The KesslerKoch website encourages us to enter the trading world confidently by utilizing the services of this inventive forex broker. However, upon closer examination, there are several compelling reasons to avoid doing so. KesslerKoch lacks proper licensing and regulation as a broker, prompting valid concerns about its legitimacy. Consequently, it’s advisable to categorize this website as potentially fraudulent. It’s crucial to explore why steering clear of KesslerKoch is prudent and to consider superior alternatives for engaging in financial market investments.
KesslerKoch Regulation
If a financial services provider is legitimate, its website typically contains clear and detailed information about the owning and operating company, its location, and the licenses it holds. Legitimate brokers also offer access to a comprehensive set of legal documentation. While the availability of such information doesn’t guarantee its accuracy, its absence strongly suggests potential fraudulent activity.
The homepage of the website indicates that the broker is backed by a company called KesslerKoch AG, supposedly based in Switzerland. However, there’s no record of a broker by that name on the register of licensed brokers in Switzerland.
The financial authorities in Germany have cautioned investors about KesslerKoch, stating that it is not an authorized broker. KesslerKoch fails to provide access to essential documentation such as Terms and Conditions. Investing without a clear understanding of the entity and the terms of the agreement would be a risky decision.
When considering investment in financial instruments, it’s crucial to be vigilant of fraudulent brokers prevalent online. Always verify whether the chosen broker holds the necessary licenses. Collaborating with a legitimately authorized and supervised company, like those regulated by institutions such as the Cyprus Securities and Exchange Commission (CySEC), offers numerous advantages.
Brokers under CySEC regulation must maintain a minimum net capital of EUR 730,000, ensuring financial stability and a serious long-term commitment. The clients’ funds deposited into trading accounts are segregated from the broker’s operational funds and held in separate bank accounts. This segregation safeguards clients’ funds in the event of issues like broker bankruptcy.
Furthermore, all brokers licensed in Cyprus and other EU countries are members of the Investor Compensation Fund, which provides coverage of up to EUR 20,000 per person in case of broker insolvency.
Trading Software
Although the platform offers fundamental features like order placement, chart customization, and application of technical indicators, it lacks the advanced functionalities found in the industry’s most widely used trading platforms, such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5). MT4 and MT5 have become industry standards due to their extensive range of features, including customizable options, support for multiple accounts, the ability to design and execute custom scripts for automated trading, and the capability to backtest trade strategies.
Trading Instruments
KesslerKoch’s trading platform offers various asset classes, including forex, commodities, equities, indices, and cryptocurrencies. However, there are substantial doubts about the legitimacy of this trading activity. If you’re considering trading in the financial markets, it’s crucial to choose a broker that is diligently licensed and regulated for your own protection and peace of mind.
KesslerKoch Spreads
KesslerKoch claims to offer typical industry spread levels of 1.5 pips. However, due to the absence of documentation, it’s uncertain whether KesslerKoch imposes additional commissions or fees.
KesslerKoch Leverage
Regulated brokers solely extend higher leverage to professional clients, who must meet stringent criteria regarding capital and experience, thereby forgoing the protections available to retail traders.
If you do not qualify as a professional trader but are prepared to undertake the risks associated with high-leverage trading, your most viable recourse is to utilize the services of an offshore affiliate associated with a reputable brand.
KesslerKoch Deposit and Withdrawal Methods
While the homepage of the website showcases logos of numerous well-known payment methods, the deposit menu only presents the obscure credit card payment processor Zen Payments. Legitimate brokers usually provide clients with a diverse range of transparent payment options, including bank transfers, credit/debit cards, and established e-wallets such as PayPal, Skrill, or Neteller.
Minimum Deposit
The descriptions of the account types indicate a minimum deposit of 5,000 USD, yet the deposit menu displays a more reasonable minimum of 250 USD. However, it’s worth noting that you can open a trading account with a leading global broker for as little as 5 USD.
Withdrawal Requirements
As KesslerKoch lacks proper legal documentation, the potential traps set by fraudsters remain unclear. Fake brokers typically impose significant fees and impose challenging traded volume conditions, making withdrawing money seemingly impossible.