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Hugo’s Way Review

Minimum Deposit: $10 VISIT BROKER

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Hugo's Way can be a good choice for traders who enjoy trading financial assets on the MT4 trading platform without the intervention of a dealing desk. The broker offers various favourable trading conditions, such as tight spreads, lightning-fast trade execution speeds, and more. However, they are not currently regulated.

Investing Brokers

March 7, 2023

Established in 2017, Hugo’s Way is an online trading broker that is based in Kingstown, Saint Vincent and the Grenadines. The broker ensures the ease of trading various Trading Products across several asset classes, such as forex, cryptocurrencies, metals, indices, stocks, futures, and energies. They provide you with convenient market access via the intuitive MT4 trading platform, which is available in desktop, web, and mobile versions.

Hugo’s Way has deep liquidity from top liquidity providers, ensuring the availability of competitive trading conditions. The broker operates using the ECN/STP execution model to offer instant access to the interbank markets. This means that the broker does not manipulate trades and operates with no dealing desk (NDD) model. Hence, Hugo’s Way utilizes the Straight Through Processing (STP) execution model to process all client orders without a dealing desk intervention. I like this setup as you can get your trades executed at some of the best available prices with minimal slippage.

They offer various learning resources which can be useful to beginners although they are quite limited in that respect. There is a free demo account option if you want to get a feel for things before making a commitment. Otherwise, the minimum deposit to open a live account is quite low at just $10. If you need any help along the way, there is a knowledgeable client support team who can be reached via various contact channels. I have always found them to be very responsive and helpful.

Although strict regulatory policies are absent, the broker still deserves a thumbs up for many reasons. They operate as a true ECN/STP broker and offer a good selection of more than 150 Trading Products for trading on the popular MT4 trading platforms. They offer competitive trading conditions, such as tight spreads, rapid trade execution speeds, and convenient account funding options. The broker allows you to use any of your trading strategies, including scalping, news trading, and hedging, without restrictions that you may find from some brokers. There are various educational resources and a responsive client support team to assist you as and when needed. All trades are executed on the broker’s ECN trading environment which I find to be suitable for day trading or investing for the long term. Whilst the lack of regulation may deter some traders, others understand that this means they may be able to provide some services that a regulated broker cannot.

The broker provides traders with a good selection of over 150 Trading Products. These trading products are available across various asset classes, such as forex, cryptocurrencies, metals, indices, stocks, futures, and energies.

Specifically, you would find a selection of 7 major forex pairs, 21 forex crosses, and 27 forex exotics at Hugo’s Way. In addition, there are about 31 crypto assets, commodities including six metals, 11 indices, 63 stocks, one future asset, and three energy instruments. Therefore, there is a decent choice of trading assets for everyone. The broker is always expanding their offering and adding new instruments according to what traders demand.

If you want to trade forex and some popular stocks or cryptos, then you should find there to be enough variety. If you are looking for a greater variety of financial instruments, TMGM have a much wider selection and they are also regulated.

Hugo’s Way Instruments Summary

Commission and Spread Fees

Commission and spreads are some of the common fees you will encounter when trading in the financial markets. While commissions are small transaction fees, spreads are the difference between the buy and the sell price.

At Hugo’s Way, traders enjoy low spreads starting from just 0 pips. They operate as an ECN/STP broker, which means they get prices directly from the liquidity providers (LPs). Trades are therefore executed at the best bid/ask prices currently available from the liquidity providers.

However, Hugo’s Way charges a commission fee of $5 per 1 trading lot. A commission fee of $5 per side can be expressed as $10 per round turn. And the commission fees can vary depending on the volume you are trading. For instance:

Overall, the commission fee of $10 per round at Hugo’s Way is quite high, especially compared with its competitors like IC Markets and XM Group, both operating as ECN brokers with spreads from zero pips, lower commission and fast executions.

