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The GKFX Financial Services broker goes to the list of KNF warnings
The Office of the Polish Financial Supervision Authority yesterday (23.01.2017/466373/XNUMX) announced that a new entity - GKFX Financial Services Ltd. Sp. z o. o. (KRS XNUMX). It is the Warsaw branch of the British broker GKFX with its headquarters in London. The Polish Financial Supervision Authority did not inform about the specific reasons for hitting the aforementioned company on the list of warnings, but it can be assumed that this is associated with many complaints from its existing clients and the "debut scandal". There is no shortage of opinions on the web that the company regularly called potential clients (the contact base was probably bought from another broker) in order to convince them to invest in a "great opportunity".
More about the so-called "Debut scandal" can be found in our article - Why (not) invest in company debuts with Forex brokers?
The scheme of "cheating on debuts" is very simple. It starts with a phone call to encourage a potential client to make an investment that will ultimately only bring profit to the broker. The entire investment process is managed by the account's "supervisor", although officially the transactions are concluded by the client following only the "prompts" of the broker employee. Even if the investment initially brings a profit, at some point it will be steeped downhill, which will involve the need for a quick deposit payment to earn the promised "thousands of percent", which will never happen in the end.
It is very comforting that the KNF has finally begun to take steps to curb this practice, which increases the chance of its ending in the near future.
And they have not advertised this broker with us for a long time. You can not believe anyone anymore. It is better to invest in Polish.
Advertising, advertising - each broker must undertake marketing activities to encourage the client somehow. It does not matter whether it is Polish or foreign, but more what activities it takes. GKFX has just followed the path of least resistance, as have some other lesser known brokers. He bought a database and called people to invest. The trades were probably not hedged, so customer loss = pure broker's profit. But greed can take revenge ... And here's the effect.