Hello Stake Review: The TRUTH About This Broker
Scamming has become prevalent in the forex business. Seasoned and newbie traders have fallen prey to unscrupulous online trading platforms and lost cash. Is Hello Stake one of them? Who regulates Hello Stake, and should you trade with them? To help you decide, read our in-depth Hello Stake review and be the judge.
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So what’s the truth about Hello Stake? Here’s all you need to know.
An Honest Hello Stake Review
A lot of investors outside the United States would like to trade in US stocks and ETFs. Hello Stake provides this opportunity by enabling investors to access the US market with $0 brokerage fees.
Established in 2017, the company operates with a solid Australian base and caters to markets beyond the country, making it easy for investors to access US stocks.
While this is an attractive feature for most traders, is it a ploy to scam traders or a legitimate investment partner?
Is Hello Stake a Legitimate Trading Company?
At first glance, most forex brokers seem legitimate. A quick look at their websites, you’ll notice that they provide the necessary information and licenses that make them look genuine to earn investors’ trust.
However, an in-depth look at the activities reveals some red flags. So how can we know whether Hello Stake is a legitimate company? We’ll examine who regulates the firm, its products and services, and customer feedback to ultimately come up with a final verdict.
Hello Stake: A Brief Background
Hello Stake, also known as Stake, offers over 6,000 US stocks and ETFs. Once you register an account with the firm, you immediately get a US brokerage account with a digital automated tax form to make tax reporting easy.
The company lists its headquarters in Sydney, Australia. However, it also has operations in Brazil, New Zealand, and the United Kingdom.
Stake is a division of the financial services company Sanlam Private Wealth Pty Limited.
Is Hello Stake Regulated?
Since the company has operations in different regions, it’s authorized and regulated by various bodies.
In Australia, Stakeshop Pyt Ltd, which trades as Stake, is Sanlam Private Wealth Pyt Ltd’s authorized representative under Australian Financial Services License (ASFL) number 337927.
Hello Stake provides its services in Brazil through Ativa Investimentos, which is regulated by the Brazilian Securities and Exchange Commission ( CVM).
Stakeshop Pyt Ltd is also registered in New Zealand as an overseas company. It’s registered as a financial service provider as per the Financial Service Providers Act. Therefore, customers who invest with the company are protected by the laws of these regulatory bodies.
Is Hello Stake Regulated in the UK?
Does The US Regulate Hello Stake?
While the company specializes in US stocks and ETFs, it works with a lot of investors from outside the United States.
Stakes has partnered with a US broker DriveWealth, a member of the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA).
Due to these regulations, customers’ securities are protected up to $500,000, including $250,000 for cash claims.
What Factors Make Hello Stake Seem Legit?
It’s quite challenging to trade in US stocks if you are a resident of another country. But this brokerage firm makes it possible for customers.
What are the methods it uses to appear legit?
This brokerage firm is regulated by the FCA, which is one of the most reputable regulatory bodies. It’s also authorized by other regulatory bodies in other countries, which makes it attractive to investors.
However, remember that even a regulated company can be a scam.
A look at the company’s website shows that the company doesn’t charge any brokerage fees. In fact, they offer free stock if you sign up and fund your account within 24 hours.
The fact that the company enables customers to trade in stocks such as Nike, GoPro, and Dropbox at no fee is enough to attract investors. But is this a trap for newbies?
Hello Stake Red Flags
Customers Can’t Access Funds
As we’ve mentioned, Stake works together with other regulated companies such as DriveWealth. According to reviews on Trustpilot, this has been a problem for some customers because they can’t access their funds without contacting both companies.
To open a cash account, customers need to open a Macquarie bank account and transfer cash, which takes a few days or more than a week to clear. For active traders, the wait time is quite frustrating because services take too much time.
Customers who manage to get their money back have to wait over a week or more to access the cash.
The company also doesn’t provide a phone number, live chat, or email for customers to follow up on issues, which is frustrating and signs of a scammer.
An App That Doesn’t Work
While Stakes has an app both on the App Store and Google Play Store, the apps have been avenues for customers to lose cash.
Customers struggle to buy or sell via the app, which doesn’t work on most occasions. In addition, the app limits withdrawals, unless your money has been there for over 60 days.
Hello Stake Review: Final Verdict
Hello Stake has all the features of a legitimate forex trader. But an in-depth Hello Stake review reveals that the company has some questionable issues. From the customer complaints, it’s clear that the company can’t be trusted. They are regulated, but customers are still losing their money. And that’s what makes it a regulated scam.
Have you lost your cash trading US stocks and ETFs with Hello Stake? We can help you recover the funds. Trader Protection has years of experience helping investors get their money back from illegitimate trading platforms. Book a free consultation session with us.