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KAB Review - is it scam or safe?

KAB Review - is kabonline.com scam or good forex broker?

RATING: 2 / 1 REVIEWS ForexBrokerz KAB
KAB is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Trading Accounts 

 
 

Account type Minimum deposit Maximum leverag Minimum trade size Spreads & Commission
KAB MT4 Not specified 1:500 0.1 2.0 pips, fixed + $50 commission
ECN Forex Not specified 1:10 0.1 From 0.1 pips + commission

 

There are two forex trading accounts with KAB. Both of them involve spread, as well as commission fees and don’t offer micro tradeable lots. ECN account type is available on the Currenex platform, while the other one provides access to the renown MetaTrader 4. 

 

As this broker is focused mainly in stocks, it also offers a separate HK/China Stocks Account. Portfolio Management Account is also available with KAB, as well as Structured Products account with limited downside risks.

 

Also, keep in mind that KAB does not accept as clients residents of Hong Kong, US, the United Kingdom, the Netherlands or Singapore. Its website is available in Chinese and English.

 

The Company. Security of Funds

 

Company

Country

Regulation

KAB Strategy Ltd.

Cyprus

CySEC

 

KAB is a broker with rich product portfolio, including China and Hong Kong stocks, global futures, as well as currency pairs. The website and the brokerage brand are operated by KAB Strategy Ltd., a company licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) since 2005. 

 

KAB is a member of the KAB group operating throughout Asia, Europe and the Middle East. Apart from its Cypriot unit, the group includes China Finance KAB Limited (a registered dealer under the Hong Kong’s SFC and Exchange Participant of SEHK), KAB Bullion Hong Kong Limited (a member of the Chinese Gold and Silver Exchange Society), KAB International Trading Limited. Probably KAB Kuwait Group (KABKG) is also a member.

 

Regulation in Cyprus involves certain rules and requirements to licensed brokers, such as holding a minimum capital of at least €730 000, which should be maintained. Besides, regulated companies must keep client funds separately from the company’s operational assets, regularly report executed transactions and many more.

 

What is particularly important to retail investors, all CySEC-regulated companies are members of the Investor Compensation Fund, covering a maximum of 20,000 EUR, if a licensed brokerage becomes insolvent or ceases trading.

 

On the other hand, brokerages licensed in Cyprus have the advantage to offer their services throughout the European Union under the MiFID regulations, as the country is a EU member.

 

Trading Conditions

 

Minimum Initial Deposit

KAB has not specified what initial investment it requires, however, on its website is mentioned that one has to deposit at least $100 to meet margin requirements, as soon as he or she starts trading.

 

Average Spreads & Commissions

We tried out the broker’s demo MT4 platform and found out that the spreads are fixed at 2 pips on EUR/USD. To our surprise, a fee of $50 is also charged per standard lot, which means that trading costs for this pair amount to as much as 7 pips per lot and are one of the highest we have seen in the industry.

 

Most fixed-spread brokers do not charge commission, as they get the remuneration for their services through the spread. By comparison, easyMarkets offers a spread fixed at 1 pips on EUR/USD and no commission fees apply. 

 

Maximum Leverage

The maximum leverage with this broker is offered on the MT4 platform and is 1:500, which is considered high, yet many brokers offer similar ratios. For example, the maximum leverage provided by easyMarkets is up to 1:400.

 

Some traders, especially beginners, tend to use the maximum leverage provided by a broker, since it allows them to operate with much greater amounts than they have deposited. While this approach may lead to large profits, however, it can also lead to losses exceeding initial investment.

 

Trading Platform

 

Like most forex brokers, KAB supports the most widely used forex trading platform - MetaTrader 4. It also claims to offer Currenex for its ECN accounts, but it isn’t available for download on its website. Nonetheless, you may take a look at the broker’s demo MT4:

 

 

Click on the image to zoom in.

 

Apart from the high commission fees, another thing that bothered us in KAB’s MT4 is that there are only 7 currency pairs available for trade.

 

User-friendly and highly customizable, MT4 is still the preferred choice of forex trading platform of traders, although it was launched more than 10 years ago. Some say it’s because of its solid charting package, or the numerous technical indicators and automated trade options (EAs).

 

Here you may check out the long list of forex brokers that support the MT4.

  

Methods of Payment

 

KAB offers its clients the following payment modes: bank wire, credit/debit cards and UnionPay Card.

   

Conclusion         

 

A part of multinational financial group, KAB is a well-regulated broker, offering a wide range of financial products for trade. Unfortunately, when we tried out its demo MT4 account, we noticed that it involves extremely high commission fees. Here are, in a nutshell, the advantages and disadvantages with regards to this broker.

 

Pros

Cons

Well-regulated

Salty commission fees on MT4

MT4 available, as well as Currenex

Limited payment methods

Part of an international group

 

 

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Traders` reviews for KAB

Spread

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Slippage

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Requotes

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Price feed

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Cons

 

 

Platform

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Cons

 

 

Deposit/Withdraw

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Cons

 

 

Customer service

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Summary

Pros

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