Hankotrade offers MT4 and MT5 trading platforms, low commissions from $2.00 and a high leverage of 2000:1. Find out what with think of this Forex broker in our Hankotrade review.
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Hankotrade offers over 70 forex markets to trade with competitive spreads, impressively low commissions from $2.00 and crazy high leverage of 2000:1. Unfortunately, the broker isn’t regulated, this combined with no segregated client accounts is a bit of a worry. If you’re happy to forego a bit of safety and security (we arn’t), then Hankotrade does provide a competitive offering.
Hankotrade uses a no-dealing desk with ECN execution model and trading with high leverage however they are not regulated by any financial regulator. While their currency markets are extensive, we think they are lacking in other asset classes including CFD indices, commodities, energy, and shares.
Overall the broker’s offering is quite basic, other than a basic forex calculator, there are no 3rd party trading tools (like for social trading), education or market analysis. However, they do have MetaTrader 4 and MetaTrader 5 as their trading platforms would pretty much cover your trading needs as far as platform options go.
We thought the spreads for their standard ECN account seemed a bit high, and their funding options are pretty limited as well given you can only fund your account with cryptocurrency.
Collectively, these points were concerning and while there are some good aspects to Hankotrade including competitive spreads, low commissions, a diverse range of currency pairs and trading accounts, we think the risks mentioned outweigh the positives.
Who Are Hankotrade
Hankotrade uses St Vincent and the Grenadines as its headquarters where they are registered as a company however don’t interpret this as meaning the broker is regulated. St Vincent and the Grenadines does not have a regulator to oversee Forex brokers that based themselves in this country, being registered as a company simply means a firm has to comply with local laws and regulations.
While numerous resources on the internet suggest they are registered in Seychelles, we couldn’t verify this information and oddly nor could the broker’s customer support team confirm. The broker also states they have an office in Dubai, which implies they should be regulated by the DFSA but we couldn’t find this either.
What we do know is that Hankotrade was founded in 2019 and is your typical no-frills No Dealing Desk (NDD) broker with ECN execution.
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According to the Hankotrade website, spreads start from 0.7 pips on their STP accounts which is relatively standard for brokers that offer competitive spreads of this type.
For their ECN broker Account and ECN Plus Account, spreads start from as little as 0 pips but they will charge a commission when you place a trade.
Being a pure Electronic Communication Network (ECN) broker, Hankotrade aggregates prices directly from third-party liquidity providers including banks and other market participants. As such, the prices and spreads can vary according to market volatility.
We were curious whether Hankotrade really does offer spreads from 0.7 pips on their standard STP accounts. We spoke to them via their live chat and while they couldn’t provide us with any numbers, they did confirm they offer raw spreads which are variable and dependent on market liquidity.
We proceeded to analyze some of their spread metrics ourselves and found them to be significantly higher, but still quite competitive nonetheless.
STP Spreads
Our findings revealed that their spreads on EUR/USD and GBP/USD were 1.1 pips and 1.3 pips. While this doesn’t place Hankotrade at the top of the leaderboard, they aren’t bad numbers.
For comparison, IC Markets and Pepperstone who are two of the leading brokers in the market offer spreads on EUR/USD from 0.62 and 1.1 pips respectively, while for GBP/USD they offer 0.83 and 1.1 pips. These numbers, like with Hankotrade are taken from the brokers websites and updated each month.
| EUR/USD | GBP/USD | AUD/USD | |
|---|---|---|---|
| IC Markets | 0.62 | 0.83 | 0.77 |
| Pepperstone | 1.10 | 1.19 | 1.10 |
| IG | 1.13 | 1.66 | 1.01 |
| XTB | 0.90 | 1.40 | 1.30 |
| City Index | 0.80 | 1.80 | 0.90 |
| Saxo Markets | 1.20 | 1.70 | 0.90 |
| Hankotrade | 1.2 | 1.4 | 1.4 |
We also have done our own spreads testing for standard accounts. And, while we have not tested Hankotrade ourselves, we can say that overall IC Markets and Fusion Markets have some of the most competitive spreads on the market and these brokers are regulated.
