Is Kot4x Legal in US? Is it Safe?
Reliability is the key criterion for choosing any broker. If you have doubts about the reliability of a company, it is not recommended to work with it. Traders from US often ask “Is Kot4x safe? Does the company operate legally in the territory of the country, can it be trusted?" Traders Union analysts have prepared a detailed analysis, where we will see whether Kot4x is legal in US and whether you can work with this broker.
Short summary about the broker Kot4x
The Kot4x Broker (kot4x.com) is an online Forex cryptocurrency and CFD broker with advanced technologies for trading on the financial markets. So, what exactly is Kot4x? This online broker provides a secure ECN trading environment and offers over 250 trading instruments, including cryptocurrencies. Is Kot4x legit? Kot4x doesn’t limit trading strategies. It charges low trading fees and allows payments in Bitcoins.
| 💰 Account currency: | BTC, EUR, USD, GBP, CAD, AUD |
| 🚀 Minimum deposit: | $10 (Mini Pairs) |
| ⚖️ Leverage: | 1:50-1:500 |
| 💱 Spread: | From 0.4 pips |
| 🔧 Instruments: | Currency pairs, indices, commodities, metals, stocks, cryptocurrencies |
| 💹 Margin Call / Stop Out: | Not indicated |
Pros and cons of Kot4x
👍 Advantages of trading with Kot4x:
•Beneficial trading terms such as precise spreads and high leverage on accounts with a deposit of $250 or more.
•Access to trades with 6 asset classes: currency pairs, cryptocurrency, stocks, indices, commodities, and metals.
👎 Disadvantages of Kot4x:
•The only way to get passive income is to participate in an affiliate program.
•Islamic accounts are not available.
•There are no proprietary services for copying transactions while using PAMM or MAM accounts.
•There are no analytics, training, or tools useful to a trader on the website.
What information should a broker disclose?
Only the broker that discloses all legal information can be considered reliable. You need to take notice of this factor when choosing the company.
The official website of the broker should contain the following information:
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The name of the legal entity.
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Country of registration.
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Number of the registration certificate.
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Legal address, factual addresses of the offices of the broker.
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License to conduct financial activity.
The information must be published either in a special section on the website of the broker or in the disclaimer. Make sure to check it.
The official website of the broker must also provide internal regulatory documents. Before you start working with a company, review Terms of Use, Privacy Policy, Disclaimer, Risks Notice, and other documents.
Broker regulation: SVG FSA
The SVG FSA is the government regulator of St. Vincent and the Grenadines subordinated to the Parliament. It was established in 2012 with the purpose of merging regulatory functions within one organization. The regulator supervises the following sectors: commercial banks, insurance market, investment funds and credit unions, self-regulated organizations.
The SVG FSA provides broker registration, but is not involved in their regulation. It means that during registration, brokers do not undergo inspection to confirm that they “meet the requirements” and are not regulated once they are registered. The SVG FSA is an offshore regulator, but reliable brokers can also work under its supervision. Before choosing a broker, registered with the SVG FSA, we recommend that you read the company review and user feedback about the company.
Is Kot4x legal in US? Broker’s license
Security (Protection for Investors)
The official website of the kot4x.com company provides information that the company is in the process of applying for a regulatory license.
Kot4x tries to compensate for the lack of a license by providing maximum security to its customers. With this objective in view, the broker uses two-factor authentication (2FA) to identify users and protect their accounts from unauthorized access. The company offers 2 options: connect the service through a special Authy application or via SMS.
👍 Advantages
- The company keeps clients' funds separately from equity capital in special bank accounts
- Two-factor authentication is used to protect personal traders’ private information and payment data
👎 Disadvantages
- A negative balance protection function is not available
- The client can’t file a formal complaint with international regulators
- The trader accepts all financial risks associated with the possible insolvency of the company
Brokers that are similar to Kot4x
In addition to license and reliability, you also need to take notice of the trading conditions of brokers. This is important both for beginners and experienced traders, as the demands of the clients with different experience differ. Traders Union analysts have prepared a comparison table of Kot4x with similar brokers.
Comparison of Kot4x with other Brokers
| Kot4x | Bybit | Eightcap | XM Group | Vantage Markets | IC Markets | |
|---|---|---|---|---|---|---|
Trading platform |
TradeLocker |
MetaTrader5 |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, TradingView, ProTrader, Vantage App |
MT4, cTrader, MT5, TradingView |
Min deposit |
$10 |
No |
$100 |
$5 |
$50 |
$200 |
Leverage |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.4 points |
From 0 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution |
Market Execution |
Market Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
No |
No |
No |
No |
No |
Kot4x owned by Kot Ltd. is a broker for professionals trading independently and ready to make a sizable investment from the beginning of cooperation with the company.
Overall. Bybit offers seamless Forex integration with crypto infrastructure, automatic leverage allocation, and MT5 support with Expert Advisors. The platform is suitable for users familiar with trading basics, as well as beginners and algorithmic traders.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
Vantage Markets is a broker that is a real catch for traders who prefer ECN trading.
IC Markets Trading Company is a great broker for scalping enthusiasts, automated trading lovers, and beginner traders.
Conclusions
Traders Union showed that Kot4x is indeed very reliable and legal in US. The company holds all necessary licenses to conduct financial activity; it complies with all key requirements of the regulator. Legality of the broker’s operation in the country is one of the key criteria for choosing the company for trading. It is important to take this into consideration, as well as the trading conditions. In this case, we can say that the broker meets all the reliability requirements.
FAQ
Can I work with a broker who does not hold the license?
Trading with a broker without the license involves high risks. The license guarantees that the company performs its obligations. Working with a broker without the license creates a risk of manipulations with quotes, failure to pay, and other schemes.
Where can I complain if a broker with a license violated its obligations?
If a broker allows a violation of the conditions, you can appeal to the authority that issued the license and to the court.
How do I choose the best broker in US for beginners?
Novice traders need to consider the brokers with licenses issued in US or other European Union countries, availability of a demo account or cent account, the level of commissions and fees and minimum deposit, as well as educational materials.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.