HQ Broker Scam: A detailed review
Overview of HQ Broker Review:
HQ Broker claims to be a globally acclaimed online trading platform that deals in Forex, CFD, Spread betting, social trading, and share dealing. Operating in the market since 2008, the company claims to have its headquarters in Hong Kong. Offering trade in over 138 tradable instruments, HQ Broker claims to be traders’ favorite across the world. To know more details about the HQ Broker, read our HQ Broker Review.
About HQ Broker scam:
Upon a little research, it was found out the HQ Broker does not come under any regulatory authority. For a broker to legally operate in the market, they must have a license issued by the regulatory authority of the country. We request our readers to not trade or invest with a brokerage firm that does not have a license. This is our first red flag against HQ Broker. Owned and operated by Capzone Invest Ltd., the company is registered in the Marshall Islands. For those of you who do not know, Marshall Islands is one of the islands in the offshore zones. Now, as the offshore zones do not have legitimate regulatory authority, it has become the breeding grounds for scam brokers.
Minimum Initial Deposit:
The minimum initial deposit that is demanded by HQ Broker raises yet another red flag against HQ Broker. The company demands an initial deposit of $100. The regulatory authorities advise against asking for a minimum initial deposit as it may only lead to the trader incurring a loss. Therefore, such high initial deposits are only asked by scam brokers.
In order to attract more customers, HQ Broker offers leverage of 1:400. This raises yet another red flag against HQ Broker as higher leverage can only mean one thing – Loss. The regulatory authorities do not allow the legitimate brokers to offer leverage above a certain limit. In Australia, the leverage is capped at 1:30 whereas it is capped at 1:50 in the US. Higher leverage increases the chance of the customer losing their money in the trade.
Another red flag against HQ Broker is that the company allows a minimum of 50 dollars for every withdrawal done through wire transfer. The company also states that the withdrawal will take 13 to 15 days. There is no minimum withdrawal rate for credit cards and debit cards.
Loss of Demo account:
A demo account is necessary for the traders and the newcomers in order to learn the working of the trade schemes. Therefore, the legitimate brokerage firms mandatorily provide demo accounts. HQ Brokers, however, does not provide a demo account to their customers. This method is often adopted by scam brokers in order to fool the customers.
After taking into consideration, all the points drawn above, it is safe to say that HQ Brokers is a complete scam. We advise our readers not to trade or invest with HQ Brokers. One must always trade with companies that have a legitimate license issued by regulatory authorities. If you have been a victim of any such scams, file a complaint with us at the earliest and we will help you get back your money.