ECN Spreads
Hankotrade were kind enough to provide us with their average spreads on the ECN account when we asked them customer support team via email. For EUR/USD, GBP/USD, and AUD/USD currency pairs and they were 0.2, 0.4, and 0.6 respectively at the time of testing. Again, while this doesn’t put Hankotrade at the top of the leaderboard, they are competitive spreads. However, when you factor in the low commission costs, Hankotrader are very good.
| EUR/USD | GBP/USD | AUD/USD | |
|---|---|---|---|
| Pepperstone | 0.17 | 0.59 | 0.24 |
| IC Markets | 0.02 | 0.23 | 0.17 |
| Go Markets | 0.20 | 0.50 | 0.20 |
| FP Markets | 0.10 | 0.50 | 0.20 |
| IG | 0.17 | 0.59 | 0.30 |
| BlackBull Markets | 0.23 | 0.72 | 0.65 |
| Hankotrade | 0.20 | 0.40 | 0.60 |
Like with the Standard Account, we have done our own tests for commission or raw spread trading accounts. Fusion markets is an excellent choice along with City Index (in Australia) and IC Markets.
Our Verdict on Spreads
When it comes to spreads, we think this is one particular area where Hankotrade really shines. While we wished they published spreads on their website for transparency, that’s the only criticism we have.
Hankotrade operates as an ECN broker with a No Dealing Desk model. This means they offer you direct connectivity to other liquidity providers and don’t make any markets themselves. As such, Hankotrade won’t be the counterparty to any of your trades regardless of whichever account you decide to select.
Speaking of which, there are three main account types to choose from including their STP Account, ECN Account, and ECN Plus Account. They provide negative balance protection across all accounts with maximum leverage of 1:500, but you can choose how much leverage you want to cap your account at, which is a nice little customisation feature.
STP Account
This is Hankotrade’s commission-free trading account with advertised spreads starting from 0.7 pips and minimum lot sizes from 0.01. The minimum deposit amount starts from $10 and you can fund your account with cryptocurrency which can be converted to either USD, EUR, or CAD as a base currency. The lack of commission makes this account better for beginner traders.
ECN Account
Hankotrade’s ECN account charges USD $4/side per $100k position size which does places them among the better brokers as far as low commission costs goes. Given HankoTrade spreads are already very good, the ECN account with Hankotrade is a worthy consideration.
You can denominate your account in the three same base currencies: USD, EUR and CAD, but the minimum deposit is USD $100.
If you are an experienced trader that just wishes to dabble with Hankotrade, then this might be a better choice than the standard account as spreads are lower. On the whole, you are better off looking at the next account.
ECN Plus Account
The ECN Plus Account is advertised as Hankotrade’s most popular account and can also be considered their ‘pro account’. It has lower commissions than the regular ECN account, charging USD $1/side per $100K position size.
We are not sure what exactly the ‘pro’ refers to but a minimum deposit of $1000 is not exactly a large amount even if it’s larger than the typical trading account. If you are serious about trading and want to save on costs, this appears to be one of the best value trading accounts
Islamic Account
Hankotrade offers an Islamic account which is ‘swap-free’ and ‘commission-free’ for Muslim traders, although you will be charged a fixed administration fee instead of the regular swap fees.
We should point out that fees are charged after two days of opening a position which is significantly less than some other brokers like Pepperstone which charges after 10 days.
Demo Accounts
A demo account is also available which is quick and easy to set up. It looks and feels just like a real account and you can choose if you want a demo STP account, ECN, ECN Plus, or an Islamic account.
Hankotrade’s demo accounts remain active indefinitely so long as you are using them, otherwise, they get automatically closed after 30 days if there’s no usage. You can also choose how much virtual currency you want to start with which is a minor point, but it again speaks to the all-around flexibility and choice that the forex broker offers.
When getting it set up, there’s no need to provide any financial details and you can easily sign in with your Gmail account. It can also be easily converted to a live trading account.
Virtual Private Server
We like that Hankotrade offers you access to a Virtual Private Server (VPS) which isn’t something that’s offered by all forex brokers. It’s a nice point of difference and provides you with lower slippage and reduced latency when it comes to executing trades. Additionally, using a VPS provides the ability to keep automated trading strategies running in the event of a power outage or your computer or device is not usable.
To use the VPS, all you need to do is email Hankotrade and request this functionality which comes at no extra cost.
