Is Hugo's Way A Good Broker?
Can they be trusted?
In 2017, Hugo’s Way was founded as an online financial platform with the aim of reaching out to both global and domestic investors. And within a short span, this multi-asset broker did manage to make a mark in the world.
Five years since its inception, Hugo’s Way is now one of the leading trading platforms which offer trading in stocks, forex and cryptocurrency. Its head office is situated in the Grenadines and St. Vincent, and it is now considered a global broker.
One of the first things that investors will observe about this company is its listed stock symbol. This sign means that the firm is publicly listed, meaning that people can easily buy shares on any global stock market exchange.
There is no denying that Hugo’s Way has huge popularity in trading. But there is no guarantee of being skepticism-free. So many people – both novice and experienced investors – have one question: Is Hugo’s Way, a good broker?
Over the years, the trading platform has helped thousands of clients. It has a strong mechanism in place, which ensures that all needs of investors are met timely. A good thing about the company is that it has a user-friendly website, allowing investors to learn more about trading easily.
It also provides good leverage, meaning that people can make good gains. It uses high tech and is up-to-date. All that there is required for a good broker firm to function smoothly, Hugo’s Way has it.
The only downside that the firm has is that it is unregulated, which makes investors exposed to all kinds of risks. However, in the world of trading, risks cannot be fully eliminated. The company has been in the business for over five years now, and so far, not many people have registered serious complaints or leveled serious allegations against the company. All of this goes to show that when you review Hugo’s Way, they do offer good services to their clients.
Another noteworthy feature of the Hugo's Way platform is that it has segregated bank accounts where it holds investors’ money – this is done to ensure that the company doesn’t use the fund of investors for its operations. Also, to add more security, the company uses Tier-1 banks. Such financial institutions are considered to be the safest banks for keeping clients’ money. For those who are not well-versed in the field of finance, let us add that Tier-1 is the term used to measure a bank’s strength and the overall financial health – the number of depositors it has or its credit rating, etc.
Tier-1 banks usually have high amounts of capital reserves. Also, many financial regulators go with such banks because they know that these financial institutions will be able to deal with unforeseeable losses.
What is in it for You if Your Funds are Being Deposited in Tier-1 Banks
Since we are raving about how fantastic Hugo’s Way is just because it deposits clients’ money in Tier-1 banks, you may have one question for us: why should you have your money in a Tier-1 bank? Such banks do have a good amount of capital, which means that clients can easily withdraw their money whenever they wish to. It also holds true if the trading accounts – which initially deposited the money here – go out of business. Traders want their principal to be safe. And for them, this feature is an important one. However, it doesn’t mean that you won’t lose your money just because you have chosen a Tier-1 bank.
The world of trading is a risky form of gamble, where you could lose your money as quickly as it can get. Losses in trading are due to lack of experience, no efforts put to research markets efficiently, or the inability to use available tools. These factors play an important role in undermining an investor’s capability to make better judgments. For beginners, it is quite important that they understand the nitty-gritty of the trading world and the volatility of stock markets. One wrong move can result in the loss of hard-earned money. It is also essential that they keep educating themselves about the market trends and other related things that they must know to make sound investment decisions.
Broker firms do help a lot as they provide the relevant data to clients. But the onus is not entirely on these firms. Investors are equally responsible for making efforts to understand the technicality of stock markets. Good broker firms keep reminding their investors that their capital is always at risk. Hugo’s Way does have a disclaimer on its website so that investors will know what they are getting into.
What are the Qualities of a Good Broker Firm?
With all this discussion on Hugo’s Way, you may have this question: what are the qualities of a good stockbroker firm? You cannot look for articles/explainers that tell whether or not a firm is good or not. So, here we are listing down some of the qualities that you should look for in a firm before you choose them and put your proverbial investment eggs in their baskets.
Account Choices
Good broker firms usually let their clients choose the account they think best suits them. There are multiple account types to choose from, but the most popular one is the ECN forex broker account. Such accounts help forex traders to accept timely and profitable offers efficiently. Which account type is best for you depends on your tailored needs. In this context, it is really important for a trading platform to offer a wide range of account types so that they can get into the trading world with whatever money they have and whatever level of risk they want to endure.
Demo Account
You may well be familiar with the term “trial period.” Almost all apps that run on a subscription model offer a trial period to their potential customers. This practice allows customers to have a fair understanding of a company’s services.
When it comes to broker firms, one important thing that they should be careful about is that many people may be venturing into the world of trading – in stocks, forex and cryptocurrency – for the first time. It is very important for them that they have the “feels” of what it’s like to be in the game of trading. For that, a demo account is the best available option. Such accounts uses virtual funds so that a client can explore all the available options without any worry.
Licensing and Regulation
What is the first thing you do when you learn how to drive? You apply for a license. There is no use in having a skill when you are not mandated by the law to use it. Any good broker firm which boasts about its top-notch services will have a license to show that it has completed all legal requirements. In the case of Hugo’s Way, the firm lacks this important certification. However, the company does say that it is in the process of applying for a license.
Deposits and Withdrawals
What will be your reaction if you find out that your money is in the bank, but you cannot access it? You won’t be very thrilled. Broker firms hold on to your money to help you with investment. But there is no point in investing if your money remains locked for months with no end in sight – what if there is an emergency and you need cash? Good broker firms understand the possible problems that investors may face. A company that is good and reliable makes sure that customers have the ease of withdrawing and depositing their money.
Customer Service
Imagine being stuck at some point in your investment journey only to find that there is literally no customer support. What will be your reaction? You won’t be very thrilled – we guessed that! Customer care is quite important for strengthening customer bases. Good firms provide the best assistance to their customers and remain available until their queries are resolved. Hugo’s Way has great customer service, ensuring that their clients remain satisfied.
The Final Word
Investors unite! The world of trading is not free from risks, but it does come with exciting rewards. Those who dare to take risks are often rewarded with high returns. Understandably, there are some apprehensions. Using your money for trading stocks or currencies sounds risky. The best route to deal with this tension is to work with a good broker firm.
Hugo’s Way is a great online trading platform. It is safe to use for your investment needs. It provides the latest tools, which allow you to assess the market situation better. What keeps some people away from this fairly good company is its regulation status. Yes, Hugo’s Way is unregulated, but it is in the process of applying for it. And even though it is not officially regulated, it does comply with all the international guidelines and standards and almost every other thing that regulated firms subscribe to.
Hugos Way Guide – Read our In-Depth Hugos Way Review
Hugos Way Rating: 5.85 / 10
Our Hugos Way review contains information about investing with Hugos Way. It is intended for educational purposes only and should never be considered financial advice. comparebrokers.org is not a brokerage or advisory service. We do not recommend or advise that investors buy or sell securities or stocks.
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Trading leveraged products such as Forex and Cryptos may not be suitable for all investors as they carry a degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.