Online trading involves buying and selling digital assets with the help of brokerage platforms and services. Online trading has been evolving for the past years, and it has continually provided convenience to traders regarding trade executions, research, and monitoring. Thanks to various regulated brokers’ online platforms, trading has become more accessible and convenient.
With tons of technological advancements, traders can now execute their trades anytime and anywhere within trading hours as long as they have a stable internet connection. However, one of the scariest variables of online trading is the kind of broker you trust your investments with.
Both KOT4X and Hugosway are offshore forex brokers that provide online trading services to traders on the foreign exchange market. However, as a trader, it is normal to wonder which between the two is the best brokerage firm. Well, let’s find out.
In this article, we will dive into the variables that affect the competence and reliability of these two brokers to help you make an informed decision.
Hugosway vs Kot4x : A Head to Head Comparison
WHAT IS KOT4X?
KOT4X is an online cryptocurrency, CFD, and foreign exchange broker that offers cutting-edge technological features to traders all over the globe. This broker allows traders to sign up for a demo account first before finally letting them deposit their actual funds for live trading.
KOT4X offers a secure trading environment through its electronic communication network that allows traders to execute their trade online. According to their official site, they offer a lighting-speed system that is designed for trading efficiency. They also claim to have honest brokers that are committed to data protection and can promote high growth potential.
As an online brokerage firm, KOT4X gives traders access to MetaTrader platforms to execute CFD trades online. This broker introduces various account types and trading instruments.
Indeed, KOT4X trading can be competitive because of its reasonable and fair spreads. Since brokers make money through spreads, their commissions are comparable to some well-established brokerage firms that big-time traders use. However, having reasonable commissions and fair spreads does not necessarily prove a brokerage’s firm reliability over time.
On the downside, this broker only accepts bitcoin funding and can’t provide any educational materials. Additional tools, features, and study resources are important for full-time traders to make better trading decisions. Unfortunately, these aren’t available in KOT4X.
IS KOT4X A REGULATED TRADING BROKER?
KOT4X is in the process of applying and acquiring a license. This means that they are not yet licensed. After applying, it would still take some time for their license to be issued. Well, because of this, they may not be the most reliable brokers in the world of CFD trading.
The company is headquartered in Saint Vincent. Since this country has loose rules, it is not surprising why KOT4X was allowed to establish a trading system and operate even without a license.
Most traders understand that regulation is a very important aspect that determines the safety, reliability, and legitimacy of any online broker. Beginners often look for regulated brokers so they can trade with utmost ease. This is also because the world of trading requires utmost vigilance since it involves money.
There are plenty of brokerage firms out there that are licensed and reliable. However, not being regulated does not automatically mean that the broker is unreliable. Nonetheless, a slight breach of important data in their site can definitely harm you as a trader.
The risks associated with trading with unregulated brokers can even become disastrous when you encounter fraud cases since you will have little to no recourse.
Nevertheless, the competence of KOT4X has been proven by satisfied traders who have used this broker to trade for years now. These traders have testified of their convenience and efficiency while working with KOT4X.
KOT4X ADVANTAGES
- Traders can start trading at fifteen dollars ($15)
- 1:500 leverage
- Expert Advisors (EA) allowed
- Low commission
- Hedging allowed
- Scalping allowed
- News trading allowed
- Buy as high as five hundred lots
- Lightning-fast execution
- Traders can go short or long on positions
- Open to multiple positions
- Tight spreads
KOT4X DISADVANTAGES
- No additional educational materials
- No adequate features suited for full-time traders
- Unregulated
- Unsatisfactory trading conditions
- Limited payment options
WHAT TRADING PLATFORMS CAN TRADERS USE IN KOT4X?
KOT4x allows users to use one of the most popular trading platforms, MetaTrader4 or MT4. MT4 trading platform is utilized by millions of investors and traders in many countries. It’s highly regarded as one of the most trader-friendly online platforms, making it popular among beginners.
Aside from the convenience it offers, MT4 also has an abundant built-in investment instrument to assure traders that it is indeed equipped with multitudes of functionality for more demanding users. MetaTrader4 also has an intuitive and customizable interface. Users can utilize this platform to engage in real-time charts that display a variety of trading instruments and conduct profound analyses of the market flow.
