HugosWay Review

Strength 1

STP/ECN Trading Account  – No Dealing Desk Account

Hugo’s way is a no dealing desk broker that only offers one trading account type. This account provides STP/ECN execution to connect you with liquidity providers compiled from over 50 banks to deliver you tight spreads.

This account has a USD$5.00 commission fee ($10.00 round-turn) to keep the spread at the raw prices set by the liquidity providers. This means there is no manipulation of your spread costs done with Standard accounts and by market makers.

Spreads offered by Hugo’s Way for the EUR/USD currency start from 0.0 and were generally reasonable for all the 55 major and minor currency pairs. The following spread ranges were observed:

When trading with this account, the following features are available:

The main features to note include:

• Choice of micro, mini, standard trading lot so you can take advantage of the low minimum deposit requirements
• Choice of base currencies to save you on conversion costs
• Scalping should you wish to take profits off small changes in forex pairs
• Hedging protect your portfolio by taking opposing positions on related assets to your primary asset
• The margin call and stop-out levels are conservative to protect your account balance from falling into negative

Overall, Hugo’s Way has low spreads but not the lowest as you can see in the ‘head to head’ IC Markets comparison. Hugosway doesn’t publish their average spreads but to compare those that do and try the forex calculator go to the lowest spreads page.

Strength 2

MetaTrader 4 Specialist – Trade With Best Trading Platform

Hugo’s Way only offers one forex trading platform option, this being MetaTrader 4 (MT4). At Compare Forex Brokers team are fans of MT4, so consider this as a strength.

First released by MetaQuotes in 2005, MT4 has become the most popular forex trading platform worldwide. With this platform, you get access to all the essential tools beginners will need for successful trading and enough sophisticated features that will keep you using the platform as your trading skill advanced.

Below looks at some of the most important features that you will find most useful.

Key MT4 Features

Essential and key tools and features that make the platform popular and one of the best include

• 30 technical indicators such as Relative Strength Index (RSI) and Bollinger Bands. Technical indicators are metrics that analyze past prices to predict future market directions. Indicators are most valued by short-term and day traders.
• 9-time frames ranging from 1 minute to 1 month, including custom timeframes such as 2,4,6,8 and 12-hour charts. Part-time traders will prefer the custom timeframes as they better suit occasional analysis rather than constant monitoring that lower timeframe charts professionals will use.
• 24 customisable graphical tools such as shapes and arrows and line studies such as Gann and Fibonacci tool which are statistical plotting visuals overlay on graphs to help you better  interpret and track graphical movements
• Multiple order placement options (instant execution, market execution through market orders and 4 pending order types) to give you control for when to open and close your positions and help you get your target price and reduce risks of slippage due to time lags

Advanced MT4 features That Take Your Trading To Next Level

As your trading skills develop, you will appreciate some more advanced features MT4 offers, including:

• Expert Advisors are one of the most powerful tools available with the MT4 platform. EAs automate your trading as they place trades automatically based on pre-defined parameters. EAs are also commonly referred to as ‘trading bots’.
• Backtesting is an intuitive tool for traders to check their trading strategies, based on historical data; to compare how their account would have performed in previous years.
• MQL4 coding platform so you can write your own signals and EA’s or buy signals and EA’s from MetaTrader 4 large marketplace.

How To Trade With MetaTrader 4

When trading with MT4 using Hugo’s Way, you can choose from the desktop platform if using Windows, Linux or Mac, a web browser (Web Trader) or mobile and tablet apps compatible with Android and iOS. With such a range of choices, you can trade from just about anywhere.

Platform Range vs Other Brokers

Hugo’s Way is an MT4 specialist. They only offer one platform. Nothing wrong with this, as most traders only need one platform. Other brokers give you choices of platforms, and some brokers have their own proprietary platforms. Hugo’s Way does not offer any other tools that can integrate with MT4 such as social trading or charting tools. While other brokers will typically give you some options.

Best Broker Platforms >>

Strength 3

150 Tradeable CFDs – Choose From Forex, Shares, Crypto

Hugos Way offers a solid range of markets for trading, allowing you to diversify your Contracts For Difference (CFDs) which can be a risk management smart strategy when building your trading portfolio as your risks are spread out.

