Korvato Review - VerifyAlgo Safety Score: 13.2/100
- Verify Algo
- Oct 22
- 15 min read
Updated: Oct 22
Safety Score Breakdown
U.S. Regulated Brokers Only: 0/20 ❌
U.S. Regulated Markets Only: 0/20 ❌
Reputation Score (Trustpilot): 8.2/10 ⭐⭐⭐⭐
Dangerous Strategies (Low Score = Bad, High Score = Good): 0/20 ❌
Drawdown History (Low Score = Bad, High Score = Good): 0/20 ❌
Performance Transparency: 5/10 ⚠️
Total Score: 13.2/100
Risk Assessment: Does not meet VerifyAlgo safety standards
Recommendation: Korvato does not meet VerifyAlgo's safety criteria across multiple categories. The service uses offshore brokers, operates in unregulated forex markets, employs Martingale strategies, uses hedging techniques involving simultaneous long and short positions on the same currency pair, has a documented complete account loss (October 2024), and provides single-account performance tracking through MyFXBook/FXBlue that may reflect balance rather than equity. The service receives above-average client feedback (4.1/5.0 Trustpilot). Prospective clients should carefully evaluate these factors.
Executive Summary
Korvato (korvato.com) provides algorithmic trading services for forex markets, marketing their system as "AI"-powered. According to the company's Trustpilot profile, they have a rating of 4.1/5.0. VerifyAlgo's analysis finds that Korvato does not meet safety standards across multiple criteria: the service uses offshore brokers, operates in unregulated forex spot markets rather than using available CME-listed currency futures, employs Martingale strategies, uses hedging involving simultaneous long and short positions on the same currency pair (a technique prohibited on U.S. regulated forex brokers), has at least one documented complete account loss (October 2024), and provides single-account performance tracking through FXBlue/MyFXBook that may report balance rather than equity. With a score of 13.2/100, Korvato demonstrates above-average client satisfaction among reviewers but does not meet structural safety criteria.
Detailed Score Breakdown
1. U.S. Regulated Brokers Only: 0/20 Points ❌
VerifyAlgo Criterion: Services must exclusively use U.S. NFA/CFTC regulated brokers.
Finding: Korvato uses offshore brokers.
Documentation: According to available information, Korvato does not restrict operations to U.S. NFA/CFTC registered brokers.
Educational context:
U.S. NFA/CFTC registered brokers provide:
Regulatory oversight and compliance requirements
Mandatory minimum capital requirements
Segregated client funds
Regular financial reporting and audits
Regulatory recourse through NFA arbitration
Offshore brokers:
Operate under different regulatory frameworks
May have different client fund protection structures
Provide different legal recourse options
Vary in regulatory status by jurisdiction
Score rationale: Korvato does not exclusively use U.S. regulated brokers. Zero points awarded in this category.
2. U.S. Regulated Markets Only: 0/20 Points ❌
VerifyAlgo Criterion: Services must operate exclusively in U.S. regulated markets with centralized clearing.
Finding: Korvato operates in forex spot markets rather than CME-listed currency futures.
Documentation: According to available information, Korvato provides forex spot trading services.
Regulated Currency Futures Context:
CME Group offers centrally cleared, CFTC-regulated currency futures.
According to CME Group's FX Product Guide (https://www.cmegroup.com/markets/fx/fx-product-guide.html#micros-minis), regulated currency futures include:
Available regulated products:
Major currency pairs (EUR/USD, GBP/USD, USD/JPY, etc.)
Micro and mini contract sizes
E-mini FX futures
Standard, E-mini, and Micro contracts
These regulated currency futures provide:
Centralized clearing through CME Clearing
CFTC oversight
Transparent centralized pricing
Standardized contracts
Daily settlement
Position limits
Access through NFA-registered brokers
Educational context - forex spot vs. CME currency futures:
Forex spot markets:
No centralized clearinghouse
Broker acts as counterparty to client trades
Pricing set by individual brokers
Regulatory oversight varies by jurisdiction
Different execution structures
CME currency futures:
Centralized CME Clearing
Exchange clearing
Centralized transparent pricing
CFTC regulatory oversight
Standardized specifications
Traded through U.S. NFA/CFTC registered brokers
Hedging technique context:
According to available information, Korvato employs a hedging technique involving simultaneous long and short positions on the same currency pair.
