Interactive Brokers vs KOT4X | Our In-Depth Analysis 2024

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Interactive Brokers and Kot4x are online forex brokers that offer their trading services to traders and investors. Interactive Brokers is a highly regulated and trusted forex broker. It is regulated by multiple regulatory authorities including SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. On the other hand, Kot4x is an offshore forex broker which is not regulated by any regulatory bodies. Both the brokers have their own strengths and weaknesses.  

In this article, we will review and compare the brokerage services offered by Interactive Brokers and Kot4x. We will explore options such as regulations, reputations, fees, features, leverage, and more. Additionally, we will analyze and rate the brokers based on macro and micro categories and options. By reviewing these aspects, you will get a clear idea of which broker suits you best for your trading journey.

Interactive Brokers vs KOT4X: In a Nutshell

Interactive Brokers

Founded in New York, USA in 1978 by Thomas Peterffy, Interactive Brokers has grown into a global brand with over 2.1 million clients. It is an American Multinational brokerage firm headquartered in Greenwich, Connecticut.  It has become one of the leading online trading solutions for traders, investors, and advisors. The brokers give access to over 5000+ tradable assets including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, and Bonds. To trade online, IBKR offers WebTrader, FIX API, MobileTrader (MobileApp), and TWS trading platforms. To learn more about IBKR, you can read our review of Interactive Brokers

Interactive Brokers Overview

Interactive Brokers Overview
  • Founded In: 1978
  • Founder: Chairman Thomas Peterffy
  • Headquarters: Greenwich, Connecticut, United States
  • Minimum Deposit: None
  • Maximum Leverage: 500:1
  • Regulations: SEC , CFTC ,FCA, FSCS, ASIC , IIROC , FSA
  • Trading platform: WebTrader, FIX API, MobileTrader
  • Account Types: Family Office Account ,UGMA/UTMA, IRA, Trust ,Joint, Individuals
  • Payment Options: Bank Wire (BankTransfer/SWIFT), ACH (Automated Clearing House), BPAY, Check, Direct Debit, Local Bank Deposits, Transfer from Existing Broker
  • US Traders:  Accepted 

KOT4X

KOT4X started operations in 2019. The broker allows clients from anywhere to choose an account type, and gain access to trade 250 forex/CFDs on its MT4 platforms. Generally, its spreads and commissions are competitive. Multiple crypto deposits are accepted while the broker charges no extra fees.

KOT4X Overview

KOT4X Overview
  • Founded In: 2019
  • Trading Instruments: Around 200 trading instruments, including 55 currencies, 104 stocks, 31 cryptocurrencies, and 8 indices
  • Minimum Deposit: $10 for BTC deposit, $25 to $50 for Debit/Credit card via Instacoins. 
  • Maximum Leverage: 1:500
  • Regulations: None 
  • Min Lot size: 0.01 
  • Max Lot Size: 500 lot per ticket
  • Trading platform: TradeLocker
  • Trading Styles: Allows all trading Styles including scalping, News Trading, CFD trading, EA trading, 
  • Account Types: Standard Pairs, Pro Pairs, Var Pairs, Mini Pairs
  • Payment Options: Bitcoin, Instacoins.
  • US Traders: Accepted 

           

Interactive Brokers vs: Kot4x Features

Interactive Brokers

  • Trading Instruments: 5000+Trading instruments including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, stocks, options, and Bonds
  • Maximum leverage: 50:1  for US Clients, 30:1  for EU clients, and 400:1 for global clients. 
  • Minimum Deposit: The Interactive Brokers minimum deposit is $0 for a cash account, $2,000 for a T Reg margin account, and $110,000 for a portfolio margin account. The minimum deposit is subject to change depending on the trading account opened and the base currency selected.
  • Trading Fees: spreads starting from as low as 0.1 pips, Stock fees USD 0.005 per share. 
  • PAMM/ MAM:  Not Available
  • Scalping: Allowed 
  • News Trading: Allowed
  • EA/ Robot Trading: Allowed with Capitalise.ai

KOT4

  • Trading Instruments: FX Major, FX Crosses, Cryptocurrencies, FX Exotics,Indices,Energies,Metals, Stocks, Futures
  • Maximum leverage: 500:1
  • Minimum Deposit: $25
  • Account Types: Four (Standard, Pro, Var, and Mini pairs)
  • Trading Fees: Spread starting from 1.2 pips or commission from $1 to $7
  • PAMM/ MAM:  Not Available
  • Scalping: Allowed 
  • News Trading: Allowed
  • EA/ Robot Trading: Allowed

Interactive Brokers vs KOT4X: Pros and Cons

Interactive Brokers Pros & Cons

Pros
  • IBK is a Forex and Stock Broker 
  • Excellent reputation (founded in 1978)
  • Regulated by top regulators like  ASIC, FCA, FSA, SFC, IIROC 
  • A wide range of products offered warrants, ETFs, Options, Futures, Mutual Funds, Bonds 
  • Over 18,000 no-transaction-fee mutual funds.
  • No monthly inactivity fee
  • Low trading fees and high interest (up to 4.58% for USD) on cash balances
  • Access to international markets and exchanges 
  • Mobile apps are convenient for individual investors.
Cons
  • Complicated account opening 
  • Learning Curve for Beginners
  • The maximum leverage is only 1:40 
  •  No Metatrader platforms (MT4, MT5) offered 
  • High minimum deposit requirements for some account types 
  • Interactive Advisors (Robo-advisor feature) is only available for US customers
  • No fixed spread is available 

