By Areena FxHFM Broker Review
HFM
- Leverage: 1:2000
- Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
- Min. Deposit: 0 US$
- HQ: Cyprus
- Platforms: MT4, MT5, HFM Trading App
- Found in: 2010
HFM Licenses
- HF Markets (Europe) Ltd – authorized by CySEC (Cyprus) registration no. 183/12
- HF Markets (UK) Limited – authorized by FCA (UK) registration no. 801701
- HF Markets (DIFC) Ltd – authorized DFSA (Dubai) registration no. F004885
- HF Markets (SV) Ltd – authorized by FSA SVG registration no. 22747 IBC 2015
- HF Markets (SV) Ltd – authorized by FSC (Mauritius) registration no. C110008214
- HF Markets SA (PTY) Ltd – authorized by FSCA (South Africa) registration no. 46632
- HF Markets (Seychelles) Ltd – authorized by FSA (Seychelles) registration no. SD015
- HFM Investments Ltd – authorized by CMA (Kenya) license no. 155
HFM (formerly HotForex) is a multi-asset award-winning Forex broker that trades Forex, Metals, Energies, Indices, Stocks, Bonds, ETFs, Cryptocurrencies, and Commodities with 1:2000 leverage, ultra-fast execution, rapid deposits and withdrawals, and swap-free accounts.
HFM has five account types: Cent, Zero, Pro, Premium, and Top-up Bonus, with narrow spreads averaging EUR USD 0.1 and unlimited liquidity. This allows any size or profile trader to pick from a variety of spreads and liquidity providers using automated trading platforms and execute any strategy, including news trading.
- The brokerage business was founded in 2010 and has its headquarters in Cyprus.
- It also services various worldwide locations, including Dubai, South Africa, and offshore corporations in St Vincent and the Grenadines.
- While HFM generates significant interest and influence primarily in Africa (see Ghana Brokers), Asian and MENA areas provide some of the best chances for global residents, as well as international proposals in general.
- Furthermore, HFM provides its trading services in conjunction with the relevant licenses in each country where it operates that control the Forex sector, ensuring that the service is trustworthy.
HFM Pros and Cons
According to our findings, HFM is a broker with a strong reputation and adherence to rules. The offering is user-friendly, we mark huge portfolios for Forex and CFDs products, and costs are deemed reasonable when compared to other famous brokers. Additionally, the minimum deposit is among the lowest in the business, enabling traders of all sizes to join. There is also an excellent education component for new traders, as well as one of the greatest selections of webinars and seminars conducted abroad, according to our financial specialists.
On the other hand, HFM’s portfolio for EU customers is restricted, offering just Forex and CFDs. Furthermore, international trade is conducted via offshore branches with lesser criteria; yet, HFM has a solid reputation and is deemed to sign in.
| Advantages | Disadvantages |
|---|---|
| Multi-asset regulated, global broker licensed from CySEC, FCA, DFSA, FSCA, FSA, CMA | International offering done via offshore |
| 1:2000 Leverage | |
| Swap free Accounts | |
| $0 min. deposit | |
| 500+ instruments to trade | |
| 24/5 online support |
Is HFM scam or safe Broker?
HFM, like any broker, should be thoroughly researched before determining its legitimacy and safety. Look into factors such as regulatory compliance, customer reviews, and any history of complaints or legal actions against the broker. Check if it’s registered with relevant financial authorities and what kind of investor protection measures it offers. Always exercise caution and perform due diligence when dealing with any financial institution or broker.
| HFM Strong points | HFM Weak points |
|---|---|
| Authorized and Regulated by CySEC, Financial Conduct Authority FCA, FSCA South Africa | Three entities based in offshore zones |
| Negative balance protection | |
| Constant enlarging of licenses | |
| Global reach with available access of Asia, Africa regions | |
| Additional Civil Liability Insurance |
How are you protected?
HF Markets (Europe) Ltd. is a member of the Cyprus Investor Compensation Fund, which is an integral aspect of any licensed broker’s fund protection. It represents a claim by covered customers against investment companies. Client deposits are safeguarded under regulatory standards.
In addition, HFM provides traders with a Civil Liability insurance program with a limit of €5,000,000, which includes coverage against errors, omissions, negligence, fraud, and various other risks that may result in financial loss, adding an extra layer of protection and another positive point to our HFM review. However, depending on the relevant rules and regulations, the criteria differ from one business to the next; see our snapshot of HFM licenses below.
Leverage
While trading with HFM, we discovered the availability of fixed or floating leverage, which is a very beneficial feature, particularly for smaller traders. Leverage allows you to double your balance a certain number of times, which increases your potential earnings. However, keep in mind that leverage may also act in the other direction, defining your risks, which is why it is critical to learn how to utilize tools effectively.
HFM provides a range of leverage levels, from the “modest” one allowed by European legislation for Forex products (1:30) to extremely high ratios of 1:2000 offered via its foreign branch. However, always remember to understand about the significant dangers of leverage, since retail trading accounts lose money quickly owing to excessive
As a result, your leverage levels are determined first by the regulatory requirements in the area, followed by your professional level in finance, so check with the customer service staff to see which one you are eligible for.
- European firms subject to ESMA regulation have a maximum leverage ratio of 1:30 on Forex products, 1:25 on Spot Metals, and so on.
- South African citizens may have access to leverage of up to 1:2000.
- Higher leverage ratios such as 1:400, 1:500, or even 1:2000 are given by HFM offshore firms since a specific registration does not restrict offerings and allows for high leverage levels.