Shares CFDs, Indices CFDs, Metals CFDs And Energies CFDs

With this broker, you will be able to choose from

• 104 shares CFD, including some of the biggest brands in the world such as Apple, Twitter, Facebook, Oracle and Intel.
• 6 Spot Metals including Copper,  Silver, Gold, Palladium and Platinum. All these can be traded against the USD and in some cases Euro.
• 3 Energies including Natural Gas, UKOil and USOil
• Dollar Futures
• 11 Indices such as AUS200, NASA100m HKG50 and AUS200

A commission of USD $5.00 per lot is charged for all of these CFDs. Leverage is maximum 1:500 for metals and fixed at 1:200 for energies and indices. Shares are fixed at 1:20.

Cryptocurrency CFD

Perhaps Hugo’s Way biggest strength is their range of 15 Cryptocurrencies and 31 cryptocurrency crosses. Cryptocurrencies include:

Cryptocurrency prices are sourced from the BitFinex exchange and leverage is fixed at 1:100. Commissions like with other CFDs is $5.00.

Crypto trading is growing fast as this instrument more than other CFD offers a greater chance to make large profits due to its highly volatile nature. If you do trade cryptocurrency, like any other CFD, trade responsibly as trading leveraged instruments carries high risk.

Strength 4

Secure Account – Peace Of Mind With KYC, 2FA Authentication

Hugosway offers a number of features to show they take the security of your accounts seriously. These features provide a level of peace of mind that your funds are safe with the broker and become more relevant given Hugo’s Way is not a regulated broker.

Two-Factor Authentication

The first measure Hugo’s Way has for security is Two-Factor Authentication (2FA). This is an additional layer of security included as part of your login process.

2FA is a dual-authentication process where you are required to verify your identity when you log in to your trading account, thus making it difficult for unauthorised people to access the account.

Hugo’s Way requires all clients to activate 2FA however they allow you to disable it in future should you wish to do so. 2FA can be done in 2 different ways. The first was is through their Authenticator app and the second was via SMS.

Know-Your-Customer (KYC)

Hugo’s Way has a strong Know-Your-Customer (KYC) process. KYC is an internationally recognised due diligence process for the finance industry to help brokers identify who their clients are and the sources of the client’s funds. This process means Hugo’s Way clients have to provide anti-money laundering (AML) details about themselves.

The use of KYC by Hugo’s Way should be viewed in a positive light. It adds a measure of integrity to the way Hugo’s Way conducts its business and helps prevent their business from being used as a conduit for money laundering. Sound KYC means Hugo’s Way can offer better service, avoid liabilities with poor business practices and maintain its reputation, which is important for trust.

Segregated Bank Account and Tier One Banks

Hugo’s Way keep your funds in segregated accounts using Tier-1 banking institutions such as Barclays and HSBC. The broker will keep your funds in your name (and in some cases Hugo’s Way name for the client) in an independent bank account. This means Hugo’s Way should never be able to access your funds.

The broker also keeps segregated bookkeeping records so that the client’s funds are tracked and never mixed with the broker’s own funds and assets.

Strength 5

Low Minimum Deposits – Start Trading From $10

Hugo’s Way allows you to commence trading with deposits as little as $10. While trading with larger amounts is necessary to earn decent profits, there are some reasons why you may prefer to open an account with low amounts. These include:

• You want to trade forex using micro-lots or mini-lots. You may have different reasons for wanting to do this, such as wanting to practice using real cash that then demos account or have little cash on hand.
• You’re a beginner wanting to open an account, but begin trading at a later point in time
• You’re an existing client wanting to transfer funds from an alternative existing account
• You need to open an account to access the demo account
• You to compare the spread of different brokers so sign up to access the broker’s platform for comparison purposes.

Many brokers will require a minimum deposit of $200. If you are serious about trading, then you will likely open your account with more than $200, however, it is nice to know the option to open with small amounts is there. Regardless, even when opening with a small deposit, you will still need to meet margin requirements to open your positions when you commence trading.

Strength 6

Unique Funding Options – Bitcoin, Vload, Ole

Hugo’s Way provides a unique range of funding options compared to other brokers. Payment with Bitcoin is just starting to become available with some brokers, while Vload and Ole platform are 3rd party providers only available with a select few brokers.

BitCoin Cryptocurrency Payments

With what started as a small hobbyist, the digital currency has become a global commodity powerhouse. Many traders, once reluctant, have begun to adopt the technology behind Cryptocurrency and use it as a medium for funding and payments. Hugosway is one of the early adopters of Bitcoin cryptocurrency as a medium for depositing and withdrawals in the online forex broking industry and remains one of the few brokers that offer this method at this point in time.

