KOT4X

KOT4X has absolutely no resemblance of a broker. The website feels like an online casino, and not a broker; the style is way too cartoonish and baby-like to be taken seriously, yet we cannot escape its modest charm.

Even so, the broker is UNREGULATED. The first clue we got is in the Terms and Conditions where it is said that the broker is based in St. Vincent and the Grenadines. As we have on multiple occasions said, the small islands nation does not regulated the financial market.

Even the support team is aware of this.

No matter, we want to conclude by mentioning again that KOT4X is UNLICENSED and thus a risk to all traders that invest in it.

We urge traders to trade with regulated brokers under the gaze of such agencies as the FCA which not only enforces a strict set of rules and demands detailed reports on company activities, but also includes a compensation fund of up to £85 000 for victimized traders resulting from insolvent brokers.

The leverage is of the typical value that unregulated brokers offer: 1:500.

The EUR/USD spread is 1.1 pips. We took this value from the demo version of the platform.

The platform offered us only Forex Pairs as trading instruments. KOT4X claims on its Accounts page that there are Indices, Commodities, Metals, Stocks, and Cryptocurrencies. Since we could not open a live account, we cannot say for sure what assets there really are.

The only language made available is English.

KOT4X LOGIN

We opened a demo account with the MT4 platform.

METATRADER 4

As one of the leading platforms in the world, MetaTrader 4’s design and interface is by now well known. The platform is abundant in trading options and possibilities, and attractive to users both rookie and pro.

The leverage is 1:500. If you chose to risk it, then take notice that such a high leverage although alluring, is potentially very dangerous, and its usage can result in fast losses of income.

The spread we saw on the demo MT4 is 1.1 pips for the EUR/USD pair. There are multiple accounts, of which two have a commission (we are unsure which account was used on the demo). Both the Standard Pairs Account and PRO Pairs Account have a $7 round turn commissions (a support agent confirmed this), which increases any spread by 0.7 pips if traders chose these account types.

The MT4 we opened was a desktop trader. There are also Apple and Android versions.

KOT4X MINIMUM DEPOSIT

The minimum deposit is $10. For an unregulated broker, this is surprisingly low, but can be read as an attempt to attract a larger demographic.

The only way to fund an account is via bitcoin. We have encountered such brokers in the cases of Tradenance and CryptoRocket, where the only acceptable way to fund an account is through bitcoin.

As we have, multiple times, concluded, this unregulated broker is not to be trusted, hence we advise against making any deposits whatsoever. If traders wish to trade in a safe and regulated environment, we recommend any broker that has a license from the FCA/CySEC since these agencies are renowned for their strict law enforcing and protection of clients’ investments and personal information.

DON’T PROVIDE YOUR CREDIT CARD CVV CODE

Furthermore, for safekeeping your money NEVER share your credit card number and CVV code with a salesperson. All online payments require this 3 digit number in order to complete purchases or transactions, and by giving yours away to some offshore broker may lead only to the complete drainage of funds from your credit card.

DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER

Be sure to never give AnyDesk or TeamViewer access to your PC to unverified agents. These 2 platforms allow for your PC to be taken over by a second party, often times for help or guidance, but in the case of these brokers for the sole purpose of looting your bank account(s) and personal information. However, in order to do so your consent is needed, and this is the only thing standing in the scammers’ way.

KOT4X WITHDRAWAL TIME AND FEES

When we tried to withdrawal, (with the intention to get to a minimum amount), no matter what sum we entered, the same error kept popping up that prevented us from landing on a definitive minimum withdrawal amount.

It is said that processing times take up to 5 days according the Terms and Conditions.

The FAQ and the Withdrawal section within the dashboard speak differently, claiming that the processing time is between several hours and a day.

Which one should you trust is up to you. But be aware that these types of inconsistencies are common for unregulated brokers.

The only withdrawal fee we could find is one that concerns Wire Transfers:

However, there was no mention of such a method of withdrawing back on the dashboard, where only bitcoin is accepted.

ADDITIONAL FEES AND TAXES

When registering, the client agrees that all taxes and fees deriving from any conflict between the customer and the company be payed exclusively by the client.

Furthermore, customers agree that KOT4X withdraws without notice a plethora of charges directly from the traders account:

The sleeper fee of $10 will be activated if after 6 months no activity has been detected in a client’s account. The frequency of the fee has not been disclosed.

Always be on your guard when dealing with unregulated brokers. They can easily launch incoming fees without warning. Furthermore, once you request a withdrawal, probably due to your suspicions being realized, the broker will most certainly deny your appeal. This denial is followed by a well thought of justification. Either they will find a loophole in the T/C that upholds their right to keep your deposit, or they will ensure you that now is the worst time for withdrawals for the market will very soon thrust upwards and multiply your initial investment by unrealistic numbers.

ACCOUNT VERIFICATION

Traders will sooner or later realize that something is a foot. Filing for a chargeback might not be as easy as it seems if, beforehand, the user has given away a copy of his ID and proof of address to the unlicensed broker. With these in their possession the broker can easily refute any claims you might have against them.

Yet again we urge readers to stay away from this broker as it will, without a doubt, never return your funds and profits. If you wish to to get smooth and efficient transactions, please visit a FCA/CySEC regulated broker, where all withdrawals are handled with care and respect.

HOW TO RECOVER

The only way to recover is by filling for a charge back, and hoping it’s not too late.

If you have given a CVV code to the broker, be sure to cancel your credit card as soon as possible, because the broker will not delay with draining every cent from it.

At some point or another you might stumble upon a “recovery” agent or agency that promises to retrieve all your money back. This sounds all too good to be true, and that’s because it isn’t. Before proceeding with the recovery they will ask a payment for their services. If you chose to indulge them, they will disappear with the money without a hint of remorse.

The last line of defense for these indecent folk is more like a desperate cry: often times they will comment on reviews and cite the whole ordeal as a conspiracy initiated by competitive brokers against them; at times even claiming that reviewers are anything but objective, and that no one writes good reviews. The absurdities are limitless!

BOTTOM LINE

In all honesty we wanted to give KOT4X a chance because it has promise, mostly embodied in the simple and one-of-a-kind style. But the lack of regulation, inconsistencies and fees tell a different tale, one that does not end happily for the trader who invests with KOT4X.