Kaspitrade: Vaccillating Trader is Not Worthy of Financial Fortune?
Kaspitrade is a shady broker that I don’t recommend doing business with. They have a lot of qualities common among scams prevalent in the trading industry. In my Kaspitrade review, you’ll find plenty of reasons why you should stay away from this broker.
The first sign is the leverage they claim to offer. Kaspitrade’s offered leverage is not allowed for UK-regulated brokers which are proof enough that they are a scam, similar to LBLV.
Did You Know?
LBLV is too under scanners. However, the firm claimed of being a sophisticated platform with innovative approaches.
Kaspitrade License and Regulation
Kaspitrade claims to be a UK-based broker. They give a UK address on the footer of their website.
When I googled that address, I discovered that it was a residential address. They have given the address of a house. Here’s the image of that place:
I don’t think you would want to trade with a broker who’s running its operations from a house. But there are many other signs that indicate Kaspitrade might be a scam. Kaspitrade shows a UK-based address but claims to have a license from FSB (Financial Services Board), which is the former name of a South African regulator.
Apart from that, there is no financial regulator in the UK with the name FSB. When I checked for Kaspitrade on FCA’s website, I didn’t find any information. So, Kaspitrade is clearly lying about its regulation. It doesn’t have any license. This means Kaspitrade is an unregulated broker who is operating illegally.
You shouldn’t trade with unlicensed and illegal brokers. Licensed brokers have to follow strict rules and regulations which ensure that their client’s interests remain safe. Moreover, FCA and CySEC have strong insurance policies so even if your broker turns out to be a fraud, you’ll get compensated. However, their insurance policies and rules apply only to licensed brokers, that’s why I don’t recommend trading with such brokers in any case.
Kaspitrade Trading Conditions
The fact of being an unlicensed broker is just the beginning. There is a whole lot that points to Kaspitrade being a scam. The following points will help you understand these points:
Kaspitrade has a custom web-based platform. They don’t provide much information about their trading platform. I don’t recommend trading with custom trading platforms because there’s no assurance of how well (or how poorly) they will perform. Moreover, shady brokers keep custom trading platforms to manipulate prices as they desire and scam their users.
That’s why I only recommend trading with brokers who use MetaTrader 4 or 5. Those platforms are reliable and are widely popular because of their numerous features and benefits.
You wouldn’t get such benefits with a custom platform like the one Kaspitrade has. Another problem with custom trading platforms is they don’t offer good support and usually have a ton of technical difficulties.
Kaspitrade requires you to make a minimum deposit of $500, which is a considerably high amount. Regulated and licensed brokers tend to keep their minimum deposit requirement around $100 and sometimes around $10! So you can understand how greedy the people behind Kaspitrade are to keep their minimum deposit requirement so high.
Read about: Gerchikco
Moreover, the lowest you can add to your account after the initial deposit of $500 is $250! Licensed brokers allow their clients to deposit as much or as little as they want. This is another sign that Kaspitrade is a scam.
Shady brokers keep such high minimum deposit requirements so they can steal a lot of funds as soon as possible. Legitimate brokers keep their minimum deposit requirements low so new users can test their services before making a big financial commitment.
Shady brokers don’t provide good services, so they don’t want you to test out. Usually, they will demand you to pay a huge amount to start trading with them and then wouldn’t let you withdraw the amount. This is how they run their scam.
You should avoid trading with brokers who keep such high minimum deposit requirements.
Leverage and Spreads
Kaspitrade offers a fixed leverage ratio of 1:200. It is proof that Kaspitrade is an unlicensed broker because FCA-regulated brokers can’t offer leverage higher than 1:30.
A high leverage ratio such as 1:200 is very risky. With such a ratio, you can lose 200 times your investment and get in debt from your broker.
As you can understand, high leverage ratios are very dangerous. That’s why US and Canadian regulators have restricted their brokers to offer a maximum leverage of 1:50.
Regarding spreads, Kaspitrade offers 4 pips spread for the EUR/USD pair. That’s not all because their offered spread can go up to 8 pips. To give you an idea, the industry standard is 1 pip. Such high spreads are dangerous and are unheard of among regulated brokers.
The offered leverage and spreads indicate that Kaspitrade is a shady broker and is certainly a scam.
Kaspitrade Payment Methods and Charges
The payment methods and fees of a broker can tell you a lot about its reliability. Kaspitrade has many shady T&Cs which indicate it is a scam:
With this broker, you can add funds to your trading account through WebMoney, Wire Transfers, and credit or debit cards. Note that wire transfers are non-refundable, that’s why they are quite popular among shady brokers.
I recommend using credit or debit cards only to fund your trading account.
In terms of fees, Kaspitrade doesn’t have any withdrawal fees. It was quite surprising. However, the minimum amount you can withdraw from your account is $100 through credit or debit cards. On the other hand, they have a minimum withdrawal limit of $500 for Wire Transfers. Note that regulated and reputed brokers don’t add such restrictions on their clients.
In their terms and conditions, they mention that they can charge inactivity fees but they never specify the amount. This is dangerous because it means the broker can charge you any desired amount under the guise of an ‘inactivity fee’. They can even wipe out your entire account balance and get away with it!
Kaspitrade claims to offer bonuses, which is another proof that it’s an unlicensed broker. FCA-regulated brokers can’t offer trading bonuses to their clients. Such bonuses allow brokers to restrict and trap their clients through various shady provisions.
The rewards you get through these bonuses are not free money but simple leverage enhancements that only worsen your trading conditions. For example, Kaspitrade demands that you have to execute 25 times the bonus and the deposited amount minimum to be able to withdraw your funds. This is nearly impossible and can trap your hard-earned money with them.
Is Kaspitrade a Scam? Yes!
Shady brokers like Kaspitrade lure people to their platforms through bonus offers and ads. They hide their shady provisions in the fine print of their terms and conditions and not everyone reads them.
People usually sign up on these brokers’ websites because of their attractive bonus offers but then they face problems in withdrawing their funds. Such brokers tend to steal their users’ funds under the guise of unfair charges. Moreover, because that person has already accepted their terms and conditions, they can’t take any action against them. St. Vincent and the Commonwealth of Dominica have become havens for such shady brokers.
That’s why you should stay vigilant and do thorough research before signing up with a forex broker.
Kaspitrade Review: Conclusion
Kaspitrade is a very suspicious broker. It gives a UK-based address of a house, has no license, lies about its regulation, and offers dangerous leverage and spreads. All of these signs indicate that Kaspitrade is a scam.
I can’t recommend working with such a broker. The best way to counter such scams is to spread awareness about their shady operations. So, if possible, you should share this review with anyone who might be interested in forex trading.
If you have any opinions, feel free to share them below. Check out this review on OctaFX if you’re interested in finding out more about shady brokers.
Kaspitrade is a shady broker who lies about its license and regulation. It gives a house's address for its office address and charges unfair fees. You shouldn't trade with such a shady broker.
- Lies about its regulations
- Has unfair fees conditions
- Uses a custom trading platform
- High minimum deposit
- Suspicious withdrawal limit