HFM Review 2024

Quick Links

• Our Review Method

• What is HFM?

• HFM Pros and Cons

• Awards

• Is HFM safe or a scam?

• Where is HFM located?

• How are you protected?

• Leverage

• Accounts

• Fees

• Spreads

• Deposits and Withdrawals

• Trading Platform

• Customer Service

• Education & Research

• Conclusion

Our Review Method ▲

In our comprehensive review process, we meticulously analyze and compare forex brokers against a rigorous set of criteria. This method involves evaluating over 1000 brokers in the industry to ensure that we provide an unbiased, detailed, and insightful review. Our experts focus on key aspects such as regulatory compliance, trading conditions, platforms offered, customer service, and additional features that stand out.

What is HFM? ▲

HFM, formerly recognized as HotForex, is an acclaimed multi-asset broker that provides an extensive range of trading options including Forex, Metals, Energies, Indices, Stocks, Bonds, ETFs, Cryptocurrencies, and Commodities. The broker offers impressive leverage up to 1:2000, ultra-fast execution, swift deposits & withdrawals, and swap-free accounts. HFM presents a variety of account types - Cent, Zero, Pro, Premium, and Top-up Bonus, featuring tight spreads with an average of EUR USD 0.1 and operating with unrestricted liquidity. This enables traders of any size or profile to select between diverse spreads and liquidity providers through automated trading platforms, permitting any strategy, including News trading.

Established in 2010 and headquartered in Cyprus, HFM has expanded its presence globally with offices in Dubai, South Africa, and offshore entities in St Vincent and the Grenadines. The broker's significant impact and interest in Africa, the Asian, and MENA regions highlight its global reach and its contribution to international trading opportunities. HFM is committed to offering regulated trading services across various regions, ensuring trustworthiness and compliance with Forex industry standards.

HFM Pros and Cons ▲

Pros

• HFM is renowned for its reputable and regulated trading environment. Our analysis highlights its user-friendly offering with extensive portfolios for Forex and CFD instruments. Compared to other well-known brokers, HFM's fees are relatively low, and the minimum deposit requirement is among the lowest in the industry, making it accessible to traders of all sizes.

• The broker boasts an exceptional education section, ideal for beginners, and offers one of the broadest ranges of webinars and seminars globally, according to our financial experts.

Cons

• For EU clients, HFM offers a limited portfolio, restricted to only Forex and CFDs.

• While international trading is facilitated through offshore branches with less stringent requirements, HFM’s solid reputation mitigates concerns, deeming it a trustworthy option for traders.

Awards ▲

HFM, with its enticing trading proposition, has been acknowledged through various industry awards and recognitions. The broker has seen remarkable development over time, transitioning from a primarily European focus to a truly global brokerage with significant regional coverage. To date, HFM has amassed over 500,000 live accounts, alongside numerous prestigious titles such as Best Clients Funds Security Broker, Best Forex Provider, and Top 12 Companies, among others. These accolades affirm HFM's reputable status in the financial trading community.

Is HFM safe or a scam? ▲

HFM is far from being considered a scam. We regard HFM as a safe broker, backed by licenses from several top-tier authorities including the FCA, FSCA, and CySEC. Operating under the brand name of HF Markets (Europe) Ltd, HFM is regulated by CySEC, ensuring it adheres to strict regulatory standards and offers its services within the EEA zone with necessary safety measures and controls.

Where is HFM located? ▲

HFM holds authorization and regulation by CySEC, Financial Conduct Authority (FCA), FSCA in South Africa, and CMA in Kenya. Additionally, HFM operates through entities registered in offshore zones such as Mauritius, SVG, and Seychelles. Despite the general advice against trading with offshore brokers, HFM's multiple regulations make it a safe trading option. This multi-jurisdictional approach attests to HFM's reliability and global reach.

