Krenton Finance’s zing is to be found not in its trading conditions but in its looks, of which it exceeds and surpasses other suspicious brokers. Yes, even if we are impressed by the visual structure of Krenton Finance, we still do have to face the reality and look away from the aesthetics. Once this is achieved, what we are left with is a facade, an offshore brokerage firm that pretty much follows the well know framework that such entities are known for. Read the review and see for yourself.
Registering took no time at all, which led us to the client area, a rather limited and symbolic place, hinting of what’s to come. Easier still was the access to a web trading platform, which seems proprietary. There is also another desktop terminal, yet we will soon see why we did not want to mingle with it. Spoiler alert, the reason is not a good one.
Anyway, the webtrader produced a EUR/USD spread of 0.6 pips, which we could not believe at first, but there it was. This cost of trade is extremely favorable to users, however most brokers, legitimate that is, apply a commission to such low spreads. We will see if Krenton Finance has done so. Aside from that, the leverage is nowhere to be found in the dashboard, nor does the terminal reveal it. Furthermore, its lack is felt throughout the website.
In fact, the entire website turned out to be the first major disappointment, because of just how little is has to offer in terms of trading info, and all info for that matter.
Stocks, Forex Pairs, and Commodities seem to be the only assets available. In this day and age of forex this is definitely not enough.
The broker can be accessed in English alone. This is yet another sigh that there is something going on… Usually, companies translate their services to at least two more languages.
KRENTON FINANCE REGULATION AND SAFETY OF FUNDS
There are 2 main points to cover here. both of which seem to superimpose over each other. Let’s go through these one by one.
The first, and most obvious one, is the alleged registration of Krenton Finance in the UK, home of, arguably, the most authoritative financial regulatory institution in Europe, the FCA. This license issuer does not look the other way when brokerage firms are involved. Its rigorous structure was designed to intimidate brokers, but also change them for the better, redirecting their focus to customers’ need, which in turn works for them as well, because a happy and safe customer is a returning one. We have to say that even if a broker company is registered in the UK, that does not qualify it for an FCA license. In fact the UK is full of registered brokers of which only a small portion are qualified to deliver legitimate trading conditions. Krenton Finance’s registration is applicable here. The official FCA database of its licensees holds no info on Krenton Finance, meaning that this broker is not regulated in the UK, even if it operates from there.
Next, we find a clause in the Terms and Conditions further distancing Krenton Finance from any hope it previously gave us of being legally available. The following is a paragraph that is commonly adopted by offshore brokers. It’s main purpose is to imply that a broker is regulated by incorporating fancy sounding words.
As you can see, there is no mention of a concrete regulator. No matter what it says, what we are ALWAYS looking for is a name of a regulator and a reference number.
There is nothing more to be said, except that Krenton Finance is UNLICENSED, therefore a risk to all investments made in it!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
KRENTON FINANCE TRADING SOFTWARE
Krenton Finance’s client dashboard reveals two choices, a proprietary webtrader and another, unknown, desktop trading software.
Let’s get the desktop one out of the way first. There is a functioning download link leading to a .msi file. Our computer warned against running it as it came for an unknown publisher.
There is no way that we will run this, and neither should you… Who knows what waits on the other side?
So we have no choice but to rely on the webtrader, a seemingly proprietary terminal, yet we doubt it.
Don’t let the looks of this intimidate you. We assure you there is nothing here to scare you off, and if you have been reading our previous reviews where we explain why the MT4 is such an efficient platform, you would know that this is not necessarily a good thing. A trading terminal must have as many options as possible to cover the meticulous requirements of forex trading.
Aside from a couple of chart customizations and pending orders, there is nothing really here to dazzle.
As for commissions, we could not find any. The EUR/USD spread of 0.6 pips is amazing, buy highly suspicious still.
KRENTON FINANCE DEPOSIT/WITHDRAW METHODS AND FEES
As per the client payment area, a user can deposit via Credit and Debit cards only. This is an interesting choice; most illegal brokers prefer bitcoin or bank transfers. The minimum deposit is $250.
Withdrawals are made through wire transfers, and can take up to 24 hours to process depending on the time of the request submission. The 3.5% fee is applicable to credit card withdrawals.
Aside form that, there is nothing really too flashy; there are no crazy fees, or the like.
We strongly advice traders to only deposit the minimum deposit, or better yet – not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.
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