If you have been looking for a broker or trading platform, you might have come across Hankotrade. Not every broker suits every trader, so it is fair to ask whether this one is a good fit for you.
It is also unusual that this broker only accepts crypto deposits. For US residents, using Hankotrade puts your money at risk and can also create problems with regulators.
In this Hankotrade review, we explain why this is not a broker you can trust with your money, what its presence on the CFTC’s RED List means, and which regulated alternatives to consider instead.
Overview
Hankotrade is an online broker offering forex and CFDs on cryptocurrencies, commodities and indices. You can trade through its web platform and its desktop and mobile apps, which run on HankoX (based on ActTrader). Its selling points are broad market access and leverage of up to 1:500.
Where the company is based is not clear, which is itself a warning sign. Hankotrade’s own contact page points to Hankotrade Global Markets Limited, registered in Belize, with an operational office at Citadel Tower, Business Bay, in Dubai. The CFTC’s RED List entry records its origin as Seychelles, and some third-party databases reference St. Vincent and the Grenadines. Founding dates given by different sources range from 2017 to 2019.
None of those jurisdictions changes the central point: company registration is not financial regulation. Being incorporated in Belize or Seychelles means a company exists, not that a supervisor checks its capital, its conduct or how it handles client money. The Dubai office is a marketing and operations address, not a regulated entity: Hankotrade holds no DFSA, CMA or ADGM licence, so clients in the UAE have no local protection either.
It only accepts crypto deposits, with minimums ranging from $10 to $1,000 depending on the account type.
Although Hankotrade states on its website that it does not serve certain countries, in practice people can sign up from almost anywhere.
Is it safe and regulated?
Before using any broker, the first thing to establish is whether it is supervised by a financial regulator, and what happens to your money if the firm fails.
Regulated brokers must meet capital requirements, keep client money separate from company funds, follow conduct rules and submit to inspections. Most importantly, clients of regulated firms are usually covered by a compensation scheme if the broker goes under.
The main regulators to look for are the SEC and CFTC in the United States, the FCA in the United Kingdom, ASIC in Australia, BaFin in Germany and FINMA in Switzerland. Hankotrade holds a licence from none of them, nor from any other financial supervisor.
Is Hankotrade regulated in the US?
No. Hankotrade is not registered with the SEC or the CFTC, the authorities that oversee brokers in the US financial markets. It is not regulated in the United States.
The products Hankotrade offers, forex and CFDs on commodities and indices, fall under CFTC oversight. A foreign broker offering them to US residents is required to register.
While Hankotrade’s website says it does not serve US investors, its traffic tells a different story:
The CFTC added Hankotrade to its Registration Deficient List (RED List) on 6 July 2022, and it is still listed. The entry records the broker’s origin as Seychelles and its offerings as forex and CFDs, and states that it appears to be acting in a capacity that requires CFTC registration without being registered.
It is worth being precise about what that means. The CFTC states plainly that inclusion on the RED List does not mean that the Commission or a court has concluded that any violation occurred. The list is compiled from tips and leads, and works as a warning to traders rather than as a finding of wrongdoing. What it does tell you is that a US regulator has looked at this broker, concluded it should be registered, and found that it isn’t.
Hankotrade is also unregulated in the United Kingdom, Canada and everywhere else it operates.
Is Hankotrade a safe broker?
Hankotrade has attracted users through its global availability and wide product range, and reviews are mixed. Some users report no problems, while others describe funds disappearing from their accounts and difficulties withdrawing.
To judge whether a broker is safe, it helps to know what protections a regulated one provides. In the US, registered brokers are overseen by FINRA, which enforces conduct rules and can fine firms that break them, and most are members of SIPC, which protects client assets up to $500,000, including a $250,000 cash sub-limit, if the broker becomes insolvent.
Because Hankotrade is not registered with the SEC or CFTC, it cannot be a member of FINRA or SIPC. There is no conduct regulator to complain to and no compensation scheme if the firm fails. The same applies elsewhere: no FSCS in the UK, no investor compensation scheme in the EU.
