KAB Review
KAB Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this KAB Review.
KAB Review
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.
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.
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.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
KAB Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about KAB Review.