How are you protected? ▲

Protection of funds is a critical aspect of a regulated broker's offerings. HF Markets (Europe) Ltd, under HFM, is a member of the Cyprus Investor Compensation Fund, providing a safeguard for client deposits. Furthermore, HFM enhances trader security with a Civil Liability insurance program with a limit of €5,000,000. This program covers various risks including errors, omissions, negligence, and fraud, offering an additional layer of financial protection. However, the coverage and conditions may vary across different HFM entities, underscoring the importance of understanding the specific protections offered by each.

Leverage ▲

Trading with HFM offers the availability of both fixed and floating leverage, a highly beneficial tool for traders, particularly those with smaller capital. Leverage enables traders to amplify their trading balance by a specific multiplier, significantly increasing potential profits. However, it's crucial to remember that leverage also amplifies risks, making it imperative for traders to understand and use this tool wisely.

HFM provides various leverage levels, from the more conservative ratios mandated by European regulations, such as 1:30 for Forex instruments, to the much higher ratios of 1:2000 available through its international branch. It's essential to be aware of the high risks associated with leverage since retail trading accounts can rapidly lose money due to high leverage.

Leverage levels are primarily determined by regulatory requirements in your region and your level of financial expertise, so it's advisable to check with HFM's customer support team to know which leverage you are entitled to.

For European entities adhering to ESMA regulation, the maximum leverage ratio is set to 1:30 on Forex instruments and 1:25 on Spot Metals. Residents of South Africa may access leverage of up to 1:2000. Higher leverage ratios such as 1:400, 1:500, or even 1:2000 are available through HFM's offshore entities, where registration does not limit offering and allows for high leverage levels.

Accounts ▲

HFM offers a diverse range of account options, including five distinct accounts tailored to specific needs: Cent, Zero, Pro, Premium, Top-up Bonus, Copy Trading, and PAMM accounts, with Swap-Free Trading also available. Additionally, Islamic Accounts suitable for traders from the MENA region or elsewhere are offered.

Initially, traders can sign up for a Demo Account and later transition it to a Live Account by depositing funds. Each account type provides flexibility, allowing traders, investors, and professionals to select an option that best fits their trading strategy. The availability of trading Micro lots, using Cent or Nano accounts, or opting for a Copy Trading account are noteworthy features.

How to open a HotForex Demo Account?

Opening a Demo account with HFM is straightforward, requiring no verification at the initial stage. The process of opening a risk-free account on HFM's website is quick, granting access to either MT4 or MT5 platforms with unlimited demo funds. Here's a step-by-step guide to opening a Demo Account:

1. Navigate to HFM's Demo Account Sign In page.

2. New clients should enter personal data such as First and Last Name, Country of residence, email, phone, etc. Existing clients can simply sign in.

3. Complete all required information for the first registration of myHF.

4. The account will be approved almost immediately, granting access to a New Demo Account. Subsequently, you can proceed to submit a Live Account to manage your funds.

How to open a HotForex Live account?

To start Live Trading, submit a request for a Live account. HFM may require confirmation of your documents, including identity, residency, and other proofs before you begin. In both scenarios, you will gain access to the myHF client area to manage all your accounts and finances.

What Instruments I can trade in HFM?

HFM offers a broad market range, including 17 trading tools and over 150 trading products, granting access to global markets. This range encompasses Indices, Metals, Energies, Shares, Commodities, Bonds, ETFs, DMA Stocks, and Cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, and more.

Fees ▲

HFM's trading costs are primarily based on its competitive spread offering, which is among the most attractive in the industry. The broker provides spreads from 0 pips on specific accounts. Nonetheless, it's advisable to consider additional, non-trading fees and charges for deposits or withdrawals when calculating your overall trading costs. HFM's Fees are considered average to low, with an overall rating of 4.0 out of 5, based on our analysis and comparison to over 1000 other brokers. Generally, traders can benefit from free deposits and withdrawals worldwide.

Pros

• Competitive spread offering

• No deposit fees

Cons

• Inactivity fee after 6 months of no-account activity

Overview of the Non-Trading Fees

It's important to note that an inactivity fee of 5 USD per month is charged if your account shows no activity for 6 months or more. Despite this, there are no deposit fees, and some withdrawals are free, further detailed in this HFM review.

