A financial service provider is of great importance when it comes to trading in the global financial market. The brokerage firm’s choice plays a crucial role and is the main entity that decides your retunes’ size. With a scam or fraud firm, you can lose entire funds and also your sensitive information. Unfortunately, HotForex falls under the list of scam. It does not abide by any of the points mentioned on its official website: transparent, fair or open. The broker is paying heed only on maximising its wealth, keeping the sentiments of traders at the size.
In this HotForex review 2021, we will discuss everything you need to know before making any decision.
HotForex Scam or safe?
Though one of the oldest firms, the broker has not taken any action to register itself under some authentic financial body. Multiple random and local authorities regulate it. One cannot find out whether these bodies are sound or not. We don’t know why the financial service provider requires a license from multiple jurisdictions instead of a robust regulation from one reputed regulator. There can only be a single reason for this; the broker wants to hide some suspicious activities from its clients.
Moreover, the broker does not provide advanced safeguard tools, robust encryption and SSL protection to secure your sensitive data as well as transaction details. Thus, along with money, your private details are at risk with the firm. We will advise you to think twice before investing and start away with such frauds.
Types of trading account
The broker offers multiple account types, but these trading accounts’ features and services seem to be quite similar. Further, we do not have any data regarding primary and most vital retail account types such as silver, gold and platinum.
The accounts offered contain many unrealistic services, and due to this, the entire thing looks like a major red flag. Additionally, commissions and fees of each trading account are beyond the reach of normal or average investors.
The demo trading account provided by the broker is available for limited days only. Also, the features incorporated on this flatten your ambition for trading and investment. Sometimes it compels traders to give up the financial trading arena.
Trading platforms of HotForex
The entire financial market has shifted its trading operations to MetaTrader 5, and we don’t know why the broker is struck with outdated and conventional Meta Trader 4. Also, it appears as the broker has opted for the cheapest package. The platform lacks numerous features, which are basic and essential for trading.
Also, the working of MT 4 is not easy. There are many complex functions which create much confusion on trader’s part. Unfortunately, the broker has not done anything about these major issues. There are no platform based tutorials or videos. Moreover, it is not feasible to call a customer support team each time when you face such problems.
Fees, commissions and spreads
The fees and commissions charged on trade are extremely high and directly affect the size of returns. The broker charges a high fee on withdrawal, inactivity and holding a trading position overnight.
The broker asks for high and variable spreads that go as high as five pips on some trades. Also, they keep on changing while executing the trade.
Minimum deposit
The broker claims that it takes a minimum deposit of just $5 for opening a trading position. But, the reality is completely opposite. The minimum deposit starts from $5 and goes as high as $500. The home page of the official website is misleading and tries to trap traders by presenting manipulative data.
The high charges demanded by the broker does not do justice with the poor services offered by it. There are many renowned firms which ask for relatively low fees and provide top and advanced features.
Leverage
The broker allows trading on unrealistic margin leverage of 1:1000. Most of the well-established and regulated brokers allow a maximum margin of 1:500 on trade. Moreover, the European Union has fixed this limit to 1:300. Thus, the leverage offered by the broker seems to be a built-up number and creates suspicion in mind.
Also, trading on high leverage is risky. About 80% of traders lose money due to trading on high margin. So, you should try to avoid such risky investments and brokers offering leverage beyond the permissible limit.
Trading instruments and products
There is a very sparse and limited range of tradable assets offered by the HotForex. The assets in each type of market are also restricted. It is the major blockage in diversifying a trading portfolio and declining risk to some extent. Also, traders miss out many potential and good trading opportunities due to this limited range.
Educational resources
The broker’s educational resources are limited and not up to the market. Most of the courses and articles are conventional and need many serious upgradations. Education is an essential factor which leads to success in the financial world. It is clearly visible from the broker’s educational section that it is not serious about educating and enhancing its users’ standard.
Research and market analysis
Research is an important part which helps in making an efficient decision. In the name of a market analysis or research HotForex offers only some outdated instruments such as new and calendars. The financial service provider fails to offer ultra-modern charting tools and advanced calculators.
Customer support service
The customer support service of the broker is unsatisfactory and unacceptable. The broker claims that it offers 24/5 dedicated support, but it completely disappoints when it comes to execution. The live chat option remains offline often and does not provide a relevant answer as a robot operates it. The repose time to answer a call is quite elongated, and same is the case with emails. The team takes three to five long days to revert.
Thus, you do not have any backup to support or answer your queries in case of urgency.
Why should you avoid HotForex?
The various reasons why you should not opt for
- Does not allow scalping
- Conventional research tools
- Poor customer support service
- Outdated educational resources
- Issues with regulation
- Unrealistic leverage
- Extremely high trading charges
- Lacks MetaTrader 5
The Bottom Line
HotForex was established in 2010. It has been more than eleven years, and still, the broker lacks many advance and essential services. The trading charges associated with the trader is beyond the reach of average traders. Regulatory issues and unrealistic leverage of 1:1000 also raise questions on the authenticity of the brokerage firm. It is not the right choice for you. Therefore think twice before investing. It is better to choose other reliable and trustworthy firms over HotForex. This list includes firms like HFTrading, T1markets, PrimeFin, Global TradeATF.
Frequently asked questions
What margin is offered by HotForex?
The broker offers unrealistic leverage of 1:1000. Thus, pushing traders towards risk.
What are the cons of HotForex?
- Poor customer support service
- Outdated educational resources
- Issues with regulation
- Unrealistic leverage
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