Is Hugo’s Way Regulated in Canada? Is it Legit? - TU Expert review
Hugo’s Way is currently not regulated by any financial authorities. While the broker may offer attractive trading conditions, the absence of regulation means there is no oversight to ensure fund security, fair trading practices, or compliance with industry standards.
Is Hugo’s Way regulated in Canada? Broker’s license
Security (Protection for Investors)
The broker is registered in an offshore jurisdiction and does not have any licenses. According to the information on the website, the broker provides segregation of client accounts, but there is no data on partner banks. There is also information about two-factor authentication of signal encryption and protection of traders' accounts.
👍 Advantages
- Segregated accounts declared
👎 Disadvantages
- Lack of information on regulation and broker licenses on the website
Is Hugo’s Way regulated in Canada? Broker’s license
At the moment, Hugo’s Way is not regulated in any country.
Traders Union experts strongly recommend prioritizing regulated Forex brokers. Regulation ensures that brokers adhere to strict compliance standards, providing traders with greater financial security, transparency, and protection against fraud. A regulated broker is also more likely to resolve disputes fairly and safeguard client funds.
To help you make a safer choice, we have compiled a list of the top 3 alternative brokers with high ratings according to our methodology:
| Plus500 | Pepperstone | OANDA | |
|---|---|---|---|
TU overall score |
6.83 |
7.17 |
6.79 |
Regulation |
FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles) |
ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec |
FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA |
Tier-1 regulation |
Yes |
Yes |
Yes |
Investor protection |
€20,000 £85,000 SGD 75,000 |
£85,000 €20,000 €100,000 (DE) |
£85,000 SGD 75,000 $500,000 |
ECN Spread EUR/USD |
0,1 |
0,15 |
Short summary about the broker Hugo’s Way
HugosWay (also Hugo’s Way and Hugosway) was founded in 2017. Despite its relatively young age, the company has firmly established itself among the classic brokers working on Forex with traditional trading instruments. HugosWay aims to cooperate with clients from Europe and Asia. Registration is in Saint Vincent and the Grenadines.
| 💰 Account currency: | USD |
| 🚀 Minimum deposit: | From USD 10 |
| ⚖️ Leverage: | up to 1:500 |
| 💱 Spread: | From 1.7 pips for all instruments except commodity assets |
| 🔧 Instruments: | Currencies, assets of stock and commodity markets, cryptocurrencies |
| 💹 Margin Call / Stop Out: | 100%/70% |
Pros and cons of Hugo’s Way
👍 Advantages of trading with Hugo’s Way:
•Low initial deposit - from $10.
•Сryptocurrencies are among the arsenal of trading tools.
•There is a demo account.
👎 Disadvantages of Hugo’s Way:
•Offshore registration and lack of information on liquidity providers.
•Only 4 options for depositing / withdrawing money.
•Average spread that may widen at times of abnormal volatility.
•Lack of unique tools and offers that give an edge over competitors.
Why is it important for a broker to have the license in Canada?
A financial license is the key document for any broker. It confirms that the company complies with the requirements of the financial regulator and observes the law. It is important for traders to choose a broker registered their jurisdiction for the following reasons:
-
Any claim is filed at the place of the broker’s registration. Accordingly, in case any dispute arises, it will be easier for the trader to file a claim.
-
A license issued in Canada guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
-
Traders can claim compensation under the government programs of deposit guarantees in case the broker experiences financial problems.
It is also possible to choose a broker that is not regulated in Canada. In that case, however, the company must have a license from a reliable regulator, for example of an EU country, the UK, USA, Australia, etc.
Brokers that are similar to Hugo’s Way
In addition to Hugo’s Way, also other brokers from this jurisdiction have the license of Canada. Hugo’s Way has many competitors, and before you start working with this broker, you need to compare it to other companies. TU analysts have prepared a comparison of brokers that operate in the Canada market and have a license of this or another reliable jurisdiction.
Comparison of Hugo’s Way with other Brokers
| Hugo’s Way | Eightcap | XM Group | RoboForex | FxPro | InstaForex | |
|---|---|---|---|---|---|---|
Trading platform |
WebTrader, MT4, Mobile platforms |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
MT4, MobileTrading, MT5, cTrader, FxPro Edge |
MT4, MultiTerminal, MobileTrading, MT5, WebTrader |
Min deposit |
$10 |
$100 |
$5 |
$10 |
$100 |
$1 |
Leverage |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
10.00%% |
No |
No |
Spread |
From 0 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
STP |
Market Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
No |
No |
Yes |
No |
Yes |
Is it safe to trade with Hugo’s Way in Canada?
Hugo’s Way is not regulated in Canada. The company does not hold a financial license, which could raise certain security-related questions. Nevertheless, the company has a good reputation and has proven its reliability to traders. Hugo’s Way offers attractive conditions; many traders in Canada have chosen to work with this broker. However, be aware of the risks when working with such companies.
FAQ
How do I check a broker’s license?
Brokers should provide their license on their official website. It is also recommended to check it on the official website of the financial regulatory authority.
Does a broker need to have an official representative office in Canada?
Yes. According to the rules of Canada, brokers must have an office in Canada. This is a mandatory condition for obtaining the license.
Can the license issued by Canada be considered reliable protection against fraud?
Yes. The rules of the financial regulator of Canada are very strict, which makes obtaining a license in this jurisdiction extremely difficult for scammers.
What kind of information should a broker provide for traders?
On their official websites, brokers must provide the name of the managing company, r egistration certificate, legal address and internal regulatory documents.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.