I just got a cold call from +44 22 0296 9287 claiming to be from HQBroker. They claimed to allow trading in “international markets” including “the big four – Stocks, Currencies, Commodities and Indexes”. I asked on which exchanges can I trade and they seemed to be confused by that question. NYSE, ASX, NASDAQ, LSE who knows.
They claimed that 20% of their clients were in Australia. More on that later.
They claim they are “regulated” and “licensed” but when I challenged that claim they started naming large American financial institutions that provide “liquidity guarantees” to them. Their website states they are licensed in Poland. Without an Australian Financial Services (AFS) Licence, I pointed out that they were making an illegal brokering solicitation in Australia. They said that opening an Australian office is difficult but that as soon as they have 1000 active traders they will do it.
Aside: If 20% of their clients is less than 1000 traders then they have less than 5000 clients, right?
The “securities manager” I was now talking to said they were a large “international company” trading in “international markets”, surely their IP address would be blocked if they were not regulated and licensed in Australia. I pointed out that Australia currently only blocks piracy sites.
While unlicensed, cold-call, broking solicitation is illegal in Australia, that wasn’t where it got really scary.
The zinger? HQBroker offered “software with 100% successful record that monitors the market 20 times a second, 5 days a week, 24 hours a day”. Even forex markets are closed once the New York market closes on Friday afternoon (local time) until Sydney opens on Monday morning (local time). In reality that means there is about a day and a half that we can’t trade retail forex. Interbank forex is manned 24/7 but retail investors can’t access that market.
I honed in on that 100% success claim. Nobody (and no AI) hits on every trade, some trades just don’t pay off. But they wouldn’t budge, they proudly said “risk free”, then “money back guarantee” if I tried their three day trial on a $250USD account opening deposit. After 3 days I could withdraw my original deposit and any gains-if there were any losses they’d refund the deposit in full.
This mysterious software not only gives trade signals but actually opens and closes trades on their international markets. It uses “mathematical models” to automatically trade for you.
Again, I expressed my skepticism at the 100% successful trade claim. “Impossible!” I exclaimed. The system has “automatic stop loss and take profit”. Stop loss? Aha! So losses are possible. “No,” he said, “because trading pairs move in sync like USD/Gold. When one is falling the other is rising.” So now HQBroker is back to pitching binary options trading as fool-proof, no-risk, guaranteed triple-digit-percentage returns.
At that point I’d finished my lunch and wanted to get back to working so I hung up, I’d wasted 48 minutes of their time while eating my lunch. A pleasant distraction.
A quick google search will show HQBroker is very poorly reviewed, with it’s corporate structure best described as “murky”.
UPDATE 4 April 2018 10:24 AEST: The comments section is getting some traction so I’ll leave it as a bit of a free-for-all for now. There is rudimentary anti-spam checking but that’s it. I cannot take time to confirm identity of commentators below.
Remember: On the Internet, nobody knows you’re a dog.
Update: 10 May 2018 Got a call with the exact same MO today from 03 9077 1873 but this time promoting Financials Trading Online which is listed as a scam on ASIC’s MoneySmart website. Either H Q Brokers are moving on or it’s a variation on the same scam.