Kowela Swindle | Revealing Forex Fraud, Fallacious DMCAs & CNMV Warning (Latest Update 2023)
Kowela is an offshore forex broker which has received several reviews calling it a scam.
The company has shady trading conditions and has even received a warning from Spain’s CNMV.
CNMV, the National Securities Market Commission (Comisión Nacional del Mercado de Valores) is the governmental agency in Spain, to regulates finances in the securities market.
They claim to offer a large variety of currency pairs and commodities you can trade. However, the company’s suspicious nature suggests they might not be as reliable as they make themselves seem.
In the following Kowela review, I’ll give you a detailed overview of this forex broker and help you understand why you should avoid trading with them:
About Kowela: Is It Regulated?
Kowela doesn’t share any information about its license. Clearly, they don’t have a license and are an unregulated broker.
The only thing they share about themselves is the name of their company. Also, their company “Kowela LLC” is based in St Vincent and the Grenadines. SVG is a highly notorious region in the forex industry as it has very lenient regulations.
Furthermore, there is no proof that Kowela is actually based in St Vincent and the Grenadines because the company doesn’t share any physical address. Their address is Suite 214, Kingstown, St Vincent and the Grenadines.
Without a physical address, you can’t verify if the company is actually located in the country it claims to be.
This is a huge red flag and adds further to my suspicions that Kowela is not a regulated broker.
You should be extremely cautious of unregulated brokers as they don’t follow laws and regulations. Furthermore, because they don’t have a license, they don’t get the protection of a serious watchdog like FCA or FINMA.
In many cases, consumers who start dealing with such brokers end up losing a lot of money through the broker’s dubious tactics. For example, many clients of the unregulated broker Tiger Trade Copy complain about losing their entire deposits instantly.
Many reviews of that broker complain about how they show ‘rigged’ trades to dupe traders to make you invest more, only to steal your entire funds.
However, the red flags of Kowela don’t end here. It has plenty of additional issues:
Spanish Regulator Issues A Warning Against Kowela
Spain’s CNMV (Comision Nacionel del Mercado de Valores) has issued a warning against Kowela. CNMV is a prominent financial regulator and it only issues warnings against scams and unregulated financial services providers.
The warning states that Kowela doesn’t have a license to operate in Spain. Without a license from CNMV, it is illegal for Kowela to offer its services in its jurisdiction.
Financial regulators all across the globe issue warnings against forex scams to alert investors.
For example, OmegaPro is a crypto scam that has received warnings from multiple financial regulators for being a Ponzi scheme.
The CNMV warning should be reason enough for you to avoid trading with this broker. However, it has a ton of additional issues I must highlight:
Additional Reasons Why You Should Avoid Kowela:
Apart from the warning by CNMV and the unregulated status of this broker, there are several red flags that suggest it’s a scam.
In the following points of my Kowela review, I have highlighted those red flags for you:
High Minimum Deposit:
The minimum deposit requirement at Kowela is $5,000. They offer multiple trading accounts and the smallest one is called Junior which has a minimum requirement of $5,000.
This is an extremely high requirement as most reputed forex brokers keep their minimum deposit requirement around $10 or below. That’s because a low minimum deposit limit allows traders to test out the broker without facing much financial risk.
On the other hand, scammers tend to keep their minimum deposit limit high to ensure that they can steal at least some substantial sum from every victim.
That’s why you shouldn’t trade with brokers with outrageous minimum deposit requirements.
Other trading accounts available with Kowela are:
- Advanced (Minimum Deposit $25,000)
- Investor (Minimum Deposit $50,000)
- Trader (Minimum Deposit $100,000)
- Trader Pro (Minimum Deposit $250,000)
- VIP (Minimum Deposit $1,000,000)
With the expensive accounts, Kowela claims to offer in-depth investing tools, complex indicators, multiple execution orders, and Islamic accounts.
To open an Islamic account with this forex broker, the minimum deposit you’ll need to make is $250,000.
Certainly, this is a huge drawback.
Kowela offers its clients leverage up to 1:400. This is extremely high.
To give you an idea of how high this is, the highest leverage an FCA-regulated broker can offer is 1:30 while those with a license in the US can only offer leverage up to 1:50.
Regulators keep these limits because new and inexperienced investors can lose their entire deposits within minutes while using such leverage.
You would be better off avoiding this broker to make sure you don’t lose your entire investment quickly.
Poor Trading Platform:
Kowela claims to have its own proprietary trading platform which you can download on your system.
However, I wasn’t able to access the platform so I can’t give any insights into its performance.
It’s worth noting that most reputed forex brokers offer the MT4 or MT5 trading platforms as they have a ton of features.
Those platforms offer plenty of charts, graphs, analysis tools, and more that let you trade easily.
On the other hand, proprietary trading platforms tend to be notorious for being ‘rigged’. Hence, beware.
Shady Terms and Conditions:
Kowela has plenty of shady terms and conditions.
For example, one of their clauses states that the company can reject or cancel any financial transaction if they deem it necessary.
They might also refuse transaction requests from a bank or any other third party.
In other words, the company can cancel your withdrawal request whenever it wants. When you sign up with them, you’ll have to agree with these provisions.
There are plenty more examples of their shady terms and conditions.
That’s why I don’t think anyone should sign up with Kowela. There’s a great chance you will get scammed.
Kowela is Using Illegal Marketing Tactics to Hide Negative Reviews:
While looking into Kowela, I found out that someone representing them was posting fake DMCA notices against their reviews.
Turns out, the representative is specifically targeting reviews that highlight the problems present in this broker.
A fake DMCA notice is when someone fraudulently claims to be the original owner of a piece of content and claims that the actual original content is plagiarized.
Here is the fake DMCA notice I found:
Using fake DMCA notices is quite common among online scams and fraudulent companies.
For example, HULT Private Capital is a financial scammer that uses this tactic to bury negative reviews. Similarly, MSP Limited is another shady forex broker which uses this tactic to hide negative user reviews.
After going through the above points, it’s clear that Kowela is not a reliable company. It is an offshore broker that has received a warning from the Spanish regulator, CNMV.
Due to these reasons, I don’t recommend trading with Kowela.
Kowela is a shady forex broker which has received a warning from Spain’s CNMV. Also, the company has terrible trading conditions and uses illegal marketing tactics to hide negative reviews. Don’t trade with them.
- Illegal marketing tactics
- Received a warning from CNMV