Hugo's Way Review - Not Recommended Broker

Written by
Réka H.
Fact checked by
Adam N.
Updated
11h ago

Summary

 

Hugo’s Way is a non-regulated online broker, registered in St. Vincent and the Grenadines. It offers mainly CFDs for trading, but stocks and cryptos are available as well.

Mostly because of the lack of regulation and available financial information, we do not recommend trading with Hugo's Way.

We at BrokerChooser care about our users: we want to make sure you have a good understanding of how investing works, and we have reviewed over 100 brokers to help you decide which one fits your needs best. We also want to help you avoid bad experiences.

In this article, we highlight a broker that we do not recommend based on the objective research of BrokerChooser’s analysts. Read below to find out which brokers we do recommend!

 

Find a reliable broker

 

A surefire way to avoid scams is to choose a reliable broker from our selection of the best CFD brokers and best forex brokers for 2022.

If you want to start your search from scratch, use our proprietary broker finder tool for a tailored recommendation.

Hugo's Way overview
Regulation No regulation
Foundation date N/A
Annual financial statements published No
S&P credit rating No
Big 4 auditor No
Listed on stock exchange No
Banking background No
Investor protection No

Regulation

The legal entity behind Hugo’s Way is called Hugo’s Way Limited, registered at Beachmont Business Centre in St. Vincent and the Grenadines, a country widely considered as an offshore tax haven. The company doesn't hold a regulatory license, hence it is not regulated by any financial authority.

It’s important to note that not all unregulated brokers are scam. However, in our opinion, the lack of regulation is something of a red flag, therefore BrokerChooser does not recommend trading with unregulated providers.

Main issues

In addition to the lack of regulation, there are other issues at Hugo’s Way that would make us advise against trading with them.

  • Only limited data is available about the company, with lots of important information missing. For example, we couldn’t find a foundation date, any financial statements or a trustworthy auditor.
  • Hugo's Way doesn't offer investor protection and doesn’t take responsibility for financial losses as a result of system failure, execution problems or the lack of information.
  • Probing their customer service, we found an email address and a live chat function, but our questions submitted via chat didn’t yield any relevant information or answers. Another warning sign is that there is no phone number to ring in case of emergency.
  • There is also no information about key pricing details such as CFD trading commissions. You can check spreads, though, and the minimum deposit is low ($10), but we don’t think this is sufficient information for a safe account opening.

 

How to get your money back

The Hugo's Way website has no information about the process of getting your money back in the case of broker insolvency or any other problems. In fact, Hugo's Way states in its Legal Risk Disclosure that it is not liable for any money lost.

As a general rule, we recommend that you thoroughly check your broker before you deposit any money. If in doubt, document everything, make screenshots, save emails and chats, so you have as much proof as possible in case you need to turn to the authorities.

If you do get scammed by a broker, here are a few options you can try to get your money back:

  • You can turn to your bank and file a chargeback request; a mechanism whereby the banks involved in the transaction return the disputed funds from the account of the seller of the service if the service was not provided.
  • You can take legal action and issue a so-called Mareva (or freezing) injunction against the company.

 

How to spot if a broker is a scam?

There is a higher likelihood that a broker might be a scam if:

  • it is not regulated at all
  • it is regulated under a jurisdiction widely seen as an offshore haven (e.g. Vanuatu or St. Lucia)
  • it is featured on a warning list of a top-tier regulator (e.g. the UK’s FCA, or the SEC in the US)

 

If you would like to know more about scams, how to avoid them, and how to get your money back, read our Forex trading scams page.

Got questions?
Engage with our growing community of traders and investors like you to find your answers.
Join now

Author of this article

Réka Hidas
Réka Hidas

Réka is a former Junior Broker Analyst for BrokerChooser. She attended the International Business and Economics bachelor program at Corvinus University in Budapest. She's eager to help investors find the best investment providers, through writing extensive reviews, while also developing her skills and growing professionally in this field.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

Follow us

Regional settings

×
I'd like to trade with...