While we haven’t tested the VPS servers with Hankotrade, we have tested with various other brokers and found BlueBerry Markets to be the best choice.
Our Verdict on Account Types
From low commissions, negative balance protection, their VPS offering, and the integration with hedging, scalping, and automated trading strategies, there’s plenty to like about Hankotrade regarding account types.
While they lost points for the minimum deposit amounts, overall we think the offering is pretty good in this department and we consequently scored them highly.
The only other point we would make is that there isn’t much difference between their two ECN accounts other than the commission structure and the minimum deposit requirement. Ideally, we would have liked to see more functionality included with this account like improved liquidity or enhanced order execution to make the offering more attractive.
Hankotrade isn’t integrated with any third-party payment providers and only offers cryptocurrency deposits and withdrawals. They currently accept Bitcoin, Ethereum, Litecoin, Bitcoin Cash, USDC, USDT, and a few others.
While crypto is used to fund the account, it is automatically converted when deposited into your base fiat currency, which can be either USD, EUR or CAD. The minimum deposit amounts differ across all the accounts which Hankotrade offers.
The STP account has a $10 minimum, the ECN account has a $100 minimum, and the ECN Plus account has a $1,000 minimum. It should also be noted that the minimum withdrawal amount across all three is $50.
Our Verdict on Funding Options
Given Hankotrade only offers cryptocurrency funding methods, has no partnerships with third-party providers, and has minimum deposit and withdrawal restrictions, we scored the broker poorly overall.
Hankotrade offers trading via MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms. We think it’s good that these platforms are integrated as they are very popular and boast large online communities with impressive functionality including customised indicators to automated trading strategies.
MetaTrader 4 (MT4) is the world’s most popular trading platform, making it a safe and familiar choice. The platform has over 30 indicators, 33 analytical tools, and you can also automate your trading using Expert Advisors (EAs). Additionally, it boasts a solid range of order types, provides backtesting capabilities, and has various timeframes available for in-depth market analysis. It also offers trading signals software so you can copy trade using MetaTrader signals. MT4 is also available on Windows, OSX, Web Trader, Android and iOS which means you can easily access your trades while on the move.
Desktop
The desktop app provides you with real-time market data, advanced charting tools, and a variety of technical indicators. You can also personalise your trading environment, modify indicators, templates and other settings. The availability of expert advisers (EAs) also means you can make use of a variety of automated trading strategies involving hedging and scalping.
Web
The web app provides similar functionality to the desktop app and is a good option if you are using a computer where you can’t access or download the MT4 app. We also noticed that 2FA is available, providing an additional layer of safety that isn’t always on offer for web trader platforms.
Mobile
The MT4 mobile app is useful when on the move and provides you with almost complete functionality, enabling you to access market data, monitor and place trades, and use EAs for automated trading strategies.
MetaTrader 5
Hankotrade also offers trading via MT5 however, in our view one of the key selling points of using the platform is the ability to trade shares, but as we mentioned, Hankotrade doesn’t offer shares which sort of defeats the purpose.
With that being said, MT5 still does offer you enhanced functionality compared with MT4 which you can still apply to your forex trading.
There are more indicators (38 vs 30), analytical tools (44 to 33) and timeframes (21 to 9). The only thing that holds the platform back is that MT5 isn’t exactly compatible with MT4 and most traders comfortable with MT4 and don’t wish to change what they are already familiar with.
For crypto lovers, another cool feature about MT5 is the ability to trade on a Bitcoin-denominated account. If you wish to know, see our deep dive for the differences between MetaTrader 4 and MetaTrader 5 to help you decide.
ActTrader
Hankotrade is also available on ActTrader which can be accessed on desktop, webtrader, iOS and Android. In terms of functionality, ActTrade offers many of the same features MT4 provides including one-click trading, price alerts, customisable trading windows, and built-in indicators.
Our Verdict on Trading Platforms
In general, we think Hankotrade provides a decent offering given it is integrated with MT4, MT5 and ActTrader, although we would have liked to see it integrated with other platforms like cTrader and TradingView. Overall, we gave Hankotrade a moderate rating for trading platforms.
Hankotrade offers you a fairly standard range of forex pairs to trade with 70 pairs in total but unfortunately the other asset classes are quite limited.
