There are a lot of forex, and CFD brokers over the internet. New traders often find it difficult to find a suitable broker that meets their expectations. Even experienced traders may change brokers if they find another broker that is offering better services.
Also, brokers are constantly upgrading their services to serve their clients better. This is why broker comparison is always a subject of interest to active traders. In this article, we will compare the brokerage services provided by KOT4X and LMFX to deduce the strengths and weaknesses of each broker.
More about Kot4x
Kot4x is a forex/CFD broker that describes itself as the “kings of transparency”. Founded in 2019 in St. Vincent and the Grenadines, KOT4X provides its clients access to trade more than 250 trading instruments on its MT4 platforms. The broker operates a Straight-through processing (STP) brokerage model which ensures that clients’ trades are executed at the best prices without requotes or manipulations.
Pro traders are provided a special account type with low spreads. They can also register as PAMM managers to trade with funds pooled together by investors while earning a commission on profits. The broker also runs a funded accounts challenge where qualified expert traders are provided a trading capital of $50k, $100k, or $200k and he earns up to 80% of his profits.
Key Features
- Global ECN/STP broker that accepts clients from all over the world including USA and Canada.
- The minimum deposit is $10 while the maximum leverage is up to 1:500.
- Offers multiple account types including demo and micro accounts for beginners.
- Accounts can be funded with multiple crypto coins such as BTC, ETH, LTC, USDT, DOGE, etc.
- Professional traders who can prove their competence may receive funded accounts up to $200,000 and earn up to 80% of their profits.
Cons
- No regulatory information is provided by the broker.
- Clients have no other choice of platform except MT4.
- There are no training resources to help newbies.
- Inactivity fees of $10 are charged from dormant accounts.
More about LMFX
LMFX was founded in 2015 to provide online forex and CFD trading services to clients from all over the world. Traders registered with the broker are given access to trade about 100 instruments on the MT4 platforms. Being an ECN/STP broker, its clients enjoy low spreads and fast executions.
The broker has monthly demo contests in which winners are rewarded with a total of $1,750 funds for trading in a live account. A 100% deposit match bonus is available to clients who deposit at least $100. New clients can also take advantage of the Phoenix bonus which is for only first-time depositors.
LMFX supports its traders with tools like multiple trading calculators and an economic calendar. It also hosts a blog where market news and trading ideas are published. Free VPS is provided to traders who meet the requirements.
Key Features
- High leverage up to 1:1000
- Trading tools like calculators, economic calendars, etc are provided.
- Contests and promos are available to interested traders.
- VPS hosting is available to eligible clients.
- A multilingual client support desk is available 24/5.
Cons
- Unregulated broker.
- No social trading or managed accounts.
KOT4X vs. LMFX: What are the differences?
Both brokers are unregulated; offer similar instruments on the same MT4 platforms. Below are some of their differences:
- KOT4X has PAMM accounts that benefit investors and beginners while LMFX does not offer such accounts.
- KOT4X accepts payments in multiple Cryptocurrencies like BTC, ETH, XRP, LTC, DOGE, and USDT but LMFX only accepts direct BTC payments.
- LMFX accounts can be funded through online payment solutions like FasaPay, Skrill, and Neteller while KOT4X only accepts direct payments via cryptos.
- KOT4X allows its clients to speculate on Crypto CFDs while LMFX does not.
- You can start trading with only $10 on KOT4X while LMFX requires at least $50.
- LMFX enables trading with higher leverage of 1:1000 while KOT4X offers a max of 1:500
- LMFX offers free VPS services to its clients who maintain a balance of $5,000 and above while other clients pay $20 monthly for it. But KOT4X offers no VPS services.
- LMFX has 5 articles that aim to introduce forex trading to a beginner. KOT4X has none.
- LMFX provides an economic calendar on its website while KOT4X does not have any.
- Demo account contests are organized by LMFX for new clients who can trade but have little or no trading capital. KOT4X has no demo contests.
- LMFX’s clients can opt to benefit from the ‘Phoenix recovery bonus’ or the ‘100% deposit bonus’. KOT4X does not give bonuses.
