KOT4X Review

Item: KOT4X
Rating: 4.6
Author: Justin Grossbard

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.

Written by

Justin Grossbard

With over 20 years investing experience and 10 years of trading, Justin co-founded Compare Forex Brokers in 2014. He has worked within the foreign exchange trading industry for several years and for several of the largest banks globally. He has an Honours in Commerce and Masters degree from Monash University. He also owns Innovate Online offering digital marketing services with over 20 employees.

Updated: 05/07/2022

What Changed?

Each month we update average spreads data published by the brokers the retail brokers lose %

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Summary Of KOT4X

The Kings of Transparency (KOT4X) is an online forex broker that specializes in helping you trade Contracts For Differences (CFDs) 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 and confusing account withdrawal and deposit when it comes to bitcoin.

🗺️ Regulation Country	Unregulated
💰 Trading Fees	Variable Spread with no commission<
📊 Trading Platforms	MT4 Trading Platform
💰 Minimum Deposit	$50
💰 Withdrawal Fees	$0
🛍️ Instruments Offered	Forex, Indices, Stocks, Crypto, Commodities
💳 Credit Card Deposit	Yes

See How KOT4X Stacks Up To These Brokers

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Saxo

Account Types

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.

Key Features Common To All The Accounts

No Islamic account- all accounts have swaps which makes them unsuitable for sharia law
There is no dealing desk as they use a combination of ECN and STP trading execution models
Swaps are allowed
Scalping and hedging are allowed
Demo accounts are available for new traders

Mini Pairs – Micro-Lot Trading And Limited Pair Choices

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.

$1.00 commission per lot
Typical spreads starting from 1.0 pips
Limited to 29 Forex pairs

Standard Pairs – Medium Spreads + Commissions

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.

$7.00 commission per lot
Low spreads starting from 0.8 pips
Full range of markets

PRO Pairs – Low Spreads + Commissions

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’s entire range of products.

$7.00 commission per lot
The lowest typical spreads start from 0.4 pips
Full range of markets

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.

VAR Pairs – No Commission Standard Account

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.

$0 commission per lot
The highest typical spreads start from 1.2 pips
Full range of markets

Commission Per Account

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:

Account Types	USD ECN Account	AUD ECN Account	EUR ECN Account	CAD ECN Account	BIT ECN Account
Standard	7 USD	7 AUD	7 GBP	7 CAD	1500 BIT
Pro	7 USD	7 AUD	7 GBP	7 CAD	1500 BIT
Var	0 USD	0 AUD	0 GBP	0 CAD	0 BIT
Mini	1 USD	1 AUD	1 GBP	1 CAD	15 BIT

Leverage

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.

	Forex	Cryptos *	Stocks *	Indices *	Energies *	Metals *
Leverage Size	500:1	100:1	20:1	200:1	200:1	200:1

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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Our Rating

The overall rating is based on review by our experts

5.00

Spreads

5 / 10

Leverage

10 / 10

Trading Platform

7 / 10

Risk Management

1 / 10

Range of Markets

6 / 10

Customer Service

1 / 10

Spreads

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 offers:

	PRO Pair	Standard Pair	VAR Pair	MINI pair
Typical Spread	From 0.4	From 0.8	From 1.2	From 1.0

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 brokers’ average spread is as low as 0.09 pips which represents a potential saving of $3.10 for each lot you trade.


0.43	0.47	0.67	0.59	0.26
0.30	0.25	0.50	0.23	0.14
n/a	0.30	0.50	0.50	0.20
0.30	0.83	0.50	0.85	0.20
0.68	N/A	N/A	0.59	0.24
0.70	0.70	0.60	0.60	0.30
0.80	1.10	1.10	0.60	0.30
0.40	0.30	0.70	0.20	n/a
0.87	1.18	0.86	0.86	0.61

Data taken from broker website. Accurate as at 01/07/2022

Compare All Spreads >>

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 spread for KOT4x VAR pairs account is 1.2 pips, you could save $5.00 for each lot you trade by choosing the right broker.