NFA regulations:
The NFA prohibits forex dealers from allowing customers to maintain multiple positions in the same currency pair on opposite sides simultaneously (FIFO rule).
Educational note:
Taking both long and short positions on the same currency pair:
Creates offsetting positions
Results in doubled transaction costs (spread/commission paid twice)
Produces net zero directional exposure
Is prohibited on U.S. regulated forex brokers under NFA FIFO rule
By operating in forex spot markets through offshore brokers, services can implement this technique.
Score rationale: Regulated currency futures on CME provide access to currency pair markets with centralized clearing and CFTC oversight. Korvato operates in forex spot markets using techniques prohibited on U.S. regulated forex brokers. Zero points awarded in this category.
3. Reputation Score: 8.2/10 Points ⭐⭐⭐⭐
Trustpilot Rating: 4.1/5.0VerifyAlgo Reputation Score: 8.2/10 (Trustpilot rating × 2)
Client feedback themes:
Based on Trustpilot reviews, positive themes include:
Customer service experiences
System performance during certain periods
Communication and support interactions
Based on Trustpilot reviews, feedback about performance includes:
Account losses and drawdowns
Strategy experiences
Performance variations across different time periods
October 2024 account loss:
At least one client review documents a complete account loss in October 2024.
Educational context:
A 4.1/5.0 Trustpilot rating represents above-average client satisfaction. This rating reflects experiences of clients who left reviews.
Score rationale: The Trustpilot rating of 4.1/5.0 converts to 8.2/10 using VerifyAlgo's scoring methodology (Trustpilot score × 2).
4. Dangerous Strategies: 0/20 Points ❌
VerifyAlgo Criterion: Services must not use Martingale, grid trading, or similar unlimited-risk strategies.
Finding: Korvato employs Martingale strategies.
Documentation: According to available information, Korvato uses Martingale position-sizing methodology.
Educational context - Martingale strategies:
Martingale strategies involve:
Increasing position sizes after losses
Attempting to recover prior losses with subsequent winning trades
Continued position size increases during adverse movements
Can result in large accumulated positions
The Martingale mechanism:
Initial position opens
If position moves favorably, closes with gain
If position moves unfavorably, position size increases
Process continues during adverse movements
Eventually position sizes may exceed available margin
Can result in large losses
Mathematical characteristics:
Pattern of frequent small gains
Occasional large losses
Each position increase requires additional capital
Results depend on market conditions and available margin
All trading strategies carry risk; Martingale has specific risk characteristics
The hedging component:
According to available information, Korvato also employs a hedging technique involving simultaneous long and short positions on the same currency pair.
Educational context on same-pair positioning:
Taking both long and short positions on the same currency pair:
Creates offsetting positions
Results in doubled transaction costs
Nets to zero directional exposure
Prohibited on U.S. regulated forex brokers under NFA FIFO rule
Combined approach pattern:
System opens initial position
If adverse, may increase position in same direction (Martingale)
If continues adverse, may open opposite position (same-pair positioning)
Both long and short positions may be open simultaneously
Continues managing positions during market movements
Eventually positions close or reach margin limits
NFA prohibition context:
The NFA's FIFO rule prohibits same-pair opposite positioning on U.S. regulated forex brokers. This rule exists because this technique:
Doubles transaction costs
Creates zero net directional exposure
Can complicate position tracking
Is restricted under U.S. forex regulations
By operating through offshore brokers in unregulated forex markets, services can implement this technique.
Score rationale: Korvato employs Martingale strategies and same-pair positioning techniques that are prohibited on U.S. regulated forex brokers. Zero points awarded in this category.
5. Drawdown History (Low Score = Bad, High Score = Good): 0/20 Points ❌
VerifyAlgo Criterion: No documented complete account losses.
Finding: At least one client reports complete account loss in October 2024.
Documentation: According to client testimony, at least one user experienced a complete account loss in October 2024.
Educational context:
A complete account loss represents total or near-total loss of account capital.
The October 2024 account loss:
This documented loss occurred during October 2024. Market conditions during that period affected results.
