Hugos Trading – Is It a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Hugos Trading - DO NOT TRADE WITH THIS PROVIDER
2.7/10
$100
Minimum Depositupdated 2020
Hugos Trading offers its customers 5 account types for trading:
- Starter Account: You need to make a minimum first deposit of $300 to trading on the Starter Account.
- Platinum Account: To use the Platinum Account, you need to make an initial deposit of $1,500.
- Bronze Account: To trade on the Bronze Account, you first need to deposit at least $4,500.
- Gold Account: For trading on the Gold Account, you need to make an initial deposit of $9,100.
- Diamond Account: To trade on the Diamond Account, you need to first put in a minimum of $ 15,000 in your trading account.
This broker provides its customers a leverage ratio of 1:1000, but we could not find information on what the spreads are.
Try these regulated brokers if you want to start trading cryptocurrencies
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
Website URL: https://hugostrading.com/
Founded: 2020
Regulations: Not Regulation
Languages: English
Deposit Methods: Cryptocurrencies
Minimum Deposit: $300
Free Demo Account: Not Available
Number of Assets: 30+
Types of Assets: Cryptocurrencies, Forex Pairs, CFDs on Indices, Stocks and Commodities.
Trading Accounts and Conditions
Hugos Trading offers its customers 5 account types for trading:
- Starter Account: You need to make a minimum first deposit of $300 to trading on the Starter Account.
- Platinum Account: To use the Platinum Account, you need to make an initial deposit of $1,500.
- Bronze Account: To trade on the Bronze Account, you first need to deposit at least $4,500.
- Gold Account: For trading on the Gold Account, you need to make an initial deposit of $9,100.
- Diamond Account: To trade on the Diamond Account, you need to first put in a minimum of $ 15,000 in your trading account.
This broker provides its customers a leverage ratio of 1:1000, but we could not find information on what the spreads are.
Hugos Trading – Advantages
Here is the one advantage of trading with Hugos Trading:
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Range of Trading Instruments
Hugos Trading offers its customers a wide range of trading instruments. You can choose to trade with all the major cryptocurrency pairs such as BTC/USD, BTC/ETH, ETH/USD and so on.
You also get to choose from a wide variety of Forex currency pairs – both major as well as minor. And in commodities, you can choose to trade in precious metals such as gold and silver, and you can also trade in oil and natural gases. You also get 7 different indices to trade with.
Hugos Trading – Disadvantages
Besides the fact that Hugos Trading offers a decent range of trading instruments, there are no other advantages to trading with this broker. In fact, it is more disadvantageous to trade with Hugos Trading.
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Offshore Broker
Hugos Trading mentions two different companies that own and operate it – Hugos Trading Trading Services Ltd and Prime Technologies Ltd. The first company is based in the Seychelles, while the second is based in St. Vincent and the Grenadines (SVG).
This means that both the companies that control Hugos Trading are offshore entities. And unfortunately, offshore brokers are more often than not scammers.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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Lack of a Trading License
The government of SVG has announced publicly that it does not have regulations in place for companies that are offering Forex and CFD services. So, we know that Hugos Trading is not regulated from that territory.
Upon further checking, we found that this broker is also not regulated by the Seychelles. And, of course, it is not regulated by any authority anywhere else.
Dealing with unregulated brokers is a huge risk, since these brokers work outside the law. Therefore, traders do not have any protect against scams or losses.
Thus, considering Hugos Trading’s unregulated status, we would strongly advise you not to do business with this broker.
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Advertising Misleads
This broker promises its clients that it can get them between 2.5% and 15% returns every single day, depending on the type of account you choose. This is basically a lie.
Regulated brokers are obliged to highlight the fact that Forex and CFD trading is risky business and that customers can lose as much as 70% of their deposits in the process of trading.
2.5% to 15% profits are just a fantasy, since they are not possible. What this means is the Hugos Trading is lying to attract more customers, with his completely unethical and unscrupulous.
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Referral Program is a Ponzi Scheme
For those of you who don’t know, a Ponzi scheme is a scam that promises you really high rates of return on your investment. It also promises you that you will not bear any risk when you invest with them.
Hugos Trading seems to be running a Ponzi scheme. The broker promises that you will get a percentage bonus when you refer people to their platform.
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No Demo Account
Hugos Trading has no demo account to offer, which to us is another red flag – especially when put together with all the other issues we have discovered with this broker.
Most legitimate brokers ensure that they offer their customers a demo account. It’s basically full disclosure. The trader knows exactly what the trading conditions are and also what the quality of the trading platform is.
Scammers, on the other hand, avoid offering demo accounts, since they don’t want their customers to know what they will be getting into.
- Poor Trading Software
This broker does not offer its customers a good trading platform. It has a web-based binary options platform that doesn’t work too well and does not offer any analytics options the way the MetaTrader platforms do.
The MT4 trading platform is the world’s number one trading platform, and most legitimate brokers offer this software to their customers. The platform is easy to use and you also get great features that make trading much easier, such as market indicators for analytics, charting options that can be customized, and even trading robots for automatic trading.
- Leverage is Too High
Hugos Trading offers its clients a trading leverage of 1:1000, which is more than 30 times higher than what is permitted in most regulated markets. The reasons why there is a cap on the amount of leverage a broker can offer is because of the risk associated with high leverages.
The fact that this broker offers such impossibly high leverages is not a good sign, since it means that you could end up losing a lot of money if you trade with Hugos Trading.
Conclusion
We would not recommend Hugos Trading to any one of our readers as this broker is clearly running a scam operation.
Hugos Trading
Pros
- Range of Trading Instruments
Cons
- Offshore Broker
- Lack of a Trading License
- Advertising Misleads
- Referral Program is a Ponzi Scheme
- No Demo Account
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
eToro is a multi-asset platform which offers CFD and non CFD products. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.