Beware! Hotmarketscfds 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.
The Hotmarketscfds low-quality website gives us no good reason to believe that it is really a legitimate investment firm that will allow us to profit from the financial markets. Closer inspection confirms our suspicions that Hotmarketscfds is nothing more than another online scam. Let’s take a detailed look at how you could distinguish scams from credible forex brokers.
Hotmarketscfds Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.
Hotmarketscfds, however, is completely anonymous. The link to the Terms and Conditions is empty. If you don’t know who you are dealing with and what the terms of the deal are, it would be very unwise to put your money on the line.
The website lists contact addresses in the United Kingdom and the United States which are undoubtedly false. These are highly regulated jurisdictions that do not allow anonymous websites to offer financial services.
The British financial authorities confirm this by blacklisting Hotmarketscfds.
If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority (FCA).
They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.
Hotmarketscfds Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
On the homepage of the website there are links to the mobile applications of the MetaTrader 4 (MT4) platform, but Hotmarketscfds does not provide credentials to log into a trading server. There is no trading software on the website’s dashboard.
There are more than enough licensed brokers offering clients the MT4 experience and/or the newer version of the software MT5. These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
Hotmarketscfds Trading instruments
Hotmarketscfds has neither the legal authorisation nor the technological capacity to facilitate trading in financial instruments.
The website also advertises cryptocurrency trading, which is prohibited to brokers in the UK.
Hotmarketscfds Spreads and cost of trading
Hotmarketscfds promises ultra-competitive pricing, but that means nothing given the lack of licence and trading software. The website also promises sure profits, which is also proof that we are dealing with a scam.
A genuine broker will not and cannot promise you guaranteed profits. In fact, licensed companies are obliged by regulators to warn their clients about the high risk of losses when trading financial instruments.
Another such piece of evidence is the claim that Hotmarketscfdsoffers bonuses. Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms. Hotmarketscfds does not provide clear information about the conditions attached to bonuses.
Hotmarketscfds Maximum leverage
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
Hotmarketscfds Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Crypto||24 hours||24 hours||Fee depends on crypto|
Hotmarketscfds only allows the deposit of funds with cryptocurrencies.
This is typical of financial scammers. Cryptocurrencies are their payment method of choice because on the one hand they allow the scammer a degree of anonymity, and on the other hand they do not allow the scammed to ask for a refund.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Neteller or Skrill.
Hotmarketscfds Minimum deposit
Hotmarketscfds requires a minimum investment of 500 USD. For a significantly lower amount you could get a starting account to trade with a reputable and regulated forex broker.
Hotmarketscfds Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Hotmarketscfds||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The lack of a publicly available Terms and Conditions or Client Agreement means that scammers may have set many traps such as hidden fees and impossible-to-meet withdrawal terms.