Abstract：HotForex is a multi-asset forex broker providing retail and institutional trading services worldwide for over a decade. Founded in 2010, the company operates from its headquarters based in Mauritius.
Not to mention, the firm holds multiple regulations worldwide. With a competitive pricing structure, a wide range of trading tools, and efficient customer support, HotForex claims to be a market leader. However, the broker receives critics for its bad conduct, which we'll discuss in this review.
Let's start with some quick facts that we filtered out based on HotForex clients' feedback on different social media and online trading forums, like Facebook, Twitter, Telegram, TrustPilot, Reddit, Quora, etc.
Fact # 1 - Trade Execution
According to clients, HotForex claims to be an ECN broker and pretends to pass out clients' orders to the market without interference. However, the company's existing customers believe that's not true. Moreover, people also complain about delayed order execution, which contradicts the non-dealing desk operational procedures.
Fact # 2 - Deposit and Withdrawal Issues
We also encountered multiple threads where clients complained about the HF's delayed payment procedures. According to a customer, he didn't receive his money transferred from the HotForex account even after one week of the confirmation sent via email stating the transfer was successful.
Fact # 3 - Bonus offers
The company is also reported for hosting too many bonuses. According to clients, the company employs unrealistic trading conditions to avail bonuses. Further, clients are not allowed to withdraw any bonus in some cases. For instance, the broker doesn't allow you to withdraw the welcome bonus even after fulfilling all other prerequisites unless you make further deposits.
Fact # 4 - Unfair pricing
Last but not least, people seemed disappointing with the company's expensive cost structure. People not only experienced high spread charges but received wrong price quotations.
How can the above factors harm investors looking to trade with HotForex？
First of all, if the broker is an ECN, it should have a lightning-fast trade execution policy. However, it is one of the most lagging factors in trading with HotForex, as reported by its clients. Delayed trade execution might not only result in missing a profitable opportunity but can lead clients, especially the scalpers, to incur significant losses during volatile market conditions.
People seemed to be more concerned about their withdrawal issues with the company. Essentially, there is no use of profits if you've not been able to access them in need.
HotForex offers multiple bonuses to lure clients into a trap. For instance, it provides a 100% supercharged, 100% credit, 50% welcome, and 30% rescue bonus commingled with unrealistic trading restrictions, making it impossible for clients to take a benefit.
Lastly, trading fees (spreads, commissions, swap charges) or non-trading fees (inactivity fees, deposit and withdrawal fees) could outperform the expected benefit of trading if charged unfairly.
How do people react when feeling ditched by HotForex？
People follow distinct approaches after being scammed by HotForex. Some prefer to raise their issue with the brokers, while others prefer notifying their banks. However, well-informed investors usually report it to regulatory agencies like FCA, DFSA, etc. For instance, a customer filed a complaint on the HotForex complaint portal and raised the issue with the bank to launch an investigation amid unauthorized credit card use.
What to do if you ever come across these issues？
Fortunately, HotForex holds regulations from reputable regulatory authorities like FCA, FSA, DFSA, and FSCA. These regulatory authorities bound their licensed entities to act in the best interest of investors. It is worth mentioning here that you must know the concerned regulatory authority of your broker, so whenever you need to launch a complaint against it, you exactly know where to submit it. Typically, you can find such information on the homepage of your broker's website at the bottom. Alternatively, you can ask customer support to confirm under which regulatory authority your broker operates？
Therefore, if you think you've been mistreated, first try to raise your concern with your broker's customer support team. If they fail to provide you with reasonable justification, you can write a complaint to the respective regulatory authority highlighting your issue in detail. For instance, clients in the UK can visit https://www.fca.org.uk/ and fill up the complaint form.
Note: Do not forget to attach supporting documents, such as screenshots, email communications, account history, etc., while registering your complaints.
