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Hugo’s Way Unbiased Review

In today’s review, we’ll take a look at one of the most popular brokers in the US. Hugo’s Way was founded in 2017, and the broker is known for allowing trading strategies like scalping and hedging. The main concern is whether Hugo’s Way is safe to trade with. Let’s learn all about what Hugo FX is about.

Key points?

  1. What is Hugo’s Way? Hugo’s Way is a forex and CFD broker founded in 2017. The broker offers various financial instruments and is known for allowing strategies such as scalping and hedging.
  2. Is Hugo’s Way Safe? There are obvious red flags in the way Hugo’s Way operates and how customers are reacting. Given that Hugo’s Way is an unregulated broker and has been the subject of a legal warning from Spain’s financial authority, the CNMV, it can be said that the broker is not safe to trade with.
  3. Where is Hugo’s Way Located? Even though most of the website visits are from the US and the UK, Hugo’s Way is reportedly located in Seychelles. However, the lack of detailed information about its physical location is concerning.
  4. How Are Customer Reviews About Hugo’s Way? Customer reviews indicate issues with pending or unsuccessful withdrawal processes.
  5. What About Regulations and Licenses? Hugo’s Way is an unregulated broker, and there is a warning issued by Spain’s National Securities Market Commission (CNMV) advising traders to approach the firm with caution.
  6. What Are Hugo’s Way Trading Conditions? Hugo’s Way requires a $10 minimum deposit and offers a 1:500 maximum leverage for forex pairs. As an ECN broker, the spreads are low, and the broker charges a $5 commission per lot.

What is Hugos Way?

Hugo FX is a forex and CFD broker founded in 2017 as a product of Hugo’s Way Limited. Since entering the forex market, Hugo FX has attracted many traders with its trading conditions, especially in the US and the UK.

Hugo’s Way offers various financial instruments, including cryptocurrencies, energies, futures, forex pairs, indices, metals, and stocks. The broker is known for allowing strategies such as scalping and hedging and offers leverage of up to 1:500 for forex pairs. Hugo’s Way is an ECN broker that charges $5 per lot in commissions.

Hugo FX is located in Seychelles and requires a minimum deposit of $10 for crypto deposits and $50 for credit or debit card deposits. However, Hugo FX is an unregulated forex broker and has been the target of many controversial customer reviews. Customers are not the only ones concerned; Spain’s National Securities Market Commission (CNMV) has warned Hugo’s Way for operating without authorization.

Is Hugos Way Safe?

There are common red flags when detecting a scam broker. Forex, by its nature, is a very compelling area that scammers exploit. Knowing these red flags and being aware of what comes next can be crucial for your investments.

Who is The Owner of Hugos Way?

Transparency about the founders of the broker is a sign of its legitimacy and accountability. Anonymity raises suspicions about the broker’s legitimacy and suggests that the operators have something to hide or are not committed to long-term operations.

When I looked for the founders of Hugo’s Way, I didn’t come across any names on their official website or their official Hugo FX Facebook page. Even though Hugo’s Way is not transparent about its founders, I’ve found breadcrumbs of information along the way. These pieces of information may not be reliable but might give us an idea about the founders of the broker.

During my research, I came across some names on a third-party company profile website called Rocketsearch. Rocketsearch is a search engine for company and personal information. Even though it’s not a very reliable source and the findings may not reflect the truth, this is the only information available on the internet.

the founder of hugosway

In Rocketsearch, it says that Shane Morton is the Chief Executive Officer at Hugo’s Way and also the Managing Director at SCM Capital Nigeria. However, as I mentioned earlier, the information from Rocketsearch is not reliable. If Hugo’s Way were transparent about its founders on reliable sources like their Crunchbase profile, official social media accounts, or their website, we wouldn’t need to search so deeply on the internet.

Hugos Way’s Physical Location

A reputable broker should always disclose its physical office location. This transparency is not just for legal compliance; it is to reassure clients that the firm is accountable and legitimate, ensuring the safety of their investments. The lack of information about the broker’s physical location is alarming because it complicates the process of seeking legal recourse in case of disputes.

