Few things beat the frustration and bitterness you get from losing money to scam forex brokers. A referral by a trusted friend or curiosity stirred by an ad promising you financial freedom could quickly degenerate into the loss of your life’s savings.
Scam brokers are all over the internet. But this does not mean that you should stop investing in forex trading. Instead, learn the red flags.
Hugo’s Way advertises itself as the ‘world’s most transparent brokerage’ and promises flexible leverage options. But does it mean you can trust it?
In this Hugo’s Way review, we will see if this broker qualifies to be termed as a trustable broker. We will check their regulation and reputation, among others. If you have already lost your money unfairly to the broker, we can help you follow it up.
Hugo’s Way Review: An Overview
Hugo’s Way was launched in 2017 and provides a St. Vincent and the Grenadines address on its website. Its parent company, Hugo’s Way Limited, is located in Seychelles.
It provides trading assets, such as cryptocurrencies, forex, metals, indices, stocks, futures, and commodities like oil.
Hugo’s Way works with the MetaTrader 4 trading platform. Traders can use a web-based trader, a mobile app, or a desktop software version.
Deposits and withdrawals can be made through a credit or debit card or a wire transfer from a bank account. There is also the option to get your money through bitcoin.
The broker is restricted from operating in several countries, including Japan, Vietnam, Bahamas, and several African countries.
It claims to process withdrawals within a 24-hour time frame.
Hugo’s Way Regulation
We will begin this Hugo’s Way review with an essential aspect – regulation.
We always emphasize that you should check a broker’s regulation before proceeding with making a deposit. A regulatory body will govern the broker’s operations and protect you by ensuring the broker is acting in your best interests. You also get the assurance that your cash is protected from acquiring a negative balance.
A look at Hugo’s Way regulation revealed that the broker has none. It is not licensed.
What makes the situation worse is that Hugo’s Way is an offshore company. Most scam brokers set up their operations in offshore jurisdictions due to the low taxation and easy setup. Acquiring a license comes with little requirements.
Offshore jurisdictions are not strict on overseeing brokers’ operations. The Financial Services Authority of St. Vincent and the Grenadines, for instance, where Hugo’s Way is located, issued an alert to investors concerning Forex Trading and Cryptocurrency. It stated that it does not regulate or license such operations.
It does not regulate or license International Business Companies operating in such activities either.
Hugo’s Way states that it is trying to find the right regulator. And that the process is taking a lot of time. But given that the broker has been in operation since 2017, we think that it has had more than enough time to find a good regulator. Any broker that cares about its clients will ensure that they are well protected, instead of giving a flimsy excuse.
Hugo’s Way Suspicious Affiliate Program
A scam forex broker is always easy to spot. These brokers work questionably hard to get more signups. They use juicy gifts and bonuses to encourage signups from naive traders.
Hugo’s Way uses a different approach – a multi-tier affiliate program.
It offers $2 per traded lot placed by every new referral a trader brings to the broker. It continues to pay the commissions for as long as the referral keeps trading. Traders can also earn from sub-referrals.
Hugo’s Way goes as far as providing marketing tools and an affiliate campaign manager to those participating in the referral program.
By using an attractive and rewarding affiliate program and pushing it in all ways possible, Hugo’s Way takes advantage of consumers’ tendency to trust recommendations from their peers. These customers are likely to overlook Hugo’s Way’s lack of proper regulation and continue to trade with the broker, only to end up losing their money.
Limited Educational Materials: Another Red Flag from Hugo’s Way
With the high numbers of new traders who sign up as a result of the aggressive referral system, Hugo’s Way is sure to get a lot of signups from clients who are new to trading. However, they show no interest in helping these traders grab the basics of trading or make better trading decisions using educational materials such as blog posts, videos and in-depth tutorials.
Its only interest is to have traders invest their money. It then takes advantage of inexperienced traders’ gullibility to use unfair trading conditions and have them lose their investment.
Hugo’s Way Limited Customer Service Contact
Given that the broker is new in the market and unregulated, traders are bound to face challenges. But Hugo’s Way does not provide enough contact information to get issues resolved fast.
It only provides a contact form. There is no phone number, which would be a quicker way to reach support and get urgent issues resolved.
Hugo’s Way’s Market Reputation
It has not been in the market for long, but Hugo’s Way has managed to attract an unfavorable rating of 2.7 from Forex Peace Army, an unbiased review website.
Although it claims to process withdrawals within 24 hours, this customer reveals that it is not the case. Their withdrawal was still pending more than 72 hours after they had made the request. Delayed withdrawals are a typical behavior of scam brokers.
This other experienced customer claims that Hugo’s Way manipulates the market to make traders lose. And we can only imagine what happens to inexperienced traders who are struggling with no learning materials, poor access to customer service, and apparently, manipulated trading conditions.
Here is another complaint from a customer stating manipulations of their account.
These two reviews on Trustpilot, another reliable review site, tell of the manipulations the broker does to ensure that traders lose their money.
We have enough evidence to conclude this honest review.
Hugo’s Way Review: The Verdict
Hugo’s Way is by no means worth your trust. The total lack of regulation should be enough to make you run from this scam broker.
They use customer referrals to encourage signups, only to have traders lose their money through manipulated accounts and poor trading conditions.
If you are lucky enough not to end up with a negative account balance, a withdrawal will turn out to be an endless wait.
If you have lost money to this scam broker, feel free to schedule a free consultation. We can help you recover it.