Spreads ▲

HFM's fees are transparent, with the primary charge being a variable spread - the difference between the bid and ask price. The broker does not offer fixed spreads. There are no additional fees or commissions, making cost calculations straightforward for traders of all levels. Spread fees vary by account type; for example, the Micro Account spread starts from 1 pip, while the Zero Account offers a spread as low as 0.2 pips on average.

However, trading costs also depend on margin requirements, which may significantly increase if you opt for a 0 spread. Therefore, it's crucial to thoroughly review account conditions before signing up.

HFM's Spreads are considered average to low, with an overall rating of 4.0 out of 5, based on our assessment and how they compare to other brokers. The Forex spread for EURUSD is notably lower than the industry average, highlighting HFM as a competitive choice.

Overnight Fee

Overnight or rollover fees should also be considered as part of the trading costs if you hold an open position for more than a day. This fee varies by instrument and can be directly seen from the trading platform or upon the trade's opening. Exemptions apply to swap-free accounts designed for traders adhering to Sharia rules, as these accounts are exempt from interest rates or swaps.

Deposits and Withdrawals ▲

HFM supports a wide array of funding methods, making it convenient for traders to fund their accounts. The broker also offers its unique HFM MasterCard, facilitating straightforward transactions and secure online payments. The deposit and withdrawal process at HFM is rated as excellent, with a score of 5.0 out of 5. The minimum deposit requirement is among the lowest in the industry, and the fees for transactions are minimal or non-existent. Additionally, HFM supports a diverse range of payment methods, but traders are advised to confirm the conditions with the specific entity they trade with.

Pros

• Over 14 deposit and withdrawal methods, including major credit and debit cards, wire transfers, and a variety of ewallets

• Zero withdrawal fee for most methods

Cons

• Wire transfers may incur fees from banks or international policies

How to deposit and withdraw funds at HFM is straightforward. Traders simply select their preferred payment provider and follow the instructions for deposit or withdrawal. HFM processes withdrawals promptly, operating 24/5 for trader convenience.

Trading Platform ▲

HFM offers the award-winning MT4 and its newer version, MT5, as its primary trading platforms. These platforms are renowned for their one-click trading feature, along with numerous tools and access to high-quality technology through advanced configuration. HFM's platform selection is ranked excellent, with a score of 4.5 out of 5, offering a choice between popular platforms and HFM's proprietary trading apps, packed with tools and excellent research capabilities.

Pros

• A versatile choice between MT4 and MT5 platforms

• Advanced trading features and tools for all types of traders

Cons

• Desktop version remains the most feature rich compared to web and mobile versions

HFM's platforms support various trading strategies, including scalping, with no restrictions. Risk management tools such as Limit Order and Stop-Loss Orders are available to assist traders in managing their risks effectively.

Customer Service ▲

HFM's customer service is available in 27 languages, covering most of the world's widely used languages. This extensive language support makes HFM accessible to traders globally. The customer support at HFM is rated as good, with a score of 4.5 out of 5, based on positive trader reviews and our testing of HFM's Customer Service Live Chat.

Education & Research ▲

HFM excels in providing educational resources and research tools, with a particular focus on traders in Africa and Asia. The broker offers trading courses, live webinars, video tutorials, daily analysis, and an economic calendar among other resources. HFM's education and research are rated with a score of 5.0 out of 5, making it one of the top brokers for trader education in the industry.

Pros

• Comprehensive education resources including trading courses and webinars

• Excellent range of analytical and research tools

Cons

• Some advanced tools and resources may require a minimum deposit

Conclusion ▲

HFM stands out as a customer-oriented broker, offering a secure and regulated trading environment that caters to a wide range of traders. With competitive pricing, a broad selection of accounts, platforms, tools, and instruments, HFM supports a variety of trading strategies without significant restrictions. Whether you're a beginner or an experienced trader, interested in copy trading, EA trading, or looking for PAMM options, HFM provides a suitable solution. Consequently, HFM is highly recommended for traders of all experience levels, looking for low rates and comprehensive trading services.