Search
Close this search box.

Hugo’s Way vs. Kot4x: A Comprehensive Broker Comparison

If I had written this article last year, it would have been very different. Back then, Hugo’s Way had no problems with withdrawals, and Kot4x was still an unregulated broker. However, a lot has changed since then. Today, we’ll compare two brokers that have been quite popular, especially in the US: Hugo’s Way vs Kot4x.

User Base

Both Hugo’s Way and Kot4x advertise themselves as global brokers. However, it should be noted that these brokers may not necessarily operate under valid licenses globally. Despite Kot4x recently obtaining its ASIC license, as we’ll discuss later, both brokers have operated or are operating for a significant period without proper licensing or registration.

hugo's way traffic

That said, both brokers are quite popular among traders in the US. The thing about unregulated brokers is that they accept clients from anywhere in the world, even though they aren’t technically supposed to accept clients from just anywhere. Nevertheless, Americans have favored Hugo’s Way for quite some time. Hugo’s Way has been favored by Americans since its inception in 2017, particularly due to its low minimum deposit requirement and wide variety of tradable instruments in forex and crypto, two of the most volatile markets.

kot4x traffic

The reason Americans loved both brokers is that they found trading conditions and tradable instruments that they couldn’t find with other brokers. The compelling possibilities drew people to Kot4x and Hugo’s Way.

why kot4x and hugosway is popular among american traders

Regulations and Safety

hugosway scam warning -min

As I mentioned last year when I was writing the Kot4x review, it was still an unregulated broker, but they were working on obtaining the necessary licenses. They have succeeded in obtaining one of the reputable licenses, ASIC, although it’s worth noting that while licenses and registration are important indicators of a broker’s reliability, it’s still possible to encounter regulated scammers. I haven’t traded with Kot4x or Hugo’s Way for a while, but when I compare both brokers in terms of improvements, I see that Hugo’s Way has been on the losing side since Kot4x obtained its ASIC license, while Hugo’s Way still operates without a license. Not only does Hugo’s Way operate without a license, but they have also received a warning from Spain’s financial authority, CNMV.

kot4x asic regulation

Account Types

I value the variety of account types offered by forex brokers because it allows me to trade in a way that matches my trading style and needs. There are several criteria to consider when choosing account types, including risk tolerance, financial situation, and flexibility.

Hugo’s Way is an ECN forex broker that offers only one account type, while Kot4x has four different account types: Standard, Pro, Var, and Mini. These accounts are all designed for traders at different levels of experience and with different needs. For example, the Standard account offers a spread of 0.8 on its trades, while the Pro account offers 0.4. I won’t go into every detail, but the variety of offerings is something that every trader should look for.

Minimum Deposit Requirements

Being able to trade with a low minimum deposit requirement is important because spreads and commissions might not always be as the broker advertises, especially with unregulated brokers. This way, you’ll be able to test the market before committing further. I will never suggest anything that will jeopardize your safety; therefore, I suggest you look for brokers that are FCA regulated or more reputable.

Fca regulated forex brokers

In this section of our Hugo’s Way and Kot4x comparison, Hugo’s Way gets the round. Why? Because the minimum deposit requirement of Hugo’s Way is only $10, while you need to deposit $25 for trading with Kot4x, and this amount gradually increases as you change the account types. Accessibility is an important aspect of a forex broker, and the minimum deposit is the first and foremost aspect of this accessibility.

Spreads

In this round of the Hugo’s Way vs. Kot4x battle, Hugo’s Way gains the upper hand. The reason being, as an ECN broker, Hugo’s Way offers reasonably low spreads, as low as 0.1 pips, while Kot4x offers varying spreads for different account types.

Hugo’s Way advertises to offer spreads, and spreads are crucial for scalping because scalpers aim to profit from small price movements in the market. When frequently entering and exiting trades within a short timeframe, trades become highly sensitive to transaction costs. The tight spreads that Hugo’s Way offers, reduce the cost of trading for scalpers and allows them to capture small price fluctuations more effectively.

The lowest spread that Kot4x offers is 0.4 pips, and it’s for the Pro account with a $500 minimum deposit requirement. Now, this amount may be normal for scalpers who might want to enter the market with less capital and trade their way up with exotic pairs. However, with Kot4x, you’ll either be squeezed under the minimum deposit requirement or you’ll have to accept the relatively high spreads that come with the accessibility.

low spread forex brokers

Commissions

Commissions at Hugo’s Way are $5 per lot, while Kot4x offers $3.50. It’s reasonable, since Hugo’s Way is an ECN broker and offers naturally low spreads; their primary source of income is through commissions, which Hugo’s Way does. On the other hand, Kot4x offers reasonably low commissions, even though they also generate revenue from spreads. When you consider the industry standards, Kot4x’s spreads are low. I’d say both brokers are cost-effective options.

Conclusion: Which is better, Hugo’s Way or Kot4x?

As we come to the end of this comparison between America’s popular brokers, there are a few aspects that differentiate these brokers. I believe that the main difference between these brokers is the desire to improve. Like I’ve said several times before, the outcome of this comparison would have changed drastically if Kot4x hadn’t been trying to improve.

Hugo’s Way has long been favored by American traders for its low minimum deposit and diverse range of forex and crypto pairs. What made Kot4x stand out is that it tried to be better and worked on its regulatory profile and license for more reliability and security. Kot4x recently obtained its ASIC license, even though it’s not enough to say that it’s safe to trade with them. Kot4x has come a long way.

Account types are what make a broker’s experience rich and well-designed. When we compare Kot4x and Hugo’s Way in terms of account types, we see that the variety at Kot4x is much more suitable for traders with different needs. This variety allows you to trade with different spread and minimum deposit conditions. On the other hand, Hugo’s Way offers only one account type, which makes it harder to use for different trading strategies.

Another aspect that differentiates the two brokers is the spreads. Hugo’s Way is an ECN forex broker and by its nature, it offers low spreads. This, along with the broker’s positive approach to scalping, makes it an ideal choice between these brokers. Hugo’s Way’s spreads are as low as 0.1 pips, while Kot4x’s lowest spreads are around 0.4 pips per lot.

We said that the spreads are quite low at Hugo’s Way, but what about commissions? A broker has to make money somehow, and Hugo’s Way relies on commissions. While Kot4x keeps its commissions around $3.50, Hugo’s Way goes up to $5 per lot traded. Even though Hugo’s Way offers higher commissions, the advantage of low spreads shines in high-volume trades.

Overall, if you are going for high-volume trading, Hugo’s Way might be the more cost-effective option. However, if you are planning on trading low volumes, you can go for Kot4x. For me, safety is the most important thing. Even though between these brokers Kot4x seems to be the reliable option with its ASIC license, it’s always better to trade with brokers that hold more reputable licenses and have a rich history.