HYCM-BOT – Is this Brokerage a Scam?

HYCM-BOT

Millions of people made the mistake of not taking the decision of choosing a brokerage seriously and had to pay a hefty price for it when they lost their entire investment. Do you really want to do that? It can be devastating to find out that you have been scammed and all your money is gone, even though you wanted to trade in order to make high returns. Not only do you fail to do that, but you lose what you already had. This happens because people do not believe they can be scammed until it happens. Even though you may not want to believe it, this HYCM-BOT review shows that such fraudulent brokerages are more common than you think.

Considering that there is a lot of money involved in the online trading space, you should not be surprised that there are so many criminals active here. Of course they are just looking for ways to get you to part with their money and the quickest way to do this is by presenting themselves as brokerages. It has become extremely easy nowadays to create a website and pretend to be a genuine broker. If you do some research, you will come to know just how many people have suffered at the hands of such companies.

It is only because they did not do their evaluation properly and fell for the tricks of the fraudulent broker. This is what you need to avoid at all costs, or you could end up suffering the same fate. As long as you do your evaluation, you will be able to distinguish between an authentic and scam broker and then make your decision accordingly. No matter how impressive a company may seem, or how good reviews it has, you should always evaluate it yourself.

One of the names you will come across in your search in HYCM-BOT that sounds a lot like another legitimate broker known as HYCM. Many people might confuse the two names as well, which is exactly what HYCM-BOT intends to do as it is essentially carrying out a clone scam i.e. using the details of a legitimate company to pass itself off as one. When you evaluate the brokerage, you can find the many reasons it is a scam. Check some of them out below:

The regulatory problems

Perhaps the simplest way for you to distinguish between a legitimate and fraud broker is through their regulatory status. The former will be properly licensed and regulated, while the latter will definitely be not. This is because licensing and regulation comes with a great deal of requirements to be fulfilled that a scam just cannot do because they are out to steal money, so they cannot risk revealing their true intentions, nor do they want to get caught.

But, fraudulent brokers have no problems in pretending to be licensed and regulated, which is exactly what HYCM-BOT tries to pull off. According to its website, it is regulated by a bunch of well-known regulatory bodies. These include the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), the Cayman Islands Monetary Authority and the Dubai International Financial Centre (DIFC).

As far as its base of operations is concerned, HYCM-BOT says that it is based in Saint Vincent and the Grenadines. As impressive as the claims of regulation sound, you have to follow up and verify. This is when the story starts falling apart because you can search the online registers of the regulatory bodies mentioned above and you will not find HYCM-BOT listed in any of them. Instead, you are in for a surprise because the CySEC does mention the broker, but not the way you expect.

A warning has actually been issued by CySEC against HYCM-BOT, which dictates that the brokerage is operating illegally in the country and should not be trusted because it does not have authorization to provide its services. Apart from that, the fact that HYCM-BOT is based in Saint Vincent and the Grenadines is also a problem because it is an offshore jurisdiction that is known for being a hotspot for scams because it does not regulate its forex industry.

The lacking trading platform

The trading platform is the primary tool of an online broker that you use for conducting your transactions, but this is another aspect where HYCM-BOT will disappoint you. The broker is offering you something that barely qualifies as a trading platform because it is severely lacking. It does not have the tools and functionalities you would expect from a regular platform.

The platform is essentially a chart with a bunch of buttons that don’t really do much. It appears that HYCM-BOT is offering a binary options trading platform, which is not the kind of trading you want to engage in. First off, it is very unpredictable and there is a lot of room for manipulation by the brokerage. Secondly, this trading model has been banned in various jurisdictions.

The high minimum deposit

You will be expected to deposit a minimum amount with a brokerage in order to start trading and this is no different at HYCM-BOT, but the amount you are asked to deposit certainly varies. You will find that they are demanding a minimum deposit of $500 and even though it does not seem like much, it is more than the standard amount that most brokers ask for. The standard is usually at $250, so this is twice that.

The deposit method

Last, but not the least, the deposit method of HYCM-BOT is also a problem because they only allow their clients to make crypto payments. You can use Bitcoin, Litecoin, Ethereum and Dogecoin, which is not reassuring because crypto transactions cannot be reversed. There is no option of filing for a chargeback, as you can do when making credit card payments, which means your funds will be gone.

Final Word

Considering the many flaws that you find in HYCM-BOT, you can determine that this brokerage is indeed a scam and you should not choose it for your trading activities.