Kot4x Review: Forex Offshore Trading Scam

After reading some client complaints against the broker, we decided to write the Kot4x Review. Consider the analysis as a warning about this shady offshore provider.

Since there’s no regulation in place, Kot4x broker could easily disappear with your funds and you won’t be entitled to compensation. That’s why it’s imperative to know the facts and be careful.

What is more, we strongly advise you not to invest in Status Markets, QuantumAI, and Deltafx fraudulent brokers.

Is Kot4x a Scam Broker?

Plain and simple, Kot4x is unregulated. Run by the company of the same name, Kot4x is based in Saint Vincent and the Grenadines (SVG).

This little island in the Caribbean Sea is actually an infamous den of thieves. Countless scammers found their homes due to SVG’s tax system.

The local regulator – the FSA, is concerned only about the banking sector. No Forex regulation here, folks. Thus, Kot4x is unlicensed to provide FX trading services but still does so.

That’s a clear violation of the law imposed by onshore regulatory bodies such as the European Securities and Markets Authority (ESMA), ASIC, United States’ SEC, etc.

Kot4x is an online trading scam from SVG. The offshore broker is unregulated. Many traders have expressed dissatisfaction with how this broker operates, pointing to various service and withdrawal issues.

Why Is Trading On a Licensed Broker’s Platform Preferable?

You want a licensed broker, not an offshore crook. That’s why you have to look for those licensed by Tier 1 regulators such as the FCA, ASIC, BaFin, FINMA, etc.

That way, rest assured you’re getting negative balance protection, segregated funds, leverage restriction (1:30), transaction reports, and a compensation scheme in case something happens to the broker.

Also, the minimum operating capital for licensed brokers (e. g. 730,000 EUR in the EEA zone) is significantly higher than that of offshore providers. 

Kot4x Available Trading Platform

The Kot4x trading platform options are MetaTrader 4 and WebTrader. To our surprise, it seems that the broker really does provide a legit version of MT4.

MT4, the trailblazer in the world of trading, offers its users a wide range of advanced tools to facilitate trading. 

Aside from a customizable interface, traders can choose between three order execution options, nine order types, 30 built-in technical indicators, and nine timeframes for placing orders. There’s also an automated trading feature.

On the other hand, WebTrader is nowhere near MT4. The browser-based platform offers just some basic charts and graphs.

Mobile App

Kot4x offers a mobile version of MT4 for both Android and iOS. The platform has been adapted for mobile trading, which is convenient for trading on the go.

WebTrader doesn’t require a mobile app since the platform is accessed via a browser. However, we advise caution given complaints about Kot4x.

What Traders Are Saying About Kot4x

Kot4x was up to no good. Judging by client reviews from various websites, it seems there’s been some fraudulent activity. Some even complained about the trading platform, which could be a sign that it’s been rigged by Kot4x.

I passed their 50k challenge only for them to later deny me on not having consistent enough lot sizes, they aren’t even specific about it!! Furthermore, I complained about their position sizes being wrong, and they did nothing about it!

• Trustpilot user, September 13, 2022.

Personally, my account was blocked several times in Kot4x. Without access to it, money was withdrawn from the account. I can’t prove that the account lacks $500. It turns out Kot4x are more like manipulators…

• TradersUnion user, February 23, 2023.

Kot4x’s Trading Assets and Instruments

Kot4x offers FX pairs, CFDs on indices, commodities, and stocks, and crypto asset trading. There’s a total of 31 cryptocurrencies available. Below, you’ll find a list of assets with examples for each. Please be careful.

• Forex pairs – EUR/USD, GBP/JPY, AUD/USD…
• Indices – FTSE100, S&P500, NIKKEI225…
• Commodities – gold, crude oil, corn…
• Stocks – Apple, Google, Tesla…
• Crypto – BTC, ETH, XPR…

Kot4x Service Countries

We managed to find out where Kot4x was active thanks to similarweb.com. Namely, the broker’s clients in the past three months mainly came from the US. 

• US (55%);
• Mexico (6%);
• Germany (6%);
• Malta (6%);
• Spain (5%);
• Others (22%).

Keep in mind that the US is probably the most heavily regulated country in the world when it comes to the financial market. The US Securities and Exchange Commission (SEC) even banned CFD trading, which is probably why some traders turn to offshore brokers.

 What Are The Different Kot4x Account Types?

According to the Kot4x website, there’s one ECN account that lets traders choose from the following:

• Standard pairs;
• PRO pairs;
• VAR pairs;
• MINI pairs.

These options differ in the available spreads, commissions, instruments and recommended minimum deposit. The actual minimum deposit is 15 $. For the minimum lot size, Kot4x put 0.01 lots.

Leverage, Spreads, and Fees

The leverage caps at 1:500, which is well above the legal limit of 1:30 and extremely dangerous in volatile markets.

Spreads range from 0.4 to 1.2 pips depending on the account type. The levels are good and competitive, considering that the industry’s standard is 1.5 pips.

Commissions for the Standard and PRO pairs are 7 $ per lot, for the VAR pairs 0 $, and for the MINI pairs 1 $ per lot.

Free Demo Account

We found a Kot4x demo account option on the website. If this is legit, then great. Demo accounts are perfect for training. However, when real money comes into play, you could face a harsh reality.

PAMM Account

Kot4x also offers a PAMM account. PAMM stands for Percentage Allocation Management Module.

This concept allows FX traders to copy their trades and distribute a certain amount to their accounts based on the allocated percentage. 

Basically, it connects two accounts and copies transactions. The investors depend on the managing trader’s decisions. All PAMM accounts must belong to one broker’s system. 

What Methods Of Deposit And Withdrawal Does Kot4x Accept?

There’s only one funding method – Bitcoin. That’s so typical of shady and unregulated offshore brokers like Kot4x. 

Legit providers include a wider range of payment options such as credit cards, wire transfers and e-wallets, not just an unreliable cryptocurrency.

Hence, the main problem associated with Kot4x is withdrawal issues. The broker claims to respect Anit-Money Laundering rules, but there’s no official authority to affirm this.

Kot4x Terms & Conditions – What You Need to Know

If you think Kot4x violated any terms and conditions when it didn’t allow you to withdraw, think again. We found a vexing bonus policy that you, as the client, agreed to when you opened an account with Kot4x.

Namely, the broker issues a 20% withdrawal bonus (5,000 $ max). Then, traders have to reach an insane trading volume in order to transfer that bonus and request a withdrawal.

The standard lot for FX pairs is 100,000. If you get a 200 $ bonus, you have to achieve a volume of 4,000,000! There’s a reason regulators banned brokers from issuing bonuses.

What Should I Do If I Have Kot4x Problem?

If you’re having withdrawal issues, please call us for help. Since Kot4x accepts only crypto payments, your transactions will have to be traced first.

This requires the use of advanced software such as CipherTrace. Luckily for you, we have a team of experts that specialize in crypto trading and are willing to assist you. Book your free consultation today!

If you were scammed by a broker, let us know.