Kot4x broker has designed four types of core account plans for traders with different capital sizes, with the minimum deposit threshold starting from $50. Among them, the Standard Account requires a minimum initial investment of 200 US dollars and provides a maximum leverage ratio of 1:500, which is applicable to position sizes with a nominal value of up to 100 lots. This account mainly adopts the floating spread model. Taking the EUR/USD currency pair as an example, the median spread during the regular trading hours (the opening period of the London market) is 1.3 points. When liquidity is abundant (such as when the average daily trading volume exceeds 300 billion US dollars), it can drop to 0.9 points. However, during the market volatility triggered by the Bank of Japan’s policy shift in January 2024, the peak spread widened to 4.5 points. All account types are exempt from transaction commissions, and over 95% of the platform’s earnings rely on spread costs. It is worth comparing that under similar market conditions, traditional ECN brokers usually maintain the spread range between 0.2 and 1.0 points, but charge a transaction commission of $3.5 per lot.
Professional traders can choose the Raw Spread Account. This plan requires a minimum deposit of 5,000 US dollars to obtain special execution conditions. The EUR/USD spread of this account can be compressed to a starting point of 0, and the actual transaction cost is transferred to the commission structure – a fee of $3.0 per lot is charged. According to the 2024 Independent Transaction Cost Analysis Report, in the active user scenario where the monthly trading volume reaches 300 standard lots, the original spread account saves approximately 17% of the execution cost compared to the standard account. However, it is necessary to pay attention to the difference in quote accuracy: Within the first 90 seconds after the release of the non-farm payroll data, the probability of the original spread account sliding was 42%, slightly higher than the 37% of the standard account, with a median slippage of 0.8 points. High-frequency traders, in particular, need to evaluate such parameters. According to a 2023 Goldman Sachs study on high-frequency strategies, slippage above 0.5 points would render 30% of short-term strategies ineffective.
The ECN Prime Account, which is exclusive to high-net-worth clients, has a more precise configuration and sets an entry threshold of $20,000. This account offers liquidity access at the inter-bank market level and integrates quotations from over 12 Tier 1 liquidity providers. Its core advantage lies in the execution quality of large orders: when the single transaction volume reaches 50 lots (5 million base currency units), the deep quotation ability of the ECN account reduces the slippage rate to 25%, significantly better than the 38% probability of the original spread account. The fund management tools have also been upgraded simultaneously, including real-time position proportion monitoring (automatically warning that the risk exposure of a single variety exceeds 15% of the account’s net value) and support for the execution of the VWAP (Volume-weighted Average price) algorithm. Based on the 2022 UBS trading System evaluation data, this type of algorithm can reduce impact costs by up to 40% in large orders, and is particularly cost-effective for professional institutions with asset management scales exceeding one million US dollars.
Special function accounts meet specific regulatory or religious requirements. The Islamic Swap-Free Account is completely exempt from overnight interest charges, but its transaction cost structure is compensated by an increase of 0.7 points in the spread (compared to the standard account). For example, when holding 100 lots of EUR/USD long positions overnight, the standard account incurs a cost of approximately $35 at a daily interest rate of -0.05%, while the Islamic account internalizes the cost through the spread premium. It is worth noting that the offshore regulatory status of kot4x broker enables it to be free from the leverage restrictions of mainstream financial regions (such as the EU ESMA), continuing to offer professional clients leverage options up to 1:500. However, after the UK FCA adjusted the leverage cap for retail traders to 1:30 in 2024, the risk of margin calls for such highly leveraged accounts has drawn regulatory attention – historical data shows that on trading days when the euro’s single-day fluctuation exceeds 1.5% (accounting for 12% of the total trading days throughout the year), the forced liquidation rate of accounts using 1:500 leverage is as high as 67% It is four times higher than a 1:100 leveraged account.
The account security mechanism implements multi-dimensional protection. All account types are mandatorily enabled with two-factor authentication (2FA) and implement the 256-bit AES encrypted transmission protocol. The custodian bank system adopts a nominal segregated account system, but due to the regulatory framework of Saint Vincent, the actual audit frequency is once every 12 months, which shows a difference in the implementation level compared with the quarterly audit of the UK FCA. The 2024 platform liquidity stress test report shows that when the market’s sudden volatility exceeds 30% (similar to the Swiss franc black swan event in 2015), the median execution delay for orders over 200 lots reaches 1.2 seconds, which is three times higher than the industry’s leading platform’s benchmark value of 0.4 seconds. It is recommended that traders give priority to examining the degree of account fund protection in accordance with the requirements of the “Global Broker Solvency Agreement II” to be implemented in 2025. Currently, the legal protection limits for customers in mainstream regulatory areas (such as £85,000 for FSCS in the UK) are not covered under this platform system for the time being.