In Hugo’s Way’s official website, the broker seems to be located at Hugo’s Way Ltd, House of Francis, Room 303, Ile Du Port, Mahe, Seychelles.

hugos way location

Customer Reviews About Withdrawals

Ponzi schemes make payments with the money coming from new clients. When the flow of new customers stops, the payments will stop, and customers will complain. Reading customer reviews on reputable sources is a great way to understand if a broker is a scam or legitimate.

When looking through customer reviews, I suggest evaluating each comment and reading the worst reviews first. This approach is important because on many sites, customer reviews can be bought and misleading. Both WikiFX and Trustpilot are reliable sources to check a product or service’s reliability, but it’s important to note that people are not always reliable. When you look into a broker’s profile, you may see bought reviews that do not reflect the truth.

wikifx review 1
hugosway review trustpilot fake 1

To find genuine customer reviews, you need to dig deeper. Many scam brokers pay hefty amounts to affiliates, and the internet is filled with their promoters. Some scams even operate through pyramid schemes like Eaconomy and Novatech. To protect yourself, it’s crucial to cross-check customer reviews from multiple sources. I also suggest visiting their social media profiles for more insights.

When I looked at the Google Maps reviews about the broker, I found that customers are complaining about pending or unsuccessful withdrawal processes. While these reviews are not the sole representatives of the situation, they are a good indicator of the broker’s potentially fraudulent operations.

hugos way google maps reviews
google maps customer reviews 3

As you can see, the customer reviews on Google Maps are not very pleasing. When you dig deep enough on Trustpilot, you’ll be able to see more customers complaining about the unresponsiveness of customer services and issues with withdrawals.

hugosway trust pilot withdrawal issues

Regulations and Licenses

Forex brokers are typically required to be registered and regulated by financial authorities within the jurisdictions they operate. These regulations ensure that brokers adhere to specific standards, including keeping client funds segregated or operating under ethical practices. A broker with a poor regulatory history, such as fines or warnings from financial regulatory bodies, indicates past misconduct or a failure to comply with regulatory laws.

Not being regulated by a trusted authority is equally concerning and, in most cases, illegal. Remember the Silverstar Live forex scheme; Silverstar Live marketed its operations as a no-loss, guaranteed win, which was illegal in the US since you have to inform potential clients about the risks involved in the investment.

Unregulated brokers are not bound by any standards or oversight, leaving clients vulnerable to unethical practices. Another issue with unregulated brokers is the lack of a mediator to resolve disputes, such as those customers experience with withdrawals. Issues with withdrawals are often signifiers of how the broker’s income is generated.

segregated accounts hugosway

Hugo’s Way CNMV Warning

There is a warning issued by the Comisión Nacional del Mercado de Valores (CNMV), Spain’s National Securities Market Commission, advising traders to approach the unregistered firm Hugo’s Way LTD with caution. The CNMV is responsible for the supervision and regulation of the Spanish securities markets.

hugosway scam warning -min

According to the warning, Hugo’s Way LTD is not authorized to provide investment services and activities regulated by the Spanish Securities Markets and Investment Services Act (Law 6/2023, of 17 March). This includes activities related to forex and crypto.

The CNMV states that this firm does not have the necessary authorization to operate within Spain’s regulatory framework.

Hugo’s Way Trading Conditions

Tradable Instruments

A variety of tradable instruments is great for diversifying portfolios, which I am not a big fan of, and for news trading, which I find compelling enough to look for in a broker. Since Hugo’s Way claims to be global, I’d expect it to offer more than 100 CFD instruments. Forex and crypto options are more than enough, especially the crypto.

