HFIM review – 5 things you should know about hfinvest.net

Beware! HFIM is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

Visit Site

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

HFIM, or Hedgefundsinvest, presents itself as an award-winning forex broker with decades of experience in the market. But this website is actually a good reminder that you should always do careful fact checking before you put your money on the line. Such a check reveals that HFIM is illegally using the details of a legitimate company. This is actually a brazen type of scam known as a clone website. Let’s take a closer look at how you can tell the difference between trustworthy brokers and scams like HFIM.

HFIM Regulation and safety of funds

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities. But this information is potentially false or misleading, so it is strongly advisable to have it verified.

According to the homepage of the website, this broker is operated by the UK-based company Hedge Funds Investment Management Ltd and regulated by the Financial Conduct Authority (FCA).

There is indeed a company with this name, registration number and address in the FCA database. But this company operates through a different domain than HFIM – namely hfim.com.

Another European financial regulator, the Belgian Financial Services and Markets Authority (FSMA), has noticed the fraudulent nature of HFIM and has blacklisted the website.

HFIM’s website claims to hold licenses from financial regulators in a number of other jurisdictions such as Australia, Cyprus and South Africa, but no details of companies and regulatory licenses are provided. These claims are patently false.

The text of the Terms and Conditions on HFIM’s website does not mention a company name and lists the offshore zone of Vanuatu as the applicable jurisdiction.

When choosing a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. Always check that the company is indeed on the records of the specified regulator and that the domain used is among those officially approved for the particular broker.

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.

HFIM Trading software

After registering an account, we get access to a pretty basic web trading platform that doesn’t feature extensive customization options or advanced functionality. We’ve seen the exact same platform being used by multiple fake brokers we’ve encountered. Scammers are using rigged trading software to fool their victims into believing that their money is really being invested and even turning a profit.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

HFIM Trading instruments

HFIM advertises trading in all major asset classes, including cryptocurrencies. This also indicates that this website does not constitute a broker licensed and regulated in the United Kingdom. The FCA prohibits brokers in the country from offering crypto derivatives trading to retail clients.

HFIM Spreads and cost of trading

In the HFIM  trading platform we see a very low spread of 0.4 pips. But first, this trade is fictitious, so the bargain price has no real meaning. And second, HFIM  provides no information on whether it charges additional commissions.

HFIM Maximum leverage

When registering for an account, you can choose a leverage ratio of up to 1:1000. This again is proof that HFIM is not the regulated broker it claims to be. 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. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. The same rules currently apply to Australia. In the US, the maximum limit is slightly higher at 1:50.

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.

HFIM Deposit and withdrawal methods

We weren’t at all surprised that the only payment method accepted by HFIM is Bitcoin. This is the payment method of choice for most financial scammers. The reason for this is that on the one hand cryptocurrencies provide a degree of anonymity and on the other hand they do not allow the defrauded person 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.

HFIM Minimum deposit

The leading brands in the industry offer beginner traders starter accounts with a very low minimum deposit. You have no good reason to take chances with shady brokers like HFIM.

HFIM Withdrawal requirements

HFIM  does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.