KOT4X Pros & Cons

Pros
  • Regulated by multiple top tire regulators like  NFA,  FCA, ASIC, FSA, AMF, FMA, MAS, DFSA 
  • Allows scalping, EA/ Robot Trading, News Trading
  • Offers web trading, mobile trading and ECN Trading 
  • IG's acquisition of tastytrade for $1 billion brought options trading and listed-derivatives (such as futures) trading to clients in the United States
  • 16,000 trading instruments, investments in IPOs and exchange-traded funds;
  • Quality choice of trading platforms, including MT4, WebTrader, MobileTrader (MobileApp), ProRealTime
  • Relatively good spreads, from 0.6-1 pips depending on the type of instrument;
  •  Offers passive investment programme ( MAM, PAMM accounts)
Cons
  • Relatively high Minimum deposit ( Min Deposit $250) 
  • Conservative leverage in some areas  ( The max leverage is 1:200)
  • IG charges $/£12/€14 per month after 24 months of inactivity 
  • Limited product range on MT4
  • High Stock CFD fees 

Interactive Brokers vs KOT4X: Side-by-Side Comparison

Interactive Broker
KOT4X
Product
Product
Interactive Broker
KOT4X
Founded In
Founded In
1978
2019
Founded By
Founded By
Chairman Thomas Peterffy
Not Found
Headquarters
Headquarters
Greenwich, Connecticut, United States
St. Vincent and the Grenadines
Regulations
Regulations
SEC, CFTC, FCA, FSCS, FINRA, FCM, IIROC, MAS, FSA
ASIC
Min Deposit
Min Deposit
None
$10
Max Leverage
Max Leverage
1:500
1:500
Tradable Assets
Tradable Assets
Stocks, options, futures, currencies, bonds, and funds
FX Majors , FX Crosses, Cryptocurrencies, FX Exotics, Indices, Energies, Metals, Stocks, Futures
Fees
Fees
Spread starting from 1 pips
Spread from 1.0 pips
Platforms and Tools
Platforms and Tools
WebTrader, FIX API, MobileTrader
TradeLocker
US Traders
US Traders
Allowed
Allowed

Interactive Brokers Vs KOT4X: Our Scores and Ratings

We rated both brokers, Interactive Brokers and KOT4X, on a scale of 1 to 10, with 0.1 increments. To achieve a comprehensive rating, we broadly grouped all services offered by brokers into 6 macro categories and assigned percentage weights to them. Each macro category is subdivided into several data points which contributes to the total score of 1.0-10.0 assigned to each macro category. Since all categories are not equally important, our weight percentage plays a significant role in assessing the broker accurately. For example, Regulation and Security contributes a total weight of 40% to the whole ratings because this is the most important rating category. To learn more, read our methodology.

Interactive Brokers :

9.1
Interactive Brokers Score
Regulation and Security (40%)10
Fees and Commissions (20%)8
Trading (15%)9
Trading tools (10%)7
Customer Support (10%)9.5
Trading Education (5%)9

KOT4x

3.5
Kot4x Scores
Regulation and Security (40%)1.5
Fees and Commissions (20%)6.5
Trading (15%)6
Trading tools (10%)1
Customer Support (10%)5
Trading Education (5%)1

Final Verdict :

Both Interactive Brokers and Kot4x offer similar trading services worldwide. However, there are differences in their regulations, reputations, and operations. Interactive Brokers is a regulated and trusted forex broker, supervised by top-tier regulatory authorities, including the SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. In contrast, Kot4x is an unregulated offshore forex broker. Interactive Brokers provides multiple trading platforms, including WebTrader, FIX API, MobileTrader (MobileApp), TWS., while Kot4x does not offer MT4/MT5 and uses only PRO4 Trading Platform as its trading platform.

Since Interactive Brokers is licensed in the USA, it can accept U.S. clients. However, Interactive Brokers does not offer high leverage or CFD instruments due to regulatory obligations in the USA. In contrast, as an unregulated offshore broker, Kot4x can offer U.S. traders high leverage and CFD trading. Our score for Interactive Brokers is 9.3, and for Kot4x, it is 9 (according to our expert ratings, brokers that achieve a score of 8.00 or higher are considered safe and trustworthy).

Therefore, if you are looking for a U.S.-regulated forex broker, Interactive Brokers is a good choice. However, if you prefer to trade CFDs with high leverage, you may consider Kot4x. Keep in mind, though, that trading with an unregulated offshore broker carries significant risks.

Written by

Jason Paine is a forex trader, researcher, and tech enthusiast. He is passionate about financial markets and cutting-edge technology. With a dynamic 16-year trading career, he's on a mission to guide fellow traders. Having navigated diverse forex brokers, Jason shares his insights at Brokersway to bridge the gap between traders and the right brokerage.

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