Company Information
KOT4X is a brokerage brand owned and operated by KOT4X Ltd which is a company registered according to the laws of St. Vincent and the Grenadines. The company has not provided its operating licenses, regulatory authority that supervises its operations, or its management team.
Global Trade Partners Ltd is the investment firm that owns the LMFX brokerage brand. The company is registered in Macedonia. But, just like KOT4X, the broker has not provided a company profile, no regulatory licenses, or a company structure.
Account Types and Features
KOT4X has account types that were designed for traders depending on their experience, trading volume, trading instruments, and trading capital. For all account types, the maximum leverage is 1:500, the minimum trade size is 0.01 lots and the maximum trade size is 1,000 lots. All orders are executed at market rates. Below are the account types:
Mini pairs are for new traders who are testing out their skills with a mini account. KOT4X recommends a minimum deposit of $25 to open this account. Only 29 forex pairs and 13 indices can be traded from this account. Spreads start from 1.0 pip and a commission of $1 is charged per lot.
Standard pairs are the major accounts designed for experienced traders. Account holders can trade all available instruments in the KOT4X brokerage. Typical spreads start from 0.8 pips while the commission is from $7 per lot. $50 is the recommended minimum deposit to open this account.
PRO pairs are the accounts that offer the lowest spreads from 0.4 pips while the commission is $7 per lot. But, only 28 forex pairs and Gold CFDs can be traded from this account. KOT4X recommends $500 as the minimum deposit.
VAR pairs are for experienced forex traders who prefer to pay from spread charges. Only about 28 forex pairs can be traded from this account. There are no commissions but spreads start from 1.2 pips. KOT4X recommends opening this account with at least $250.
On the other hand, LMFX has 3 account types which largely depend on the trader’s preferences. Below are the account types:
Premium accounts: The minimum opening balance is $50 while the spreads are from 1.0 pip with no commissions. The maximum leverage is 1:1000.
Fixed account: $250 is the minimum opening balance for this fixed spread account. The spreads start from 1.8 pips with no commissions. The maximum leverage is 1:400.
Zero accounts: This account is designed for expert traders who desire raw spreads starting from 0.0 pips with no markups. Commissions of $8 per round lot are charged. At least, $100 is required to open this account while the maximum leverage is 1:250.
Demo accounts are available at no cost from both brokerages and they can be funded with up to $100, 000 in virtual funds.
Spreads and commissions
KOT4X spreads range from 0.4-1.2 pips while commissions range from $1-$7; it all depends on the account type. LMFX offers variable spreads from 1.0 pip and fixed spreads from 1.8 pips on its accounts. But, zero accounts start from 0.0 pips with a commission of $4 per lot per side.
Trading Services Offered
Both brokers offer trading platforms where registered traders can speculate on the price direction of trading instruments in the asset classes of forex, indices, stocks, commodities, and cryptos. There are no restrictions on strategies; both brokers support manual and automated trading using Expert Advisors (EAs).
Additionally, KOT4X invites investors to register and create PAMM investor accounts. This enables them to select managers and assign them funds to trade on their behalf. The profits are shared according to the contributed percentage after the manager has taken his commission.
Platforms and Features
The only platform provided by both KOT4X and LMFX is the MT4 trading platform. All account holders can only choose from the web, iOS, Android, or windows desktop versions of MT4 suitable for them. MT4 is a trading platform widely used by forex traders and brokers from all over the world. It comes with powerful trading and technical analysis features. The platform supports complex charting, multiple order types, and “Auto Trading” via Expert advisors (EAs).
Market and Instruments
KOT4X states that it offers 79 forex pairs, 13 indices, 8 commodities, 38 stocks, and 23 crypto CFDs.
LMFX offers 48 currency pairs, 9 indices, 5 commodities, 7 metals and oils, and 37 stocks CFDs from US and UK exchanges.
Deposit and withdrawal
KOT4X accounts can be funded directly with Cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Dogecoin, Ripple, USDT (ERC 20), USDT (TRC 20), and USD Coin (TRC 20). But, withdrawals are only via BTC. All funds are received within a few hours into any of the 6 wallets that come by default once an account is created. The wallets are denominated in BTC, USD, GBP, EUR, CAD, and AUD.
