Beware! Hyper Forex 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.
Hyper Forex is a broker that is registered and claims to be regulated by a very uncommon agency, the Labuan Financial Services Authority, in the small island of Labuan, is a federal territory of Malaysia. It also claims to be regulated by the Labuan International Business and Financial Centre, and that is registered in the small island of St. Vincent and the Grenadines.
The broker claimsto be offering a 1:1000 leverage, a substantial amount that can is very dangerous in the hands of more novice traders. As for the EUR/USD spread, the demo platform gave us a cost of trade of 2.3 pips which is unfavorable towards traders.
HYPER FOREX REGULATION AND SAFETY OF FUNDS
The company, HYPER GLOBAL TRADE PTE. LTD, as mentioned claims some contradicting things that we shall know see.
First of all, the name GLOBAL TRADE PTE. LTD and Hyper Forex were not found anywhere on the official the Labuan International Business and Financial Centre which incorporates the Labuan Financial Services Authority as well. Meaning that we cannot vouch for the broker’s legitimacy. Next, readers should be aware that St. Vincent and the Grenadines do not regulate the forex market, even if the broker is registered there.
We are left with no choice but to deem this broker UNREGULATED, and therefore a risk to all those who invest in it.
Although unregulated, we have to say that Hyper Forex conducts its business in a professional manner. For instance, we were required to give ID document in order to register a live account which is a rare thing with unlicensed brokerage firms; however we were able to open a trading platform demo.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
HYPER FOREX TRADING SOFTWARE
We opened a Metatrader 4, which is the most popular trader in circulation today, because it gives us all the necessary trading tools for optimal trading.
The MT4 here is made available to any device, including mobile. Furthermore, the platform is available as a desktop browser. However, the traders cannot be opened as a web-trader.
What’s more is that Hyper Forex does not charge commissions for opening and/or closing trading positions.
HYPER FOREX DEPOSIT/WITHDRAWAL METHODS AND FEES
The client portal gave us Neteller, SticPay, and Wire Transfer as depositing methods. As for a minimum deposit, it’s $10. Note that the website claims to offer more depositing methods, which the client portal does not include. This is probably because we had not verified our account. There are no depositing fees.
Withdrawals methods on the other hand, are indicated on the client portal as Wire Transfer, Neteller, SticPay, and FasaPay. The minimum withdrawal is $10. The broker claims that there are no withdrawal fees, aside from those arising from the different payment methods.
We strongly advise traders to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.