Hugo’s way is a new broker with no regulation taking on the established multi-regulated IC Markets We compared Hugosway vs IC Markets to determine which broker is best for spreads, account types and platforms. Read to see how each compares.
Updated: 10/06/2021
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The lower you keep your trading expenses, the more money you can extract from the global currency market. The difference between the bid price and the asking price aka the spread is the first cost traders need to pay for trading forex. One way to keep the relatively low costs of forex trading is to choose a broker with low spreads.
Our team of experts at Compare Forex Brokers has put side-by-side forex brokers Hugosway vs IC Markets to see which one offers lower spreads.
In the long run, the impact of higher spreads on your profits can be the fine line between profitability and losing. Only a half a pip lower spread can increase your profits by 90% (statistic based on taking 100 FX trades). Minimizing the forex spread can be one of the most effective ways to improve your bottom line.
To work out the real cost that comes in the form of the spread, we’re going to outline an example.
For example, we’re going to assume that your EUR/USD trading strategy has the following profit-and-loss ratios:
Note* Without counting the spread, we can say this strategy has a positive expectancy.
If we go one step forward and assume the average spread you pay is 2 pips, it means that the spread cost is 10% of your profits. However, the difference between the average win and the average loss is 5 pips. So, in reality, your net gain per trade is only 5 pips.
If we go one step forward with our calculations, the spread cost for an average profit of 5 pips and paying 2 pips spread is 40% of your profit. If the spread increased by only 0.5 pips, the spread cost will account for 50% of your profits.
The more the spread increases, the more it will eat from your profits.
Note* Pepperstone is the only other brokerage trading firm that can compete with IC Markets spreads.
Over the past years, the forex industry has become a very competitive field. When you trade forex through the best forex brokers like IC Markets, you can enjoy raw spreads on currency pairs and many CFDs.
The Australian-based trading firm IC Markets offers two types of spreads, depending on the trading accounts you choose:
By comparison, Hugo’s Way offers forex traders higher spreads across its retail investor accounts. The Hugo FX website doesn’t provide potential clients with relevant information about the average forex spreads they offer. However, the live spreads revealed that Hugo’s Way offers worse trading conditions. The live EUR/USD spread is 0.8 pips.
Note* Hugosway vs IC Markets EUR/USD spread comparison shows that IC Markets EUR/USD spread is 0.7 pips tighter. In the long run, this can save you up to 14% of your profits.
Trading EUR/USD with an 0.1 spread (IC Markets) vs trading EUR/USD with an 0.8 pips spread (Hugosway):
In the spread comparison table below you can review Hugosway vs IC Markets spreads on the most popular currency pairs and CFDs.
Note* On average, IC Markets spreads are 0.7 pips tighter than Hugo’s Way spreads. The largest forex spread difference was noted on AUD/USD (1.0 pips spread difference). The AUD/USD spread on IC Markets Raw spreads was 0.2 pips compare to 1.2 pips spread found with HugosWay.
IC Markets is the winner in the low spread category. Both FX brokers Hugo’s Way and IC Markets offer ECN prices, but our overall rating process revealed that forex traders can find better trading conditions with IC Markets. The 0.0 raw spreads offered by IC Markets are secured due to the 25 liquidity providers that keep the spread tight. Claim your free demo account today by clicking the button below.
In an attempt to reach out to a wider customer base, many Forex brokers offer multiple account types.
No matter what is your trading experience or skill level, risk tolerance or financial objectives, retail clients will be able to choose a forex account that will suit their trading needs.
If we take IC Markets, which has proven to be one of the best Forex brokers globally, we should point out that it offers its clients a choice of three main live account types:
In comparison, Hugo’s Way, which is still in the early stages of its business experience, offers Forex traders only one live account type.
Over the years, IC Markets’ Raw Spread Account has become quite popular among retail traders. It allows for Forex trading with the lowest possible spreads (starting from 0.0 pips), while the average spread offered on major pairs such as EUR/USD is 0.1 pips (one of the lowest worldwide).
In comparison, Hugo’s Way’s MT4 ECN Account, which allows access to true ECN trading environment, has variable spreads, with the average spread on EUR/USD being around 0.7 pips (according to price data measured by Compare Forex Brokers).
IC Markets’ Raw Spread Account provides access to:
Hugo’s Way’s MT4 ECN Account provides access to 55 currency pairs and complex instruments (Contracts for Difference) on 31 Cryptocurrencies, 104 Stocks, 11 Stock Indices, 6 Metals, 3 Energies and 1 Future contract.
