HotForex Is Why Im Broke

 50 Words on – Why you can go Broke with HotForex?

Bonuses, bonuses and more bonuses… If you are a fan of bonuses, this is definitely the broker for you: you have a 30% Rescue Bonus, a 50% Withdraw Bonus and a 100% Credit Bonus to name a few. These offerings are prone to change from time to time, but more important, they come with a ton of conditions and strings attached. To me trading is more important than hunting bonuses or special offers and I strongly believe that a good trader doesn’t need any bonus. Of course, I don’t expect everyone to agree with my opinion, but I stand by it nonetheless.

 

How Can You Avoid Going Broke With HotForex

  • If you choose to accept their bonuses, make sure you take the [long] time to understand all the conditions and limitations.
  • Take note that some bonuses cannot be withdrawn and are only used as margin
  • Read and understand the whole Terms and Conditions document. Ask for clear explanations if things are not written well enough.
  • Be aware of the fact that slippages and some delays at news time are just part of the game, not some evil plan made by Hot Forex.
  • All brokers usually widen their spreads at news time so be prepared to pay higher sums if you want to trade news.
  • The leverage can go as high as 1:1000 so make sure you know what you are doing if you think about using such a high leverage.
  • Withdraw periodically until you are convinced you are dealing with a trustworthy broker.

 

The Good, the Bad and the Ugly Speak

Beauty is in the Eye of the Beholder Beauty is in the Eye of the Beholder

The Ugly side of Hot Forex is actually more beautiful than other brokers’ Good side… eh, let’s not exaggerate, but anyway, just like I said above, there’s a positive vibe around this broker on most internet forums and specialized review websites. Comments like “So far they seem to live up to their motto of being honest, open and transparent. Most brokers nowadays tend to hide behind a veil of secrecy” [2] can be easily encountered online and happy customers greatly outnumber the unsatisfied ones. And speaking of complaints and bad words… we can find a few: sudip02 claims on Babypips forums that “…withdrawal is slower and harrusful” [3]. I don’t know the word “harrusful” but I guess he felt harassed in some way; if you take a look at the post date, you will notice it was made in 2011, before Hot Forex became a regulated broker and anyway, the user doesn’t offer a lot of information about his problem.

One of my favorite comments however is a positive one and comes from Ilyaz from Uzbekistan [4]: he says he changes brokers every month… yes every month and by the time the comment was made, he had changed 13 brokers in 13 months. Weird, I know, but I respect the guy’s way of dealing with cr4p… he simply doesn’t take any. If the broker doesn’t live up to the expectations and doesn’t keep promises, Ilyaz just closes the account and moves on to the next one. Yeah, cheers for that! It’s the way we all should deal with brokers. But Hot Forex is the exception which made Ilyaz stay more than one month with a broker and that says a lot in my opinion. Good comments bad comments, almost everything is relative but there’s nothing extremely Ugly that would make me stay far away from this broker.

 

The Bad… or Should I Say the Big The Bad… or Should I Say the Big

Sometimes being new on the market is seen as a negative thing because there’s not a lot of history to help traders judge the service of a broker. Well, Hot Forex is regulated by the CySEC since 2012 (I consider they didn’t exist until they became regulated) so we can consider them an infant compared to the big players in the industry, but so far they are doing a good job so I don’t think their age is a reason of concern. What I don’t like is their fixed spreads: GBP/JPY – 4.2 pips, EUR/USD – 1.8 pips and GBP/USD – 2.5 pips. These are too big for such commonly traded pairs and I believe someone should tell Hot Forex that we are living in 2014, not 2012 when those spreads might have been… hot. Anyway, there’s another reason for concern: according to section 6.17 of their Terms of Business, “Due to low liquidity and/or high volatility and widened spreads, placing of pending orders around some Economic Announcements may be restricted”. So don’t be surprised if you cannot place pending orders during news, because you agreed to it… you do read all the Terms and Conditions document before opening an account, don’t you?

 

So Hot, it Burns? So Hot, it Burns?

Hot Forex offers the full package: good spreads and commissions, proper trade execution, small minimum deposits and 8 different types of accounts to suit everyone’s needs. Overall there’s a positive internet vibe surrounding this broker and generally people seem to be happy with their service. To back this up, Hot Forex won 12 awards, including Best Online Broker (Eastern Europe), Best Forex Broker in the Gulf 2013 and Best Forex Broker in China 2013. They offer the option to use both variable and fixed spreads, with accounts starting at $50 (Micro) and going as high as $40,000 for the VIP account; for a reasonable first deposit of $500, Hot Forex offers the possibility to open a Currenex [1] account. The “Tools” section is quite helpful, offering interesting statistics like Client Positions (percentages of clients with open Sell orders versus clients with open Buy orders) and Volume per Symbol (shown as a percentage of the total volume traded by Hot Forex clients). Overall Hot Forex is a reasonably good broker, with the ability to become one of the best if they continue to offer a high-quality service.

