KOT4X is an unregulated forex broker that offers 4 account types, ECN/STP trading, and the MT4 forex trading platform. This KOT4X review looks at the key features this broker offers and if you should consider this unregulated broker.
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The Kings of Transparency (KOT4X) is an online forex broker that specializes in helping you trade Contracts For Differences (CFD’s) such as Forex, crypto, stocks, and commodities. KOT4X has some good features such as low minimum deposits, decent commissions, the popular MetaTrader 4 (MT4) platform, and a choice of 4 different account types. However, also has some concerning weaknesses such as lack of regulation, sub-par customer service, confusing account withdrawal and deposit when it comes to bitcoin.
The overall rating is based on review by our experts
KOT4X uses a live MT4 account and offers 4 types of trading accounts, these are PRO Pairs, VAR Pairs, Standard Pairs, and Mini Pairs. These account types mostly differ through their commission structure and spreads, meaning each is ideal for a different type of trader.
Below, we look at the similarities and differences between each account type. We found the accounts available with KOT4x quite strange. We cannot understand why you would choose either the Standard Pairs or Mini Pairs accounts over the Pro Pairs. It appears only the VAR account presents a genuine alternative.
This account restricts your lot trading size to micro-lots (1000). Other trading accounts allow trading lots for micro, mini, and standard lots ( 1000 to 100,000).
Micro-lot is the smallest tradeable lot that most forex brokers will offer. Mini Pairs account is therefore an option if you are new to trading and want to keep your risk to a minimum while you practice trading. As the lot size is smaller, the capital you will need to open a position is lower.
In terms of costs, it does appear that spreads are in line with the Pro Pairs trading account. While the commission is only $1.00, the typical spreads start from 1.0 pips (1 pip = $10.00). This means you will pay $11 to open your position. This is the same as the Pro Pairs account, which has a $7.00 commission and spreads starting from 0.4 pips (0.4 pips = $4.00).
When choosing this account, beware that the main limitation is that you can only choose 29 forex pairs. This is different from the other KOT4x accounts which allow a choice of 55 forex pairs, stocks, commodities and cryptocurrencies.
Given you can easily reduce the lot size you trade with when using the Pro Pairs account and it offers more products to trade with, there doesn’t appear to be a good reason to choose this account.
Not to be confused with what other brokers call Standard accounts (which have no commissions), the KOT4x Standard Pairs account is a commission account with a $7.00 commission for each standard lot you trade when you open and close your position.
This account has the same conditions as the Pro Pairs accounts except that spreads spread are slightly wider. We are supposed to be experts but we don’t actually know why you would choose a more expensive account over an identical cheaper account. We asked the KOT4x live chat and their response was quite comical and we discuss this conversation in our customer service section. We question the whole point of offering this account.
This is the classic ECN style account and the account recommended for most traders. This account has the lowest spreads with typical spreads starting from 0.4 pips. The Pro Pairs account has the tightest spreads as commissions are not included with the spread. You pay commission in addition to the spread with commission costs being $7.00 per standard lot.
With this account, you get access to KOT4x entire range of products.
This account uses Electronic Communication Network (ECN) and Straight Through Processing (STP) style order execution to bring you the best quotes KOT4X can offer. This type of trading means the broker connects you with liquidity pools to trade meaning there is no dealing desk.
The VAR account is what most brokers call their Standard Account, it has no commissions making it best for beginner traders or discretionary (long-term) traders.
Typical spreads for VAR Pairs account start from 1.2 pips, so are wider than other account types as commission costs are already absorbed into the spread. This makes costs are slightly higher than other KOT4x accounts but the simpler cost structure means costs are less complicated for beginner traders.
The commission you will pay will vary according to your home currency. This is how much you will pay for each account in commission depending on your country:
KOT4X is an unregulated broker, meaning they are not bound by any leverage restriction that reputable regulators around the world may require of brokers.
Below are the listed leverage amounts for major markets KOT4X serves.
If you are in a country that restricts leverage to 50:1 and you really want higher leverage, then leverage is one of the few reasons to genuinely consider this broker.
That said, we never recommend using an unregulated broker, leverage is a risky tool best used by professional traders who know how to use it properly. Considering that most professional brokers only use a maximum of 4:1 leverage, it is hard to think there is a need to use the leverage of 200:1 let alone 500:1.
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KOT4X does not list its spreads for each individual currency pair. While not all brokers list their average spreads, we look more positively at brokers that do publish their spreads as it shows the broker is confident enough in their speeds to be transparent.
Below are the minimum typical spreads for each account KOT4x offer:
The KOT4x Pro Pairs account is very similar to commission accounts from other brokers. Commission costs are similar if not the same for most brokers and they use ECN style trading execution so the comparison is fair.
You will notice other brokers’ average spreads are lower than KOT4x. Some broker’s average spread is as low as 0.09 pips which represents a potential saving of $3.10 for each lot you trade.
Data taken from broker website. Accurate as at 04/06/2021
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It is a similar story for no commission accounts. Some brokers offer spreads as low as 0.7 pips per lot. As the typical minimum spreads for KOT4x VAR pairs account is 1.2 pips, you could save $5.00 for each lot you trade by choosing the right broker.
Hidden account fees are one of the reasons that people get concerned when coming into the trading space on a live account. The good thing about the Kings of Transparency is that they have no withdrawal or deposit fees from the broker’s end. However, if you are using Blockchain to make a withdrawal or deposit then there will be a processing fee from the blockchain network,
KOT4X account funding can be done via these methods;
When using a debit/credit card via the eCommerce pay method. The minimum funding amount is $50. The max funding amount is $300 per transaction. With a maximum of 2 transactions a day. Therefore if the trader is looking for a large account balance they would have to purchase bitcoin first and get it transferred to their KOT4X account.
