Kainos Defrauded Investor with "Trading Signal" Scam

Exposed broker: Kainos

Regulatory status: operating under cloned license

Complainant: Mr. Chen

Cause of complaint: investor cannot withdraw

The cunning illegal broker swindled investors by claiming that they can achieve “financial free” under the instructions of signal providers; while investors appeared to be profiting, they actually suffered losses in trading. Recently, Mr. Chen shared his experience of being defrauded by the illegal forex broker Kainos.

Event recap

Mr. Chen first made acquaintance with the “signal provider” Mr. Zhang in early August this year. Coaxed by Zhang‘s inciting words about “financial free” and “the strongest team of international trading professionals”, Mr. Chen signed up at Kainos and added the signal provider recommended by Zhang to his contact. After that, Mr. Chen was hypnotized by the signal provider into stepping up his investments. According to his trading records, he was instructed by the signal provider to place orders frequently within just a few days. And although Mr. Chen appears to be profiting, the commission from his frequent transactions had outweigh his gains, rendering his account in loss overall. Realizing that something’s wrong, Mr. Chen filed 2 applications on August 13th in the afternoon to withdraw his account balance. However, his applications remained unapproved. Though Mr. Chen was able to log in his account regularly, he failed to receive the money withdrawn.

Mr. Chen’s deposit records

Mr. Chens trading records and account balance.

Mr. Chens applications remained unapproved

Analysis

Worried about not making the right decisions in their trading, many investors often turn to so-called “signal providers” for help. Yet many scammers are trying to lure investors into their traps through this self-claimed of “signal provider”. Mr. Chens case is a typical example of “signal-provider scam”, in which the “investment experts” bombarded him with attractive empty promises that eventually hypnotized him. Investors need to watch out for such “experts” that approach you during the investment process. Their remarks, often exaggerative and self-contradictory, are extremely unreliable.

As for Kainos, the broker claims on the official website that it holds an MM license (regulatory number: 705428) from FCA(UK); but information from FCA website shows the regulatory number belongs to Trading.com instead, and Kainos is actually operating under cloned license.

Conclusion

WikiFX App shows that the broker Kainos is currently operating under cloned license without valid regulation. Rated at 1.64 on the WikiFX App, the broker is extremely unreliable, and WikiFX suggests investors to stay away from it.