The real value behind Cryptocurrency is that it is an open-source, decentralized digital token, which allows for transactions without the use of an intermediary bank as the crypto economy is self-regulating. With the more recent establishment of the Bitcoin Lightning Network, a micro-payment protocol designed to facilitate crypto transactions between two parties, bitcoin funding offers benefits which will appeal traders. These include:

• Avoid using a personal bank account for funding accounts
• Low-cost transactions between accounts
• Instant and secure trading between accounts
• Anonymous transactions between accounts

When using Bitcoin, there is a minimum $50 deposit and no maximum. Hugo’s Way does not charge for funding with this method.

Vload

Vload is a voucher system that can be used to fund your Hugo’s Way account. With Vload, you purchase vouchers using your chosen payment method and then use these vouchers to deposits funds into your Hugo’s Way account.

The advantage of using Vload is that it allows you to fund your account using funding methods that Hugo’s Way does not allow or save on costs where direct deposits to Hugo’s Way might be more costly.

When using Vload, there is a minimum deposit of $10 however this can vary depending on the amount you deposit.

Ole Platform

Hugo’s Way allows deposit and withdrawals using the Ole platform. The Ole platform is designed to simplify the KYC process and allow funding to your Hugo’s Way using prepaid debit cards, credit cards and reward systems using multiple global currencies.

When using Ole Platform, there is a minimum $50 deposit required. There are no costs to use Ole.

Bank Wire Transfer

Of the deposit methods available, Bank transfer is the least preferable option. This is because you will incur a $25 fee to deposit and withdraw funds from your Hugo’s Way trading account. If you wish you wish to use wire transfer, it’s recommended to use a 3rd party such as Vload, Ole Platform and even BitCoin as a go-between. When using Bank Wire, there is a minimum $100 deposit requirement.

Credit/ Debit Cards (Visa, MasterCard)

Hugo’s Way allows funding via Credit and Debit Cards (Visa and MasterCard). Hugo’s Way does not charge using this method.

When using a Credit or Debit card you can only withdraw to the card as much as you deposited using the cards. Other profits must use other withdrawal methods.

Weakness 1

Not A Regulated Broker – Are Your Funds Safe?

Hugosway is not a regulated brokerage trading firm. While it perfectly possible the broker is operating with best or acceptable business practices, lack of regulation does mean they are not being held accountable by a financial authority with necessary powers to influence the broker’s operations. That means that you do not have the peace of mind that your account and investments are safe and the business financial operations are secure.

Hugo’s Ways Policies

Hugo’s Way is an offshore broker and is not overseen by Tier-1 regulators such as ASIC, FCA, CySEC or even lower-level regulators some brokers use such as those in some Caribbean, Seychelles, Pacific or African islands. Instead, they use their own practices to give you some mention of security when trading with them. Some of these are touched on in Strength 4 such as 2FA, KYC and segregated tier-1 bank accounts.

Segregated Account Policies

We notice that the broker states they sometimes keep funds deposited in the name of Hugo’s Way in an independent bank account. While it is hard to know what this exactly means, it does seem to be a bad business practice to keep your funds in any other name but your own.

In addition to questionable segregated account practices, they state they have segregated accounting records and that a trader’s funds will not be used to pay creditors should Hugo’s Way cease operating. With no external regulatory authority monitoring their books, you cannot be sure the broker is managing these books with the utmost integrity, and you can’t report suspicious activities and other common scams.

Risk Management

Hugo’s Way promise they evaluate and regularly review all business risks related to day-to-day operations. This is standard practice any business should do and it may well be Hugo’s Way do an excellent job at this however this is also dependent on the quality of their financial team and the business always operating with integrity. The type of things a regulator would hold brokers accountable for. Unlike a regulated broker which must keep minimum capital in reserve to ensure the operating funds do not come under stress, no one knows how much capital Hugo’s Way has at any time.

What you get with a regulated broker

• The requirement to keep your funds in segregated accounts so the broker can never access your funds.
• Depending on the country of jurisdiction, brokers require a minimum level of liquidity to operate as a regulated broker (In Australia, as an example, brokers require $1M AUD liquid to broker with a financial services licence). This helps ensure the broker won’t suddenly go insolvent.
• A formal complaints process, so you have recourse to correct trading disputes.
• Local regulation: ideally your broker will use your national regulator in your jurisdiction, as this will ensure the broker operates with practices consistent with the country’s requirements.
• Regulated brokers have a local office as opposed to an offshore broker which can make lines of communication difficult.
• Product disclosure statements (PDS) explain the broker’s business practices so you know what to expect with each product when trading with them.