These methods can be used to withdraw funds from the KOT4X account;
*If making a deposit using a credit/debit card using e-commerce then it is only possible to withdraw the same amount via debit card into your bank account. For example, if you deposited $200 AUD and after a few good trades, the account is now valued at $400. KOT4X only allows the trader to withdraw their initial deposit amount of $200 into their bank account. The other $200 has to be withdrawn via Bitcoin on a third-party platform like Coinbase.
The minimum deposit amount is $10 for Bitcoin purchases, which have to be done through a third-party broker. The recommended crypto broker on KOT4X’s website is Coinbase as they provide detailed instructions on how to set up an account and send money to the KOT4X crypto wallet.
If using debit or credit card via 3rd part platform then there will be a minimum deposit of $25 to $50 with no maximum amount.
In conclusion, the process of having to use bitcoin to fund a trading account seems long-winded and tedious. Even though KOT4X doesn’t charge any deposit or withdrawal fees because they utilize bitcoin as their main transaction method there are hidden blockchain transfer fees that are not stated.
KOT4X only offers one trading platform, this trading platform is MetaTrader 4 (MT4). As this platform is the world’s most popular trading platform for traders and brokers you can be sure you are getting a reliable trading platform to cover your needs.
It is interesting to note, that KOT4X doesn’t have any section devoted to information about this trading platform. We presume they expect traders will know of MT4. The KOT4X FAQ section however does cover 16 questions to help you use MT4. All flavours of MT4 are available including MT4 for windows, android, iOS and MAC. MT4 WebTrader for trading through your browser is also available.
Features of MetaTrader 4 include:
KOT4X is an unregulated broker which means that it has not been approved by any regulatory financial authority.
At Compare Forex Brokers, we never recommended unregulated brokers. While it is perfectly possible that an unregulated broker is completely trustworthy and legit, we see few benefits in using one.
Choosing a regulated broker means you will get the following benefits:
While we have no reasons to believe KOT4X is not legitimate and your funds are segregated, it is not possible for us to determine if they are engaging in legit practices.
It is hard to determine if an unregulated brokerage website is a scam or not because their license may be pending. This is the case for KOT4X as they are located in St. Vincent and The Grenadines and are currently in the process of applying for their license according to their website. One benefit of being an offshore broker is that they can accept clients from all around the world.
For this reason, we recommend a broker from a major regulatory body such as:
The main regulatory bodies are;
The client’s funds are located in segregated independent accounts, therefore making it easy to distinguish different client funds. Another benefit is that client’s funds are kept off-book and won’t be used to pay creditors in the unlikely event that KOT4X has to shut down. An added security feature is the 2-factor authentication can be enabled giving another layer of protection to the customer’s accounts.
The customer service for KOT4X has 3 different ways to help.
While KOT4X has a callback, they definitely need to implement a phone number that clients can use to contact if there is an urgent matter about their trading account that needs solving immediately.
We tested KOT4X live chat. Kot4X uses a bot to answer the obvious question however it is possible to get through to the KOT4X customer service team. Unless you wish to ask the most basic questions about the broker and its features, then you are wasting your time. We used the KOT4X live chat as we wanted to know the difference between their Standard Pairs and Pro Pairs account. They explained that Standard Pairs has medium spreads and Pro Pairs has low spread but they could not explain why you would choose Standard Pairs to account for Pro Pairs.
KOT4X does not have an education centre for new traders that are looking to get involved in trading, which is a little frustrating because of how difficult the financial markets are to learn. There are hundreds of articles online that KOT4x could link to beginner traders if they wanted to learn more about trading. If they had market research and analysis forums where other fellow traders could post their thoughts on the market direction it would increase the community aspect of the platform.
Another massive advantage of KOT4X is its user-friendly website that is easy to get around and always displays a well-detailed FAQ section with any further concerns a trader might have. They have over 120 different articles with questions from; getting started and general queries to using MT4 as a platform. This makes it really easy and helpful for a customer to find the information they need as soon as possible.
KOT4X offers a good range of markets for CFD (contract for difference) trading. Trading CFDs can help diversify your portfolio and therefore can be seen as a defensive hedging strategy against large losses when trading.
Leverage for Forex is a maximum of 1:500 however other CFDs cannot be changed. Given most brokers allow you to set your leverage level up to a maximum, it does seem like a good reason to consider other brokers.
KOT4X offers 31 different cryptocurrencies to be traded including;
When trading cryptocurrencies, the leverage available is 1:100. Most regulators restrict crypto leverage to 1:2 or 1:5.
KOT4X offers 11 different indices to trade on including;
Leverage with KOT4X indices is 1:200, most regulated brokers limit leverage to 1:20.
KOT4X offers 9 different commodities to trade, including;
Leverage for commodities is 1:200. You will find many regulators such as ASIC, CySEC, and the FCA limit leverage to 1:20 for gold and 1:10 for silver.
KOT4X offers 105 different stocks to buy or sell, the broker does not advise if you can trade stocks outside America. Stocks available include:
Leverage for stocks is 1:20.
The Kings of Transparency KOT4X.com is an online brokerage website that can be used by all levels of traders. KOT4X offers a wide range of markets for the majority of its account types.
It is hard to recommend a brokerage website that is not regulated as it comes with inherent risks for the customers. Especially if the broker doesn’t offer a compelling feature that makes them stand out from other brokers. From what we can see, you won’t be saving on spreads or costs, so the only real benefit of choosing KOT4X is higher leverage and the ability to fund your account with Bitcoin and even this feature has its problems.
The live chat customer service is really poor as well, so don’t expect much if you need help from the broker for anything that is not already answered in the FAQ.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.