For a head-to-head comparison of Hugosway vs IC Markets range of markets see the table below.
Note* IC Markets offers two additional assets classes (Bonds and Soft commodities) in comparison with Hugo’s Way.
IC Markets requires a minimum deposit of $200 and allows clients to use maximum leverage of 1:30 for Forex in Australia and Europe (500:1 outside Australia and Europe). Hugo’s Way requires a minimum deposit of $10 and allows retail clients to use maximum leverage of 1:500 for Forex and Metals trading.
Since both brokers ensure deep liquidity and decent order execution speed, the Raw Spread Account and the MT4 ECN Account are an appropriate choice for day traders, scalpers as well as traders using Expert Advisors.
We should also note that both brokers will charge a commission on their popular trading accounts. IC Markets will charge a commission of $6.00 per round turn for 1 Standard Lot traded, while Hugo’s Way will charge a commission of $10.0.
Note* HugosWay’s commission is almost double that of IC Markets’ commission.
Last but not least, IC Markets’ Raw Spread Account supports 10 base currencies (EUR, USD, AUD, GBP, SGD, NZD, JPY, CHF, HKD, CAD), while Hugo’s Way’s MT4 ECN Account supports 6 base currencies (GBP, USD, EUR, CAD, AUD, Bitcoin).
Both brokers offer a Free Demo Account, which allows retail clients to test trading strategies in real market conditions and to familiarize themselves with trading platform features and tools.
As for an Islamic Account option, at present, Hugo’s Way does not offer a Swap-free Account. However, clients of the Islamic faith can open such an account with IC Markets. The broker’s all three main account types support a swap-free account option, “where no interest fees will be credited or debited.”
IC Markets range of account types has more features than Hugo’s Way. This is why, based on our star scoring system, IC Markets scored the most points being the overall winner in this category. Make sure you choose your trading account based on what type of trader you are and what are your trading needs.
The practice has shown numerous cases of unethical behaviour by Forex brokers over the past two decades, including client trading account manipulation, use of client funds as operating capital, rejection of client withdrawal requests, or simply cutting off any contact with clients.
Because of these and other cases of scam within the Forex industry, many traders may not be willing to put their trust in a Forex broker that lacks any regulation by a reputable authority.
IC Markets is one of the largest FX CFD providers in terms of Forex volume worldwide and has over 100,000 active clients. On a daily basis, IC Markets is processing over 500,000 transactions.
IC Markets conducts its business by following the strict regulatory standards imposed by two of the most reputable regulatory authorities globally:
Disclaimer: To serve the need of clients in other areas of the world, IC Markets Global is regulated in Seychelles by the Financial Services Authority (FSA) with licenses No SD018.
In comparison, at present, Hugo’s Way is conducting its business operations from an offshore location with no tier-one regulator. As an offshore broker, Hugo’s Way is not licensed by any government financial authority. Trading with an unregulated broker comes with a high risk associated with fraudulent activities.
Note* Not all unregulated brokers are scams. Offshore forex brokers are the primary destination for United States residents looking for unrestricted access to forex trading. US traders have only a limited number of regulated forex brokers (Oanda, Forex.com or IG Markets) which is why offshore brokers may look attractive.
Hugo’s Way is taking the necessary steps and investigating different regulatory jurisdictions to ensure that our clients have the best cover possible.
The difference between regulated brokers vs unregulated brokers is that forex regulation gives you an extra level of security and protection of your money.
When it comes to client fund security, IC Markets assures that it keeps client money in Segregated Client Trust Accounts at AA-rated financial institutions such as National Australia Bank (NAB) and Westpac Banking Corporation (Westpac). Thus, the use of client funds for any operational expenses or purposes is not possible. Hugo’s Way also states that client funds are kept fully segregated from the broker’s bank accounts, but it does not provide more details.
Since Hugo’s Way claims to take client security seriously, it has added an extra layer of security for Forex traders, known as a Two-factor authentication (2FA). This way clients’ trading accounts remain protected against any unauthorized access.
IC Markets does not offer 2FA, but on the other hand, it assures all electronic payments are processed via Secure Socket Layer (SSL) technology and are encrypted.
Along with all the above-mentioned advantages, however, there is one disadvantage. Both brokers do not seem to follow a negative balance protection policy.
As a result, trading CFDs, which are high-risk derivative instruments, with high leverage ratios may lead to losses that exceed initial deposits on retail investor accounts. This generates the necessity for traders to use all other risk management tools, which brokers offer, to protect their active positions.