InstrumentsAvailable Pairs
CryptocurrenciesBCHBTC, BCHUSD, BITUSD, BTCUSD, DASHBTC, DASHUSD, EDOBIT, EDOUSD, EOSBIT, EOSUSD, ETCUSD, ETHBTC, ETHUSD, ETPBIT, ETPUSD, IOSTBIT, IOTABIT, IOTAUSD, LTCBTC, LTCUSD, NEOBTC, NEOUSD, OMGBIT, OMGUSD, QTUMBIT, SANBIT, SANUSD, TRXUSD, USDTUSD, XMRBTC, XMRUSD, XRPBIT, XRPUSD, ZECBTC, ZECUSD
EnergiesUKOil, USOil
FuturesDollar
Forex CrossesAUDCAD, AUDCHF, AUDJPY, AUDNZD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, NZDCAD, NZDCHF, NZDJPY
Exotic Forex PairsEURCZK, EURDKK, EURHKD, EURMXN, EURNOK, EURPLN, EURSEK, EURTRY, EURZAR, GBPDKK, GBPNOK, GBPSEK, NOKSEK, USDCNH, USDCZK, USDDKK, USDHKD, USDHUF, USDILS, USDMXN, USDNOK, USDPLN, USDRUB, USDSEK, USDSGD, USDTRY, USDZAR
Major Forex PairsAUDUSD, EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, USDJPY
IndicesAUS200, ESP35, EUSTX50, FRA40, GER30, JPN225, NAS100, SPX500, UK100, US30
MetalsXAGUSD, XAUEUR, XAUUSD, XPTUSD
StocksXAGUSD, XAUEUR, XAUUSD, XPTUSD

Fees When Trading with Hugos Way

Hugo’s Way is an ECN broker, which means that fees directly affect your trading. ECN brokers offer substantially low spreads but try to compensate for them with fixed commissions. Let’s check Hugo’s Way’s conditions.

Hugo’s Way charges $5 per lot commissions. However, it is not really competitive since lower commissions can be found with other brokers, reputable ones. The spreads are also not that low for an ECN broker. You can check the live spreads here.

Hugo’s Way does not charge any withdrawal or deposit fees, but many customers have had problems with withdrawals from Hugo’s Way.

The minimum deposit requirement for Hugo’s Way is $10 if you deposit with crypto, specifically bitcoin. If you choose to deposit with a credit or debit card, this amount rises to $50. The maximum amount is unlimited for bitcoin deposits, and for other options, it depends on your credit card provider.

The minimum withdrawal limit is also $10, and it is the only way to make withdrawals. When it comes to the maximum limit, Hugo’s Way does not impose one. However, considering the complaints from customers about the withdrawal process, it is something to consider.

Hugo’s Way Account Types

Hugo’s Way is an ECN broker that offers only one account type. You can open positions with as little as 0.01 lots, which equals $1,000.

Most brokers offer two or more account types: one for low-volume trades and one for high-volume trades. I would prefer it to be that way, with perks for high-volume traders and advantages like bonuses for beginner and low-volume traders.

Scalping is a trading strategy that involves making rapid decisions to profit from fractions of price movements. Scalping is permitted with Hugo’s Way.

Hedging is a strategy used to manage risks by offsetting potential losses with an opposite position in a related asset. Hugo’s Way allows hedging.

Maximum Leverage with Hugo’s Way

Leverage is highly dependent on regulators. Most trusted authorities impose restrictions on regulations; for example, the FCA does this not because they don’t want traders to win, but because leverage can be dangerous despite its advantages. Since Hugo’s Way is an unregulated forex broker, it has the freedom to offer as much maximum leverage as it wants.

Hugo’s Way offers 1:500 leverage for forex pairs, which is the maximum leverage that Hugo’s Way offers. Leverage decreases to 1:2000 for indices and 1:100 for energies and cryptocurrencies. Hugo’s Way also offers 1:20 leverage for stocks.

Conclusion

In conclusion, Hugo’s Way presents a mixed picture as a forex and CFD broker. On one hand, it offers a wide range of forex and crypto pairs that can be utilized in various trading strategies such as scalping and hedging, along with a 1:500 leverage option and accessibility for as little as $10. However, on the other hand, the broker has been operating without a proper license and has been the subject of financial warnings.

The concerns about the broker’s safety outweigh the trading conditions. The lack of clear information about the broker and the way it operates only adds more to the concern. This, coupled with customer reviews about withdrawal issues and a legal warning from Spain’s CNMV, indicates that the broker is not safe to trade with and should not be trusted.

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