Beware! HubTrader 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.
HubTrader’s website feels like a start-up company. The fundamental difference here is that start-ups are usually aiming for legit way to gain capital, whereas HubTrader feels like it has taken the alternative road, the easy way out. Is preliminary allegation true for HubTrader, or should we reconsider about HubTrader? Read the review to find out all there is to know about this one.
The registration page was surprisingly efficient and unique enough to satisfy as eye candy. Yet it did not take us more than a couple of seconds to register, which is concerning. When compared to established global brokers, the registration process there can take up to 10 minutes and sometimes more. Nevertheless, after registering, HubTrader opened a fancy looking client area, that still somehow was able to contain a feel of illegitimacy to it. We were able to access a trading platform, and it seemed proprietary, but more on this later.
The trading terminal produced a EUR/USD spread flickering around 0.5 and 0.7 pips. This cost of trade is very favourable to clients. The leverage that was put on us was capped at 1:100, which is quite different fro what the website claims it to be (1:4). As far as our efforts when, there seems to be no way to change it. The platform offered the following tradeable assets for us to buy or sell: forex pairs, commodities, crypto, stocks, and indices.
The website is translatable in English, Arabic, Russia, Spanish, and German.The same languages are found in the user area.
HUBTRADER REGULATION AND SAFETY OF FUNDS
Unfortunately, HubTrader is one of those brokers that have either not realised the importance of having a regulation, even if it’s just an alleged one, or they have explicitly chosen not to include one.
Whatever the case is, we claim HubTrader to be UNREGULATED. The first proof is the total lack of regulatory information. The second piece of evidence is the following highlighted sentence taken from the footer:
This translates into: this broker is not regulated by any authority. Otherwise, it would have clearly stated what this “local law” is.
The next piece of revealing info is again in the footer, claiming that the Five C LTD parent company of HubTrader is located in the Marshall Islands, an environment well know for attracting all sorts of shady firms, many of which are illicit forex brokers. This is because the islands do not have a financial license issuer. So being registered there is both easy and means nothing. What matters is for a broker to be licensed by some renowned and austere financial watchdog.
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.
HUBTRADER TRADING SOFTWARE
HubTrader comes with a decent proprietary looking trading software. However, again we must insist that visuals are not the most important element. In fact it’s HubTrader’s platform visuals that give away its main issue. But first here’s a look at the web-platform:
Notice the “Chart by TradingView” we have underlined. This is an indication that HubTrader has taken all of its charts from a very well known provider of 3rd party charts. These are not owned in anyway by HubTrader. What’s more is that the charts and the spreads for all assets are the same, which makes us quite unsure if the charts go by the assets’ liquidity, or vise versa. Users should never have to ask themselves such questions. Trading platforms and conditions must be clearly laid.
Aside from the cool visuals, the platform does not have that much else to offer. The most intricate feature are pending orders and alerts. When you take these away, there is nothing except buy/sell options.
Furthermore, according to the website’s Account sections, the three account types all have a commission in percentage attached to them.
We are unsure how this applies to spreads… Just be warned!
Here is another one for you,. The broker gives itself the right to aggregate your open positions with its own or those owned by its associates or partners. What this means is a mystery to us, nut you wont see us finding out. We suggest you taking the same path as us; that is not depositing at HubTrader.
HUBTRADER DEPOSIT/WITHDRAW METHODS AND FEES
The payment area discloses the following deposit information: Users can deposit via Credit and Debit Cards only, with a minimum requirement of $281:
Users can deposit in EUR, USD, and GBP.
The only thing that the withdrawal section reveals about withdrawals is that they take up to 7 days to process.
The closest thing we got to a withdrawal fee is the following ambiguous clause:
From it we gather that there is a 4.5% fee on withdrawals, and that withdrawal for all methods expect wire transfer have to complete a trading volume requirement of 1% from the initial deposit amount. Read it anyway you want, it still is very confusing.
Next, is a clause concerning interest payments arising from cryptocurrency borrowing (?) and/or similar confusing operations. What’s noticeable here is that the broker ill debit the user’s account directly every day. And it does not disclose what this interest fee is…
Here is yet another paragraph from the Terms and Conditions sticking a 10% tax on users for unpaid amounts under the T/C.
Aside from these baffling charges, HubTrader also has a plethora of other smaller fees applicable:
Finally, but definitely not least, we have the clause that keep the broker away from any legal harm; the indemnification clause.
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.