Hanseatic Brokerhouse Review

WHO IS HANSEATIC BROKERHOUSE?

According to research in South Africa, Hanseatic Brokerhouse is an online broker based in Spain, with two companies behind the brand, namely Naga Markets Ltd, based in Cyprus, and Hanseatic Brokerhouse Global Markets Ltd, based in Germany.

Hanseatic Brokerhouse offers trading forex, precious metals, commodities, index & stock CFDs, as well as ETFs and futures on the industry’s standard MetaTrader 4 platform.

SAFE OR SCAM?

The forex market is extremely volatile, linked as it is to fluctuations in global currencies which in turn are determined by various market movements and global events.

While this very volatility contributes to more enhanced and lucrative trades, particularly for regular traders, it also means that a certain level of security is required within the forex trading environment in order to ensure full profitability.

Most forex brokers aim to provide a certain level of security through some form of authorization under relevant regulatory bodies. The most recognized of these bodies include such organisations as the FCA, CySEC and ASIC.

However, such regulation can also present certain restrictions, such as on the level of leverage which regulated brokers may offer.

While these restrictive measures are put in place in order to protect traders, some investors may seek out brokers with less regulatory restriction to benefit from concurrently enhanced trades – a risk which is ultimately taken at the trader’s own discretion.

As already noted, Hanseatic Brokerhouse is overseen by Naga Markets Ltd., a company licensed by Cyprus Securities and Exchange Commission (CySEC) since 2013.

Hanseatic Brokerhouse Global Markets Ltd., is regulated by Germany’s watchdog, BaFin.

Both CySEC and BaFin are highly reputable regulatory bodies which apply very strict regulatory measures to the brokers they oversee, and provide extensive client protection measures.

Included in these measures are comprehensive client compensation schemes which protect client funds in the event of broker insolvency.

Added to this, client funds are required to be held in segregated accounts to avoid any potential financial mismanagement from the authorized brokers.

PROS AND CONS

LEVERAGE

Most brokers on the forex market today offer some form of leverage, which is essentially a small loan granted on behalf of the broker to their clients in order for them to make larger trades and increase their potential profits.

The entire forex and CFD industry to some extent relies upon the use of margin and leverage.

Leverage is the opportunity provided by a forex broker to open a speculative position worth a much larger amount of money than you have at their disposal. Leverage is expressed in ratios like: 200:1, 100:1, 50:1, etc.

For example, if your online trading company blocks €1,000 from your trading account to open a 100,000 EUR/USD position, it means you are using a 100:1 leverage. Put in different words, you control €100,000 with only €1,000.

As such, leverage is a great way for smaller traders to potentially make larger returns than they would have been able to with the investments already at their disposal.

However, making larger speculations with borrowed money also carries a higher risk of significant losses, particularly for those intending on investing large sums of money.

It is for this reason that many regulators made the decision to cap the maximum leverage which brokers operating under their authority could offer, so that most regulated brokers can now offer a maximum leverage of 1:30.

Hanseatic Brokerhouse used to offer a leverage of 1:200, which is standard for the industry, but due to the aforementioned changes in regulatory rules regarding leverage, the broker now offers a maximum leverage of 1:30.

While not as high as the leverage offered by some other brokers in the industry, this ratio is fairly normal for EEA operating brokers, and also means a minimized risk to traders.

ACCOUNTS

The forex industry is arguably the largest financial market in the world today, and as such abounds with a wealth of different traders of all experience levels and trading styles.

In order to facilitate this varied base of client traders, most forex brokers provide a selection of different accounts which each cater to the specific needs of traders, and are  often designed according to experience level and investment styles.

Many of these accounts come with their own spreads and commissions also tailored to the requirements and the investment potential of specific traders.

Hanseatic Brokerhouse offers its clients a single account type with leverage up to 1:30, variable spreads and the option to trade in micro lots on the MT4 platform.

This account also includes the following conditions:

• Minimum deposit: $ 200
• Minimum trade size: 0.01
• Spreads: from 1.5 pips

Hanseatic Brokerhouse does not provide services for persons linked to certain regions, such as Bosnia-Herzegovina, Cuba, Iran, Iraq, Laos, North Korea, Sudan, Syria, United States of America, Yemen, Afghanistan, Uganda, Vanuatu and Canada.

MARKET INSTRUMENTS

Hanseatic Brokerhouse offers trading forex, precious metals, commodities, index & stock CFDs, as well as ETFs and futures on the industry’s standard MetaTrader 4 platform.

FEES

Different forex brokers will offer different fee structures based on how they make a profit and on the type of traders which they target, or cater for.

Most forex brokers make a profit on the commission, or the spread, or both, and some offer more competitive structures, while others charge higher commissions in return for more lucrative trading options.

Traders will ultimately have to choose a broker whose fee structure best suits their trading style, the investment they have at their disposal, and their trading strategy.

Hanseatic Brokerhouse offers commission-free-trading, however its spreads are above the average, starting out 1.5 pips on EUR/USD.

DEPOSIT AND WITHDRAWAL

Traders often examine a broker’s deposit and withdrawal options in order to determine how the associated rates charged by the broker might affect their profitability over the long term.

