Beware! HitOption 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.
HitOption never succeeded in impressing us. There is nothing that this broker can stand for- its structure is incredibly unstable and the rough edges are evident even during our first seconds with it. As soon as we started scrutinizing it, we had an idea with what type of a broker we were dealing with. There is nothing keeping us from exposing HitOption. The following review is tasked with just that.
An easy and suspicious registration process followed, which is to say that it reminded us that HitOption might not be the most trustworthy source for trading FX and CFDs. Anyway, the sign-up procedure did not work for us. For whatever reason, we could not create an account, even a practice one. The broker gave us an error message, leaving us without an account. What this means is that all the following trading details will be taken from HitOption, a broker whose website we personally do not fully trust.
Failed registration attempts are always a clear warning that the broker currently being reviewed has something to hide. Usually, such firms offer services only to handpicked traders. This is part of a bigger scheme that we have described in the last sections of the review.
Our first major issue with this approach is that HitOption comes with a very limited website in which there is close to nothing helpful. We are not exaggerating by saying that the only thing we learned from the website is that HitOption might be exclusively offering cryptocurrency as its only available tradeable asset. This makes HitOption a crypto broker, and based on our experiences, such brokers don’t do too well.
There is no indication of a spread or a leverage value of any kind. Besides, the website is so unfriendly and narrow that it sort of makes sense to us not to find any trading conditions on it. In fact, the sources claiming the broker to be based on cryptocurrencies are also unreliable. And seeing that we cannot register, there is no way for us to make sure that HitOption actually offers anything in terms of trading, be it cryptocurrencies or otherwise.
The website is available only in English, which limits its user-base only to an Engish speaking audience.
HITOPTION REGULATION AND SAFETY OF FUNDS
Aside from an alleged registration in England and a Certificate of Incorporation held by the broker, there is nothing really going on here concerning a license. Let us explore the two previous claims.
The alleged address in the UK is saying a lot. The UK is home to the FCA, one of the most notorious and respected forex broker regulators around. We took it with it to see if the firm was regulated by it, and the results were not surprising. HitOption is not licensed by the FCA.
Second, we have the Certificate of Incorporation. The document reads that the Register of Companies (misspelled on the paper) for England and Wales certifies that HIT HOLDING COMPANY LTD is incorporated under the Companies Act of 2006. In the world of Forex this is as useless as any other piece of paper. Not only is the parent company suspicious, but the provision does not guarantee a safe and legitimate trading experience provided by HitOption. Furthermore, we cannot be sure that HitOption did not fabricate the document, forging the names. Based on the spelling mistake, this theory might not stray too far from the truth. Last but not least, a certificate of incorporation or a similar document is NOT an FX license!
The only logical conclusion we can draw from everything said is that HitOption is NOT LICENSED, and is, therefore, a risk to all those investing in it. Furthermore, there are no legal documents of any kind, a fact that neglects the legal bond between the broker and its users.
Investing in unregulated brokers is synonymous with losing money. Never be too quick to deposit! Always check for a regulation prior to depositing. This should always be any trader’s priority! If the broker at hand has a regulation, preferably FCA or CySEC., then you are good to go. From there on it’s all a matter of taste and the offered trading grounds. These two agencies are in the top 5 list of the best regulators in the world. All brokers under their gaze abide by the strictest of rules and guidelines. Furthermore, both the FCA and CySEC have a compensation scheme covering all users of brokers that cannot pay their dues, due to insolvency or other similar reasons. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
HITOPTION TRADING SOFTWARE
Here is the other major issue with the broker that we encountered. Without a registration, we cannot confirm that the broker in fact comes equipped with any sort of trading terminal. We have reviewed enough illegally operating firms to be skeptical.
The evidence for a trading software is as vague as it can be. Claiming your terminal to be” the ultimate platform” is not at all the way you should be advertising trading software. Personally, we believe that there is no trading software used here. Once users are registered they will either be presented with a handful of TradingView charts, a binary options trading software, or nothing at all.
HITOPTION DEPOSIT/WITHDRAW METHODS
The moment we failed to register is the moment that we knew all the payment information had to be taken from the website. The source of information is clearly not to be fully trusted seeing that HitOption is unregulated. And anyway, this section will not have too much to say due to the fact that the website offers a tiny amount of vague payment details. And let us not forget that HitOption comes with zero legal documents.
The minimum deposit is supposed to be $50. Payment methods, both for withdrawing and depositing, are all based on crypto wallets, gaming. Crypto payments are by far the riskiest depositing means because they are untraceable. All other payment details have been kept away from users.
Overall, HitOption is your typical scammer broker. It is untrustworthy, and a probable scam! Do not invest in it!
How does the scam work?
The scam tactics that brokers use come under a common denominator. Most of them have a similar structure, with small touches that some brokerages choose to include. When users fall for these they will sooner or later realize it!
The very first step resolves around the fake internet ad, found mainly in social media websites. These high-promising advertisements promote a care-free lifestyle where money is made with easy trading on assets like forex or/and cryptocurrencies. Clicking on one of these will redirect users to a website (usually the broker’s website, but sometimes an intermediary site) where they will be asked to provide contact details. Sooner or later, traders will start receiving calls or emails with alleged opportunities on huge profits in exchange for a minimum deposit, an amount that depends on the broker, but also on the user herself (high income vs low income).
If the user deposits her first deposit, then she has fallen into the scam, and the broker is ready to initiate the second stage of the scam. Enter the account managers (sometimes called senior managers). These will push for more deposits, while slowly taking over your account. They will be very aggressive with their solicitations, trying anything and everything within their ability.
At this point, the user has not yet withdrawn! When she attempts to do so, she will be greeted by a very unpleasant reality: her deposit(s) and profits can never be returned. The broker usually enforces one of the following: either it will block the account, it will close down the website, it will stall withdrawal requests, or delete the account!
What to do if scammed?
The first thing you can do, and the most crucial, is to file for a chargeback with your credit or debit card company ASAP! MasterCard and VISA have extended their chargeback period to 540 day.
Deposits that were initially invested through a bank, and were lost as a result of the scammer brokers, should stimulate users to CHANGE their bank account details- both username and password! Furthermore, it wouldn’t hurt them to contact the bank and check with them.
It is crucial to know to never invest in suspicious brokers through a crypto wallet. A majority of these payments are untraceable, and you are risking to lose all your money with no hope of ever seeing it!
The scammer, or other related parties, have a last card to play. Deposit/Investment recovery agents are notorious fraudsters that promise to recover all your lost capital in exchange for a fee. Once the commission is paid, these will disappear with the money, which leaves you at an even bigger loss!