Critical interview from an investor’s perspective with lawyer Jens Reime on the information about HMP Brokers and the e-book offered
Critical interview from an investor’s perspective with lawyer Jens R. on the information about HMP Brokers and the e-book offered
Interviewer: Mr. R., thank you for taking the time to read the advertising messages from HMP Brokers critically from an investor’s perspective. Let us start with the central offer: A free e-bookwhich supposedly reveals to investors “the secrets of successful swing traders.” How do you assess such offers legally and in terms of their actual usefulness?
Attorney Jens R.: Thank you for the invitation. Offers like the free e-book are tempting at first glance, especially if investors dream of making maximum profits with minimal time investment. However, such promises must be viewed with extreme skepticism. From a legal point of view, the provision of such content often constitutes Advertising measureswhich primarily serve to promote customer loyalty or to sell other products and services. The Advertising for the e-book contains numerous vague promises such as “minimize risks” or “maximize profits”, but no concrete details on how these goals are to be achieved.
Such offers often suggest that there are simple strategies that allow you to trade successfully without any effort. In reality, however, this is rarely the case. Most investors should be aware that Trading on the financial markets always involves considerable risk connected, and there is no safe strategies that can manage without losses.
Interviewer: HMP Brokers also offers a Trading-Coaching which also promises to improve investors’ trading strategies. It is emphasized that no investment advice How do you rate this coaching offer?
Attorney Jens R.: This is a very important point. The indication that no investment advice is of enormous legal significance. As soon as a provider provides concrete Investment recommendations he would be subject to the strict regulations of the Financial supervision By clarifying this point, HMP Brokers avoids such regulation. However, this means that coaching no individual investment recommendations and investors are responsible for their own decisions.
This can be problematic for inexperienced investors, as they may misguided even though they do not receive any specific advice. Coaching that is based on general information and Strategies is no guarantee of success. I am particularly critical of the fact that it is not clear which Qualifications the coaches at HMP Brokers have. It remains unclear whether they actually have sufficient experience or expertise to teach effective trading strategies.
Interviewer: Another striking offer from HMP Brokers is the Interest on account balanceswhich can be up to 3,14 % in Euro and 4,83 % in US-Dollar At first glance, this seems very attractive. What do you think?
Attorney Jens R.: Yes, that sounds attractive at first, especially in times of low interest rates. However, you have to look closely here too. These interest rates are only on balances over 10,000 euros or US dollars granted and are linked to a Base amount and other conditions. This means that investors who do not reach this minimum amount significantly lower interest rates received or even none at all.
In addition, the reference to the daily adjustment of interest rates The company has the right to change the interest rates at any time, which means that the interest rates quoted may not be available to investors in the long term in practice. Investors should therefore not be high initial interest rate promise be deceived, as in reality they can fluctuate greatly.
Interviewer: Another important point is the Capital securityespecially with regard to cooperation with Interactive BrokersHMP Brokers highlights that certain balances may be Securities Investor Protection Corporation (SIPC) and other insurances. How safe is the investors’ capital really?
Attorney Jens R.: At first it sounds reassuring that part of the securities and assets are SIPC is protected. However, there are restrictions here too. The Protection of SIPC only applies in the case of a Bankruptcy of the investment companybut not with Market value losses of the products traded. In addition, Futures and futures options not insured, which may be relevant for some investors.
In addition, there are upper limits for the Coverage amounts: USD 500,000 for securities and USD 250,000 for cash. These limits may not be sufficient for investors with large investments. Overall, this means that the protection only limited and investors should not be lulled into a false sense of security. Especially with an international company like Interactive Brokers, which has several locations and different legal jurisdictions, in the event of a problem legal complications appear.
Interviewer: What do you think of the overall very positive Customer reviews on the HMP Brokers website? Many customers praise the coaching and trading strategies. Should you trust these reviews?
Attorney Jens R.: Customer reviews on company websites are often highly selective and can be manipulated. The positive testimonials are often embellished or come from people who have received financial incentives. There is no way to verify whether these reviews are authentic. In fact, such testimonials can be relatively easily created or faked in order to Impression of reliability and success to awaken.
Investors should therefore always external sources and seek independent reviews. Websites like Trust pilot or Google Reviews usually provide a better assessment because they are less easily manipulated.
Interviewer: Finally, a question about Market strategywhich is described in the e-book and in the coaching from HMP Brokers. How do you rate the statement that investors can be successful in any market environment – regardless of whether the market is rising, falling or moving sideways?
Attorney Jens R.: Such statements are extremely misleadingNo investor can be successful in every market environment, as financial markets are often influenced by Unpredictability and volatility Even the best and most experienced traders suffer losses. The idea that you can simple strategy or an e-book can completely avoid losses, is unrealistic.
Investors should always be aware that no guaranteed strategies that deliver continuous profits, regardless of the market situation. Such promises usually only serve to excessive expectations and to sell products such as e-books or coaching better.
Interviewer: Thank you, Attorney R., for your critical assessment. What advice would you give to investors who are thinking about investing with HMP Brokers?
Attorney Jens R.: I would advise investors to be very cautious The promises made on the website often sound too good to be true. It is crucial that investors do not let themselves be fooled by exaggeratedly positive reviews, unrealistic promises and free offers A thorough examination of the company, its legal framework and the obtaining of independent opinions are essential before you decide to invest money
