Beware! KOT4X is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
KOT4X is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides the MetaTrader 4 trading platform and a very generous leverage. Traders are extended a leverage of up to 1:500. Furthermore, there is a wide range of trading products from which to choose. The required minimum deposit is only $50 which is quite low and favorable for traders.
KOT4X regulation & safety of funds
On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the name KOT4X ltd. Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage.
Readers are reminded that the government of SVG has had to publicly state quite a few times in the past that it does not regulate Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients. Putting all this aside – the brokerage purports to provide the MetaTrader 4 trading platform, however, we were unable to register for a demo account. Through the website we could see a stated spread of 1 pip which is half a pip below the industry average and quite tempting.
But without a demo account we cannot be sure whether the brokerage does in fact provide such a spread. Furthermore, the leverage extended to clients is 1:500 which, however, hides the undesirable risk of losing more than the initial deposit. The minimum deposit is perhaps the biggest advantage of the brokerage – it is only $50 which is extremely low in Forex trading. Usually brokerages require $250 and with KOT4X trader’s are not pressured into putting a lot of cash in order to get a taste of trading. However, despite this advantage the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.
Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.
KOT4X deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via Bitcoin which is quite bizarre and further inclines us to question the brokerage’s intention.
Going through the terms and conditions of the brokerage we did not find withdrawal fees.
Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:
Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
My experience started ok with this broker until my 3rd day of trading. I was scalping US30 for a sell and attempted to close the trade in profit, I received an error message stating “broker busy”. By the time I closed the error message, and went to close the trade again it was now in the negative. I attempted to call but there was no number as they are located in St. Vincent and Grenada. I emailed customer service, they were slow to reply; by the time a rep by the name of Xander got in touch with me, the trade went badly negative. I sent him everything he asked for to locate the trade. He stated he could not see that I attempted to close the trade and therefore saw no problem with the trade and would not issue any refunds. I repeatedly asked the rep what does “busy broker” mean as this is the error message that appeared when I tried to close the trade, he never gave me a direct answer. Come to find out they are an unregulated, offshore, market manipulating, B-book broker who hedges against they’re clientele. I know of 2 other people that this happened to. Stay away from this broker especially if you are new to this.
Is this for real?
Wow so glad I found this. This actually happened to me while trading with my demo kot4x account twice. I went to close a position in profit and it said that I closed it. After I go back to my chart I see at the bottom that the position was still open. Immediately the trade went against me because I was trading gold and had been waiting for hours for the for my trade to go my way so I could close it in profit or break even. After that I had to wait for gold to go up again so I could try to get out a second time. Well a couple hours later I go back to check my position and find that the demo has stopped updating price action on all three of my devices and stayed this was for at least 30min. In that time gold went up and I could have got out again but couldn’t because mt4 was not receiving any information from kot4x. And to isolate the issues I used my fiber connection at home as well as my cell phone connection to make sure it was not a fault on my end. I’m never opening a live account with this broker. Scam city.
I found it very easy to open a demo account in KOT4X tho. I enabled 2fA.
I traded us30 today and got up 23k and received an email later on stating that there was a glitch in the system and that I owe them 22k!! Wow !!
i traded with them and in 2 days i had made a profit of over 600 and yet when i tried to withdraw they claimed my profit was only 100 and on futher adding my profits and substracting my losses i found out they had scammed me as my winnings should be over 1100… Still unsatisfied with this behaviour and awaiting feedback from their support team.
I’ve blown my account only because they activate trades early and they reverse, they don’t close at TP and reverse as well ass giving a busy signal when trying to close trades.I started off good I made $1500 in 4 days come Friday my account was blown on every trade and kicking me out. I’ve emailed them of course no response. The spread count is ridiculous especially during swap which goes too 200 fir no reason. Finally, I put the sane trades in both my live and demo account and there is no way I’m winning in demo and blowing my live account. I’m just waiting for my trades to go back positives so I can close out and go to a different broker.
Kick rocks kot4x
their system inconveniently holds deposits until a move is complete and then they release the money for trading. i called them and ask out of all times why are they holding my deposit. they said normal process for deposits can take up to 6 hours. interesting how their system released the money after the days market move. instacoins and my bank released my money 3 hours prior so kot4x was just sitting on it for their benefit obviously. they also inconveniently give system busy messages when closing a deposit in profit and will close you after a minute or so in the negative or kindly leave you 5 dollars in profit eating up 95% with their system games.in my gut i feel they are not running a good honest business and im not going to play there games they can suck it
kick rocks kot4x
i meant to say that i chatted with them i did not call
This company is a scam the owner is from Miami named Cue Banks on Instagram he’s stealing money and lying to new traders. Karma will knock on their door maybe tomorrow maybe 2 years from now. But they are in for a hellish awakening.
For real? How do you know this?
I have a friend that put a withdrawal of $1.3m since September and not being paid till now. They have even wiped his whole trades
What idiot keeps such a large amount with an unregulated broker?