Is Hankotrade a Scam? The Facts You Need to Know

The dealer specializes in margin trading, focusing on contracts for difference (CFDs). The project operates without licensing under the law, leading to negative reviews from clients. Trading is exclusively conducted via a browser-based platform with numerous limitations. Additionally, various services and privileges are advertised, though they exist solely as part of the marketing campaign. Let us analyze whether hankotrade.com is fraudulent.

Company Highlights

Key Hankotrade Trading Features

Hankotrade offers multiple account types with different parameters and services. Upon registration, traders gain access to the following accounts: STP, ECN, and ECN Plus. These accounts differ in terms of initial deposit requirements, spread levels, and specific features. Below, we outline the basic trading conditions and discuss the disadvantages of dealing with this brokerage firm.

The minimum deposit required is $10, but transactions can only be made using cryptocurrency, a major drawback as it limits deposit options and makes it difficult to dispute transactions. To access the full range of services and “privileges”, a deposit of at least $1,000 is required. As a result, the company’s administration pressures clients to deposit larger amounts to trade under acceptable conditions, creating a high-risk environment for retail traders.

Leverage reaches 1:500, a key red flag. Such excessive leverage does not comply with regulatory requirements or local legislation. High leverage significantly increases the risk of liquidation, leading to substantial financial losses within a few trading sessions.

A demo account is available during registration, allowing traders to test the platform. Additionally, all accounts support a swap-free (Islamic) option, catering to specific religious trading requirements. Spreads start from 0 pips and exceed 0.7 pips, but to obtain these conditions, a minimum deposit of $1,000 is mandatory. The minimum lot size is 0.01 per trade.

Ultimately, trading with this CFD broker presents multiple drawbacks, including unprofitable leverage, misleading spreads, a lack of investment programs, and the necessity of larger deposits to access basic services. The broker’s policies seem designed to extract more capital from clients rather than to facilitate fair trading conditions.

Overview of Available Trading Instruments

Hankotrade provides access to financial instruments such as currency pairs, commodities, indices, and cryptocurrencies. However, the broker does not disclose details regarding the number of available assets for different account types, leaving traders with incomplete information.

It is also important to consider the nature of CFDs, which are often used by fraudulent brokers for manipulative practices. CFD trading carries a high risk of capital loss, often exceeding 85%. This leads to a conflict of interest, where the company benefits from clients’ losses. Additionally, the absence of stop-loss guarantees increases the likelihood of rapid account depletion.

Hankotrade.com Trading Platform Analysis

Hankotrade operates exclusively through a browser-based trading platform, HankoX WebTrader, which comes with inherent limitations. Unlike industry-standard platforms such as MetaTrader 4 or MetaTrader 5, WebTrader lacks advanced analytical tools and automation capabilities.

The interface includes an order book, trade history, and a price quote section. Despite aggressive marketing campaigns that advertise insurance services and negative balance protection, these features are not actually available. Furthermore, there are concerns regarding the reliability of asset pricing data, as discrepancies in displayed quotes suggest potential price manipulation.

The platform suffers from low stability, with no mobile version available. Issues include poor data privacy, slow order execution, as well as the ability for company managers to manipulate trades, spreads, and commissions artificially. The absence of an independent audit further diminishes trust in the trading environment.

Additional Services

Hankotrade relies heavily on additional services as part of an aggressive promotional strategy. These services include a free VPS, an economic calendar, and a profit calculator, along with a FAQ section. However, these tools provide limited practical value and do not compensate for the broker’s numerous shortcomings.

The dealer also promotes a bonus program for new traders, offering up to a 100% deposit match. However, these bonuses come with strict wagering conditions. The administration reserves the right to cancel bonus funds without prior notice, impose time restrictions for fulfilling bonus requirements, and, in some cases, prevent withdrawals until a certain trading volume is reached. Many traders have reported difficulty in accessing their funds due to these restrictive conditions.

A multi-tier partnership program is also available, including IB and PAMM models. Commissions are paid based on account type and trading volume, with a total reward rate of 40% of the commission charged to the referred user.

Fee Structure. Are You Paying More Than You Should?

Hankotrade discloses basic trading commission details. The cost of transactions is set at $2 per $100,000 traded. The standard account claims to have zero commissions, but this information is only partially accurate. In practice, traders are likely to incur financial losses due to hidden fees.

Transaction fees vary depending on the deposit method, as costs depend on the selected cryptocurrency. Additionally, the company’s partnership agreements mention administrative fees for utilizing services. Many traders have reported unexpected charges, making the cost structure unpredictable and unfavorable.

Legitimacy of Hankotrade

Hankotrade’s legitimacy is often questioned in online reviews, and for good reason. The brokerage project is not regulated in Europe and lacks authorization from offshore regulators or the UK’s Financial Conduct Authority (FCA). No details regarding legal registration or office locations are disclosed.

It is also worth noting that CFD trading is banned in certain jurisdictions. The company fails to specify regional restrictions, such as for U.S. citizens. These factors severely limit the likelihood of recovering lost funds, even with legal assistance. Moreover, the website footer lacks any regulatory references.

The Broker’s Past and Present

Hankotrade has been in operation since 2020, as verified through domain registration records on WebArchive. However, the company does not openly disclose its founding date or business achievements. Despite operating for several years, brand recognition remains low, and client reviews are predominantly negative. Many traders report withdrawal issues, unethical trading practices, and poor customer support.

Conclusion

We strongly advise against trading with Hankotrade. The company is unregulated by European authorities and lacks offshore regulatory approval. Trading conditions are unfavorable, making profitability virtually impossible. The probability of losing invested funds is extremely high. Additionally, the lack of transparency and customer support further solidifies its reputation as an unreliable broker.

Weighing the Pros and Cons

Common Questions