HONESTUM

Overview of HONESTUM

HONESTUM is a financial broker established approximately 1-2 years ago, based in Hong Kong. The company offers a range of financial services, including forex trading, CFD trading, and cryptocurrency trading, catering to the Chinese market exclusively. Despite the absence of regulation, HONESTUM operates with multiple office locations in Hong Kong, Singapore, and the United Kingdom.

The broker provides clients with three account types, namely Standard, Premium, and VIP, each offering varying leverage levels and spreads. The trading platform available is MetaTrader 4 (MT4), a popular choice among traders worldwide. Customer support is available through email only.

Regulation

HONESTUM operates without any regulatory oversight, making it an unregulated financial broker. As an unregulated broker, the company does not fall under the supervision or jurisdiction of any major financial authority. This lack of regulatory oversight means that there is no independent body to monitor or scrutinize HONESTUM's activities, ensuring compliance with industry standards and regulations.

Clients may face increased risks due to the absence of consumer protection measures that regulated brokers typically adhere to. Without regulatory safeguards, there is limited recourse for clients in case of disputes, fraudulent practices, or financial irregularities.

Pros and Cons

HONESTUM offers a variety of financial services, including forex trading, CFD trading, and cryptocurrency trading, catering to the Chinese market. The availability of multiple office locations in Hong Kong, Singapore, and the United Kingdom suggests a wide reach for potential clients. The broker provides three account types, each with distinct leverage levels and spreads, allowing users to choose options that align with their trading preferences.

Additionally, the MetaTrader 4 (MT4) platform, renowned for its popularity and user-friendly features, is available for clients to execute their trades efficiently.

One significant concern is that HONESTUM operates as an unregulated financial broker. The lack of regulation raises doubts about the company's credibility and transparency, as there is no independent oversight to monitor its activities or protect clients' interests. Moreover, the mixed reputation of the broker based on online reviews presents uncertainty for potential investors and traders. Some users have praised HONESTUM for customer support and trading platform quality, while others have complained about high fees and withdrawal delays. The inaccessibility of the company's website since March 2023 further compounds these doubts, as a functioning website is crucial for transparent communication with clients and providing essential information about the broker's operations.

Inaccessible Website

The website of HONESTUM has been inaccessible since March 2023. The inaccessibility of the website raises concerns about the credibility and reliability of the company. A functional website is an essential aspect of any legitimate financial broker, as it serves as a primary platform for communication with potential clients and existing customers. The website usually provides crucial information about the company's services, account types, trading conditions, and other relevant details.

When a website becomes inaccessible for an extended period, it can create a lack of transparency and leave clients in the dark regarding the broker's current status and operations. Potential investors and traders may view this situation as a red flag, leading to doubts about the company's stability and trustworthiness. The inability to access the website may also hinder users from performing due diligence and obtaining essential information, further eroding the company's credibility in the eyes of potential clients.

Market Instruments

HONESTUM offers trading in the following markets:

Forex: HONESTUM offers forex trading services, providing clients the opportunity to trade currency pairs. The broker allows users to speculate on the price movements of various major, minor, and exotic currency pairs in the foreign exchange market.

CFD: With HONESTUM, clients can engage in Contract for Difference (CFD) trading. This enables users to trade CFDs on a wide range of financial instruments, including stocks, indices, commodities, and cryptocurrencies, without owning the underlying assets.

Cryptocurrency: HONESTUM offers cryptocurrency trading, allowing users to participate in the highly dynamic and decentralized market of digital currencies. Clients can trade popular cryptocurrencies like Bitcoin, Ethereum, Ripple, and other altcoins.

The following is a table that compares HONESTUM to competing brokerages:

Account Types

HONESTUM offers the following account types:

Standard Account: The Standard Account offered by HONESTUM requires a minimum deposit of $200 and provides users with a variable spread and leverage of up to 1:500. Traders using this account type will be subject to a commission of $3.50 per lot. The educational resources available for Standard Account holders are categorized as Basic.

Premium Account: For the Premium Account, clients need to deposit a minimum of $2,000. This account type offers a variable spread and leverage of up to 1:1000. Traders are charged a reduced commission of $2.50 per lot. The educational resources available for Premium Account holders are categorized as Advanced.

