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SmartHubFX Review - is it scam or safe?

SmartHubFX Review - is smarthubfx.com scam or good forex broker?

RATING: 1.2 / 0 REVIEWS SmartHubFX
SmartHubFX is an offshore broker. Your money is not safe.

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Trading Accounts and Conditions

 

Trading account  Min. deposit  Max. leverage Spread
Standard  N/A N/A 1.6 pips

 

SmartHubFX is one of the many offshore brokers operating on financial markets. The main problem with this company is the lack of reliability that comes along with the offshore registration, as well as the lack of clarity regarding the trading conditions.

 

Read the whole review to find out the possible benefits and disadvantages in choosing to trade with this broker.

 

 

SmartHubFX Advantages

 

Trading on MT4 & MT5

Clients of SmartHubFX are allegedly offered access to both the MetaTrader4 (MT4), and the MT5, two of the finest and most popular trading solutions on the market. They both have Intuitive trading interface, top-notch charting, support automated trading via Expert Advisors, and on top of that the MT5 allows trading in exchange-traded stocks. 

 

However, we only found the MT5 available on the broker’s website, and actually could not test it for free.

 

 

>> Check out the top MT5 brokers <<

 

 

VSFC authorization

The company operating this broker, SmartHubFX Limited, is licensed by the Vanuatu Financial Services Commission (VFSC) as a dealer in securities. Although such a license does not mean a lot in the trading world, because of the lax regulations in offshore zones, it is still better than nothing.

 

 

SmartHubFX Disadvantages

 

Registered offshore

As we mentioned, SmartHubFX is registered offshore, in Vanuatu. Even if an offshore company really has some sort of license, as is the case with SmartHubFX Limited, this is no more than a shiny piece of paper. Actually, offshore brokers are not subjected to strict financial supervision, nor have to meet any stringent requirements.


For example, the minimum capital holdings requirement set out by VFSC is just $2,000 while forex brokers authorized in the UK or Cyprus have to maintain €730,000 at all times. More importantly, financial services providers in the EU have to arrange a compensations scheme in the event of broker insolvency, as well as to adhere to all rules introduced by ESMA. The latter include provision of negative balance protection, cap on leverage (up to 1:30), and more.

 

Offshore brokers, on the other hand, are pretty much free to do whatever they like, which means that the security of your investment depends solely on the integrity of the people behind them. More often than not, these people are con-artists and this might as well be the case with SmartHubFX.

 

Trading conditions not fully disclosed

Another worrisome sign regarding SmartHubFX is the broker doesn’t provide much details about the trading environment they offer. It has not disclosed what leverage levels it provides, nor what is the minimum deposit required, which is the good practice of all decent forex brokerages. This is an obvious disadvantage that is actually very common among shady brokerages.

 

No demo accounts

Another worrisome sign regarding SmartHubFX is that it does not offer free demo accounts. Considering that the broker’s trading conditions are not clearly presented on its website, potential clients are unaware of the trading costs, as well as other key aspects of its service.

 

Free testing service is highly praised in the trading world, as it shows that the brokerage is transparent with its trading conditions and pricing.

 

 

Unfavorable clauses in the broker’s Terms of Use

When we read the broker’s terms and conditions, we stumbled upon a disturbing clause – by signing up with SmartHubFX, clients agree that the broker can make withdrawals from their bank account.

 

 

Click on the image to view larger.

 

 

Conclusion

 

SmartHubFX is a Vanuatu-registered broker that also appears to be partnering with some educational forex program called OneForex (oneforex.eu). The lack of adequate regulation, as well as the lack of clarity on the broker’s trading conditions inclines us to suspect that SmartHubFX might be involved in some sort of investment scam.

 

Many forex brokers choose to register in Vanuatu, since they are obliged to meet fewer and softer requirements and to comply with less strict rules than if they were regulated in the UK or US for example.

 

 

>> Check out a list of forex brokers licensed in the UK <<

 

 

Here are, in a nutshell, the strong and weak sides of SmartHubFX:

 

Pros Cons
MetaTrader supported Registered offshore
VFSC license Trading conditions not fully disclosed
  No demo accounts
  Unfavorable clauses in the broker’s Terms of Use

 

Latest news about SmartHubFX
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Traders` reviews for SmartHubFX

Spread

Pros

Cons

 

 

Slippage

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Cons

 

 

Requotes

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Cons

 

 

Price feed

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Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

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