Martingale and account outcomes:
Systems using Martingale strategies can experience:
Gains during certain market conditions
Losses during other market conditions
Outcomes that vary based on timing and market movements
Results that differ across clients based on enrollment timing
Educational context on timing:
October 2024 market conditions may have included:
Specific volatility levels
Directional moves in currency markets
Various market events
Conditions affecting position management
Client experience variation:
With Martingale strategies, outcomes can vary:
Some clients experience gains during favorable periods
Other clients experience losses during adverse periods
Timing of enrollment affects individual results
Market conditions determine outcomes
This variation can explain mixed client feedback: clients enrolling and trading during different periods may experience different results.
Score rationale: Documented complete account loss in October 2024. Zero points awarded in this category.
6. Performance Transparency: 5/10 Points ⚠️
VerifyAlgo Criterion: Third-party verified performance through platforms like MyFXBook or model account methodology showing representative client results.
Finding: Korvato provides FXBlue and MyFXBook tracking for individual accounts.
Documentation: According to available information, Korvato uses FXBlue and MyFXBook for performance tracking.
Positive element - third-party verification:
FXBlue and MyFXBook provide third-party verification, which offers:
Independent data confirmation
Prevention of manual result manipulation
Real-time trade tracking
Auditable historical data
This represents a meaningful transparency effort.
Critical Context: Balance vs. Equity Reporting
Important limitation of MyFXBook for forex services:
MyFXBook and FXBlue typically report based on balance (closed, realized trades) rather than equity (current account value including unrealized positions).
Why this matters:
Many forex algorithmic systems, particularly those using Martingale or position-holding strategies, may carry open positions with unrealized losses that are not reflected in MyFXBook reporting until positions close.
What this means:
MyFXBook shows: Balance performance from closed trades
Account reality: Equity may differ due to open positions with unrealized gains or losses
The difference: MyFXBook balance can show one performance level while account equity shows another
Example scenario:
MyFXBook reports: +15% (based on balance from closed trades)
Actual account equity: -30% (including unrealized losses from open positions)
Unrealized losses only appear in MyFXBook when positions eventually close
Educational context:
This balance vs. equity distinction is particularly relevant for:
Martingale strategies (may carry unrealized losses during position management)
Grid strategies (accumulate multiple open positions)
Hedging strategies (maintain offsetting open positions)
Any system holding positions during adverse movements
Limitation - single-account tracking:
Single-account tracking:
Shows individual account performance
May not represent typical client results across all users
Cannot show distribution of outcomes across client base
May represent accounts during specific time periods or with specific parameters
The October 2024 loss context:
The documented complete account loss in October 2024 may not be reflected in displayed MyFXBook accounts if those accounts:
Were not active during October 2024
Use different settings
Represent different time periods
Show accounts with different outcomes
What single-account tracking provides:
Third-party verification of displayed account
Real-time trade data for that account
Historical performance of that account
Independent confirmation preventing manipulation
What single-account tracking cannot provide:
Representative client experience across all users
Percentage of clients experiencing various outcomes
Distribution of results across client base
Whether displayed performance represents balance or equity
Contrast with highest transparency (10/10):
Services receiving full transparency points would provide:
Brokerage statements: Direct confirmation from brokers showing actual equity
Aggregate reporting: Real-life fills of all users using the product
Model account methodology: Average performance across all clients
Equity-based reporting: Performance including unrealized positions, not just balance
Outcome distribution: Percentage experiencing gains, losses, complete losses
Clear labeling: Whether reported performance is balance or equity
For systems using Martingale strategies, comprehensive transparency would show:
What percentage of accounts showed gains?
What percentage experienced losses or complete losses?
How much unrealized loss do accounts typically carry?
What was the October 2024 experience across all accounts?
Are reported MyFXBook results based on balance or equity?
Single-account balance-based tracking cannot answer these questions.
Why 5/10:
Credit awarded (5 points):
Uses FXBlue and MyFXBook third-party verification
Provides independently verified performance data
Prevents manual result manipulation
Demonstrates transparency commitment
Credit withheld (5 points):
Single-account tracking rather than aggregate reporting
No brokerage statements provided showing actual equity
No model account showing average of all user fills
No clarification whether MyFXBook shows balance or equity
Cannot verify typical client experience including unrealized positions
Particularly important for Martingale strategies where unrealized losses may not appear in MyFXBook balance reporting
Score rationale: Korvato provides third-party verified performance through FXBlue and MyFXBook (positive), but does not provide brokerage statements, aggregate reporting of real-life fills across all users, or clarification of balance vs. equity reporting. 5/10 points awarded.