If you do not have Bitcoins or any of the accepted cryptos, you can choose to fund your account by buying BTC from Instacoins. You will be routed to instacoins website where you can buy Bitcoins with credit/debit cards, bank wire transfers, or e-wallets like Skrill. Card payments are instantly processed, e-wallets are processed within a few hours while bank transfers take 2-5 days.
LMFX has multiple payment options. Direct wire transfers require a minimum of $250 deposit and it takes 2-15 bank working days before the transfer is complete. Debit or Credit cards issued by Visa and MasterCard can be used to fund accounts instantly. The minimum deposit is $50. But card withdrawals take 2-15 days and the minimum withdrawal is $10.
eWallets like FasaPay, Skrill, and Neteller can be used for deposits and withdrawals. The minimum deposit is $50 while the minimum withdrawal is $10. eWallet transactions are usually completed within a few minutes.
You can also fund an account through direct Bitcoin deposits. If you do not have Bitcoins, the broker has partnered with Instacoins which supports instant buying of BTC via debit/credit cards, bank transfer, and Skrill.
LMFX has also partnered with PayRedeem for account deposits using eCards and withdrawals using payout eCards. The minimum deposit is $10; you can buy the eCard on the PayRedeem website with debit/credit cards, bank transfers, or BTC. Approved withdrawals are issued as payout eCards which can be redeemed via bank transfers.
LMFX vs. Kot4x: Head-to-Head Comparison
| Feature Name | KOT4X | LMFX |
| Founded In | 2019 | 2015 |
| Minimum Deposit | $10 | $50 |
| Maximum Leverage | 1:500 | 1:1000 |
| Regulation | None | None |
| Deposit Methods | BTC, ETH, LTC, DOGE, XRP, USDT (ERC 20), USDT (TRC 20), and USD Coin (TRC 20). | BTC, PayRedeem, Instacoins, Credit/Debit cards, bank transfer, Skrill, FasaPay and Neteller. |
| Withdrawal Methods | BTC | BTC, Wire transfer, PayRedeem, Neteller, Skrill and FasaPay. |
| Withdrawal Execution Time | Within 24 hours | Within 24 hours |
| EA/ Robot | Allowed | Allowed |
| Scalping | Yes | Yes |
| Trading Instruments | Forex, Indices, Commodities, Stocks and cryptos | Forex, indices, commodities, metals and oils, and stocks CFDs. |
| US Residents | Allowed | Allowed |
Frequently Asked Questions
Is KOT4X better than LMFX?
No, KOT4X is not better than LMFX because the two brokerages are virtually operating at the same level. Both are unregulated, offer the same MT4 platforms, and use similar execution models. There are areas in which one broker offers better services or features than the other but in terms of quality of services and broker ranking, none is at a higher level.
What is the minimum deposit for KOT4X?
You can open a KOT4X with a minimum of $10. But, it will be the “Mini pairs” account type that can only trade 29 forex pairs only. To trade over 100 instruments available on the brokerage, you will need to open the “Standard pairs” account with $50.
What trading tools does LMFX provide?
In addition to the tools that come with the MT4 platform, LMFX also provides the economic calendar and trading calculators such as; Pivot points, Position size, Fibonacci, pip value, risk percentage, risk and reward calculators.
Final Impression
KOT4X and LMFX are global brokers that offer forex and CFD trading services over the internet. The MT4 is the platform provided by both traders for all trading activities and none is endorsed by any regulatory authority.
Traders without much capital may consider KOT4X as only $10 is needed to start live trading. Unlike LMFX, KOT4X offers crypto trading which has 24/7 market availability. If you already have popular altcoins like ETH, USDT, LTC or DOGE, KOT4X will accept them directly without the need for conversions.
Scalpers and traders who like high leverage or those who desire fixed spreads are likely to find LMFX more suitable. If you have money in eWallets, then LMFX will make things easier for you. Trading contests and bonus seekers will be happy to trade with LMFX; also their free VPS is great for high-volume traders.
Trading with unregulated brokers is very risky, so be careful when dealing with LQDFX orLMFX.