KBC Trading Review

WHO IS KBC TRADING?

According to research in South Africa, KBC Trading and Capital Investment Limited (also referred to as KBC trading) is a Forex Trading and Capital Investment Company, with headquarters in the United Kingdom (UK).

The company also has new offices in the United Arab Emirates (UAE) and in other parts of the world.

Information on the internet about the company is sketchy. The website reveals little to no information regarding trading platforms, research, leverage or if they are regulated. Investors should take considerable precautions before trading with them.

SAFE OR SCAM?

One of the best benchmarks to measure the safety of a broker like KBC Trading, is to establish which regulating authorities are watchdogs over its actions.

No regulating authorities are mentioned on their website, and it could therefore be assumed that this company leans more to scam than safety.

PROS AND CONS

LEVERAGE

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

KBC Trading does not specify what maximum leverage they offer.

ACCOUNTS

A forex account at KBC Trading is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

KBC Trading offers the following types of accounts:

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

KBC Trading offers the following of the above: multi-currency trading in the Forex market to trading activity on the stock exchange, Cryptocurrency market and investments in promising Fintech start-ups.

FEES

Cost depends on different factors, like spread and margins, and KBC clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

KBC Trading states on their website that they do not charge any fees. The profit that they make from overall investments is apparently enough for them.  However, payment processors may charge traders with receiving fees and they have no control over that.

DEPOSIT AND WITHDRAWAL

Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of KBC Trading the minimum deposit is $10. Deposits and withdrawals can be done through credit or debit cards or a bank wire.

TRADING PLATFORMS

The forex trading platform provided by KBC Trading to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

KBC Trading only advertise a Mobile Trading app on their website.  A Mobile App provides quicker access and KBC Trading has an app for IOS and Android.

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with KBC Trading for the first time, you will be required to go through a basic “know your customer” process, which will allow KBC Trading to ascertain that your submitted details and ensure the safety of your funds.

Customers can open a live account directly through the KBC website using the process outlined above.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of KBC Trading customers can reach the support team via email, live chat and telephone.

Their customer service is advertised as available 24/7 and 365 days a year and ready to answer your questions. Their website also states that managers are available for support and you can get in touch with a support team member within a second at any given time.

EDUCATION

Before starting to trade, potential clients of KBC Trading should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

KBC Trading offers an Institute which is the training arm of the organization that trains students on how to navigate the Forex market for profitability.

It also offers a free three month mentorship for graduates of the institute to ensure their success in the Forex Market. The course costs between $750 – $2,400.

RESEARCH

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

KBC Trading state they have a newsletter clients can subscribe to regarding trends in the market.

Their website also states that they have professional traders who do three things that amateurs often forget. They plan a trading strategy, they monitor market daily and they diarize, track, and analyse each of their trades.

AWARDS

Although KBC Trading is acclaimed by some customers, there is no indication of awards won on its homepage.

CONCLUSION

KBC Trading can be described as a company that warrants some scrutiny before investing with them.

They do seem to offer a whole institute for learning regarding trading and offer excellent percentages.

Their website also states that they have professional traders who do three things others often do not: they plan a trading strategy, they monitor market daily and they diarize, track, and analyse each of their trades.

The worrying factor is the lack of information on their website and the negative feedback from a few investors regarding great losses after trading with them.

DISCLAIMER

KBC Trading warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with KBC Trading, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

KBC Trading warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable.

KBC Trading cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with KBC Trading?

You can trade several different instruments with KBC Trading, which include the following:

• Forex
• Cryptocurrency market
• Investments in promising Fintech start-ups.

Which platforms are supported by KBC Trading?

KBC Trading provides the following:

• Mobile Trading App

Does KBC Trading offer leverage?

No, KBC does not specify a leverage amount.

What spreads can I expect with KBC Trading?

If details on the website are not comprehensive, more information can be obtained from the customer support service.

Does KBC Trading charge commission?

No, more information on commissions can be obtained from the customer support service.

Is KBC Trading regulated?

Nothing is stated on their website about any regularity bodies.

Is KBC Trading a recommended forex trading broker for experts and beginners?

KBC Trading offers a trading environment for all types of traders from beginners to experienced traders.

What is the overall rating out of 10 for KBC Trading?

2/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does KBC Trading offer a demo account?

No

How long is the demo account valid?

KBC Trading does not offer a demo account on their website.

Which live trading accounts does KBC Trading offer?

• Trial Daily
• Standard Daily
• Smart Accumulator

What are the available deposit currencies for a live trading account?

Multiple currencies are accepted.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for KBC Trading?

$ 10 is the minimum amount.

How do you make a deposit and withdrawal with KBC Trading?

KBC Trading offers the following deposit and withdrawal methods:

• Credit
• Debit cards
• Bank wire

Withdrawals can be done via:

• Credit
• Debit cards.
• Bank wire

Does KBC Trading charge withdrawal fees?

No, but fees from financial institution may apply.

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.