This supports plenty of order types and time frames as well.
TRADING WITH MT4 INCLUDES:
- Real-time price quotes through the market’s watch window
- User-friendly and fully customizable interface
- Support of multiple types of orders
- Multiple types of charts and time frames
- A wide range of options for technical indicators
- Options for drawing objects (used for price analyses)
- Automated trading through EAs or expert advisors
- Technique tester to back-test expert advisors over historical details
- MQL editor to develop customized indicators, EAs, and scripts
- Online marketplace and community for traders to share their tools, signals, and ideas
- Notifications for price alert through platform pop-ups, SMS, and email
- Availability on mobile devices and desktop
Again, through KOT4X, traders can experience the above-mentioned outstanding features of MT4.
WHAT IS HUGOSWAY?
Hugosway is another CFD or Contract For Difference and online foreign exchange broker that was established not long, back in 2017. Hugosway Ltd. actually runs and owns the brokerage firm and is located in the Grenadines and St. Vincent.
This brokerage firm is an STP or Straight Through Processing platform which allows for foreign exchange and contracts through the MetaTrader4 trading platform. The firm offers one hundred fifty tradable assets, including indices, futures and stocks, metals, energies, currency pairs, and cryptocurrency.
It also provides liberal leverage, tight spreads, trading analytics, and lost minimum capital deposits. All these are aimed at helping traders with their foreign exchange trading careers. Moreover, this brokerage firm has a responsive customer support team which is a crucial factor when it comes to cryptocurrencies and foreign exchange.
However, although Hugosway is open to client inquiries 24/7, some traders still complain about the inefficiency of its live chatting system. Active and full-time traders have more complex complaints and queries compared to beginners, but as of now, it’s still lacking on the side of Hugosway. This means that they have to upgrade their customer support to better provide their customers the help they need.
Just like any other brokerage firm, Hugosway has its own pros and cons which include the following:
HUGOSWAY ADVANTAGES:
- Accommodates all kinds of traders, beginners, experienced, short-term, and long-term
- The minimum deposit amount is only $10 (perfect for conservative investors)
- More than one hundred fifty tradable assets
- Straight Through Processing (STP)
HUGOSWAY DISADVANTAGES:
- No contact details available for urgent customer care
- High charges for withdrawal and bank transfers
- No market news, trading analyses, educational materials, and trading tools
- Limited types of accounts
- Unregulated
- A limited number of platforms for trading
- Inefficient live-chatting system
IS HUGOSWAYREGULATED?
No. Just like Kot4x, Hugosway is an unregulated broker. This means that they are not authorized by any institution or regulatory body to operate as trading brokers. Nevertheless, despite its unregulated status, Hugosway has always done its best to ensure its clients’ safety.
Before they agree to become your broker, Hugosway will present you with a disclosure risk that you must read thoroughly. This way, you will get to understand the risks involved in their careers before you can hire them.
WHAT TRADING PLATFORMS CAN TRADERS USE IN HUGOSWAY?
Just like KOT4X, Hugosway offers the MetaTrader4 trading platform. This trading platform is indeed widely used among most brokers because of the simplicity and convenience it provides to its clients.
Even though MetaTrader5 has already been released, traders still choose MT4 because of its unsurpassed user-friendliness. Therefore, Hugosway continues to support MT4 usage despite the release of the latest version.
FINAL THOUGHTS: WHICH ONE IS BETTER TO TRADE WITH?
Both Hugosway and KOT4X have their own pros and cons. However, when it comes to choosing between the two, KOT4X may be a good choice. This is because it offers reasonable commissions and fair spreads. It also allows hedging and is open to multiple positions. Nonetheless, Hugosway allows all kinds of traders, making it a great choice for both beginners and experienced traders.
However, a more complex issue with these two brokers is that they are unregulated. Since they are unregulated, they are not permitted to operate as brokerage firms. While they may be reliable, you should trade at your own risk. Besides, even regulated and well-established brokerage firms have their advantages and disadvantages. Therefore, it is up to the trader on who to entrust their investments with and who not to.