Deposit and Withdrawal Fees

Hugo’s Way does not charge any fees for account deposits and withdrawals. However, some third-party payment providers may charge small fees for deposits and withdrawals. These fees may vary depending on the payment method in use. I found the blockchain fee to be quite high when funding via crypto which took a signficant chunk of the amount I was sending. Therefore, I would prefer if they could support some additional forms of payment like FXPRIMUS do. Other than that, I have always had my withdrawals processed quickly.

Inactivity Fees

Unlike some brokers that charge account maintenance fees on dormant accounts, Hugo’s Way does not charge any inactivity fees. This means that traders do not worry about facing exorbitant fees for leaving their accounts inactive for a few months. I think this is a big plus for those of you who plan on holding positions for a long period of time and dont want the pressure of needing to check your account every so often.

MetaTrader 4

At Hugo’s Way, all trading activities are carried out using the MT4 trading platform. It is a popular trading platform that was introduced in 2005 by the trading software company known as MetaQuotes. The platform has since grown to become one of the best trading platforms among forex and CFD traders.

The MT4 platform is packed with useful trading tools to help you get an enhanced trading experience. Some of the exciting features of the MT4 trading platform include one-click trading, multiple timeframes, various technical indicators, and more. The platform is designed with an intuitive interface, making it ideal for all levels of traders. Also, it is fully customizable, and as such, you can set the platform to suit your individual trading needs.

MT4 has an abundance of implemented trading tools that enables quick and easy market analysis across multiple chart types and timeframes. With the various indicators, you can see what instruments are trending up or down, while trades can be entered and exited at the click of a button. It supports demo accounts if you wish to practice trading online and familiarise yourself with the platform before making any commitment.

The MT4 trading platform is available as a desktop application for Windows and Mac computers, web trader, and a mobile trading app that is compatible with Android and iOS devices and can be downloaded from the respective app stores. The web version of the MT4 runs directly on modern web browsers, such as Chrome, Safari, Edge, and Firefox, without needing to download or install any additional software. The mobile app is best suited for traders who wish to place trades and check trading positions while on the go as long as there is an internet connection. 

I think the broker could improve by adding support for the newer MetaTrader 5 platform. This is becoming more widely used nowadays and we could see MT4 no longer being offered in the not so distant future. MT5 also has a lot more functionality. If you want access to both MetaTrader platforms, then Pepperstone provide them along with the excellent cTrader platform for those of you who are looking to take things to the next level.

Platform features

Hugo’s Way Platforms Summary

Insights

The “Insight” section opens up a web page containing various educational resources to help traders make knowledgeable trading decisions. It contains various trading guides and a selection of essential site information, such as projected downtime, site updates, and more. These learning resources are imperative for traders with limited knowledge of trading in the financial markets. The trading guides cover how to purchase Bitcoin, how to make deposits and withdrawals to and from your Hugo’s Way trading account, and more. There are also information sheets on what Forex is, all about Cryptocurrencies, how to start your trading journey, and much more. To be honest, I think the broker is lacking signficantly in terms of educational content. If you are a beginner, Fortrade might be a better option.

FAQ

Located at the bottom of the broker’s website, the FAQs section is a comprehensive list of traders’ most common questions and their corresponding detailed answers. Hugo’s Way provides traders with a detailed FAQ section covering various topics, including getting started, account management, deposits/withdrawals, trading conditions, security of funds, MetaTrader 4, and company info. You can get quick answers to your questions here which might save you from needing to reach out to support.

Hugo’s Way Research and Education Summary

Account deposit and withdrawal processes at Hugo’s Way are mostly seamless. Every client is offered wallets in USD, EUR, GBP, CAD, AUD, and BTC. Money can be transferred from wallet to wallet, from wallet to MT4 account, and vice versa. Bitcoin deposits are available to all clients upon registration. But, only verified clients can use other payment methods that are provided by Hugo’s Way.

