Beware! HWGsecurites 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.
HWGsecurites gives away vibes of a startup company website. If it were not for the text, we would have never guessed this to be advertised as a forex brokerage firm. The interface is user friendly, and it a genuine blast to go through the website. There is a very innocent feel to the whole thing, and it is well used to cover some of the more shady aspects of this broker, elements that took us some time to uncover, but uncover, nevertheless, we did. Continue reading to find out more.
We had to proceed with a demo account, for the live one required ID documents. The demo account, was nevertheless, also unavailable, because it too required a number of verification documents. De facto, we had no way to register any type of account. This means that we have to rely on the website with sensitive information, and as we shall soon see, this in not the best of ideas.
According to it, the cost of trade for the EUR/USD pair is 2 pips, which is a usual spread. Forex pairs, commodities, cryptocurrencies, and indices are the instruments that a user can trade with. The leverage is maxed out at 1:1000, and this is a very dangerous leverage. It can lead to great profit, however it can also result in immediate loss.
The website is available in English and nothing else.
HWGSECURITIES REGULATION AND SAFETY OF FUNDS
HWGsecurites is said to be abiding by the laws of St. Vincent and the Grenadines, a small nation in the Caribbean pool.
There, the laws allow for more loose behaviour, making this a very fruitful ground for all sorts of illicit brokerages. And the fact that the nation does not have a FX regulator just acts as yet another invitation to even more shady broker companies.
Just as a side note- there have been circulating rumours that St. Vincent and the Grenadines will soon reform, its entire licensing framework,and with that will tighten its grip on the current brokers operating from there.
This regulatory information is the only one we could find. Thus we can quickly stamp this broker as an UNREGULATED entity, and therefore a risk to all investments!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
HWGSECURITIES TRADING SOFTWARE
We have evidence that the MT4 is available to registered users of HWGsecurites. This is a huge leap forward, as this terminal is the most
As the leading industry trading software, the MetaTrader 4 is not even surpassed by its newer version, even though the MT5 is a better rendition of the two. Even so, the MT4 is still light years away from some newer trading softwares, that try and duplicate it but never succeed.
The terminal encompasses automated trading, easy to learn interface, chart management possibilities, analysis tools, technical indicators, a back-testing environment, Expert Advisors, and more. Once you get a hold of how it works, you will start discovering things that will make you a better trader, but a also give you further insight of how the industry works.
HWGSECURITIES DEPOSIT/WITHDRAW METHODS AND FEES
The payment information is taken from the website of an unregulated broker, thus we cannot guarantee it to be true.
The minimum deposit according to the Account page is $15, while according to the trading platform area it’s $100. We have no way of knowing what the minimum requirement is, for we had no way to access a user area. However, this discrepancy is not the best of signs.
The Terms and Conditions clearly indicate that there are fees for withdrawing. Yet, there is no disclosure consisting of the value of these commissions and charges.
We found no details on processing times or a minimum withdrawal amount.
We believe that the following clause reveals that there is a turnover requirement that has to be completed before a withdrawal is requested. It seems that HWGsecurites can set the trading volume limit at its sole discretion.
There is a very odd Negative Balance Protection policy at use here that is worth a gander. HWGsecurites will activate and take from other account held by a users whose account goes below zero. Basically, HWGsecurites equals things out by filling one negative account with the money available in another account held by the same person. However, the clause leads us to assume that if the user does not have a second account, HWGsecurites will take from a different user’s account! Read the clause to draw your own take on it.
The Terms and Conditions are on the short side. What this means is that there is a lot of things that are left unsaid. We believe that these undisclosed clauses will still be applicable: HWGsecurites is unregulated; it will find a way. And anyway, we think that what we have discussed is more than enough proof to keep you away from investing here (even if there were some positive aspects).
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time