Score Summary
U.S. Regulated Brokers (20%): 0/20 — Uses offshore brokers
U.S. Regulated Markets (20%): 0/20 — Operates in forex spot markets; regulated CME currency futures available; uses techniques prohibited on U.S. regulated forex brokers
Reputation Score (10%): 8.2/10 — Trustpilot rating of 4.1/5.0
Dangerous Strategies (20%): 0/20 — Employs Martingale strategies and same-pair positioning
Drawdown History (20%): 0/20 — Documented complete account loss in October 2024
Performance Transparency (10%): 5/10 — Third-party verified accounts (FXBlue/MyFXBook); no brokerage statements, aggregate reporting, or balance vs. equity clarification
Total VerifyAlgo Safety Score: 13.2/100
Educational Analysis
What the score means:
A score of 13.2/100 indicates Korvato does not meet VerifyAlgo's safety standards across most criteria. The service scores points in reputation (8.2/10 based on 4.1/5.0 Trustpilot rating) and partial points in transparency (5/10 for third-party verification without aggregate reporting).
Key findings:
Broker structure: Uses offshore brokers rather than U.S. regulated brokers
Market structure: Operates in forex spot markets; regulated CME currency futures available but not used
Strategy methodology: Employs Martingale strategies and same-pair positioning prohibited on U.S. regulated brokers
Risk history: Documented complete account loss in October 2024
Transparency: Third-party verification (positive); single-account tracking without balance vs. equity clarification
Client feedback: Above-average Trustpilot rating (4.1/5.0)
Understanding Balance vs. Equity in Forex Performance
What prospective clients must understand:
For forex algorithmic trading services, the distinction between balance and equity is essential.
Balance:
Shows closed, realized trades only
Reflects profits/losses from positions that have been closed
Does not include open positions
MyFXBook typically reports balance
Equity:
Shows current account value
Includes unrealized gains/losses from open positions
Reflects what you could withdraw today
What you see in your broker account
What determines margin requirements
Why this matters for Korvato:
With Martingale strategies that may hold positions during adverse movements:
MyFXBook may show: Balance performance from closed trades
Your account shows: Equity including unrealized positions
During drawdowns: These can differ significantly
Example scenario:
MyFXBook balance: +20% (from closed profitable trades)
Your account equity: -25% (including large unrealized losses from open positions)
The difference: 45 percentage points
What you experience:
Your emotional response is based on equity (what you see in account)
Your withdrawal ability is based on equity
Your margin calls are based on equity
MyFXBook balance shows different numbers
Questions to ask Korvato:
Do your displayed MyFXBook accounts show balance or equity?
How much unrealized loss do accounts typically carry during drawdowns?
Can you provide equity-based performance alongside balance?
During October 2024, what were equity levels before the documented complete loss?
What percentage of accounts currently have significant unrealized losses?
Strategy Explanation
What prospective clients should understand:
Korvato employs Martingale position sizing combined with same-pair positioning.
The Martingale approach:
System opens initial position
If position is profitable, closes with gain
If position moves unfavorably, position size increases
If continues unfavorably, positions continue increasing
Eventually position sizes may reach margin capacity
Positions remain open during management process
The same-pair positioning:
System may open long position on currency pair (e.g., EUR/USD)
If adverse, may increase long position size (Martingale)
If continues adverse, may open short position on same pair (EUR/USD)
Both long EUR/USD and short EUR/USD positions open simultaneously
Continue managing positions during market movements
Educational context:
Taking simultaneous long and short positions on same currency pair:
Creates offsetting positions (profits on one side, losses on other)
Results in doubled transaction costs (spreads paid twice)
Produces zero net directional exposure
Is prohibited on U.S. regulated forex brokers under NFA FIFO rule
Why NFA prohibits this technique:
The NFA's FIFO rule exists because this technique:
Doubles transaction costs without providing actual hedge
Can complicate position and risk assessment
Results in zero net exposure while paying costs twice
U.S. regulations restrict this practice to protect traders
By operating through offshore brokers in unregulated forex markets, services can implement techniques prohibited under U.S. regulations.