0.75	0.85	1.40	1.19	0.86
0.86	0.74	1.19	1.19	0.83
0.70	1.30	1.30	2.20	1.40
0.80	0.90	1.70	1.80	0.80
1.10	1.10	1.10	1.60	1.50
1.20	1.40	1.70	1.50	1.30
0.62	0.77	1.27	0.83	0.74
1.10	1.20	1.40	1.50	1.20
1.30	1.40	1.50	1.50	1.40
1.20	1.20	1.40	1.40	1.20
1.20	1.20	1.40	1.40	1.40
1.30	1.50	1.50	1.70	1.70
1.30	1.70	2.10	1.40	1.50
1.20	1.40	1.40	1.50	1.20
1.52	1.65	1.64	1.10	1.45
1.40	1.20	1.90	1.90	1.60
1.70	1.80	2.00	2.20	1.60

Data taken from broker website. Accurate as at 01/07/2022

Compare All Spreads >>

Account Fees

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,

Account Funding

KOT4X account funding can be done via these methods;

Bitcoin direct transfer to another bitcoin wallet
Debit/credit card via 3rd party provider
Debit/credit card via E-Commerce*

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.

Account Withdrawal

These methods can be used to withdraw funds from the KOT4X account;

Bitcoin direct transfer to another bitcoin wallet
Credit/debit card from 3rd party platform
Credit/debit card via E-Commerce*

*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.

Minimum Deposit

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 a debit or credit card via 3rd part platform then there will be a minimum deposit of $25 to $50 with no maximum amount.

Account Fees Conclusion

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.

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Trading Platforms

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:

It connects the trader to real-time prices and quotes to execute their trades at the most accurate rates
It allows for multiple trading orders to be placed at once as well as trailing stops, take profit, and stop-loss tools
If the trader is more advanced then they have the option of automated trading strategies to help enhance their portfolio with backtesting
MT4 has a full range of charting and technical analysis tools to forecast price movements. There is also an option for the trader to build their own indicators too
Demo accounts are available for beginner traders getting used to the platform

Regulation – Is This A Scam Broker?

KOT4X is an unregulated broker which means that it has not been approved by any regulatory financial authority.

This isn’t the first unregulated broker we have reviewed, other brokers include Hugosway and TradersWay. Like with these brokers, we at Compare Forex Brokers, never recommend 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:

Transparent trading operations: A good regulator requires brokers to submit periodic financial reports for auditing and ensures spreads from liquidity providers are not manipulated.
Safety of your fund – Regulators require brokers to segregate your funds so they cannot use your funds for their own needs. This ensures your cash is safe no matter what happens to the broker. Some regulators also require the brokers to keep a reserve aside to prevent the broker from going into liquidation.
Dispute resolution: A good broker will have a resolution procedure in place for clients to resolve complaints they may have with the broker
Protection from fraud: Regulators ensure the broker is legit and not a scam
Product disclosure statement: Regulated brokers will have a product disclosure statement. This ensures your clients know exactly what they get for the broker’s services

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;

ASIC (Australian Securities and Investments Commission) – Australia
FCA (Financial Conduct Authority, UK) – The United Kingdom
Cysec (Cyprus communities & Exchange Commission) – CySEC
DFSA (Dubai Financial Services Authority) – United Arab Emirates
FMA (Financial Markets Authority) – New Zealand

Security

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.

Customer Support

The customer service for KOT4X has 3 different ways to help.

Use their live 24/7 live chatbot on the homepage of the website
The contact us page within their website and fill out a request form.
Or just emailing their support team directly.

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.

Education

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.

FAQ – Ease Of Use

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.

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KOT4X Range Of Markets

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.

Cryptocurrencies

KOT4X offers 31 different cryptocurrencies to be traded including;

Bitcoin / USD
Etherium / USD
Litecoin / USD

When trading cryptocurrencies, the leverage available is 1:100. Most regulators restrict crypto leverage to 1:2 or 1:5.

Indices

KOT4X offers 11 different indices to trade on including;

Euro Stoxx 50 – US Dollar
NASDAQ 100 – US Dollar
S&P500 – US Dollar
UK FTSE 100 – US Dollar

Leverage with KOT4X indices is 1:200, most regulated brokers limit leverage to 1:20.

Commodities

KOT4X offers 9 different commodities to trade, including;

Crude – US Dollar
Silver – US Dollar
Gold – US dollar

The 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.

Stocks

KOT4X offers 105 different stocks to buy or sell, the broker does not advise if you can trade stocks outside America. Stocks available include:

Apple
Facebook
Google
Mastercard
Tesla

The leverage for stocks is 1:20.

Conclusion

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.

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