Traders Hub Review: Perils of Trading Under Weak Supervision

Financial pitfalls and potential hazards may arise when financial entities operate under the shadow of minimal supervision. 

This Traders Hub review shines light on the risks investors face when venturing into the uncharted waters of Seychelles-based brokers. Read on if you want to gain valuable insights before navigating the intricate landscape of global financial markets.

Weak Regulations and Safety Concerns

Seychelles, with its lax regulatory oversight, has become a hotbed for brokerage activities. Traders Hub

Limited is based in this loosely supervised area and legally incorporated as an online trading company. For the registration details, you may visit the jurisdictional regulator’s database. 

While some may argue that any license is better than none, we have to point out apparent issues that come when trading with loosely regulated brokers. 

What Offshore Licenses Lack

First and most importantly, the security of funds isn’t as solid as when depositing with heavily regulated, preferably Tier 1 companies. 

Negative balance protection and compensation funds are often features not provided by offshore firms. What’s more, the trading conditions themselves aren’t subjected to risk-reduction strategies, so you’ll often see limitless leverage offered. 

Choosing the right platform to start off your Forex journey is certainly important, but so is the concrete trading knowledge. For more information on educational resources, we recommend you hop over to our Forex Platinum Trading review.

Trading Feature Overview

We could compare reviewing the trading features of this offshore broker to a rollercoaster ride. Some of the deals seem excellent, while others are either questionable or downright off-putting.

There seems to be a large diversity of trading apps and instruments, but effectively utilizing any of these is difficult for a number of reasons.

Account types at least offer some diversity, but are undermined by large trading costs. The maximum leverage is way higher than what would be allowed in nations with strict regulation.

Pestering For Investments

Traders Hub account types are advertised as being quite numerous to cater to any client’s needs. If you decide to create one, however, you will be greeted by only two types:

• Gold – spreads based
• Platinum – commission based

There are some slight variations in the trading amenities with either of these selections, but the Platinum seems to be a better deal… At least on paper, since nobody will tell you the minimum deposit, even though you will be asked to invest nearly every step of the way.

The broker provides a demo account to all of their clients, but with a catch. Even though anybody can create a demo, clients will never be given an access password, rendering a demo useless.

Large Selection of Platforms

While the site advertises only the MT5 application to the clients, both MT4 and MT5 are available through the client dashboard. Mobile versions of these industry standard programs are available as well.

The selection includes proprietary applications developed for iOS and Android users as well, but the apps have not yet been rated by any users.

Now, we could not ignore some serious issues with all these programs… Namely, it’s impossible to login with the credentials you create in the dashboard. Account creation through the apps is locked on purpose, effectively preventing you from accessing any trading features.

Available Markets

An advertisement on the site briefly mentions more than 1,000 of different trading assets. Unfortunately, without proper access to any trading app, we couldn’t verify they are actually available.

There is some basic overview, with a few examples for each asset class:

• Forex – EUR/USD, AUD/CAD, GBP/CHF, USD/JPY
• Stocks – Cisco, Tesla, Alibaba, Exxon Mobil
• Commodities – Brent, Cocoa, Gold
• Indices – Dow Jones, DAX, Hang Seng

Incomplete Disclosure of Costs

Depending on the account type, clients will incur a trading commission of $6 per standard trading lot, which is slightly above the industry average. That’s all fine and dandy, but the spreads are not disclosed in any detail. For a spread based account type, they are simply explained as “competitive”.

That’s not where the lack of transparency ends, however, as the numerous fees are not disclosed either. It is apparent that the company charges a withdrawal fee, for instance, but never says how much it costs.

The relatively high leverage of 1:100 is common with some suspicious firms like Bitcoin Sprint. Even though the broker offers changing the leverage, it is not possible to do so. For comparison sake, max leverage in most European nations is 1:30, while Canada and the US allow leverage to be no more than 1:50.

Referral Program 

The Traders Hub broker promises fixed bonus incentive on each successful referral. With that, other benefits are advertised as certain, the more efficiently you promote the brand. 

However, exact terms on how traders take part in the campaign and what are the withdrawal conditions for these commissions are not disclosed.

Transactions and Funding 

The website mentions an alleged UAE company as their payment processor. The firm in question is called Sole Proprietorship LLC. 

Regulatory oversight in UAE is conducted by two entities, and for the payment processors supervision, the Central Bank is in charge. However, this alleged entity doesn’t show up in their database of regulated payment processors. That’s yet another reason for concern.

Otherwise, the site doesn’t reveal the exact withdrawal terms and funding procedure steps until you pass a detailed KYC. Keeping away these crucial aspects from potential customers doesn’t reflect a respectable brokerage practice!

Prop Trading Firms Offer More!

Why would you ever subject yourself to the risk of investing with poorly regulated brokerage agencies? Also, why ever stress about if your broker of choice is gonna rob you or be fair and transparent with you when it comes to the safety of your funds?

Instead of burdening yourself with these and many similar issues, simply choose proprietary trading and get funded with up to $180,000! Our team is always at your disposal in case you’d like to book a free zoom consultation. So if you consider yourself to be a talented retail trader but lack the capital to trade big, give us a call.

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