The balance vs. equity issue:
During this process:
System may close some profitable trades (improves balance, shows in MyFXBook)
System may hold large unrealized losses in open positions (reduces equity, may not show in MyFXBook balance until closed)
Your account equity can be significantly lower than MyFXBook balance suggests
The October 2024 Account Loss
The documented evidence:
At least one client reports complete account loss in October 2024.
What this represents:
A complete account loss occurred during October 2024
Market conditions during that period affected results
This outcome is documented in client testimony
Context for prospective clients:
With Martingale strategies, outcomes can vary:
Some clients experience gains during favorable market conditions
Other clients experience losses during adverse conditions
Timing of enrollment relative to market conditions affects individual results
The October 2024 loss demonstrates that complete losses can occur
Questions for prospective clients:
Before considering Korvato, investors should understand:
How many total clients experienced complete losses in October 2024?
What percentage of active accounts were affected?
What market conditions contributed to the loss?
What, if anything, has changed since October 2024?
What percentage of accounts have experienced complete losses historically?
Are current accounts at risk of similar outcomes?
Single-account MyFXBook tracking cannot answer these questions about overall client outcomes.
Considerations for Investors
What this review provides:
This analysis is educational and based on:
Available information about strategy and operations
Trustpilot reviews (4.1/5.0 rating)
Documented Martingale strategy use
Documented same-pair positioning technique
Documented October 2024 complete account loss
CME Group's publicly available currency futures products
NFA regulations on same-pair positioning
Educational context on balance vs. equity reporting
Objective application of VerifyAlgo's safety criteria
Understanding the score:
13.2/100 reflects:
Does not use U.S. regulated brokers
Does not operate in U.S. regulated markets (CME currency futures available)
Employs Martingale strategies
Uses same-pair positioning prohibited on U.S. regulated brokers
Has documented complete account loss
Provides third-party verification (positive) but no aggregate reporting or balance vs. equity clarification
Receives above-average client satisfaction among reviewers
Critical questions for prospective investors:
About brokers and regulation:
Which offshore brokers are used?
What client fund protections exist with offshore brokers?
Why not use U.S. regulated brokers and CME currency futures?
What recourse options exist if issues arise?
About markets:
Why operate in unregulated forex spot rather than regulated CME currency futures?
What advantages does forex spot provide?
Do clients understand regulated alternatives exist?
About strategy:
How exactly does the Martingale position sizing work?
At what point does position increasing stop?
How does the same-pair positioning work?
Why is same-pair positioning prohibited on U.S. regulated brokers?
What is the maximum position size the system can reach?
About the October 2024 loss:
How many clients experienced complete losses in October 2024?
What percentage of total active accounts were affected?
What specific market conditions contributed?
What has changed to address this?
What prevents this from happening to current or future accounts?
About performance and transparency:
Do your MyFXBook accounts show balance or equity?
How much unrealized loss do accounts typically carry?
What percentage of all clients have experienced complete losses?
What percentage currently have significant unrealized losses?
Why show only single accounts rather than aggregate statistics?
Can you provide brokerage statements showing actual equity?
Can you provide aggregate reporting of all user fills?
About risk assessment:
What is the maximum equity drawdown clients should expect?
How long do unrealized losses typically persist?
What protections exist against margin calls?
At what point would the system stop adding to positions?
Personal assessment:
Before considering Korvato, honestly assess:
Can I afford to lose 100% of my trading account?
Do I understand how Martingale position sizing works?
Do I understand the difference between balance and equity?
Do I understand that MyFXBook may show balance while my account shows lower equity?
Do I understand how same-pair positioning works?
Am I comfortable with offshore broker usage?
Do I understand why these techniques are prohibited on U.S. regulated brokers?
Can I tolerate potentially large unrealized losses for extended periods?
