HotTrades Review – Is it a Good Option?

HotTrades Review

Online trading is filled to the brim with opportunities and tapping into them requires a brokerage’s services. This has been the norm even before trading was possible online and it remains unchanged today as well. But, this does not mean that just any brokerage would do. If that was the case, there wouldn’t be any need for the thousands of companies that exist. Yet, they do and this is because they provide different quality of services. You have to find a good option that can offer you the professional services you are looking for. So, how does this HotTrades review help?

You need to bear in mind that not every broker is capable of offering you good services, regardless of their claims. No company would ever advertise its own shortcomings and tell you its problems. Likewise, with cybercriminals very active over the internet, they have also pervaded this space. Therefore, there are a lot of brokerages out there that are really not brokerages at all. Instead, they are just a sham set up for fleecing as many people as possible. Hundreds of thousands of people have fallen into such traps and paid the price with their hard-earned money and their data.

When you decide to engage in online trading, it is with the intention of making profits and not losing your money to scammers. This means you cannot afford to take shortcuts when it comes to finding a broker and should prioritize finding a good one that can help you enjoy the trading opportunities the markets have to offer. Amongst the many brokers that are operating, you will come across HotTrades and at first glance, you will believe it is legitimate. But, when you look under the surface, you will find that this is nowhere close to reality.

What are some of the issues you will come across? Check them out below:

The parent company has a scam warning

When you are thinking about signing up with any brokerage, you should always do some due diligence. This involves checking the background, including its parent company, and other relevant corporate details. You need to know who you are going to trust with your money and your information. Moreover, looking into their background also helps you ensure that you are dealing with a legitimate company that can be contacted in case of a problem.

Doing the same in the case of HotTrades reveals that its parent company is Trinity Capital. The problem with this is that the Portuguese regulatory authorities have issued a warning against Trinity Capital. According to CMVM, the company has been offering its services to traders in Portugal without proper authorization, which is not something that any genuine brokerage would do. The fact that it has been blacklisted by a reputed regulatory authority should be enough to alert you.

It appears to be a clone firm

If you have checked out some other popular brokerages in the financial markets, then you will have no trouble in realizing that HotTrades seems to be imitating a very renowned brokerage by the name of HotForex. It seems that HotTrades is using the tactic of a clone firm, which is quite common amongst scammers where they attempt to ride on the coattails legitimate companies in order to fool their clients.

It is not regulated

One of the best ways for you to ascertain if the company you are dealing with is legitimate or not is by checking its regulatory status. Shady and scam companies are usually unregulated and don’t have a license to offer their services. The regulation also depends on the jurisdiction from where the company is operating. In the case of HotTrades, you will find that it is based in Saint Vincent and the Grenadines. This certainly does not do any good because this is an offshore jurisdiction.

Moreover, the authorities in St. Vincent and the Grenadines have already asserted that they do not regulate the forex industry, which has made it a hotbed for scammers. Since HotTrades is operating from there, it means that the broker is not regulated at all and cannot offer you the same protections you can get from HotForex, the company it is trying to imitate.

It has a malicious bonus policy

When you go through the offerings of HotTrades, you will discover that they are offering trading bonuses to their clients. This itself should be considered a warning sign because offering these bonuses has been prohibited in a number of jurisdictions. Most regulatory authorities do not allow companies to provide these bonuses because they usually come with strings attached that are often malicious.

Same is the case with HotTrades, as you will find that they have a malicious bonus policy. They have imposed a minimum turnover requirement that you have to achieve before you are permitted to make withdrawals on their platform. The requirement is deliberately kept as such that traders will not be able to achieve it, thereby preventing them from being able to withdraw their money at all.

It offers excessive leverage

While some people may find a high leverage appealing because it gives more trading room, but you have to remember that it comes with lots of risks. This has prompted regulatory authorities to impose a cap on leverage for retail traders in most jurisdictions, yet HotTrades is offering leverage as high as 1:500, which shows that their aim is to only attract more victims.

It does not allow chargebacks

If you take a look at the payment options at HotTrades, you will find that they only accept payments via bank wire transfers. This means that you will not have the option of filing for a chargeback in case something goes wrong. You can only use this option when deposits are made via credit cards like VISA and MasterCard and those are not supported here at all. Hence, they can take your money and disappear without you being able to do anything about it.

The Conclusion

All of these problems can help you determine that HotTrades cannot be considered a good option for anyone.