VIP Account: The VIP Account is designed for high-volume traders, requiring a minimum deposit of $50,000. This account type provides users with a fixed spread and the highest leverage of up to 1:2000. Traders with a VIP Account will pay the lowest commission rate of $1.50 per lot. The educational resources available for VIP Account holders are categorized as Exclusive.

The specifics of the account types are as follows:

Minimum Deposit

HONESTUM offers varying minimum deposit rates for its different account types. Traders can open a Standard Account with a minimum deposit of $200, while the Premium Account requires a higher minimum deposit of $2,000. For those seeking a VIP Account, the minimum deposit significantly increases to $50,000.

Leverage

HONESTUM provides different leverage ratios for various trading instruments. Major currency pairs can be traded with leverage of up to 1:500, while minor currency pairs have a maximum leverage of 1:200. For commodities, the maximum leverage offered is 1:100, and for indices, it is 1:50. Cryptocurrencies have the lowest leverage at 1:5.

The following is a table which displays HONESTUM to the leverages of other brokers:

Deposit & Withdrawal

HONESTUM offers a range of deposit and withdrawal methods to facilitate transactions for its clients. Traders can fund their accounts through bank wire, credit/debit cards, and e-wallets like Skrill, Neteller, UnionPay, Perfect Money, FasaPay, Qiwi, and WebMoney.

These various deposit methods provide flexibility and convenience for clients to choose the option that best suits their preferences and geographical location. Additionally, the same methods are available for withdrawals, ensuring ease of access to funds when needed.

Trading Platforms

HONESTUM offers the popular and widely used MetaTrader 4 (MT4) trading platform for its clients. MT4 is known for its user-friendly interface and a comprehensive set of charting and technical analysis tools. Traders can execute trades efficiently using MT4's order execution capabilities and access a wide range of financial instruments offered by the company.

However, it is worth noting that there is suspicion that HONESTUMs license of MetaTrader 4 is counterfeit.

Here is a table comparing HONESTUM with other brokers in this regard:

Customer Support

HONESTUM offers customer support primarily through the email info@honestumhk.com. Traders can reach the support team by sending inquiries or concerns via email. However, there is no mention of other customer support channels, such as live chat or phone support, which means in case the phone channel is inaccessible, customers have no ability to reach HONESTUM. This can be seen as a breach of credibility as communication in the financial broker industry with traders is extremely important.

Customer Feedback

HONESTUM has received mixed customer feedback online, with allegations of fraud among the negative reviews. Some users have expressed satisfaction with the broker's customer support and the functionality of the MetaTrader 4 (MT4) trading platform. They appreciate the assistance received and the ease of executing trades.

However, there have been complaints from certain users about high fees, withdrawal delays, and allegations of fraud. These negative reviews and fraud allegations indicate that some clients have encountered significant issues and raise concerns about the company's credibility.

Conclusion

HONESTUM is an unregulated financial broker, established approximately 1-2 years ago, with a primary focus on serving the Chinese market. The company offers a range of financial services, including forex trading, CFD trading, and cryptocurrency trading, through its MetaTrader 4 (MT4) trading platform.

HONESTUM provides three distinct account types, each with its own set of features and benefits, catering to traders with varying levels of experience and investment capacities. The minimum deposit is $200 with a maximum leverage of 1:2000. It should be noted that there is no accessible website and multiple accounts of high fees and withdrawal delays, meaning a lack of credibility with HONESTUM.

FAQs

Q: What financial services does HONESTUM offer？

A: HONESTUM provides forex trading, CFD trading, and cryptocurrency trading services.

Q: What are the three account types offered by HONESTUM？

A: HONESTUM offers Standard, Premium, and VIP account types.

Q: How much is the minimum deposit for a Standard Account？

A: The minimum deposit for a Standard Account is $200.

Q: What is the highest leverage ratio available with the VIP Account？

A: The VIP Account offers a maximum leverage of up to 1:2000.

Q: What trading platform does HONESTUM use？

A: HONESTUM utilizes the MetaTrader 4 (MT4) trading platform.

Q: How can clients reach customer support at HONESTUM？

A: HONESTUM's customer support can be contacted through email.