Account Types
HFM offers a number of account choices, including five separate accounts depending on individual criteria. The selection includes Cent, Zero, Pro, Premium, Top-up Bonus, Copy Trading, and PAMM accounts with Swap Free Trading; moreover, you may choose an Islamic Account ideal for traders from the MENA area or beyond.
You may sign up for a Demo Account right away and then upgrade to a Live Account by simply depositing money.
Each account type provides considerable flexibility and the ability to pick depending on your trading strategy, enabling novice traders, investors, and pros to discover their own path in trading.
| Pros | Cons |
|---|---|
| Ultra-fast execution with quick deposits & withdrawals | Accounts and offer depends on the entity |
| Various Account Types with low Spreads | Some conditions are not available in some regions |
| $0 min. deposit | |
| Leverage up to 1:2000 | |
| Swap Free Trading |
How can I establish a HotForex Demo Account?
We were able to register a sample account in minutes since there is no verification required. While you should just complete the risk-free account setup procedure on the HFM website to have access to either the MT4 or MT5 platforms with limitless demo cash. So here is the step-by-step method for establishing a demo account:
Opening a Trading Account Step by Step:
1. Go to the HFM Demo Account Sign In page.
2. If you are a new customer, please input your personal information, such as your first and last names, country of residence, email address, phone number, and so on. Or if you’re an existing customer, sign in.
3. Fill in the essential information for the initial registration of myHF.
4. An account will be accepted practically instantly, where you may receive access to New Demo Account via your client area, followed by Live Account submission to handle your cash.
How can I establish a HotForex Live account?
Once you are ready or have chosen to begin Live Trading, you may apply for a Live account. HFM may need validation of your documentation, including identity, residence, and other evidence, before you begin. In all circumstances, you will have access to the myHF client area, where you can manage all of your accounts and funds.
What Instruments I can trade in HFM?
One of the HFM Pros is also supplied a market range that contains 17 trading tools and over 150 trading goods, as well as access to worldwide marketplaces. These include indices, metals, energies, shares, commodities, bonds, ETFs, DMA stocks, and, as of last year, the ability to trade cryptocurrency such as Bitcoin, Ethereum, Litecoin, Ripple, and others.
HFM Fees
HFM trading expenses are a hallmark of the tight spread offering in general, and we conclude based on our study that they provide some of the most attractive spread prospects in the market, with spreads starting at 0 pips on certain accounts. However, it is important to include other, non-trading fees and charges for deposits or withdrawals when calculating your trading expenses, as shown in the fee table below:
- HFM Fees are average and modest, with an overall rating of 8 out of 10 based on our testing and comparison to over 500 other brokers. Fees vary according on the business, however traders may utilize free deposits and withdrawals mostly globally.
Overview of the Non Trading Fees
It is important to note that if you do not use your account for 6 months or longer, you will be charged a fee. Following this, your account is subject to a monthly inactivity charge of $5 from HFM.
Regardless, there are no deposit fees, and certain withdrawals are also free, as we shall discover in our HFM review.
| Fees | HFM Fees | FXTM Fees | XM Fees |
|---|---|---|---|
| Deposit Fee | No | No | No |
| Withdrawal Fee | No | No | No |
| Inactivity Fee | Yes | Yes | Yes |
| Fee ranking | Low | Average | High |
Spreads
HFM costs are clear, and the sole charge is a variable spread, which is the difference between the bid and ask prices; HFM does not provide set spread. HFM does not charge any extra fees or commissions, thus calculating the position is simple and straightforward, regardless of your degree of trading experience; check our spread discoveries below:
Spread costs are determined by the account type you pick; for example, a Micro Account spread starts at 1 pip, while a Zero Account has no charge and often averages 0.2 pips.
- However, the difference in trading expenses is also dictated by margin requirements, which virtually quadruple if you want to trade with no spread. So, before you sign in, be sure to thoroughly review the account requirements.
Below is a comparison of the most popular instruments, the usual spread based on standard circumstances, and fees compared to another broker, FP Markets.
- HFM Spreads are graded average/low, with an overall rating of 8 out of 10 based on our testing against other brokers. We discovered Forex spread lower than the industry average of 1.2 pips for EURUSD, which is a big bonus.
Comparison between HFM fees and similar brokers
| Asset/ Pair | HFM Spread | FXTM Spread | XM Spread |
|---|---|---|---|
| EUR USD Spread | 1 pips | 1.5 pips | 1.6 pips |
| Crude Oil WTI Spread | 5 pips | 9 pips | 5 pips |
| Gold Spread | 19 | 9 | 35 |
| BTC USD Spread | 30 | 20 | 60 |
Overnight Fee
Always include overnight or rollover fees as trading charges if you are holding an open trade for more than a day. Each instrument defines its own charge, which you will see straight from the site or when you open the transaction, as seen in the example below with Cryptocurrencies.
However, unless you are trading via swap-free accounts meant for Sharia-compliant traders, which are free of interest rates and swaps.
Fee conditions upon opening of trade
Deposits and Withdrawals
There are multiple ways to fund trading accounts supported by HFM. Besides broker issue its very own HFM MasterCard for a straight transaction and the ability to make safe online payments.
- HFM Funding Methods we ranked Excellent with overall rating 10 out of 10. Minimum deposit is among lowest in industry, also Fees are either 0 or very small, besides range of supported funding methods is good, but be sure to verify conditions with entity you trade
Here are some good and negative points on XM funding methods found:
| HFM Advantage | HFM Disadvantage |
|---|---|
| $0 Minimum Deposit on Cent, Zero, Premium and Top-up bonus Accounts | Methods and conditions vary based on entity |
| Wide range of deposit option including Credit Card, Bitcoin, WebMoney and fasapay | |
| Free deposit and withdrawals |