Beware! Hybrid Reserve is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Hybrid Reserve is a newly-launched offshore broker that offers trading in forex and various CFDs, placing a focus on cryptocurrencies. While its spread might seem low, there are a number of reasons not to sign up with this broker. First of all, it is not regulated. Second, its offer is not that good – the maximum leverage levels provided are up to 1:10, it does not offer a proven platform like MetaTrader4, and its clients are not allowed to withdraw any funds within one month from initial deposit (if at all).
In case you prefer trading with higher leverage levels, check out our list of recommended brokers offering leverage of 1:100 or higher.
Hybrid Reserve Regulation & Safety of Funds
The brand is owned and operated by Singlebell LTD, a company registered in the Marshal Islands, an offshore zone. Offshore destinations are attractive locations to forex and binary options brokers, as registration is easy and low-cost. However, these brokers don’t have to meet any strict requirements and are not monitored by any financial authority. That is why it often the case that offshore brokers deliberately run investment scams. Even if they are not, all investments with unlicensed companies come with significant risk. Such companies can do whatever they like with your account, with your trades and the money you have deposited, or the information they might have from your ID document or credit card, in case you make the mistake to share any such data.
Hybrid Reserve Deposit/Withdrawal Methods and Fees
The brokerage offers a diverse set of payment methods for potential clients. Traders may deposit through PayPal, Western Union, WebMoney, Cash, Skrill, bank wire and credit card.
As regards withdrawals, the broker warns that those by bank wire may take up to 7 days, and each one will be charged with the amount of $25.The minimum amount for a withdrawal is 100 USD, GBP or EUR, depending on the account’s currency. Besides, Hybrid Reserve has set some other requirements for withdrawals, which raise even more red flags:
Clients of this broker must meet a minimum trading amount (turnover) requirement before a requesting a withdrawal. This amount is not specified.
The minimum trading period is one month from date of initial deposit before a withdrawal request can be placed.
In addition, don’t be fooled by any bonuses offered by Hybrid Reserve or other offshore brokers. There is no such thing as free lunch with such companies. In the case of Hybrid Reserve, clients will have to perform a trading volume of at least 300 times for each $1 of the Bonus in order to be able to withdraw.
Another provision of Hybrid Reserve’s Terms and Conditions we find especially alarming is entitled Trading Cancellation. It states that the broker has the right to refuse to distribute profits to its clients and has pointed out several grounds for this without limitation:
How does scam work?
As some of you know, the typical investment scam involves a lot of cold-calling. However, the fraud starts well before that, as the cons must get potential victims’ contact information from somewhere. Scam companies usually acquire this information via some phishing website that contains a professionally edited ad or video. Typically, those ads exploit your natural desire for easy and quick profit you will end up filling out a registration form.
And that’s when the cold-calling starts. At first, fraudsters will try to get you deposit some $250. You should be aware that a cut of $50 of your deposit gets straight to the person on the phone. At first the trades go more than well, and after the initially invested sum is doubled or tripled, you will get a phone call from the next-in-line scammers, who will talk you into depositing a larger sum so that you start making real money. You might be tempted and invest some $10k. Usually that’s the moment when the trades turn red and victims begin to consider closing the account and getting back their money.
Unfortunately, this is not an easy task. You will be passed on to the “recovery department” that will begin stonewalling you for months. Actually, they try delaying your withdrawal, as you have the right to file for a charge back with you credit card provider within a 6-month period.
What to do if scammed?
The first thing to do is of course, file for charge back, as long as the 6-month period has not expired. Also, if you have given away your banking details, including your credit card number or banking pass, or if you have agreed to install Team Viewer, cancel your card and change the password ASAP.
Finally, if you have lost your money to investment scammers, do not trust the so called “Recovery Agencies”. You will just lose more money with an upfront payment without receiving any help for recovery.