HedgeSpots – Can You Trust Them?

Website URL: www.hedgespots.com

Founded: 2019

Regulations: Unlicensed

Languages: English, Arabic

Deposit Methods: Visa, MasterCard, Skrill, American Express

Minimum Deposit: €1,000

Free Demo Account: None Available

Number of Assets: Not Mentioned

Types of Assets: Stocks, Indices, Forex, Cryptocurrencies, Commodities

Trading Accounts and Conditions

HedgeSpots offers its customers the following types of trading accounts:

• Opening: To use this account, you first need to deposit €1,000. There is no interest charged on this account.
• Horizon: The minimum deposit requirement for this account is €5,000. You are charged a 3% interest on this account.
• Heritage: To use the Heritage Account, the minimum deposit you need to make is €15,000. You are charged a 4% interest on this account.
• Fortune: The minimum amount you need to deposit is €50,000. You are charged a 5% interest on this account.
• Great Fortune: For this account type, the minimum deposit requirement is €150,000. The interest charged on this account is 6%.
• Infinite: For this account, the minimum deposit you are required to make is €300,000 and you will be charged an interest of 7%.

There is no mentioned of what the leverage ratios are or even what spreads are offered. The broker only mentions that they do not charge any brokerage fees.

HedgeSpots – Advantages

There are so many things wrong with this broker that we cannot list any advantages you may have trading with them. Read on to find out more.

HedgeSpots – Disadvantages

• Confusing Corporate Information

On its homepage, HedgeSpots claims to be owned by a company called Get Promotions LTD, a company that is based in Sofia, Bulgaria. However, in the broker’s Terms and Conditions page, it is stated that the agreement is being signed between you (the trader) and a company called Morgancapitalinv. There is absolutely no information provided about this company – no address, no telephone number – nothing!

And then the broker provides 4 different contact numbers in the UK, in the Netherlands, in Sweden and in Bahrain.

This hodge-podge of corporate information actually reveals that this broker is anonymous.

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• Lack of Regulation

There is no information on HedgeSpots’ website about its regulatory status. The only thing we know is that this broker – in its Terms and Conditions – clearly states that all their Terms and Conditions are governed by the laws of the United Kingdom.

So, since we did not have a license or registration number, we were forced to manually check this broker’s regulation status. And since there are 4 different countries mentioned on their website – Bulgaria, UK, Netherlands, Sweden, and Bahrain – we decided to check the online registers of all financial authorities in those countries.

Unsurprisingly, we did not find any trace of this broker, its parent company Get Promotions LTD or even that mysterious company Morgancapitalinv.

All of our investigations have proved that this broker is operating anonymously and without a license. This is the worst possible combination and indicates a scam operation.

• No Information on Trading Conditions

HedgeSpots does not provide any information about its trading conditions. We do not know what the leverage ratios or spreads are. All we know is that you will be charged interest rates on all the accounts except the most basic.

The trading conditions a broker sets tell you how much each trade you carry out with them will cost. So, if you do decide to trade with HedgeSpots, you will basically be going in blind – you will not know how much of your money will be taken in trading costs.

• High Minimum Deposit Requirement

The minimum deposit requirement to open an account with HedgeSpots is €1,000, which is ridiculously high. The average minimum deposit requirement for most brokerages is between $100 and $250, so a €1,000 requirement is about 4 times higher than the market average.

• Contradictory Information on Commissions

On its Account Types page, HedgeSpots claims to charge no commissions, however, when you check their Platforms page, the broker says that they charge low commissions, but do not mention any figure. Such contradictions show that this broker is trying to hoodwink you into investing with them.

• High Dormant Fee Charged

In the Terms and Conditions, HedgeSpots states that if you do not trade on your account for a period of 6 months, then they will charge you a Dormant Fee of 10% every month. While the time period for dormancy is on the shorter side, it is still within limits. However, the 10% fee being charged is ridiculously high.

Other brokerages also may charge dormancy fees however, those charges are minimal and not as high as this.

• Web-Based Unproven Platform

Like with many other scam brokers, HedgeSpots does not offer its clients the use of the MT4 (MetaTrader 4) trading platform. This is the world’s best and most popular platform, with more than 80% of trading using it. The MT4 platform features excellent charting and market analytics tools, as well as automated trading robots.

What you will get from HedgeSpots is an unknown, and unproven web-based trading platform. The broker calls it a cryptocurrency trading platform, but since they do not offer a demo account, we were not able to check it out for ourselves.

• Very Poor Customers Reviews

If you do a Google search of HedgeSpots, you can check the customer reviews. The reviews are almost all about how this broker scammed them and how they ended up losing thousands of dollars because they were not allowed to withdraw their funds after they traded.

Conclusion 

Everything we have researched about HedgeSpots shows us that this broker is a scammer. And if you read the horror stories of customers who have written reviews about them, you will also be convinced that this broker is not one you should do business with. So, we request all traders to avoid HedgeSpots.

HedgeSpots

2.5

User Experience

3.2/10

Payment Options

2.3/10

Security

2.5/10

Support

2.3/10

Reputation

2.2/10

Pros

• None

Cons

• Confusing Corporate Information
• Lack of Regulation
• No Information on Trading Conditions
• High Minimum Deposit Requirement
• Contradictory Information on Commissions