit using a credit card, you should file a chargeback immediately, and this step can help you recover the funds at the earliest.
However, if you have deposited through a bank transfer or bitcoin, there are fewer chances of getting the money back. In such a scenario, you should be aware of recovery agencies that claim to recover your funds. Such agencies will ask you to pay for the services, but the team will not do anything to recover the money.