I play low stakes online poker (0.01/0.02) and I really don't know what to do in the following situation. I am in late position, say the cut-off, and 3 players before me all limp. I have a good KQs and raise to 0.08 (I want to get the limpers out) and then all the limpers call and I go to the flop 5 or 6 handed (button and BB called to). Is the 4x raise bad or what do I do against limpers?
When everybody plays really loose, you should play really tight. So you should fold a lot of hands. Poker isn't about seeing flops and hitting hands. It is about winning money.
So wait for a very good hand and then raise BIG pre-flop. Try something like 15x. If they call you have a massive advantage post flop, since you have a much stronger range. You want to play against ideally one other player. A very big sizing accomplishes this. If they all fold, maybe size down a bit next time, but definitely don't go too small.
When you have well connected, but not particularly strong hands like KQs in the situation that you described, it is fine to limp along. Your hand benefits a lot from seeing a cheap flop. Against calling stations you should only blow up the pot with a premium hand.
Kind of disagree with @raymond so i'll add my own answer.
When everyone plays really loose, i find that loosening up is quite profitable (but still tighter than the rest). IE if my opening range is about 20%, but half the table is playing 80% of hands, then ill start to open up wider (maybe 35%). This gives me an opportunity to play more hands with a stronger range, and i would need to worry less about dominated hands like KJ, AT, etc.
KQs to me is definitely premium enough in position to start building a pot. You're not really here to steal blinds, you want a reasonable pot you can outplay and take down postflop. Hence i'd be raising somewhere between 7-9BB. You want to put hands that limp in tough positions, and you want junk hands to call. A hand like J9o or A7o can easily call the 4x, and easily fold the 15x.
Against multiple callers its likely profitable to never bluff. Most of the time if you hit a pair it would be top pair, and you should hit it enough to be +EV multiway. Headsup you may need to consider how your opponent tends to play, his aggression etc, before considering how to proceed.