The bottom line is that forex traders can enjoy higher protection with IC Markets. Regulated and licensed brokers ensure fair prices, transparent trading conditions, protection from fraud and safety of funds.
A multi-functional, user-friendly and fast-responsive trading platform is what every trader seeks, no matter their knowledge or skill level. If you want to climb the ladder and become a successful trader, you need a trading platform that can assist you to achieve your goals.
Our team of experts factored in the various trading platforms offered by IC Markets and Hugosway.
With IC Markets, retail traders can choose from a selection of trading platforms, including:
In comparison, Hugo’s Way offers its clients the MetaTrader 4 trading software only with “true ECN connectivity,” which allows clients to trade with Straight Through Processing (STP) execution model.
The trading software offered by IC Markets can be accessed via several devices. There is a downloadable desktop version for both Windows and Mac OS. Online trading can also be done via the web-based application MetaTrader WebTrader and cTrader Web.
Additionally, IC Markets offers trading on the go via fully functional forex trading apps (iOS and Android devices).
Note* Hugo’s Way’s MT4 is not compatible with Mac OS.
IC Markets MetaTrader 4 server is located in the Equinix NY4 data centre, which ensures low latency, minimized possibility of slippage and an average order execution speed of 36.5 ms. Hugo’s Way, however, does not disclose specific execution speeds.
The exceptionally fast execution of trade orders ensures no-requotes.
Note* Hugosway claims to have 50 different liquidity providers compared to IC Markets which streams its quotes from only 25 LPs.
When it comes to a variety of analytical tools and MT4 platform features, IC Markets definitely offers a superior software solution.
MT4 platforms by both brokers have no limits on trade sizes, as the minimum lot size is 0.01. Also, both brokers allow news trading, scalping and hedging on their MT4 software. With IC Markets, there is no “first in, first out” rule.
Note* The FIFO rule says that if multiple positions are held involving the same currency pair, you need to close first the earliest position.
IC Markets’ MetaTrader 4 has no restrictions on limit orders. This means traders can place their Stop Loss and Take Profit orders at the closest pip distance possible from the current market price. This is not valid for Hugo’s Way’s MT4.
IC Markets allows access to a high-quality VPS service, which enables clients to run automated trading strategies 24/7 with the fastest possible connectivity to the broker’s trading servers. In comparison, Hugo’s Way does not provide access to a VPS service.
In order to improve the overall trading experience for its clients, IC Markets offers an extra set of advanced trading tools, previously not featured in the MT4 trading software. The set includes 11 applications (Alarm Manager, Correlation Matrix, Sentiment Trader, Stealth Orders among others) and 17 technical indicators (Candle countdown, Donchian, Keltner, Linear regression, Renko, Chart – in – Chart indicator among others).
In comparison, MetaTrader 4 by Hugo’s Way offers a rather limited set of features and technical analysis tools. There are 3 trade execution modes available (instant, request and market), 2 market orders, 4 pending orders, 2 stop orders and a Trailing Stop feature. There are no extra trading tools.
Another useful feature IC Markets clients can benefit from is copy trading platforms. Clients can copy leading traders from social networks operated by ZuluTrade and Myfxbook. In comparison, Hugo’s Way doesn’t provide clients with copy trading features. While Hugo’s Way doesn’t provide copy trading integrated into their software package, traders can use third-party software that is compatible with MT4.
Overall, IC Markets offer a wider option of trading platforms, faster execution speed, no FIFO rule, high-quality VPS service and advanced trading tools. Traders looking for more than just the MT4 platform can satisfy their needs by opening an account with IC Markets.
Nowadays, a forex broker is expected to provide its clients with additional high-quality services that can come in the form of:
Professional customer support service is another important aspect of any brokerage. It is always a good thing when clients can contact a dedicated user-friendly team of professionals, if they are looking for a resolution to some technical or account-related issue, or if they are simply willing to provide some feedback on the broker’s service.
If an FX broker can’t offer reliable customer service and communication with its clients, you’re going to struggle to get resolved any problem that might arrive while trading. The first responsibility and duty of reliable FX customer support are to assist customers with all their inquiries and to be efficient. The main tasks of client support specialist include:
The forex support team plays an integral role in the overall good standing of the forex brokerage trading firms. Before you choose a forex broker, make sure you test their technical support and see for yourself how you’re treated as a potential client.
With IC Markets, clients can take advantage of a 24/7 customer support service via 3 main channels of communication:
Note* The broker’s dedicated support team can be reached either on the global phone number +61 (0)2 8014 4280.