Comparison Context
How Korvato compares within VerifyAlgo framework:
Positive elements:
Above-average Trustpilot rating (4.1/5.0)
Third-party performance tracking (FXBlue, MyFXBook)
Independent verification preventing manual manipulation
Areas not meeting VerifyAlgo criteria:
Offshore broker structure
Unregulated forex spot market (regulated alternatives exist)
Martingale strategies
Same-pair positioning prohibited on U.S. regulated brokers
Documented complete account loss
Single-account tracking without aggregate reporting
No balance vs. equity clarification
Score context:
Services at 80-90/100: Meet all VerifyAlgo criteria
Services at 60-70/100: Meet most criteria with limited gaps
Services at 40-60/100: Mixed profiles with some concerns
Services at 20-40/100: Multiple areas not meeting criteria
Korvato at 13.2/100: Does not meet most safety criteria
Services at 0-10/100: Fundamental structural issues
Understanding the Trustpilot Rating
Why the 4.1/5.0 rating with documented complete losses:
The Trustpilot rating reflects experiences of clients who left reviews. With Martingale strategies, outcomes can vary based on timing:
Timing affects outcomes:
Clients enrolling during favorable market conditions may experience gains
Clients enrolling before adverse conditions may experience losses
Different enrollment timing produces different results
Market conditions determine which clients experience which outcomes
This explains mixed feedback:
Some clients report positive experiences during favorable periods
At least one client reports complete loss during October 2024
Rating reflects those who left reviews
Outcomes vary based on when clients enrolled and traded
Educational context:
A service can maintain above-average ratings while experiencing documented complete losses when:
Majority of clients experience favorable outcomes during certain periods
Smaller percentage experience adverse outcomes during other periods
Those with positive experiences outnumber those with losses in review population
Ratings reflect current reviewers, not all historical outcomes
This is not unique to Korvato; it is a characteristic of how Trustpilot ratings work for services where outcomes vary significantly across clients and time periods.
Methodology Note
This review applies VerifyAlgo's safety framework objectively:
Scores reflect criteria alignment: Each category has defined standards
Documentation based on: Available information, Trustpilot reviews, NFA regulations, CME products, educational context on forex reporting
Analysis is educational: Intended to help investors understand factors and make informed decisions
Factual reporting: Review reports documented information and applies objective criteria
No intent to harm: Review is for educational purposes to help investors understand safety factors
What VerifyAlgo scores measure:
✅ Regulatory structure (broker and market oversight)
✅ Strategy methodology (Martingale, position sizing, hedging techniques)
✅ Historical outcomes (documented losses)
✅ Performance transparency (verification methods, aggregate reporting, balance vs. equity)
✅ Independent client feedback
What VerifyAlgo scores do NOT measure:
❌ Current client profitability (many may currently show positive results)
❌ Marketing effectiveness or "AI" terminology
❌ Customer service quality
❌ Whether specific accounts will experience particular outcomes
❌ Company intentions or character
Important context:
The 13.2/100 score reflects:
Strategy characteristics (Martingale, same-pair positioning)
Regulatory structure (offshore brokers, unregulated markets)
Historical outcomes (documented October 2024 complete loss)
Transparency limitations (single-account tracking, no balance vs. equity clarification)
Client feedback (above-average Trustpilot rating)
Many Korvato clients may currently have positive experiences. The score reflects documented strategy characteristics, regulatory structure, and the October 2024 complete loss.
Company Response
Korvato may contact VerifyAlgo to provide additional information or clarification regarding:
Strategy methodology and risk management protocols
Aggregate client outcome statistics across all users
October 2024 loss details (number of accounts affected, percentage of client base, causative factors)
Balance vs. equity clarification for MyFXBook reporting
Brokerage statements showing actual client equity
Model account methodology showing average of all user fills
Consideration of CME currency futures as regulated alternative
VerifyAlgo will review any submitted documentation and update this analysis within 5 business days if factual corrections are warranted.
Specific invitation:
If Korvato can provide:
Aggregate statistics showing percentage of clients experiencing gains, losses, and complete losses
Clarification of whether MyFXBook shows balance or equity
Brokerage statements demonstrating actual equity performance
Explanation of risk controls that have been implemented since October 2024
Model account methodology showing average of all user fills
VerifyAlgo would review this documentation and update the assessment accordingly.
Sources:
Trustpilot reviews (korvato.com): 4.1/5.0 rating
Available information regarding Martingale strategy use
Available information regarding same-pair positioning technique
Documented October 2024 complete account loss
NFA regulations on same-pair positioning (FIFO rule)
CME Group FX Product Guide (https://www.cmegroup.com/markets/fx/fx-product-guide.html#micros-minis)
Educational context on MyFXBook balance vs. equity reporting for forex services
Company website (korvato.com)
VerifyAlgo safety framework criteria
