Distinguishing an Honest Broker from a Fraudulent One
With the rise of online trading, the number of scammers is rapidly increasing. It becomes increasingly difficult to differentiate between an honest and a fraudulent broker: externally, all resources look similar, and the services and conditions provided are approximately the same. There are not enough reviews for a fair assessment. In this article, we will take a look at the example of HotTrades to help beginners choose a reliable intermediary and protect their interests.
Information Available on the HotTrades Website
The resource supports five languages, including Russian, implying a significant proportion of Russian-speaking audience.
Various advantages, reliability confirmations, and fairness are presented on every page. However, these claims are unsubstantiated: there are no reviews of HotTrades, it is not mentioned in ratings and reviews. It is unclear how they received any awards for 2019-2020 if the platform was only registered in 2021.
The contact information for HotTrades raises doubts: a legal address, a phone number with an international Australia code, a non-existent email address. This means that communication can only be made in a one-way manner, without the ability to initiate communication.
Legal Aspects and License
It is worth noting that HotTrades is not an independent legal entity. According to the publication, the brand belongs to Glastrox Trade Ltd, previously registered in the Marshall Islands.
However, this is incorrect, as the company Glastrox Trade Ltd ceased its operations in March 2021. Moreover, regulation in the Marshall Islands does not oversee the activities of forex brokers. Such violations demonstrate that we are dealing with scammers offering inexperienced users fake services.
As documents claim, the broker is managed by Trinity Capital LLC, registered in Saint Vincent and the Grenadines. However, in Saint Vincent and the Grenadines, there has been no regulation of broker activities since 2018. Claims about licenses and regulation turn out to be false.
It is also important to note that HotTrades does not have a license from the Central Bank of Russia, meaning that partnering with them poses risks for users.
Offers for Traders
HotTrades attracts clients with a low entry threshold and the availability of a demo account.
The technical differences between the accounts are insignificant; for a larger sum, brokers can provide additional training. Depositing $50,000 gives users a large leverage, increasing the likelihood of losing the entire deposit quickly.
WebTrader and MT4 are offered as trading platforms. Providing desktop, mobile, and web versions is considered a competitive advantage.
Broker’s Popularity, User Reviews
HotTrades does not have a wide presence online, has no negative reviews, and offers alternative search queries in search engines. This indicates that the resource does not generate interest from users and is likely to be forgotten soon. In case of feedback, we will update the information in this section.
Scams in HotTrades
Scammers have several methods of deception, but the most common is blocking a user’s account immediately after deposit. By simulating trading without executing trades on the market, clients, convinced of success, may deposit more funds, offering scammers additional money.
Another method is offering refunds. After the account is blocked, scammers offer to return the money through a chargeback service for a symbolic fee and then disappear, leaving the client with a loss.
Conclusion
Having studied the information about HotTrades, we have come to the conclusion that it is another project of scammers aimed at inexperienced users. The resource lacks licenses and clear registration. There are no reviews, and the online popularity is approaching zero. Opening an account here only means losing funds to scammers.
Working with HotTrades was a deeply unsatisfying experience for me. Firstly, the lack of transparency was significantly off-putting. On several occasions, fees were introduced that were not clearly communicated beforehand which felt very dishonest on their part. Secondly, the customer service was extremely poor. Whenever I had any sort of issue or enquiry, responses were sluggish and unhelpful, if I received them at all. To cap it all off, the online trading platform was riddled with technical issues, causing frustrating disruptions during trading. I wouldn’t recommend HotTrades as a reliable broker; their service is seriously lacking in both professionalism and competency.