Traders also often seek out brokers who provide a wide range of deposit and withdrawal options in order to make for a more streamlined and cost effective process.

Hanseatic Brokerhouse requires a minimum deposit of $ 200 on its single live account type, which is relatively high for the forex industry, as many other brokers offer minimum deposits of as low as $1.

That said, the broker does offer commission free trading.

Both deposits and withdrawals can be made through a number of popular and convenient methods, which include credit/debit cards, bank wire transfer, Skrill, Neteller, Sofort, giropay.

Prospective clients intending on using Sofort and giropay should keep in mind that the minimum withdrawal amount is $ 1000.

TRADING PLATFORMS

Hanseatic Brokerhouse provides one type of trading platform, namely the highly popular MetaTrader4. While this selection might seem limited, MT4 is an incredibly comprehensive platforms which supports a wide range of products and trading strategies.

Added to this, the broker has teamed up with German mobile social trading application SwipeStox to offer advanced copy trading options to its clients.

HOW TO OPEN AN ACCOUNT

Opening an account with Hanseatic Brokerhouse is a straightforward process which consists of the following steps:

1. Enter the broker’s website and review the account types of accounts available. These can include small-scale accounts with low minimum balances designed for beginning traders; or accounts with sophisticated features designed for active traders.
2. Complete an application form.
3. Upon completing the application, you will be registered with a username and password that will give you access to your account.
4. Log in to the brokerage’s client portal.
5. Arrange for the transfer of funds from your bank to deposit funds into your account. This may be through check, credit or debit card, or electronic transfer from your bank account. Note: Using a credit card for this purpose can be subject to interest charges.
6. Once your account has been funded, you are now ready to start trading. At this point, you will want to review any recommendations or special details that your broker provides regarding use of their trading platform before actually making your first trade. Some brokerages may offer trading simulator programs to allow traders to practice before actually putting money into trading.

CUSTOMER SUPPORT

Unfortunately, Hanseatic Brokerhouse only offers very limited customer support in the form of a query submission only, with no live chat or telephone options available.

The support team is able to offer client services in three languages, namely English, German and Spanish.

EDUCATION

Hanseatic Brokerhouse offers no educational resources through its website, such as webinars, eBooks or online tutorials, which may be due to the fact that the broker seems to position itself more towards experienced traders.

RESEARCH

Hanseatic Brokerhouse also does not offer any additional research tools apart from those embedded in the MetaTrader software, which are nonetheless very extensive.

As such, MT4 provides more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them.

MT4 users can download ready-made or create their own EAs and let the program do all the work.

AWARDS

Often, the level and number of awards which a broker has received is a strong indication of their standing within the industry, though some brokers do not participate in awards schemes.

Despite having received a number of positive customer reviews, Hanseatic Brokerhouse does not list any awards on its website to date.

CONCLUSION

Hanseatic Brokerhouse is a decent online broker which provides a wide range of tradable assets and commission free trading, though its spreads are somewhat higher than average.

The broker is well-regulated, and delivers its features on the advanced MetaTrader 4 trading platform. Unfortunately, Hanseatic Brokerhouse lacks in its provision of adequate educational tools, and might therefore not be adequate for beginner traders.

DISCLAIMER

Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.

Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks, according to research done in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with Hanseatic Brokerhouse?

Hanseatic Brokerhouse offers trading forex, precious metals, commodities, index & stock CFDs, as well as ETFs and futures

Which platforms are supported by Hanseatic Brokerhouse?

MetaTrader 4

Does Hanseatic Brokerhouse offer leverage?

Yes, Hanseatic Brokerhouse offers a maximum leverage of 1: 30

What spreads can I expect with Hanseatic Brokerhouse?

Hanseatic Brokerhouse’s spreads are above the average, starting out 1.5 pips on EUR/USD.

Does Hanseatic Brokerhouse charge commission?

No, Hanseatic Brokerhouse offers commission-free trading.

Is Hanseatic Brokerhouse regulated?

Yes, Hanseatic Brokerhouse is regulated by CySEC and BaFin

Is Hanseatic Brokerhouse a recommended forex trading broker for experts and beginners?

No, Hanseatic Brokerhouse is better suited for advanced traders

What is the overall rating out of 10 for Hanseatic Brokerhouse?

7/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does Hanseatic Brokerhouse offer a demo account?

Yes

How long is the demo account valid?

The demo account is valid for 30 days

Which live trading accounts does Hanseatic Brokerhouse offer?

• Standard Account

What are the available deposit currencies for a live trading account?

USD, EUR, GBP

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for Hanseatic Brokerhouse?

$ 200

How do you make a deposit and withdrawal with Hanseatic Brokerhouse?

• Credit/debit cards
• Bank wire transfer
• Skrill
• Neteller
• Sofort
• giropay

Does Hanseatic Brokerhouse charge withdrawal fees?

No

How long does it take to make a withdrawal?

Withdrawals can take up to 5 business days depending on your banking institution, while e-wallet withdrawals are completed within a few minutes