Specific warning signs about Hankotrade:
- Crypto-only deposits: unusual for a legitimate broker. Crypto transfers are effectively irreversible, so there is no chargeback or recall if funds are not returned.
- Large deposit bonuses: Hankotrade advertises a 100% deposit bonus for deposits from $100, up to $25,000. Bonuses of this size usually carry volume conditions that make withdrawing difficult until you have traded a multiple of the bonus.
- Withdrawal complaints: several independent sources document reports of delayed or blocked withdrawals, a recurring pattern with unregulated offshore brokers.
- Unclear corporate identity: the jurisdiction on its own site, on the CFTC list and in third-party databases doesn’t match, and its founding date varies by source.
- Low independent ratings: broker watchdog sites consistently score it near the bottom for safety.
- High leverage: up to 1:500, far above the 1:30 retail cap in the EU and UK, which exists because leverage at that level wipes out retail accounts quickly.
What happens if you use Hankotrade in the US?
Hankotrade accepts US clients without CFTC registration. In practice, that means if something goes wrong, you have almost no way to hold the broker accountable: no US regulator supervises it, and pursuing an offshore entity through the courts is expensive and rarely successful.
There is also a risk on your side. CFDs are not permitted for retail traders in the US, and the CFTC prohibits foreign brokers from offering them to US residents. Trading them through an unregistered offshore broker puts you outside the rules the US market operates under.
The CFTC can impose civil monetary penalties of over $1 million per violation, a figure adjusted annually for inflation, or triple the monetary gain, and can bar people from trading on regulated US markets. In practice, enforcement targets the brokers rather than individual retail traders, so the realistic risk to you is losing your deposit rather than being fined. Still, you would be trading outside any protection the US system provides.
Alternatives
Hankotrade’s appeal comes down to market access and high leverage, neither of which is worth trading without regulation or any protection for your money.
If you want a regulated broker, these are solid options. Availability depends on where you live: US residents should look at Interactive Brokers, eToro or Webull, while DEGIRO serves European investors only.
Interactive Brokers
Best overall, available worldwideeToro
Best for social trading and commission-free stocksWebull
Best for commission-free stocks and options in the USDEGIRO
Best for low-cost trading from Europe (not available in the US)
For more options, read our in-depth broker reviews, check our broker comparison table or try our broker matching tool.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What to do if you already have funds with Hankotrade
If you have already deposited money:
- Stop depositing, even if an account manager pressures you to add funds to release a withdrawal. Requests for further deposits before a withdrawal are a classic sign of trouble.
- Request a withdrawal of your balance as soon as possible, and keep the confirmation.
- Document everything: screenshots of communications, account statements, deposit and withdrawal records, bonus terms and the crypto transaction hashes of your deposits.
- Report the broker to your local financial regulator, and to the CFTC at cftc.gov/complaint if you are a US resident.
- Ignore recovery services. Anyone contacting you offering to recover your funds for an upfront fee is almost certainly running a second scam against people who already lost money once.
Be realistic about the odds: recovering crypto sent to an offshore entity is difficult. Reporting still matters, because it builds the record regulators use to warn others.
Bottom line
If you want a safe, regulated broker, look beyond Hankotrade. The combination of factors in this review points the same way: on the CFTC’s RED List since July 2022, no licence from any financial supervisor, an unclear corporate base across Belize, Seychelles and St. Vincent, crypto-only deposits, oversized deposit bonuses, leverage of 1:500 and documented withdrawal complaints.
None of these on its own proves wrongdoing, and the CFTC is careful to say that its list is a warning rather than a finding. Together, though, they describe a broker that offers you no protection whatsoever if something goes wrong.
Regulated brokers exist for every trading style, including the high-leverage strategies Hankotrade markets. The convenience an unregulated offshore broker appears to offer is never worth the risk of losing your entire balance with no way to get it back.
