Beware! KesslerKoch is an offshore broker! Your investment may be at risk.

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The KesslerKoch website invites us to step into the trading arena with confidence by using the services of this innovative forex broker. But a careful inspection reveals numerous reasons not to do so. KesslerKoch  is not a licensed and regulated broker. We have every reason to put this website into the scam category. Let’s take a detailed look at why you should stay away from KesslerKoch  and what better alternatives you have for investing in the financial markets.

KesslerKoch Regulation and safety of funds

Guaranteed FundsSegregated AccountsNegative balance protection
KesslerKoch
UK regulated brokers£85 000YesYes
EU regulated brokers€20 000YesYes
AU regulated brokersNoYesYes
US regulted brokersYesYesNo

If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.

According to the homepage of the website, behind this broker is a company named KesslerKoch AG, based in Switzerland. But there is no broker with that name on the register of licensed brokers in that country.

Financial authorities in another European country, Germany, have issued a warning to investors that KesslerKoch is not an authorised broker.

KesslerKoch does not provide access to Terms and Conditions or other documentation. If you don’t know exactly who you are dealing with and what the terms of the deal are it would be an obvious mistake to put your money on the line.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the Cyprus Securities and Exchange Commission (CySEC).

These brokers must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. When clients deposit money in their trading accounts, they are kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.

All brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency.

KesslerKoch Trading software

Analytical toolsAuto tradingCustom indicatorsMobile apps
KesslerKoch platform
MT430+ indicatorsAndroid and iOS
MT550+ indicatorsAndroid and iOS
cTrader40+ indicatorsAndroid and iOS

KesslerKoch implements a web-based trading platform. It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.

While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

KesslerKoch Trading instruments

CurrencyStocksIndicesCryptoCommodities
KesslerKoch
XMYesYesYesNoYes
FP MarketsYesYesYesYesYes
Octaxxxxx

KesslerKoch’s trading platform includes forex, commodities, equities, indices and cryptocurrencies. But we have every reason to believe this trading is fictitious. If you want to trade the financial markets, it is in your best interest to choose a diligently licensed broker.

KesslerKoch Spreads and cost of trading

KesslerKochXMFP MarketsOcta
Spread EURUSD1,50.61.20.9
Spread GBPUSD1,51.31.5x
Spread USDJPY1,51.31.5x

KesslerKoch  promises typical industry spread levels of 1.5 pips. But given the lack of documentation, we don’t know if KesslerKoch  charges additional commissions.

KesslerKoch Maximum leverage

ForexStocksCryptoGoldIndices
KesslerKoch500:1100:110:1100:1100:1
UK regulated brokers30:15:110:110:1
EU regulated brokers30:15:12:110:110:1
AU regulated brokers30:15:12:110:110:1
US regulated brokers50:1

KesslerKoch advertises leverage up to 1:500. This is not a level that you see with regulated brokers. Trading with high leverage allows higher profits, but also increases the risk of sudden and excessive losses proportionally. All leading regulators limit leverage for retail traders.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

KesslerKoch Deposit and withdrawal methods

Deposit timeWithdrawal timePrice
Zen PaymentsInstant24 hoursNot specified

On the homepage of the website we see the logos of many popular payment methods. But in the deposit menu itself, the only option is the obscure credit card payment processor Zen Payments.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller.

KesslerKoch Minimum deposit

KesslerKochXMFP MarketsOcta
Minimum deposit$250$5$100$100

The descriptions of the account types specify a minimum deposit of 5,000 USD. In the deposit menu we see a more reasonable minimum of 250 USD. But you should know that you could open a trading account with a leading global broker for as little as 5 USD.

KesslerKoch Withdrawal requirements

Trading volumeFee/Tax on withdrawalMinimum withdrawal
KesslerKochNot specifiedNot specifiedNot specified
UK regulated brokersNoNoNo
EU regulated brokersNoNoNo
AU regulated brokersNoNoNo
US regulated brokersNoNoNo

Since KesslerKoch does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.

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