Both brokers can assist their clients over the weekend which is very handy, as most brokers are only offering support during market trading hours. By comparison, Hugo’s Way can only be contacted via live chat and email. Traders can get hold of Hugosway on the phone by requesting a “Request a Callback.”
Aside from the customer service, you also need free forex educational resources to help you reach your trading goals. This is especially true if you’re a beginner trader, then you need to first put your trading foundation before risking any real money. Most brokers have their educational centres equipped with resources that are available for traders with different levels of trading experience:
Not all forex brokers provide training for their clients, and if this is something that you need, make sure you chose an FX broker that can satisfy your needs.
IC Markets does have a well-structured education section, covering topics such as Forex Trading, Technical Analysis, Fundamental Analysis, Risk Management, Trading Psychology and Trading Plan.
The broker also has a video section with tutorials about how to download a Demo Account, how to use the One-Click Trade Manager, how to hedge orders in MetaTrader 4, among others.
In comparison, Hugo’s Way has provided only several education-oriented articles on general topics concerning the Forex market and the Crypto market.
Forex brokers can offer their clients additional services to help them better navigate the financial market. This help can come in two forms:
A good team of in-house experts can keep you up to date with the latest forex news, help you determine which currency pair to buy and sell, spot new trading opportunities, understand the latest fundamental trends and many more market insights.
IC Markets provide insight into global markets in a set of daily publications, while Hugo’s Way does not offer such content. Additionally, IC Markets Web TV will give you more insights from the forex analysts at IC Markets. The short video analysis is recorded directly from the NYSE in collaboration with Trading Central.
Comparing the customer support service, IC Markets is a better broker. Based on our assessment, IC Markets offer professional customer support, trading guides, in-house market analysis along daily market insights.
After you submit your application form to open a forex brokerage account, funding your account is the next step before you can start trading with real money. Most brokers will offer more than one option to deposit and withdraw your money. However, besides the range of funding options, you should also take into consideration factors like:
With IC Markets, retail clients can choose from up to 16 different account funding options. In the meantime, Hugo’s Way allows 4 payment methods. But what definitely tilts the scales in favour of IC Markets on this front is the fact the Australian brokerage will not charge any additional fees on deposits and withdrawals.
Depositing by a Credit Card or a Debit Card by Visa or Mastercard is one of the popular methods offered by both brokers. Hugo’s Way requires a minimum deposit of $50 with this method and will charge no fees on withdrawals. With both brokers, withdrawals may take several business days to reach clients’ card.
Another frequently used method is bank wire transfer. IC Markets emphasizes that International Bank Wire Transfers will incur a processing fee of AUD 20 or equivalent currency, which will be deducted from clients’ withdrawal amount.
With Hugo’s Way, the minimum deposit allowed ranges between $50 and $100, depending on the bank. We should note that the offshore broker will charge a deposit fee of $25 for deposits of up to $5,000, while withdrawals will also incur a fee of $25!
Both brokers allow depositing with Cryptocurrencies such as Bitcoin. Hugo’s Way requires a minimum deposit of $50 with this method, while withdrawals will take 1 to 3 hours or 3 to 6 confirmations on the Blockchain. No fees will be charged on deposits, but the cryptocurrency networks will charge a small commission on withdrawals.
Note* IC Markets will process BTC deposits in about 1 – 2 hours.
Hugo’s Way also allows account funding with VLoad. The broker requires a minimum deposit of $10 and will charge a deposit fee of 3%. On the other hand, withdrawals are instant and fee-free. VLoad is not an available option with IC Markets.
However, the Australian company offers a variety of other account funding methods, including:
Our final verdict is that IC Markets is better than Hugo’s Way in the funding methods category. As a trusted global brand, IC Markets supports 15 different funding options with no deposit and withdrawal fees on the most popular payment methods.
View Hugo’s Way Review >>Visit Hugo’s Way >>
Comparing the two forex brokers head to head has revealed that IC Markets is the best forex broker. Our proprietary star scoring system compared the spread cost, range of trading accounts, regulatory licenses, trading platforms, customer support and funding options. This comparison will make it easier for you to choose the right broker.
Founded in 2007, IC Markets is a regulated Australian Forex and CFD provider. It offers a variety of benefits for traders, including true ECN connectivity, cutting-edge trading platforms (cTrader, MT4 and MT5), low Forex fees, a fast and effortless account opening process and no additional fees on deposits and withdrawals. Not to forget that IC Markets is also a well regulated Forex and CFD provider with more than a decade of business history.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.
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