Hugosway is located at the Beachmont Business Centre, in St Vincent and the Grenadines. There is no listed phone number for the online broker. This may mean that other than storing funds with an unregulated broker, there may be no way to find direct contact if there are any issues.

Weakness 2

Costly Broker – Commissions Are High

Tight spreads are one important element that will save you on your trading costs, commission costs are another.

Commission costs with Hugo’s Way are fairly high. Hugosway charge $5USD per lot equating to a $10 round turn. If you are trading with high volumes or robot trading, this can really add up over time. A trade of 100 lots will cost you $300 USD.

The table below shows commission costs from other brokers. Brokers generally charge around $3.00 to $3.50 per lot ($6.00 to $7.00 round-turn). If you trade 100 standard lots, this is around $600 or $700, which is $300-400 less than Hugosway.

Compare All Spreads >>

Weakness 3

No Extra Features – No Trading Tools, Analysis and Education

Unlike top forex brokers such as Pepperstone and IC Markets, Hugo’s Way provides limited complimentary features that traders can utilise to develop trading strategies and manage risk.

No Advanced Risk Management Tools

Hugo’s Way does not offer advanced risk management tools such as guaranteed stop-loss and guaranteed negative balance protection. Traders (especially beginner traders) benefit from these as they help protect you from slippage and most importantly significant losses in extreme trading conditions.

No Additional Trading Tools

Hugo’s Way doesn’t offer additional tools to enhance your trading experience. Tools many other brokers offer include:

• Social trading tools (Mirror Trader, ZuluTrade, Myfxbook). Social tools allow you to copy the signals of other successful traders.
• Charting packages such as Autochartist. Charting tools allow for extra analysis and spare you the need to write your own indicators.

Hugo’s Way allows you to provide these tools yourself, however won’t provide support for use of these tools should you need it.

No Customer Services (Analysis, Education, Training)

Hugo’s Way provides minimal education and analysis. Where other brokers such as Pepperstone or IC Markets offer education and analysis to ensure best practices are followed when trading with risky leveraged instruments, Hugosway does not.

Education

Brokers operating with integrity acknowledge the risks of the financial markets and will commonly provide free or paid education features so you have the know-how to trade forex responsibly. Education tools include:

• Trading seminars. These will usually be web-seminar but some brokers do host conferences.
• PDF guides
• Live educational streams
• Videos (sometimes posted on YouTube)
• FAQ
• Glossaries of important forex terms
• Trading courses (sometimes outsourced to training specialists)

Without providing these tools and knowledge to inexperienced traders, brokers which do not offer these tools are subtlely encouraging you to be exposed to what can be an unnecessary level of exposure.

Market Analysis

The forex market is changing fast and it can be hard to keep up with all the latest market news and event. Market conditions play a large role when currency prices so it helps if the broker provides market sources to help with your trading. These typically include:

• Market news (such as Reuters)
• Economic calendars
• An in-house team of financial analysts
• Market analysis blogs
• Experts analysis

Weakness 4

Poor Reputation – Low TrustPilot And Poor Reviews

Even though Hugosway is a fairly new broker after opening in 2017, it has already begun to amass a number of reviews on Trustpilot with traders showing some distrust with the unregulated broker. Trustpilot gives Hugo’s Way a score of 2 out of 5 from 21 reviews, which would be considered poor.

While every broker has some clients who have experienced bad outcomes trading forex, it can be hard to choose who is leaving valid complaints about the broker as opposed to sour grapes due to bad trading practices from their own end. If you choose to use Hugosway, then you should be cautious and make sure you do your research before choosing this unregulated broker.

Weakness 5

Customer Support Lacking – Helpful Team But No Phone Contact

Hugo’s Way offers 24/7 customer service via email and live chat. Interestingly, there is no phone contact, which may be an issue for some traders.

Hugo’s Way Live Chat

We tried Hugosway 24/7 live chat widget to find that there was no actual human contact operating their live chat, but rather a fairly clever chatbot. While it’s fair to say the use of the word “live” is a bit of a stretch, the chatbot can be useful but is limited. Most brokers using a chatbox will connect you to a human contact if the bot cannot assist. Hugo’s Way chatbot, while fairly well-written and comprehensive, does not offer genuine human connection. Instead, you are persistently suggested to check their FAQ.

Hugo’s Way Email

The Hugo’s Way support team is actually quite helpful if you require support via email at [email protected] More often than not you will receive responses in a reasonable time and the support team seems eager to not only answer your question but educate you about the forex concept relevant to your question. For example, we wanted to clarify the commissions they charged, they not only answer the question but explained how commission costs work when buying and selling lots. A nice touch.