For commodities and energy, only gold, silver, natural gas, and oil are available. Their CFD indices are equally limited with just 6 markets to trade. There are also no shares, bonds, options or ETFs and while they do offer cryptocurrency markets, there are just three to choose from.
Leverage
Hankotrade offers 1:500 maximum leverage across all accounts which is pretty high. It should be said that using excessively high leverage is best reserved for experienced traders who understand and can afford to take the risk. Overall though, we like the flexibility and choice it provides, leaving it up to you as the trader to select whatever leverage suits your risk appetite.
Our Verdict on Products and Leverage
We gave Hankotrade an average ranking in this category as apart from forex, the other asset class offerings are either very limited or non-existent.
As we have mentioned, Hankotrade operates as an unregulated broker (sometimes called offshore broker) and is headquartered in St. Vincent and the Grenadines.
While numerous resources on the internet suggest that Hankotrade is registered in Seychelles, we couldn’t verify this information, nor could the broker’s customer service team.
While being unregulated might be an instant turn-off for some, it doesn’t necessarily guarantee a broker is safe or not, and there are various other systems that can be put in place to protect client funds, such as segregated client accounts.
Unfortunately, we discovered Hankotrade doesn’t offer this which means in the event of insolvency, retrieving funds could be extremely difficult as they are commingled with company assets.
Trustpilot
We checked Hankotrade out on Trustpilot and they have an ‘excellent’ ranking of 4.8 and seem generally responsive to both positive and negative feedback by replying to messages posted on the forum. While most of the reviews do seem genuine, you can never be 100 percent sure. It should also be said that we noticed a recurring negative theme in relation to delayed fund withdrawals.
Our Verdict on Broker Trust and Safety
Given Hankotrade is unregulated and doesn’t provide segregated client accounts, we felt compelled to rank them poorly as this presents a significant risk should the broker become insolvent. While we stand by this ranking, we also want to note that it appears plenty of users and traders are happy with their offering, which is demonstrated by their ‘excellent’ Trustpilot ranking.
Hankotrade’s customer support is very good and can be contacted via live chat, phone, Skype, email or web form. They are available 24/5 and every time we used their live chat feature, we were able to speak with a real person almost immediately.
The team seem to know their stuff and have all the key information to hand which makes the engagement smooth and useful, although we wouldn’t have needed to contact them so many times at all if they had just displayed the information on their website.
Our Verdict on Customer Service
We scored Hankotrade well for customer support given you get to speak to a real person almost immediately. Their team is helpful and happy to assist with any questions, although there were some knowledge gaps that we have outlined in this review.
There’s no educational materials or market analysis at all on Hankotrade which we thought was a bit of a disappointment. Additionally, their FAQs are very limited and they don’t seem to be active at all on social media.
The one thing they do have is a forex calculator which allows you to calculate your commissions, swap fees, pips, and margin, but this is nothing special as most forex brokers offer this at a bare minimum.
Our verdict on education
Due to there being no educational resources of any sort on the website or on social media, we ranked Hankotrade poorly overall.
Being an unregulated broker, Hankotrade accepts clients from all over the world (with some exceptions like the UK and U.S) and the account opening process is very quick. It took us about 1 minute to get set up with an account which we thought was excellent.
Simply follow the below steps to get set up.
And that’s it! You should receive an email within seconds confirming your account, and then all you need to do is log in with the details provided and you can proceed to fund your account and download the platform of choice.
If you primarily trade forex and personal circumstances require use of an unregulated broker, then Hankotrade could be a good option if you’re looking for competitive spreads and high leverage. It’s also quick and easy to set up an account, and there are various account types to choose from.
We like this simplicity and flexibility, but as we have mentioned throughout the Hankotrade review, the fact they don’t have segregated client accounts is a major red flag for us. This puts retail investor accounts at significant risk in the event the forex broker becomes insolvent and therefore can’t be understated. This, combined with the lack of transparency and limited information on the website leads us to believe that the risks outweigh the benefits for Hankotrade clients.
In summary, we think Hankotrade offers competitive spreads, but we wish they were regulated and had some more client safety features in place.
While we are not in the practice of recommended unregulated brokers, we have reviewed other unregulated brokers in the past. These include KOT4X, HugosWay, Exness and TradersWay.
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