 

 

Editor’s Note – Is HotForex a Scam?

In light of my latest research on this broker – which by the way, took me more than I would have expected – I can say there’s no suspicion of a scam. Sure, a delay here and there and maybe some slippages are likely to occur, but that doesn’t make Hot Forex a scam. Brokers are not perfect, I’ll give you that, but Hot Forex’s main concern doesn’t seem to be stealing money from us.

 

Editor’s Note – Would I Trade with HotForex? Maybe…

I would like to see them lower their fixed spreads before I’d think about opening an account and a smaller first deposit would be nice too, considering that except the Micro account, the minimum deposit is $500 (VIP is $40,000 but I’m no VIP). Come to think of it, $500 is not such a restrictive sum, but it’s still a bit much for a broker which lacks that spark of greatness. Don’t get me wrong, they are OK, but I don’t really want to put my money on just “OK”. So there you have it: definitely maybe…

 

References

  1. Currenex on Wikipedia
  2. HotForex Reviews on FXEmpire
  3. BabyPips Forums HotForex
  4. FPA User Reviews on HotForex

 

Have We Saved You From Going Broke?

  • ED

    Account number 269022
    Hotforex is a SCAM broker.
    Hotforex is a market maker, no STP broker like they claim to be.
    Look at hotforex website, there’s no liquidity providers names, I was hotforex client, when I asked account manager about who are hotforex LP’s he said can’t reveal the names, it’s a secret!!!
    Great!, I invest my hard gained money into a broker account because hotforex claim to be STP broker, to later discover that scammer hotforex is giving me a market maker service, this is a disgrace, hotforex is a scam cheater broker.
    How can’t a client know who are the LP’s of his broker when hotforex claim to be STP!!!?
    Hotforex scammed me $15000 after leaving my account to negative balance, how can an accoun run on negative margin!!
    hotforex didn’t apply its margin policy and hotforex gave me in one account $136000 of bonuses when hotforex bonus policy states $30000 is the max. per account.
    hotforex encouraged a retail client who’s highly protected by regulators by giving an extreme amount of bonus and hotforex breaching the contract by that, instead of warning retail clients of risk of trading.

    Hotforex cheat investors by claiming to be STP but hotforex is giving market maker service.

    Hotforex must be punished by regulators CySec and FSA Mauritius.

    Stay away of the SCAM hotforex.

    Reply
  • Jay

    Looks like another story of someone who lost his money and now he is blaming the broker for his mistakes.
    Next time , don’t make big deposits, read the terms & conditions and be smart! now that I think about it FIWIB is exactly the project that forex traders need. Too many complaints on good brokers out there, someone has to put an end, and explain people how to avoid going broke.

    Reply
    • Ed

      Another spammer paid to defend the scammer hotforex. Too many complaints. Against scam brokers like hotforex

      No spammer can change hotforex scam fact

      Reply
  • Shale Davis

    Have been trading with them for two years. No issues so far. Trades on gold are executed in best fashion in terms of slippage and very tight spreads. As a news trader would recommend this broker as it have very effective platform for news traders. Quotes on NFP are tight and Tick volume is not so high in this time as for other brokers. Can’t say anything about technical traders but believe their platform will work for it without problems.

    Reply
  • Sergio

    Opened a premium account with hotforex 9 months ago, everything was working alright when my losses were more than my winnings, when i started to profit and winnings increased making my ROI 350% in a month, hotforex showed me its real face, off quotes when exiting my trades, re quotes when executing trades, wide spreads that filled my stop losses. I lost half my account after that running winnings due to hotforex dealing desk service.

    please be aware of hotforex bad bad bad broker.

    Reply
  • Aurelio Garcia

    Best commission account I’ve every tried. Spread widenings are rare, no slippage in flat market, execution keeps within 500 ms what’s really great. No restrictions on EA using, withdrawals are processed in time. Love this broker.

    Reply
  • Chris

    I was introduced this broker by a friend, it’s more professional than all local brokers, especially in responing inquiries and supporting. I had a problem with funding and CS team helped me to solve it within a few mins. Highly recommend!