To ensure the ease of making deposits and withdrawals to and from clients’ trading accounts, the broker makes available a good choice of various secure payment methods. It is important to ensure that your payment method is available in the base currency of your trading account to avoid incurring currency conversion fees.

You have to log into your Hugo’s Way account through your secure client portal to deposit or withdraw funds. In the Client Portal, you will select your preferred deposit or withdrawal method to carry out the transaction. The following payment methods are available at Hugo’s Way for account deposits and withdrawals: bank wire, credit cards, and various electronic payment processors. Traders should ensure that withdrawals are made using the same method they originally used to make their deposits.

The time taken to process transactions may vary depending on the payment method in use. For instance, bank wire transfers may take up to 1 to 3 days to be processed, while some e-wallet payments are instant and allow you to manage your funds in real-time.

The minimum deposit amount is $10 which is low when you consider some brokers charge you hundreds and even thousands to get started. However, I do think the broker could improve by supporting more e-wallet funding options as this could save you from blockchain fees and speed up the process.

Hugo’s Way Funding Summary

There is no regulatory information on the broker’s website at the moment. The implication is that some protection is not available if you decide to use the broker. However, that does mean they can give you access to some products and features that regulated brokers may not be able to. You just need to weigh up the pros and cons to see what works best for you as everyone has a different risk preference. If you would prefer to use a regulated broker, AvaTrade are regulated in various countries.

Hugo’s Way states that they are taking the necessary steps and investigating different regulatory jurisdictions to ensure that clients have the best cover possible. Lack of regulation does mean that some of the limitations of regulated brokers are removed.

While Hugo’s Way is not regulated, it is important to note that their third-party payment providers are regulated. They require proof of address and identity to submit a deposit using a wire transfer or credit/debit card.

Hugo’s Way Regulation Summary

Hugo’s Way Safety

Operating since 2017, Hugo’s Way has a good level of experience in the financial markets. The broker implements various safety precautions for the overall safety of its clients.

Hugo’s Way mandates all clients to upload a ‘proof of identity and a ‘proof of address, and they also ensure the safety of their clients using a 256-bit Secure Socket Layer (SSL) encryption. This SSL technology encrypts all user data before transmission to the Hugo’s Way servers. That Way, internet fraudsters are deterred from attacking the network and victimizing clients.

Two Factor Authentication (2FA) can be enabled with an authentication app like Authy, Microsoft Authenticator, or Google Authenticator. It can also be done via SMS for verified phone numbers. Hugo’s Way insists that 2FA adds extra security to clients’ accounts.

The broker states that all deposits are kept in segregated fund accounts. Hence, all funds deposited by the broker’s clients are held either in the name of the client or in the name of Hugo’s Way for the client in an independent bank account. 

Also, during account creation, clients must provide proof of identification and proof of address to verify their Hugo’s Way account. This can include a passport, drives license, national identity card, utility bill, bank statement, and more. These strict verification processes add a layer of security to the broker.

Moreover, Hugo’s Way keeps segregated accounting records in their system to ensure that their funds and assets and client funds are tracked separately. Hence, at any time, the broker can quickly and accurately distinguish the funds held for one client from those held for another, as well as distinguish their funds. Client funds are kept off balance and never used to pay creditors.

The broker provides you with access to a reliable support team who are available 24/7 to respond to clients’ general, technical, and account-based inquiries. The support team can be reached via email, call back form, support ticket, Live Chat, and social media. They are quick to respond and very helpful in my experience.

Overall, Hugo’s Way is a decent broker if you are looking to trade a limited selection of financial instruments on an easy to use trading platform for your desktop, web and mobile devices. They do have good trading conditions in terms of tight spreads, reasonable commission fees and quick execution. However, I think they could improve significantly by adding a top-tier regulator. I also found them to be lacking in educational resources and funding options. They are an option if you prefer to use cryptocurrencies for your trading and don’t want the restrictions that some brokers can put on your trading activity. To their credit, they do also have excellent customer support.

Hugo’s Way Review

Minimum Deposit: $10

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