Kowela is an offshore forex company that has been called a scam in more than one review.
The company does business in shady ways, and Spain’s CNMV has even warned them about it. They say that you can sell a wide range of currency pairs and goods with them. But the company’s strange behavior makes it seem like they might not be as stable as they say they are.
In this Kowela review, I’ll tell you everything you need to know about this forex broker and explain why you shouldn’t trade with them:
Is Kowela Regulated?
Kowela doesn’t talk about its license in any way. They are not licensed and are not controlled as a broker.
The only thing they talk about is the name of the company they work for. Also, their business “Kowela LLC” is based in St. Vincent and the Grenadines. SVG is well-known in the foreign exchange market because its rules are very lax.
Also, there is no evidence that Kowela is established in St. Vincent and the Grenadines because the company doesn’t have a real address. Suite 214, Kingstown, St. Vincent, and the Grenadines, is their address.
If the company doesn’t have a physical address, you can’t check to see if it is in the place it says it is.
This is a big red flag, and it makes me think even more that Kowela is not a broker that is regulated by the government.
You should be very careful with brokers who aren’t controlled because they don’t follow the law. Also, since they don’t have a license, they aren’t protected by a real watchdog like the FCA or FINMA.
People who start working with these brokers often lose a lot of money because of the shady things the broker does. For example, many clients of the unregulated broker Tiger Trade Copy say that they lost their entire deposits all at once.
Many reviews of that broker say that they show ‘rigged’ deals to trick traders into investing more money, which they then use to steal.
But this isn’t the end of Kowela’s warning signs. It has a lot of other problems:
The Spanish government puts out a warning about Kowela
The CNMV (Comision Nacional del Mercado de Valores) of Spain has warned people not to invest in Kowela. The CNMV is a well-known financial regulator, and all it does is warn people about scams and companies that don’t follow the rules.
The warning says that Kowela doesn’t have the right paperwork to do business in Spain. Without a license from CNMV, it is against the law for Kowela to provide services in its area.
Investors are warned about forex scams by financial officials all over the world.
For example, OmegaPro is a crypto scam that has been called a Ponzi scheme by several financial officials.
The advice from the CNMV should be enough for you to decide not to trade with this broker. But it has a lot of other problems that I need to point out:
Why you should stay away from Kowela?
Aside from the warning from CNMV and the fact that this broker is not controlled, there are several other signs that it is a scam.
In the next parts of my Kowela review, I’ll tell you about these warning signs:
High Minimum Deposit
At Kowela, you have to put down at least $5,000 to play. They have several trade accounts, the smallest of which is called Junior, and has a $5,000 minimum.
This is a very high minimum deposit requirement since most reputable forex firms set theirs at $10 or less. This is because a low minimum deposit limit lets buyers try out the broker without taking on too much financial risk.
On the other hand, scammers usually set a high minimum deposit so that they can steal at least a decent amount from each target. Because of this, you shouldn’t deal with brokers who ask for a huge minimum deposit.
There are other trading accounts you can use with Kowela, such as:
- Advanced (with a deposit of at least $25,000)
- Investor (Minimum Deposit $50,000)
- Trader (Minimum Deposit $100,000)
- Trader Pro (Minimum Deposit of $250,000)
- VIP (Minimum Deposit of $1,000,000)
Kowela says that expensive accounts come with detailed tools for investing, complicated indicators, multiple execution orders, and Islamic accounts. This forex broker requires a minimum payment of $250,000 to open an Islamic account. This is a big problem.
Too much leverage
Kowela’s buyers can use up to 1:400 leverage. This is way up there. To give you an idea of how high this is, the most leverage a broker with a license in the UK can offer is 1:30, while brokers in the US can only go up to 1:50.
Regulators set these limits because new and inexperienced buyers can lose all of their money in just a few minutes if they use this kind of leverage. You should stay away from this broker if you don’t want to lose all of your money quickly.
Bad Trading program
Kowela says it has a trading program that you can download to your computer. But I wasn’t able to use the tool, so I can’t say anything about how well it works. Most reputable forex firms offer MT4 or MT5 trading platforms, which have a lot of features.
These systems have many charts, graphs, analysis tools, and other things that make it easy to trade. On the other hand, proprietary trading systems are often known for being “rigged.” So, be careful.
Terms and Conditions That Look Fishy
Kowela has a lot of terms and conditions that look fishy. For example, one of their clauses says that the company can reject or cancel any financial deal if they think it’s necessary.
They could also say no to requests from a bank or any other third party to do a deal. In other words, the company can always refuse your desire to withdraw. If you want to work with them, you will have to agree to these rules.
There are a lot more cases of how sketchy their terms and conditions are. Because of this, I don’t think anyone should join Kowela. There’s a good chance you’ll be taken advantage of.
Kowela is hiding bad reviews by using marketing methods that are against the law:
As I researched Kowela, I found out that someone working for them was putting fake DMCA warnings on their reviews.
It turns out that the agent is looking for reviews that point out problems with this broker. Someone sends a fake DMCA warning when they lie about being the original owner of a piece of content and say that the original content is stolen.
Fake DMCA warnings are often used in online scams and by companies that are out to steal your money.
For example, HULT Private Capital is a financial con artist that tries to hide bad reviews by doing this. MSP Limited is another shady forex company that does the same thing to hide bad reviews from customers.
After reading the above, it’s clear that Kowela is not a company you can trust. It is an offshore dealer, and the Spanish regulator, CNMV, has told them to be careful.
The company has terrible rules for doing business, and its terms of service are pretty sneaky.
Because of these things, I don’t think Kowela is a good person to trade with.
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