    Reply
  • Gilbert

    NIck, I run deep check of that broker and got very confusing reviews (but many negative reviews seems like b@llshit and attack from competitor). Guess we need to check HF personally, no pain no gain :)

    Reply
  • Nicholas McGarry

    People what are you talking here about?! Hotforex is a 100% SCAM. I used to have an account with them, from 200$ I turned it to 2000$ and then I requested a withdrawal … surprise-suprise! Not only I haven’t received my money back… Hotforex erased almost all of my profitable trades telling me that they were all out of the market! STAY AWAY FROM Hotforex IF YOU DON’T WANT TO SAY GOODBYE FOR YOUR HONESTLY EARN MONEY!

    Reply
  • Sam Tipas

    i would have to agree with gillbert , I have stumbled upon some threads with same content, duplicate spam from certain posters, there are some very obvious dirty marketing going on. some veteran traders/forum users even suggested some proof but sadly no reply from the spammers. its true if there are any complaints the easiest way to verify it to provide some decent real account numbers for the broker to check on the issue, in the end thats what compaints are for right? to have the broker solve it. this will highly affect the honest traders looking for a honest broker.

    Nicolas is a spammer unless he can prove other wise.

    Reply
  • Evrard Veilleux

    I had hotforex for about a month back in September 2014. Just like to share my experience.
    a. Margin is very high.
    b. They charge overnight rollover fees no matter which way the interest rate is in favorite of.
    c. When you submit order, the margin will get immediately counted. If you don’t have enough money, they will still allow it and take it out of your credit card immediately even if it is for a pending order.
    d. You have to sign an agreement when opening account to let them take money out of your credit …

    Reply
  • George Somerset

    News traders, stay away from hotforex, lots of slippages they open your order at the end of the candle ! With maximum slippage !Even they modify your pending order in this way that it looks you have done it by yourself and they say you was modifying your pending order till the price stop moving and than it has been opened. I can’t even prove that I didn’t modify my pending order till price stops because it shows in log that I was doing it. Terrbile. Just stay away. Another bucketshop!

    Reply
  • Alica Letcher

    Guys I hate to say this but this is yet another dodge broker you want to stay away from. Originally I thought I could trust this guys, not because of those good customer service noted by others, but because their spread was very big. This supposed to mean that the company makes money off people’s trade an not scamming them using delayed order or slippage and god knows what other tricks brokers use. But no, not only hotforex has big spread, but they have yet another smarty pants way to leech money off ppl. What they done to me was, when my account was closed by margin call, they basically took the money that was supposed to be reserved and deposited back to my account. When margin call hit, I basically had ZERO dollar… so remember, if u fall into margin call with hotforex, that means, absolute zero. no reserved capital returned to your account. very sad eh?

    Reply
  • Huang Jun

    Find this broker from FPA, funds security is my first concern. Until now withdrawal always been executed with one day, as for spread and customer service, it’s ok. So it still can be regarded as reliable broker.

    Reply
  • NT

    – Fast withdrawal via Skrill under 24 hours
    – Multiple accounts + contests
    – Good spread on majors (Premium Account)

    Reply
  • PARTH PATEL

    Hello friends, I associated with hotforex from last 3 years…..i earn sufficient amount from HFMarket…just because of good relationship with HFMarket i deposit 1.1 Million USD in December 2016.

    But still they are not showing me my deposit in my wallet account and now the support department of HFMarket told me that they don’t know about this. I Mailed them almost 5- 6 times on support@hotforex.com as well as on backoffice@hotforex.com.

    Due to illegal activities and fake transactions the representative of India (Mr. Mohit Rewari) facing some issues here and close their two offices located in India.

    They collect the funds on the name of “HF Education PVT. LTD.” from India. Now Government of India will take action on HF Market which is located in Cyprus and ask them with whose permission they run their
    business in India. At the end of result may be CySEC will cancel the certificate and many more things can be happened.

    So please beware from this company and withdraw your money as soon as possible. For any further question you can ask me on facebook messenger or whatsapp me on +91-9974327683.

    Reply
  • Jess Molino

    The broker is fairly decent, up there with 10% decent brokers in my opinion, well balanced and stable, some comments arent even backed up with facts here just to show how competition is LOl, but seriously, going to 2 years trading a live premium account, all withdrawals are spot on with in aloted time, pretty much active in both support and services, and continues to try and provide more which is a good sign, though the broker is well established but i think there is no such thing as a perfect broker and has room for improvement. so far so good well done

    Reply
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