Kowela Review: Reasons You Should Not Trust This Broker

We got to admit, this broker’s presentation on the website is pretty impressive. But you must not let this fool you because there are many fraudulent details about Kowela.

First of all, the broker lied about where this business is based, inadvertently giving away the whole trading scam. Find out how we exposed this fraud in our truthful Kowela Review.

Kowela’s Regulation and the Safety of Funds

The biggest issue we have with Kowela is the lack of a trading license. How do we know that Kowela is unregulated? Since this website claims that Kowela LTD is based in Hong Kong, we simply checked the register of the Hong Kong Securities and Futures Commission (SFC).

We were not surprised when the search showed no results. Kowela is an unregulated trading platform, case closed. You should not trade with illicit brokers such as Kowela or SafeCaps. Instead, we suggest you find a licensed provider that operates under a reputable jurisdiction.

Our recommendation is the aforementioned Hong Kong SFC, the US CFTC, the UK FCA, Canadian IIROC, Australian ASIC, German BaFin, etc. That way, you will benefit from numerous perks such as safer trading, negative balance protection, segregated funds, and even a compensation scheme in case the broker goes insolvent. 

Where Is the Kowela Trading Scam Active?

The Kowela trading scam has been active since October 2020, according to GoDaddy’s WHOIS database. It’s been three years and yet this website is still running. As for the domains, i.e. countries where the majority of Kowela’s clients live, here is the list:

• France;
• Mexico;
• Uruguay.

Needless to say, Kowela has no authorization to operate in any of these domains. If you need help getting your money back from this broker, call us. If not, avoid both Kowela and EUFM, another scammer we exposed.

Trader Reviews

What do Kowela trustpilot reviews say about this bogus website? Do not get fooled by the large number of positive reviews there. This scam obviously relies on lies and fake reviews, which we found in abundance. Trustpilot warned us about deleting a lot of fake reviews.

That leaves us with honest feedback, i.e. scam complaints. It just proves that Kowela really is fraudulent. Please heed this warning full of frustration.

Neither tru st or listen to this com pany, its a s cam…

– Trustpilot user, February 9, 2023.

Leverage, Commissions & Spreads

Kowela’s maximum leverage is 1:400. This is significantly higher than the legal limit allowed in Hong Kong for retail clients – 1:20, further proving that Kowela is a financial swindler with no regard for the rules.

As for the spreads and commissions, the broker did not disclose any information. From various sources, we found out that Kowela’s spreads range from 1 to 3 pips for FX major pairs. The lower end is decent but anything above 1.5 pips is simply too wide to be profitable.

The Kowela Trading Platform

The platform presentation we read on Kowela’s website was compelling. Too bad the platform did not live up to the expectations. It’s a web-based trading terminal with limited features.

The Kowela broker platform offers basic charts, graphs and TA indicators, and that’s pretty much it. There are no advanced tools and features such as live market reports, automated trading, branch optimization, etc.

If you want a real trading platform, we suggest you find a broker that offers legit software such as MT4, MT5, cTrader, or SiriX. Kowela does not support these platforms, which is a reason more to find another broker.

Mobile Trading App

Kowela also offers a mobile trading app. Both Android and iOS users can download this app. That being said, do not download it, it will just provide you with access to the aforementioned WebTrader, which is a lackluster platform. Mobile trading is only advantageous if your broker is regulated.

Assets You Can Trade With Kowel

According to Kowela’s website, users can trade the following assets:

• Forex currency pairs – EUR/USD, GBP/JPY…
• Indices – DAX 30, S&P 500, NASDAQ 100…
• Commodities – gold, coffee, natural gas…
• Stocks – Google, IBM, Disney…
• Crypto assets – BTC, ETH, USDT…

Trading Accounts – What’s the Difference?

Here’s an overview of Kowela’s trading account types:

• Junior – 5,000 $;
• Advanced – 25,000 $;
• Investor – 50,000 $;
• Trader – 100,000 $;
• Trader Pro – 250,000 $;
• VIP – 1,000,000 $.

In order to gain access to all of the available trading asset classes, you need to open a Trader account or any of the above tiers. The Trader Pro and VIP account types also come with an Islamic version. That’s pretty discriminatory considering how expensive these accounts are.

As you can see, even the lowest account tier is incredibly expensive. There are countless legitimate brokers that will allow you to open a Micro account for just 10 $. If your funds are trapped with Kowela, we can help you recover them.

A huge red flag in this section is that Kowela does not offer a risk-free demo account. Traders are thus denied access to the trading platform unless they invest huge sums of money, which is essentially what the scammer wants.

Kowela Withdrawal Process

According to Kowela’s withdrawal policy, there are two available payment methods:

• Credit/debit cards (MasterCard, Visa);
• Wire transfers.

There is also a discrepancy between the account type page and the FAQ section – the former says that the minimum deposit is 5,000 $ whereas the latter claims it’s 2,500 $. Whichever is true, matters little since both are pretty high and not worth the risk.

Allegedly, there are no deposit & withdrawal fees. However, Kowela “may also charge a 4% interest rate annually and an additional daily interest as determined according to your account standing.”

Customer Support

Kowela promises cooperative and helpful customer support. Per the FAQ section, “Kowela will happily provide you with a professional representative to help you with our market services.”

We believe that the true purpose of this “representative” is to get traders to invest as much money as possible so that Kowela could embezzle it. We’d rather Kowela put that much effort into obtaining a license.

Key Information To Consider About Kowela

You must bear in mind that Kowela is an unregulated broker, which means that all of your deposits, profits, and withdrawals could be lost. If this happens, feel free to contact us for help, we are at your disposal.

If you’re wondering whether it’s possible to recover your lost funds, we’re here to tell you yes. All you need is a chargeback. Book your free consultation as soon as possible so we could explain to you how the chargeback process works.

Contact us today and start your chargeback process.