Beware! Hive Markets 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.
We are reviewing Hive Markets, an offshore broker offering standard CFDs including Forex, Cryptocurrencies, Metals, Indices, Shares and Energies traded on MT4. They claim to keep clients’ funds in segregated accounts, but we are not sure about that. In this article, we are going to discuss critical details about Hive Markets, so you’d better read it if you’ve shortlisted this broker.
Hive Markets REGULATION AND SAFETY OF FUNDS
Hive Markets is a brand of Hive Technologies LLC, a company allegedly incorporated in St. Vincent and the Grenadines. Well, the broker’s registration creates a lot of problems, two being major ones. First of all, there is no information about this company whatsoever, so it’s either an anonymous offshore IBC with hidden ownership or a fictitious illegal company. Well, that’s a red flag because the people standing behind the broker apparently want to remain in the shadows, which is unacceptable in this case. The Forex brokers should be transparent and easy to check as they handle clients’ deposits; therefore, they should be held accountable for their actions.
Most importantly, though, SVG doesn’t regulate Forex brokers, which makes the entities legally created there risky for traders and investors. The absence of transparency and regulation attracts too many scammers to SVG, so we can dismiss Hive Markets as highly suspicious nonetheless. All in all, we can conclude that your funds won’t be safe if you deposit as Hive Markets is anonymous and unregulated.
Avoid it and see the high-rated EU brokers and British brokers instead. The companies on top of both lists are duly licensed and a part of money protection schemes set in place to secure the safety of clients’ money. For example, CySEC brokers’ customers can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. Hence, if you are eligible to open accounts with European companies, you can safely go for it.
Hive Markets TRADING SOFTWARE
Hive Markets comes with MetaTrader4, which is a leading platform alongside MetaTrader5. Both are currently seen on par, as MT4 leads in terms of volumes traded, while MT5 leads in the number of brokers using it. The EUR/USD spread delivered by the Hive Markets’ distribution is 1.5 pips, which is a tolerable Buy/Sell difference, but not the best one on the market. Too many legit brokers are offering even lower rates, so it’s worthless dealing with a shady FX creature like Hive Markets anyway.
That said, why don’t you see the regulated high-rated MetaTrader4 brokers and MetaTrader5 brokers we recommend? The companies topping the lists are adequately regulated and deliver the best platforms available. Both MT4 and MT5 are packed with advanced tools such as Expert Advisors, many complex indicators, sophisticated charting tools and a marketplace featuring more than 10 000 apps.
As to leverage, the offer prompts us to raise a red flag because it can vary between 1:50 and 1:500. Well, the lowest possible (1:50) is still too risky, so Hive Markets apparently creates a dangerous trading environment where clients can lose the capital invested very quickly indeed. Beware!
In fact, many financial authorities are nowadays restricting leverage, so due to regulations, EU, British and Australian brokers have to limit their clients to 1:30, while US brokers can’t provide more than 1:50. On the other end, most of the high-leverage brokers are poorly regulated or not at all, and you’d better be careful with their offers.
Hive Markets DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $10, which is a favourable requirement in general, but Hive Markets is too shady, so we recommend that our readers not send any money whatsoever. Instead, by following the links provided, one can find loads of legit brokers accepting clients for $100 or less, which indeed makes dealing with Hive Markets worthless.
As for funding, Hive Markets accepts only Bitcoin deposits for now. They claim that Credit/Debit cards will be available soon, but we can’t take their word for granted as it’s an offshore unreliable broker. As to Bitcoin funding, it’s final, and you don’t even know who’s on the other side of the transaction. Another proof that Hive Markets wants to remain anonymous, which further indicates something fishy. Beware!
While on deposits, we’d like to suggest our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system. The companies on top of both lists are sufficiently regulated, and you won’t get scammed if you trust them.
As for withdrawals and fees, nothing is mentioned except that the broker does not take cash money, and it processes the requests within 2-5 days. Well, which trustworthy FX company actually accepts paper dollars deposits in an envelope? Not a single one, of course, as there are AML and KYC laws they should be compliant with! The cash hilarity aside, we can’t help raising another red flag as the broker yet again suspiciously withholds critical information to traders. Beware!
Overall, Hive Markets is unregulated, which is more than enough for you to avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud, and it’s actually a process. In the typical scenario, the victim clicked on a swindling ad, then received a phone call, and at some point got convinced to deposit money. To make people accept fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes, and so on. Their imagination is rich and would invent as many stories to get the craved deposits.
Unfortunately, the first deposit is not the end but the beginning. Gradually, scammers would manipulate victims and would urge them to invest repeatedly. For example, con artists may not allow people to trade themselves but would pretend to manage the accounts. Forged results would show victims massive profits, and scammers would ask for more money, promising to secure more gains.
The undeniable signs of a scam come forth when people ask for withdrawals. Scammers would make excuses to refuse withdrawals and even require additional deposits to let people take their money out. Those criminals won’t stop asking for funds, no matter what. In the worst case, the victim would trust the scammers and deposit repeatedly. However, sooner or later, the scam would become evident as clients won’t see a penny, and thereon the fraudsters would cut the communication and vanish. The cons would drop the website, create a new one and continue their criminal activities untouched, while people would be left with losses almost impossible to recover.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scams. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened so that they can give you instructions and help, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush to recover funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!