HF Security of Funds
- HF Security of Funds
Unparalleled Fund Safety
Here at HotForex we understand that successful traders have to give their full attention to their trading rather than worrying about the safety of their funds. We have therefore taken extraordinary measures in order to ensure a very high level of fund safety.
These measures are usually enjoyed by institutional traders but we are in the happy position of offering them to our retail clients. We strongly believe that our efforts will have a direct, positive impact on our clients and their account profitability since higher focus translates to higher profitability in world of financial trading.
All Segregated Client accounts are independently administered by Keystone Group.
Keystone Group is a professional, third party fund administrator. They currently oversee over 1 billion USD from offices located around the world. They have an excellent track record in safekeeping and fund administration services, which makes them the perfect choice for the fund safety of our clients. Keystone Fund Services are part of the Turnstone Group of companies. For more information on Turnstone Group and Keystone you can also go here
We have therefore selected them to independently administer our client funds and also act as joint signatories for all funds leaving any clients accounts. In other words, all funds leaving a client’s account have to be approved by them first! We have absorbed the cost of this service in order to ensure peace of mind for our clients.
Following our policy of complete transparency, we provide you with a detailed explanation of how the process works After a client opens a Live Account and funds the account, funds sent to third party liquidity providers are first approved by Keystone. When a client requests a Withdrawal, Keystone will also process the request. HotForex submits all of the KYC (Know Your Client) documents and the trading reports of the client to Keystone Group for clearance and verification. This ensures that when funds are removed from a clients account, they are removed solely for the purpose of sending them back to the client.
We feel that the above process adds a significant layer of safety for our client’s funds allowing our clients to concentrate in what they do best, Forex Trading.
The company maintains both operational and client bank accounts with reputable banking institutions such as Barclays and the State Bank of Mauritius.
Supervision by the Regulator
Regulated firms are obliged to meet strict financial standards, including capital adequacy requirements. HotForex is required to submit financial reports to the regulator on a monthly basis; therefore we are required by law to maintain sufficient liquid capital to cover all client deposits, potential fluctuations in the company’s currency positions and outstanding expenses. A detailed annual audit performed by an independent internal auditor informs the regulator of any deficiencies.
The Company continually identifies, assesses, monitors and controls each type of risk associated with its operations. This means assessing on a continuous basis the effectiveness of the policies, arrangements and procedures in place which allow the company to easily be able to cover its financial needs and capital requirement at any time.